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Published: Thu, October 13, 2016
Economy | By Melissa Porter

Monarch Group secures £165mn investment from Greybull

Monarch Group secures £165mn investment from Greybull

Monarch management says that the arrival of these "state-of-the-art, fuel efficient aircraft" in less than two years' will enable Monarch to continue to provide passengers with a best in class inflight experience and allow the company to enjoy significant operational cost savings.

A statement released by Monarch on September 25 said that they were anticipating "significant investment" but also admitted that the last few trading months had been hard due to terrorist attacks and the uncertainty created by the Brexit decision in June.

The company had a deadline of midnight on Wednesday to prove to the United Kingdom airline industry regulator, the Civil Aviation Authority (CAA), that it had sufficient funds to stay afloat.

Monarch's future had been cast into doubt over the past weeks, with the firm forced to deny "negative speculation" that it was in financial trouble.

LONDON, Oct 12 (Reuters) - British airline Monarch secured a 165 million pound ($205 million) lifeline from majority shareholder Greybull Capital on Wednesday, enabling the low-priced carrier to renew a key operating licence and fund new aircraft.

An Atol licence is only awarded to airlines that satisfy the Civil Aviation Authority's financial health checklist.

Speaking to the United Kingdom travel industry today at the ABTA Travel Convention in Abu Dhabi, the airline boss said: "I'm so impressed by the messages of support from the trade and the trade press, and I've taken heart from that support".

"Monarch's licences permit them to sell Atol-protected holidays until 30 September 2017, after which they will be required to obtain a new licence in line with the annual process for all Atol-protected companies".

Chief executive Andrew Swaffield said the investment means the firm is in "great shape" and that the group is now "firmly focused on the future as a stronger Monarch".

A further extension of the Atol licence is dependent on fresh funding.

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