British airline secures funds to continue flying

British airline Monarch said a 165 million pound ($205 million) investment from majority shareholder Greybull Capital had secured its future by allowing the low-cost carrier to renew a key operating license.
The investment was agreed just hours before its operating license lapsed, enabling the carrier to continue flying.
Monarch warned in September that security concerns and the devaluation of the pound against the euro after Britain’s vote to leave the EU in June had made market conditions difficult.
The Luton-based carrier, which mainly sells holidays and flights to Britons traveling to Spain, Italy and France, has been hit by a decline in the popularity of destinations in Tunisia, Egypt and Turkey due to security concerns.
CEO Andrew Swaffield said the investment was testament to an extensive effort over the past weeks and months.
“We are now firmly focused on the future as a stronger Monarch,” he said.
Monarch issued a statement last month saying that it was operating normally after questions were asked about its financial viability on social media.
Days later, Britain’s aviation regulator, the CAA, said Monarch had until 2259 GMT on Oct. 12 to satisfy the requirements needed for a full Air Travel Organizer’s Licence (ATOL).
Under UK law, all British companies which sell air holidays and flights are required to hold an ATOL, which provides protection for customers if a travel firm ceases trading.
The 48-year old airline said the new investment would fund its growth plans, including new aircraft for its fleet.
It ordered 30 Boeing 737 MAX-8 aircraft two years ago, at the time worth more than $3.2 billion, with options for a further 15.
The first is due to be delivered in 2018, it said.

Source: Arab News