Monarch Airlines (1968) (London Luton) is in advanced talks with Greybull Capital LLP concerning a possible rescue package for the airline sources have told the Financial Times. According to the paper's report, while several firms have expressed an interest in the ailing carrier, Greybull is understood to be the most likely to strike a deal.
“Greybull is one of a number of investors in the mix, but Greybull does look like the most likely,” said the person familiar with the talks. “If the investor was to be Greybull, Monarch would have a long-term investor with a record of backing good management teams.”
Greybull's portfolio includes investments in the energy, technology, retail, industrial and manufacturing sectors in both Europe and the United States.
Administrators at PwC are understood to be ready to step in if a deal cannot be reached.
The Monarch group is owned by the Swiss-Italian Mantegazza family who have baulked at the prospect of investing further funds into the airline.
Last month, CEO Andrew Swaffield outlined a radical restructuring programme aimed at developing Monarch into a premium LCC over the next 18 months.
Among the plan's proposals are a cut in the carrier's workforce by 1'000 while 12 of its 42 aircraft will also be parked. In addition to scrapping its Nottingham East Midlands base operations from April next year, Monarch has also alluded to ditching long-haul charter flights to India, the United States and the Caribbean in favour of its new regionally-oriented, budget carrier-esque business model.
