The United Kingdom's Civil Aviation Authority (CAA) says it has extended the validity of Monarch Group's Air Travel Organiser's Licence (ATOL) until October 12 to allow the leisure operator time to resolve its financial issues.
“The CAA was able to do this by requiring the shareholder to provide additional funding and because customers' money will be protected," the regulator said in a statement Friday. “Monarch now has twelve days to satisfy the CAA that the group is able to meet the requirements for a full ATOL licence."
Monarch's current ATOL was to have expired on September 30 and its renewal has been the target of intense speculation given reports the CAA positioned a fleet of B747-400s to various Monarch destinations last weekend to cover the possibility of the airline suspending all operations.
To renew its ATOL, an operator must prove to the CAA it has adequate financial resources and is able to sustain operations.
In the wake of the CAA's announcement, Monarch Airlines (1968) (London Luton) said it has since "received significant further investment from shareholders" and "is close to announcing the largest investment in its 48-year history." UK press reports indicate China's HNA Group is set to come on-board and, at the same time, announce a new order for forty-five B737 aircraft.
Andrew Swaffield, Chief Executive Officer of The Monarch Group, commented: “I am delighted that we have been able to come to an agreement with the CAA on the extension of Monarch’s ATOL licence and am excited about the additional capital coming into the group which will help us fund our future growth."
