PE firm checks in to save airline with £165m rescue deal
AIRLINE Monarch has secured a £165m cash injection from its owner Greybull Capital after it faced a midnight deadline to secure fresh funding or risk being unable to renew its Atol licence.
The airline, which employs more than 60 staff at Leeds Bradford Airport, said that alongside the investment, the biggest in its 48-year history, Monarch would take delivery of the first of 30 Boeing 737 MAX-8 aircraft in 2018.
Chief executive Andrew Swaffield told the Independent: “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 Civil Aviation Authority, 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.”
Tony Hallwood, aviation development director at Leeds Bradford Airport, said: “We’re very pleased to hear the positive announcement from Monarch relating to major new investment. Leeds Bradford Airport has worked closely with Monarch as a partner since 2012 and we know our regional passengers enjoy the choice of ten destinations that the airline operates from LBA.
“I’d like take this opportunity to congratulate Monarch and wish them every success for the future; we look forward to continuing to welcome Monarch customers flying from Leeds Bradford Airport.”
The renewal of Monarch’s Atol licence, which compensates travellers in full if a holiday company collapses, was dependent on fresh funding.
Greybull acquired a controlling stake in Monarch in 2014. Greybull has been prominent in Yorkshire in recent months, having stepped in to buy British Steel and the ill-fated My Local.
The airline filed a £19.2m pre-tax profit in the year to October 2015 following a £57.3m loss a year earlier.
