Monarch has announced that Greybull Capital is the preferred bidder to acquire the travel group, as the charter airline looks to switch focus to the low-cost carrier market.
Greybull, which specialises in acquiring underperforming companies, will purchase the airline from the group’s shareholders, principally the Mantegazza family.
Completion of a deal remains subject to ongoing negotiations but a deal is expected to be completed by the end of October.
Monarch confirmed Greybull will provide significant capital “in order to grow the group and to capitalise on the long established and trusted brand name”.
“It views an investment in Monarch as a long-term opportunity in a very strong brand with great potential in all of its markets, and intends to be supportive shareholders throughout Monarch’s next chapter,” the travel group said in a statement.
Last month Monarch started a strategic review of the company which could result in up to 1,000 jobs being lost – about a third of its workforce.
The review, led by Monarch CEO Andrew Swaffield, is being taken so the airline can ditch its past as a charter airline and focus on competing with budget carriers such as Easyjet and Ryanair.
“The company sees a significant opportunity to build on the respected Monarch brand and distinctive customer offer, in order to create a focused and efficient scheduled European low-cost carrier.
“Monarch has developed a clear strategy to evolve into a leading European low-cost airline," the statement added.