CUSTOMERS OF AIRLINE MONARCH BREATHE A SIGH OF RELIEF AS IT RECEIVES £165MILLION OF NEW FUNDING
UK airline Monarch has settled worries over its immediate future by agreeing a £165m investment from Greybull Capital.
The fresh financing has allowed the airline to renew its membership of the Air Travel Organisers’ Licensing (Atol) scheme – the scheme that refunds customers if a travel firm collapses.
It also means the airline can invest in new aircraft. Greybull Capital is Monarch’s majority shareholder and is also known for its investment in Scunthorpe’s steelworks. It bought a majority stake in Monarch in 2014, with an investment of £125m.
“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,” said Andrew Swaffield, chief executive of the Monarch Group.
In October 2014, Monarch announced an order for 30 of the latest Boeing 737 jets, with an option to buy 15 more. It expects to take delivery of the first of those in 2018.