The approved scheme will allow the Dublin-based airline continue as a going concern, on what was described as "a slimmed down" basis, with over 140 jobs at the company being retained.
The scheme, which was supported by a majority of the airline's creditors and shareholders also sees tens of millions of euro of its debt being written off.
Last April the airline sought the protection of the courts claiming it was insolvent due to financial difficulties which were exacerbated after its aircraft were grounded due to the Covid-19 outbreak.
The impact of the pandemic also interrupted a planned merger with another airline and a proposed private restructure of the company, it claimed.
The airline said it had debts of €500m, and at the time of entering the examinership process had a net deficit of liabilities over assets on a going concern basis of €186m.
Its creditors include the Triangle Group, several firms involved in the leasing of aircraft, Investec, the Revenue Commissioners, as well as debts owed to related companies.
At the High Court on Wednesday, Mr Justice Michael Quinn said he was satisfied to approve a scheme of arrangement put together by the airline's examiner Mr Kieran Wallace of KPMG.
The Judge said creditors would do better under the examiner's proposals compared to if the airline was liquidated. He said the required number of creditors and shareholders supported the examiners proposals.
He adjourned the matter to a date in mid-August.
