Multimillion-pound lifeline has secured airline’s immediate future but Greybull is likely to have considered exit options
It is the largest investment in our 48-year history, crowed Andrew Swaffield, chief executive of Monarch, after securing a £165m injection from owner Greybull Capital. He should contain his excitement. Asking your shareholder for a large handout is not usually seen as a mark of success. At easyJet and Ryanair, the cash flows to the owners in the form of strong dividends, which is how the game is supposed to work, though it rarely has at Monarch in recent years.
Greybull deserves credit for answering the call. If its choice was simple, one assumes the private equity firm would have stepped up before the Civil Aviation Authority started prowling around. Last month’s episode, in which the regulator arranged for planes to recover stranded passengers should Monarch be unable to renew its operating licence, was unhelpful for the brand.