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An airline flying from Melbourne to western Victoria has been given a lifeline to continue for another six months.

Sharp Airlines was due to fly its last passenger and freight service on Friday, after almost 30 years in operation.

However, the state government and local councils have stepped in to offer funds to guarantee the twice-daily-weekday and Sunday service until July.

The government had been working with the company on concerns over patronage and freight services on the route between Essendon, Warrnambool and Portland.

It’s working with the company, councils, tourism bodies and industry to help boost passenger numbers.

New flight options, accommodation and tour packages are being explored to increase flight sales to attractions such as the Twelve Apostles, Tower Hill, Budj Bim and Cape Bridgewater.