2 Min Read
LONDON, Oct 12 (Reuters) - 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 licence.
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 sells holidays and flights primarily to Britons travelling to Spain, Italy and France, but has lost business over the last year as holidaymakers turned their backs on formerly popular destinations in Tunisia, Egypt and Turkey.
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 Organiser'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.
$1 = 0.8042 pounds Reporting by Paul Sandle; editing by Kate Holton