Could BA save Monarch at the 11th hour? International Airlines Group 'interested in acquiring take-off and landing slots, fleet and crew'

• Monarch Airlines was granted a 24-hour extension to its licence to sell holidays
• But its future still remains up in the air and thousands of Brits could be stranded
• However, International Airlines Group has shown an interest in parts of Monarch

The International Airlines Group which owns British Airways could save Monarch at the last minute after expressing an interest in the company.

Monarch's future as the UK's fifth biggest airline remains up in the air as it is in talks with regulators about renewing their ATOL licence which allows it to sell holidays.

It is believed 100,000 of its customers are currently abroad having flown three with Monarch and are unsure if they can make it home with the airline. 

The firm was granted a 24-hour extension to its licence to sell package holidays which will expire at midnight tonight.  

Meanwhile, IAG has declared an interest in acquiring some of the company's take-off and landing slots, crew and fleet, according to Sky News.  

The announcement is likely to bring hope to some of its 3,000 employees as some jobs can be salvaged even if it collapses and ends up in administration. 

It comes as Monarch's CEO sent an internal email - seen by MailOnline - to staff to remind them to 're-assure our customers'.

Andrew Swaffield wrote: 'You may have seen press reports and social media speculation about us this morning, about our ATOL licence and imminent future.

'And passengers may be asking as well. If you're a pilot or crew, or in another customer-facing role, please re-assure our customers, if asked, that our flights are operating as normal, carrying Monarch customers as scheduled.

'Our ATOL licence - which is for packaged holidays only - is with the CAA. Flight only bookings do not require an ATOL licence, in line with other airlines. 

'I know this is unsettling and we will try to end this uncertainty as soon as we can. Thank you for your continued professionalism - I know it hard in the circumstances, but I appreciate it very much.'

The Civil Aviation Authority (CAA) is considering to add a one-day extension their licence and a decision is likely to be made later today. 

If it refuses to grant the company the licence it would mean it will be relying on the loyalty of its customers and airports because it won't be able to sell package holidays.

Monarch today quadrupled the cost of its flights to limit the the fall out just hours before it could collapse in an apparent bid to stop people buying flights. 

A fleet of 10 jets has been chartered to rescue up to 100,000 British holidaymakers who could end up stranded if it collapses. 

And it seems it is preparing the possibly of losing its licence by hiking up the cost of its flights - essentially pricing themselves out of the market to discourage people from buying them. 

Other firms interested in Monarch's assets include easyJet, Norweigan Air Shuttle and Wizz, reports Sky News. 

When approached by MailOnline, IAG declined to comment about Monarch. 

In a statement, a Monarch spokesman said: 'Our flights are operating as scheduled today. 'Any changes to the forward schedule will be communicated to all customers.'

A CAA statement said: 'The Atol renewal process is ongoing and the CAA will conclude the processing of applications from approximately 1,300 Atol holders in the next 24 hours.

'In certain circumstances this could require a temporary extension to complete this process.

'In line with our usual practice, we will not comment on the specifics of any Atol holder's application until such time as the process has reached a resolution.

'However, we can confirm that Atol protection will remain available for eligible holiday bookings made with Monarch on Sunday.

'The CAA will provide a daily update with regard to the protection that is available to Monarch's customers.'

And last month Monarch chief executive Andrew Swaffield hit back after Ryanair boss Michael O'Leary said in an interview: 'It is an open secret that Monarch and Norwegian will not make it through the winter.'