Monarch have secured an £165 million investment from majority shareholder Greybull Capital, after concerns the airline would be unable to renew its ATOL membership.
The struggling budget airline had faced troubles earlier this year after rumours that they were unable to renew its membership of the Air Travel Organisers’ Licensing (Atol) scheme, which ensures costumers can receive refunds should a participating airline collapse.
Earlier this summer, Monarch had stated that more funding would be necessary, warning in its annual report that it needed to obtain around £35 million in funding from its majority owner Greybull Capital or alternatively, an external lender.
The airline had been participating in negotiation talks with its major stakeholder Greybull Capital and Boeing earlier in the week to secure the necessary financial assistance. The increased investment from Greybull Capital will allow Monarch to be in a position to comply with the Civil Aviation Authority’s (CAA) financial health check-list and ultimately renew its Atol membership.
Monarch were able to renew their license just hours before the CAA deadline earlier in September. The CAA had agreed to initially extend its license for 12 days until the 12th of October. The CAA has nonetheless said that it would “continue to monitor the company” in its “period of extension”.
This latest investment will ease the mounting pressure on Monarch and ensure that securing further CAA licensing will prove an easier feat.