The sculpture in memory of Flt Lt Jon Egging was moved after its previous location at East Cliff was cordoned off following a landslip in April 2016.
Engineers lifted it to the top of the nearby East Cliff Zig-Zag path.
Flt Lt Egging's widow and mother tied red ribbons to the sculpture at a ceremony to mark the relocation.
The 33-year-old pilot died when his Hawk T1 jet crashed after completing a display at the annual festival in 2011.
His widow Dr Emma Egging said the new location would allow passers-by to "view and enjoy" the memorial.
"People will have a chance to pause for a moment, look at the memorial, understand what it is about and then go on and enjoy everything else Bournemouth has to offer," she added.
The 5m-high (16ft 4in) artwork, featuring three glass Red Arrows planes and stainless steel contrails, was designed by local schoolchildren and initially unveiled in August 2012.
Rubble fell down the 30m-high (100ft) rock face in East Cliff on 24 April 2016. The carriages of an Edwardian funicular railway - known as East Cliff Lift - were partially engulfed by the landslip and a block of toilets crushed.
Although undamaged in the landslide, the Jon Egging memorial was close to the edge and was sealed off from public view.
A memorial to a Red Arrows pilot who died following a display at the Bournemouth Air Festival has been unveiled in its new location.