Monarch Airlines has confirmed it will cut 700 positions as the battle to save the company continues.

Staff have agreed to the redundancies, along with pay cuts of around 30 per cent, as the Luton-based carrier struggles to stay afloat.

Earlier the Mantegazza family, which has owned Monarch since the 1960s, agreed to sell the carrier to Greybull Capital.

Greybull will offer ₤125 million of permanent capital and liquidity facilities to the airline, anchored by a ₤50 million capital commitment.

The fund acquired 90 per cent ownership of Monarch, with the remaining ten per cent passing to the airline’s defined pension scheme.

More than 90 per cent of unionised staff voted to accept the changes.

Two-thirds of the 700 redundancies will be voluntary.

Under the restructuring of Monarch, its fleet will be reduced from 42 aircraft to 34, and long-haul and charter flying will end by April next year.

Monarch will then focus on scheduled short-haul European leisure routes.

Under the leadership of new chief executive Andrew Swaffield, Monarch will debut a new Boeing fleet of 30 737 MAX 8 aircraft, with deliveries from 2018 to 2020 providing a cost-effective and uniform fleet by late 2020.

Swaffield, said: “I am delighted to welcome the Greybull team as the new owners of the Monarch Group. 

“We have a shared vision for the strategic direction and prospects for the business, and I am looking forward to working with them to implement the exciting plans for building our future.”

Monarch will focus on five UK airport bases – London Gatwick, Manchester, Birmingham, London Luton and Leeds-Bradford – with the closure of East Midlands from summer 2015.

Commenting on behalf of the selling shareholders, Fabio Mantegazza said: “We are very proud to have created one of the most loved aviation brands in the UK over the last 46 years. 

“We think that now is an appropriate time to allow new shareholders to take Monarch into the future, with secure financial backing and clear strategic goals and we wish the Group every success.”