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Chinese investors eye up big stake in resurgent Monarch Airlines

HNA Group, a major Chinese investment group, is rumoured to be interested in a sizeable investment in Monarch Airlines.

Any deal for the Luton-based airline, which is owned by investment firm Greybull Capital, would represent the largest Chinese investment in a British airline to date.

According to Sky News, HNA have appointed a team of bankers at financial advisory group Rothschilds to advise on any deal, who have been on a global investment spree in recent months.

The Chinese investment group could potentially be hampered by EU regulations which caps foreign investment in EU-based airlines at 49%, although it is rumoured that Brussels may be willing to ease any restrictions, or HNA may look at different ways to structure the deal.

Monarch, which carries 6.5m passengers annually, has enjoyed a turnaround in fortunes in the last 18 months following its acquisition by Greybull Capital, helped in part by tumbling oil costs.

As a result of its improved prospects, a Greybull spokesperson signalled last month that the investment firm were now looking at ways to grow the rebounding British airline.

In a statement released in March, they commented: “Monarch has executed a successful turnaround, is now a strong and stable business and is therefore ready to look at growth opportunities in Europe.

“In order to review relevant options thoroughly, Monarch has sought the assistance of Deutsche Bank who will look at both inbound and outbound opportunities.”

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