Monarch Receives Late Investment to Keep Airline Flying
Photo: A Monarch Airlines plane taking off. (Photo via @Monarch)
On Wednesday, British air carrier Monarch Airlines announced that it had received its biggest investment to date from majority shareholder Greybull Capital worth $205 million to renew a key operating license and pay for new planes.
According to the official website of Monarch Airlines, the investment allows the low-cost carrier to stay in operation thanks to the successful renewal of its Air Travel Organizer’s Licenses from the Civil Aviation Authority for the next 12 months.
The investment comes hours before the license was set to expire, according to Reuters.com.
In addition to ensuring Monarch Airlines stays in business by paying for the ATOL licenses, the investment from Greybull Capital will also help pay for an October 2014 order of 30 Boeing 737 MAX-8 aircraft. The first of the new planes is expected to be delivered in 2018.
“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 licenses,” The Monarch Group CEO Andrew Swaffield said in a statement.“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.”
Monarch is an airline that sells flights and vacation packages to popular tourist destinations, and reports suggested in September that security concerns in Tunisia, Egypt and Turkey were hurting business. The drop in value of the pound also made market conditions difficult.
Monarch Airlines is known for selling vacations and flights to Spain, Italy and France.
While Swaffield said business is beginning to return to normal, other budget airlines like EasyJet are admitting annual profits are down and trading will likely remain tough.
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