Yahoo Finance Monarch turbulence over as licences renewed
Monarch has secured a £165m investment from its biggest shareholder, enabling it to continue operating for at least the next 12 months.
It said the money from Greybull Capital meant it had secured crucial new licences, ahead of a deadline of Thursday night, removing the chance of its fleet being grounded.
The airline had been forced to deny last month that it was in financial trouble - blaming "negative speculation" for the rumours.
It insisted it was business as usual ahead of today's announcement, which Sky News reported at the weekend was aided by a tweak to a big aircraft order with Boeing (Swiss: BA-USD.SW - news) - allowing Monarch to save some cash.
The revisions to that deal were not disclosed by Monarch on Wednesday.
The industry is enduring tougher times.
Like its competitors, Monarch has struggled with declining demand for package holidays to Egypt and Turkey in the wake of terrorist attacks, as well as protracted air traffic disruption in France.
It employs about 2,800 people and is based at Luton Airport.
The statement said the £165m cash injection was the biggest in its history.
"As a result of this investment Monarch has successfully renewed its ATOL licences from the CAA for the next 12 months and funded future growth plans," it said.
"In October 2014, Monarch announced an order for 30 Boeing (NYSE: BA - news) 737 MAX-8 aircraft, with options for a further 15 planes. The first of these aircraft is due to be delivered in 2018.
"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."
Chief (Taiwan OTC: 3345.TWO - news) executive Andrew Swaffield added: "I'd like to thank the CAA, our shareholders, partners, loyal customers and the team at Monarch for helping us to achieve this successful outcome.
"We are now firmly focused on the future as a stronger Monarch."
