China's HNA Group and easyJet (London Luton) are among several suitors reportedly vying for a stake of some, if not all, of Monarch Airlines (1968) (London Luton).
HNA has hired financial firm Rothschild to advise it on the possible acquisition of a stake in Monarch, Sky News has reported. Sources said although talks were still at an early stage, the Chinese had already met with executives from the UK leisure operator. Any HNA shareholding in Monarch would be limited to 49% under current European Commission laws. HNA's only known European airline asset at this time is a direct 48% stake in France's Aigle Azur (Paris Orly). Talks with Air Europa (UX, Palma de Mallorca) over a possible buy-in have also been going on for the past year or so.
For its part, easyJet has expressed an interest in acquiring all of Monarch Airlines The Sunday Times has said. Sources told the paper that any potential acquisition would include the carrier and all of its associated assets.
Monarch is majority-owned by UK-based investment firm, Greybull Capital LLP, which acquired a controlling 90% stake in the carrier from founding family, the Swiss-Italian Mantegazzas, in October 2014. With Monarch on the path to recovery, Greybull earlier this year appointed Deutsche Bank to explore the airline's growth options in Europe, which could include selling or merging with a distressed airline. Among the airlines being courted include: Air Berlin (1991) (Berlin Tegel), TUI fly (Germany) (X3, Hannover), Thomas Cook Airlines UK (Manchester International), as well as a budget airline in Spain.
Monarch currently operates nine A320-200s and twenty-five A321-200s on scheduled passenger flights between various cities and towns in the UK and various leisure destinations in Spain, Turkey, Croatia, Portugal, France, Cyprus, Gibraltar, Greece, Italy, Austria, Egypt, and Israel.
