Monarch Airlines said to be seeking restructure of short-haul business

UK carrier Monarch Airlines were said to be in the process of a radical overhaul of its business strategy as it held discussions with regulators regarding the annual extension of its tour operators licence.

SkyNews claimed that Monarch was in the process of working out sale and restructuring options to its short-haul business with KPMG for a joint venture or feeder deal with another airline before the Civil Aviation Authority (CAA) had completed its annual review of the package holiday providers Air Travel Organiser's Licence (ATOL) at the end of September.

A spokesman for Monarch said, "In recent months we have undertaken, and continue to undertake, a comprehensive review of Monarch designed to determine its optimal future shape, size and strategy.

"We are having regular discussions on a number of options with potential strategic partners and we will announce any material developments, if and when they happen."

The overhaul comes just one year after the airline was the subject of a £165m rescue package lead by Greybull Capital, its controlling shareholder, and Boeing.

While denying the whole company, which employs 2,500 people, was up for sale, Easyjet and Jet2 were pegged as likely candidates to acquire or enter into a joint venture with Monarch.

Monarch's last financial statements showed losses of £317m, mostly due to aircraft leasing contracts, and was expected to lose money in 2017 after terrorist attacks in key European markets had created difficult trading conditions for the holiday maker.