Monarch boss thanks trade for support

Monarch CEO Andrew Swaffield has thanked the travel trade for its support in the last few weeks as the airline was forced to get an injection of cash to secure its future.

The airline has today had its ATOL licences renewed after getting a £165 million investment from its majority shareholder, Greybull Capital.

The airline had faced a midnight deadline to secure fresh funding that would satisfy CAA requirements.

Swaffield was due to speak at the ABTA Convention yesterday but stayed in the UK to sort out the deal.

He flew out to Abu Dhabi to join the convention today, saying he wanted to personally come and thank the trade.

"We have been very impressed by all the messages of support we’re had from the trade and we’ve taken a lot of heart from that support," he said. "Thank you for that."

He said Monarch needed the additional funding to make sure it was able to withstand the current business environment, which has been impacted by terror attacks, political upheaval in Turkey and the weakening of the pound following Brexit.

"It’s not just a Monarch issue, but Monarch – being in the very early stages of its turnaround – needed to make sure it has the capital to withstand the kind of business environment, which we see as being longterm," he said.

"We’re not expecting terrorist attacks to suddenly stop or the pound to bounce back, and we are aware that Brexit is going to be a long and protracted process. We needed the capital to be able to confidently approach the market over the long term and to make sure we can flourish."

Swaffield admitted the publicity surrounding the events of the last few weeks had hit bookings.

"Holiday bookings have been more severely impacted than flights," he said. "But our staff have been outstanding and I’ve seen a real heroic effort to maintain our high service, and with a smile."

He also thanked investor, Greybull Capital, for its support and for taking a risk when it initially invested in the company two years ago.

Monarch suffered financial difficulties in 2014 but was saved when the investment firm bought a 90% stake.

In October 2014, Monarch announced an order for 30 Boeing 737 MAX-8 aircraft, with options for a further 15 planes. The first is due to be delivered in 2018.

Swaffield said the arrival of the aircraft would bring significant savings in fuel and maintenance costs.

Pilots’ union BALPA welcomed news of the cash injection, saying pilots and other staff had been right to accept pay cuts over the years to ‘keep Monarch on the path to recovery’.

BALPA general secretary Brian Stratton said: "This investment shows that Monarch’s shareholders rightly see a positive future for the company.

"We welcome this, and the fact that the CAA have today renewed the airline’s ATOL license. Together, these steps show there is a bright future ahead for Monarch.

"Monarch is lucky to have a great product, dedicated staff, and a loyal customer base, together with a rich heritage."

ABTA said: "Monarch is one of the UK’s best-known, most established travel brands and has been operating successfully for the past 48 years. It is very good news not only for Monarch, its staff and customers but for the travel industry as a whole

News from The Travel Convention sponsored by Hertz UK