Workers at travel group Monarch have agreed to accept pay cuts and changes to working conditions to help secure its future.

The British company is in talks with investment firm Greybull Capital, with moves to transform it into a European low-cost airline.

It announced that staff including pilots had voted to accept major concessions on pay and terms and conditions.

This demonstrates a commitment from every member of the workforce

The changes impact all areas of the business and involve concessions of up to 30 per cent in salaries, as well as changes to working patterns and other conditions.

The board of Monarch Holdings Ltd had announced earlier this week that Greybull Capital was the preferred bidder to acquire Monarch from the group’s current shareholders.

Chief executive Andrew Swaffield said on Wednesday: “This vote represents another step forward in our efforts to transform Monarch and demonstrates a commitment from every member of the Monarch workforce.

“Further hurdles are still to be overcome, however we have also secured major agreements with aircraft lessors and commitments on future investment from Greybull. This is firm progress for Monarch, its employees and its customers.”

Jim McAuslan, general secretary of the British Airline Pilots' Association, said: “Pilots and their colleagues have made major sacrifices to secure the future of this important British company, accepting lower pay and reduced terms and conditions within a restructured airline.

“We welcome the announcement that Greybull are moving towards securing their position as majority shareholders in Monarch.”

Monarch Group flies primarily to Mediterranean beach – currently including flights from Malta to London and East Midlands ­– and European ski destinations.

If the deal with Greybull goes through, the new owner would invest around £75 million (€96 million) in the airline, a person familiar with the matter said, to help fund its plan to turn into a budget airline and better compete against low-cost carriers Ryanair and easyJet.

Greybull would be buying Monarch from its shareholders, principally the Mantegazza family, ending a relationship that stretches back to the 1960s. Monarch said negotiations were ongoing but conditional upon their successful conclusion, a deal could take place in late October.