3 OCTOBER 2016


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Article from BTNews 3 OCTOBER 2016

Monarch flies on

Following a week of adverse speculation, Monarch Group has received a temporary extension to its licence to sell package holidays. The company said it had secured additional funds from shareholders and was close to announcing its biggest-ever investment.

Monarch is protected by the CAA's Air Travel Organisers' Licensing (ATOL) scheme that refunds customers if a travel firm collapses, and ensures they are not stranded. But for the licence to be renewed, allowing Monarch to continue to sell package holidays, the company had to prove it was financially robust.

The company has been majority owned by Greybull Capital since 2014, when the investment firm bought a 90% stake in the airline. See BTN 29 September 2014 and 27 October 2014

Monarch struggled under intense competition and a fall in demand for holidays in North Africa, Egypt and Turkey. It operates up to 150 flights daily.

Greybull has now put extra funds into the airline, enabling the CAA to grant a temporary extension to the airline's licence until 12 October.

By that time, Monarch says it is confident it will have secured the "largest investment in its 48-year history".

Chief executive Andrew Swaffield said he was "excited about the additional capital coming into the group,which will help us to fund our future growth".


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