Monarch boss up for the fight after airline’s £165m rescue

THE BOSS of Monarch said running an airline was ‘not for the faint- hearted’ after it secured a £ 165m rescue package.

Andrew Swaffield, chief executive of the troubled group, said holiday bookings had suffered a double-digit decline amid speculation the company could lose its operating licence because of the parlous state of its finances.

But yesterday it announced the biggest investment in its 48-year history from owner Greybull Capital – allowing it to renew its licence just hours before it expired at midnight last night.

After celebrating the investment, 49-year-old Swaffield said: ‘I’m under no illusions, it’s a very competitive market out there.

‘Running an airline is not for the faint-hearted and running one in Europe, competing with some of the biggest low-cost carriers in the world, is not easy.

‘But we are up for the fight and I think that we have proven since 2014 and again recently that we won’t lie down easily. I would say you can bet on our future.’

The Luton-based firm, which flies 6m passengers every year, has been hit by a weaker pound and the impact of terror attacks on holiday destinations.

Profits are expected to fall to £40m this year, compared with £70m last year.

‘It’s been a combination of terrorism, the closure of Egypt and the decimation of Turkey and the collapse in the value of the pound following the Europe vote,’ Swaffield said.

Airlines that fly package holidaymakers have to renew their Air Travel Operators’ Licence, which offers protection to travellers, every year.

Monarch had been forced to deny it was on the verge of going bust amid fears the Civil Aviation Authority, which grants the licences, was concerned about the state of its finances.

The airline is renewing its fleet, with the first of its new Boeing 737s due to be delivered in 2018.

Its order for 30 aircraft in 2014 came after Greybull pumped £125m into the company. It has options on a further 15 aircraft.

Swaffield said: ‘We are on the brink of a transformation in terms of the economics and customer experience of our airline.’