The Civil Aviation Authority has thrown Monarch a three-week lifeline after it failed to complete the sale of the business in time to renew its ATOL licence on October 1.
The CAA has agreed to extend Monarch’s existing licence until October 24, by which time the group hopes to have completed a deal with investment firm Greybull Capital.
Monarch and Cosmos are licensed to carry just over 350,000 passengers while its seat-only operator Avro has a licence for just over 570,000.
In a statement, Monarch said: "At our request the CAA are today extending our current licence until 24 October, which is when we aim to complete the sale of the group to Greybull Capital LLC. Between now and completion we will work with the CAA to renew for twelve months"
A CAA spokesperson added: "As publicly announced, the Monarch Travel Group is currently undergoing a financial restructure involving a new investor. This process is due to be completed on 24 October, so at the group’s request, their current ATOL licences have been extended until that point."
