A £125 million deal to save Luton-based Monarch airlines will see 700 redundancies and pay cuts reaching 30% as the company transfers ownership.

Over 90% of union staff at the company agreed to the changes, with two-thirds of the redundancies voluntary.

Jim McAuslan, general secretary of the British Airline Pilots' Association, said: "Monarch's continuing presence in the marketplace is good for customers so this new investment is welcome."

The deal includes Greybull Capital buying 90% of the company from the Mantegazza family which has owned it since the 1960s.