Monarch Airlines has received an investment of £165 million to keep it up in the air.
The cash injection was from its majority stakeholder and has enabled the struggling carrier to extend its licence to operate.
The airline had been tight up against a deadline of midnight on Wednesday from the Civil Aviation Authority to prove that it had enough money to conduct business. Had it not been able to do so, it would have had to forfeit its Air Travel Organiser’s Licence (Atol) which allows it to carry package holidaymakers.
Greybull Capital, the private equity fund, came to the rescue in what Monarch said was the biggest investment in its 48-year history.
The remaining funds from Greybull's boost will be put towards funding "future growth plans".
Greybull acquired the low-cost airline in October 2014 from the Mantegazza family who had owned it since the 1960s. Luton-based Monarch was close to collapse at the time of Greybull’s rescue.
Monarch’s flying licence was extended until 30 September 2017 as the CAA confirmed that the airline had met all the necessary requirements.
“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.
“The CAA advises consumers to book Atol-protected air holidays to ensure they are protected in the event that their travel company stops trading. In these instances, Atol-protected consumers will be brought home if they are already abroad or receive a refund if yet to travel.”
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