Monarch Airlines has been granted an eleventh-hour reprieve after securing a multi-million-pound funding package. The £165m investment, by majority shareholder Greybull Capital, was confirmed on October 12 and is the biggest of its kind in the British carrier’s 48-year history.
The lifeline came just hours before a CAA deadline for the airline to prove it had sufficient funding to stay afloat. Monarch had been due to renew its Air Travel Organiser’s Licence (ATOL), which allows it to fly package holidaymakers, on September 30 but was granted a 12-day extension after encountering undisclosed difficulties.
The Monarch Group CEO Andrew Swaffield remarked: “It is testament to the extensive effort by all parties, over the past weeks and months, that we are able to announce the largest investment in our 48-year history, as well as the renewal of our ATOL licences. I’d like to thank the CAA, our shareholders, partners, loyal customers and the team at Monarch for helping us to achieve this successful outcome. We are now firmly focused on the future as a stronger Monarch.”
The CAA has since confirmed the airline’s ATOL licence is now valid until September 30, 2017 following confirmation that it had met all the necessary requirements.
Monarch added that the investment will help fund the acquisition of 30 new Boeing 737 MAX 8s, the first of which is due for delivery in 2018.