Monarch has been granted an extension to its Atol licence following negotiations with the Civil Aviation Authority.
In a brief statement released on Friday night the airline, which was seeking new funding, thanked the CAA for the completion of successful discussions.
The airline has been granted a 12-day extension. It was due to renew its three Atol licences by September 30 but concerns about its finances emerged after reports the CAA had arranged a shadow flying programme in the event of the carrier failing.
A Monarch statement released on Friday announcing the Atol extension said “the company has also received significant further investment from shareholders and is close to announcing the largest investment in its 48-year history”.
Monarch continues to fly and looks forward to welcoming customers on board, the statement added.
Andrew Swaffield, chief executive of The Monarch Group, said: “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. I am immensely proud of the professionalism of the Monarch team."
The CAA said: “The CAA has granted Monarch a 12 day extension to its existing Atol licences. The extended licences will now expire at 23:59 on 12 October 2016. The CAA was able to do this by requiring the shareholder to provide additional funding and because customers' money will be protected.
“Monarch now has 12 days to satisfy the CAA that the group is able to meet the requirements for a full Atol licence. Monarch will remain Atol licensed until this extension expires.
“The CAA always advises consumers to ensure they book Atol-protected air holidays and consumers who choose to book an Atol-protected flight or holiday with the company during this time will continue to be protected by the Atol scheme. During this period of extension, the CAA will continue to monitor the company.”
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