The head of the new airline, Air Palau Micronesia, says its inaugural flight is scheduled to go ahead on August the 5th.
Alan Seid says a Boeing 737 that the airline will use is arriving in Palau on July the 8th.
Mr Seid says the airline will start operating flights to and from the Federated States of Micronesia, the Philippines and Australia.
And he says from September 7th the airline will also start a service to Guam.
Mr Seid the launch will be an historic occasion.
"This is the first true venture that is funded by the people and businesses and governments of these islands. Every other year you'll hear about someone doing an airline but it never works. This is the first time that it has worked."
Alan Seid says the company will wait six months before obtaining a second aircraft.
He says Palau Micronesia Air is also aiming to service Japan and South Korea within a couple of years.