Boeing bailed out Monarch until March 2017

It’s been revealed over the weekend that the true  financial situation at Monarch was more complicated than many imagined.

When Greybull, the airlines owner, injected £165m to keep the airline afloat at the end of September 2016, Boeing began payments that lasted until March 2017, to an off shore subsidiary owned by Monarch in Jersey. 

There’s nothing illegal here, but the money was justified by Boeing as it was secured, in a complex legal arrangement, against the aircraft that Monarch would eventually take delivery of, namely the 45 Boeing 738’s it ordered, and now won’t obviously get.

Boeing also invested in the still trading separate business of Monarch Engineering. 

In effect Monarch collapsed after having spent £265 million in a year underwriting its operations, on top of loosing £100m in operational costs, and spending all of its cash on hand generated from ticket revenues.