Boeing had financed Britain’s Monarch Airlines in 2016: Financial Times

The funds were channeled through Monarch’s offshore holding company, Petrol Jersey in several tranches.

On Monday, as per a report by the Financial Times, Boeing Co had sunk in $130 million (100 million pounds) into Britain’s now collapsed Monarch Airlines.

The capital infusion was routed through Petrol Jersey, one of Monarch’s offshore holding company and was done in several tranches between October 2016 and March 2017, said FT.

“We do not publicly comment ‎on our customers’ financial arrangements but ensure we are always compliant with trade law” said Boeing in a statement.

When probed further by FT, Greybull Capital, the airline’s private equity owner declined to comment on the details of the financing saying that they were “commercially confidential,”. However, Greybull Capital has denied that there had been anything secretive about the transaction.

“As a regulated body, all financing arrangements provided to Monarch were reviewed and approved by relevant authorities,” said Greybull to the FT.

In 2016, with only hours left before the expiry of its operating license, Monarch Airlines had managed to secure a 165 million pound lifeline from Greybull which enabled it to renew a key operating license and fund the purchase of a new aircraft.

At that juncture, the 48-year-old airline had stated the investment will aid in the replacement of its Airbus jets with more fuel-efficient Boeing 737 MAX-8 aircraft between 2018 and 2021.

The going-bust of one of Britain’s largest airliner has affected nearly 900,000 passengers.

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