Monarch Airlines (1968) (London Luton) has closed a deal with Greybull Capital LLP in which the investment firm will assume control of the carrier's shareholding from founders, the Swiss-Italian Mantegazza family, who will now exit the carrier completely.

"Under the program Monarch has secured GBP125million (USD201.1million) of permanent capital and liquidity facilities provided by Greybull Capital LLP (“Greybull”) anchored by a GBP50million (USD80.44million) capital commitment, with contributions from the Group’s prior shareholders, principally the Mantegazza family," the airline said. "Greybull also acquired 90% ownership interest in Monarch, with the remaining 10% to be contributed to the Pension Protection Fund (“PPF”)."

The deal was signed on the evening of Friday, October 24, just hours before the expiration of the airline's Air Travel Organisers Licence (ATOL) which the United Kingdom's Civil Aviation Authority (CAA) had extended from October 1 to allow the talks to go through.

Monarch said the conclusion of the deal had hinged on it successfully completing a strategic review and restructuring programme. Among the cutbacks seen are: the reduction of the airline's fleet from 42 to 34 aircraft; wage cuts and layoffs of some 700 employees; and the resolution of the Group’s pension deficit through agreement with the Pensions Regulator, PPF, and the Trustee of the Monarch Airlines Limited Retirement Benefits Plan.

Next year, as part of its new business plan, Monarch will cease long-haul and charter flights by April 2015 with focus being put instead on its five UK airport bases – London Gatwick, Manchester, Birmingham, GB, London Luton and Leeds/Bradford. Its Nottingham East Midlands operations will end from summer 2015.

In the long run, Monarch plans to transition into a premium budget carrier focusing on scheduled short-haul European leisure routes, with increased average frequencies, aircraft utilisation, productivity and profitability, using a streamlined fleet of thirty B737 MAX 8s by 2020.

“We are very proud to have created one of the most loved aviation brands in the UK over the last 46 years. We think that now is an appropriate time to allow new shareholders to take Monarch into the future, with secure financial backing and clear strategic goals and we wish the Group every success,” Fabio Mantegazza said.