Monarch Airlines which has its base at Manchester and Luton concluded discussions with the CAA (Civil Aviation Authority) to extend its ATOL licence.
Had these discussions broken down, all Monarch aircraft that was flying out on package holidays would have been grounded, it would have not affected those who were just flying.
The airliner is also set to announce the largest investment in its 48-year history after further significant investment by shareholders.
Andrew Swaffield, CEO of The Monarch Group said: ““I am delighted that we have been able to come to an agreement with the CAA on the extension of Monarch’s ATOL licence and am excited about the additional capital coming into the group which will help us fund our future growth.
“I am immensely proud of the professionalism of the Monarch team.”
It has been said Monarch has around ten days to show the CAA it means business and the investment in place otherwise the airliner is expected to be grounded.