Monarch has eased traveller’s worries by agreeing a £165 million investment from Greybull Capital, the UK airline’s majority shareholder.
There were concerns over the airline’s immediate future if they failed to secure any investment, but Greybull Capital, who are also known for their investment in Scunthorpe’s steelworks, stepped in at the last hour.
The new investment allows the airline to renew its membership of the Air Travel Organisers’ Licensing (Atol) scheme – which refunds customers if a travel firm goes under.
It has been reported that one million holidays and 3,000 jobs were saved as a result of the investment, which came just in time for the busy half-term break.
Monarch’s boss, Andrew Swaffield, jetted into the UK's main annual travel convention to deliver the news of the investment and declared that travellers can rely on the airline.
"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 Mr Swaffield, Chief Executive of the Monarch Group.
Central to the deal which saved Monarch was the restructuring of a £2.6 billion deal with Boeing for around 45 aircraft, which should mean there is significant cash available to the business to delay any increase in costs for two years.
The new deal will allow the airline to carry out its six-year business plan, which includes the arrival of the new Boeing 737 MAX-8 planes.
The new aircraft allow for a 22% saving on fuel when compared to the current fleet and an 80% reduction in the cost of maintenance.
Greybull holds a 90% stake within the business after striking a deal to inject £125 million of capital into the airline in 2014 – the latest investment is the fourth in just five years.
If you’re thinking of travelling abroad this year, be sure to organise your budget travel insurance in advance
Date Created: 14/10/2016