The council has acquired all shares in Regional &City Airports (Blackpool) Holdings Ltd and so now has 100% ownership of the airport site.
The infrastructure construction group said it will sell its 95% stake in the airport to the council for GBP4.3 million in cash.
Balfour then tried to sell the airport, warning it could not sustain the losses, and it temporarily closed before reopening with reduced capacity and fewer passenger flights a year later.
At the time analysts said the company needed to address the airport's decline in profitability or it would struggle to offload the business. "It all depends on the valuation of the asset".
Simon Blackburn, leader of Blackpool Council, said: "Today is a really important day for aviation on the Fylde coast and this sale heralds a positive new dawn for Blackpool Airport".
"Blackpool Airport is the largest area of land in our thriving Enterprise Zone and this purchase will help us ensure that the airport continues to play a big part in making our Enterprise Zone one of the most successful in the country".
"As the current company stands, Blackpool Airport is profitable and as such we can be confident that the money for the purchase can be repaid".