Monarch Greybull.jpg Monarch Aircraft Engineering

Monarch Bullish On Future After Ownership Change

Private equity firm Greybull Capital becomes majority shareholder in the UK-based MRO.

AMSTERDAM—The future of Monarch Aircraft Engineering looks secure after private equity company Greybull Capital took control of the MRO business as majority shareholder. 

Announced Thursday (Oct. 18), the new ownership structure will be an undisclosed injection of liquidity to secure the future of the business, following the collapse of its Monarch Airlines affiliate and Monarch Group parent company in October 2017. Following the administration, the MRO business has been under the ownership of group administrator KPMG.

Greybull had owned the Monarch Group since 2014 when it acquired a 90% majority stake for around £125 million ($162.8 million). Monarch Aircraft Engineering said its lenders PNC Financial Services will continue to provide facilities and support under its new ownership structure.

Chris Dare, Monarch Aircraft Engineering’s managing director, said that securing the investment will allow Monarch to become more strategic while moving ahead with some of its investment plans after losing airline debt of more than £100 million inherited after the airline group’s administration. “We had already developed a strategic plan while being this period of transition, but it was difficult to kick-start this without a proper investor overseeing things,” he said at Aviation Week’s MRO Europe. “The injection of liquidity will mean we can move ahead with our strategic plans.”

Dare said Monarch is undertaking a review of which services it outsources and which ones are performed in-house. Acquisitions of services is also a future possibility, according to Dare.

In the near-term, Monarch has filled its winter slots for the 2018-19 period and will see two lines of maintenance running at its Luton main base through to winter 2019-20. Its Birmingham facility will operate four lines of maintenance, comprised of three narrowbody lines and one widebody line. Overnight light maintenance for U.K. carrier with Flybe is also anticipated at Birmingham over the winter months.

Monarch is also set to open its new component repair center in Northampton, located between the two bases in Luton and Birmingham. The facility was scheduled to open last month but this has been delayed likely until late 2018 owing to challenges around utility supplies, Dare said.

TAGS: Europe
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