Boeing bails out Monarch with new £165m fleet deal

Monarch is able to renew its Air Travel Organiser's Licence (ATOL), which expired on 30 September.

Reuters

Boeing has reportedly come to the financial rescue of Monarch Airlines. Forty five new planes will be added to its fleet from 2018. The £165m (£205m) deal, the largest in Monarch's history, will secure the future of the low-budget airline.

Monarch has endured a turbulent time recently, partly caused by declining demand for package holidays after terrorist attacks in Egypt and Turkey. It has also been affected by the emergence of new players such as WOW Air and Whizz Air onto the low-cost airline market.

Greybull Capital, Monarch's majority shareholder, said Boeing's investment will now help the airline renew its Air Travel Organiser's Licence (ATOL), which expired on 30 September.

Advertisement

In an email seen by Sky News this week (7 October), the airline's chief executive, Andrew Swaffield, wrote:"I was at the CAA on Monday and have been spending a lot of time over the last two days with our legal and finance teams, as we dot the i's and cross the t's on the largest investment in our history - on the back of which we expect the CAA to renew our licences and which will help us move into the next stage of our growth and development.

"It's been another busy week for all of us following the events of last Friday and the extension to our ATOL licences. All parts of the business are working hard, both to keep things 'business as usual' and maintain consumer and customer confidence, in the face of continued media and social media commentary and speculation.

"As soon as we are able to give details of our investment and confirm the renewal I will. But to manage your expectations, this will be on the 12th (Wednesday). As said before, there is a process the business must follow and this takes time."

© Copyright 2017 IBTimes Co., Ltd. All Rights Reserved.