Monarch Airlines (1968) (London Luton) will likely finalize a deal with Greybull Capital LLP at the end of the week the Travel Weekly magazine has reported. Talks between the investment firm and the airline's board concerning the GBP75million (USD121million) deal are currently ongoing and will pave the way for the Swiss Italian Mantegazza family to exit the airline.

According to the Sunday Telegraph, the talks have been complicated by the need to agree on terms with unions, lessors, and the government-backed Pension Protection Fund (PPF). It is said the PPF will take a 10% stake in the airline and total control of its pension scheme which has an estimated deficit of more GBP150million. The Mantegazzas will also inject "tens of millions" of pounds into the scheme to help the transfer go through.

About 700 staff have already agreed to redundancy while pilots and other employees have agreed to reduced terms and conditions. Lessor AerCap has also agreed new terms on 11 aircraft.

Negotiators have until the end of the week to conclude a deal after the United Kingdom's Civil Aviation Authority (CAA) extended the deadline for the extension of Monarch's Air Travel Organisers Licence (ATOL) from October 1 to October 24.