Monarch - 3
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If the aim is to turn a profit and keep the operation in the black for the short and medium term, then would it not make sense to defer the arrival of the boeings. Changing your business model is one thing and there are significant costs involved in that, but completely switching the entire airline from one type to another almost (yes I know there are a couple of A330/757s) entirely just doesn't make sense to me. The A320 can't be that much more inefficient than the 737-MAX. If the own some of the fleet already and it is paid for the any fuel saving will likely be offset by the finance payments for an entire new fleet. It just doesn't make sense to me.
Monarch Airlines - huge changes proposed
From todays Sunday Times..
MONARCH AIRLINES is to cut more than 1,000 jobs — about one-third of its staff — as part of a drastic overhaul to cut losses and woo new investors.
All charter and long-haul flights will be axed, and the aircraft fleet shrunk from 42 to 30.
The drastic plan has been drawn up by new chief executive Andrew Swaffield in an effort to restore the airline to profitability. Internal projections show the carrier is likely to lose about £60m this year.
The specialist American aviation advisory firm Seabury Capital is leading the hunt for new investors, with about a dozen financial players — private equity and other investment funds — in the frame.
One obstacle is Monarch’s pension black hole. A defined benefit scheme, closed to new members more than a decade ago, it still has a deficit of £158m. Talks have begun with trustees and the pensions regulator about a solution.
The 47-year-old airline is a stalwart of the British holiday scene, carrying 6m passengers a year to destinations in the Mediterranean.
It is headquartered at Luton airport and with its aircraft maintenance division and Cosmos tour-operator arm has 3,300 employees.
It is owned by Switzerland’s billionaire Mantegazza family. The Mantegazzas, who have regularly injected cash in recent years to make good losses, have accountant PwC standing by to take charge if a new investor is not found. Swaffield was recruited from British Airways’ parent company IAG to run the airline in April. He was promoted to chief executive of Monarch Group in July after the abrupt departure of executive chairman Iain Rawlinson.
Monarch declined to comment yesterday, but potential investors have been given an outline of Swaffield’s plan. He will ditch Monarch’s historic “hybrid” model, which saw it mix charter flying — one-off flights for tour operators — with scheduled services.
Charter flights will end and the company will become a budget carrier operating only scheduled flights.
Large cost cuts, to bring the airline’s overheads in line with those of big rival easyJet, are to be announced in the next few months.
Last week the airline said it would shut its base at East Midlands airport, and the base at Leeds/Bradford is also under review.
Swaffield and chairman Sir Roy McNulty — the Northern Irish businessman who has chaired the Civil Aviation Authority — hope to find new investors by Christmas. It is understood the Mantegazzas would be prepared to relinquish control if the right deal can be found.
The management are pursuing a “solvent” sale — they do not want to put the company into administration to ditch legacy costs, including the pension scheme.
Dean Street, a City investment banking boutique, is helping in the hunt for new funds, and KPMG, the accountant, has prepared an information pack for investors.
Industry experts say that, while the cost cuts are promising, Monarch will still struggle to compete against easyJet and Ryanair, the two titans of the low-cost airline world.
All charter and long-haul flights will be axed, and the aircraft fleet shrunk from 42 to 30.
The drastic plan has been drawn up by new chief executive Andrew Swaffield in an effort to restore the airline to profitability. Internal projections show the carrier is likely to lose about £60m this year.
The specialist American aviation advisory firm Seabury Capital is leading the hunt for new investors, with about a dozen financial players — private equity and other investment funds — in the frame.
One obstacle is Monarch’s pension black hole. A defined benefit scheme, closed to new members more than a decade ago, it still has a deficit of £158m. Talks have begun with trustees and the pensions regulator about a solution.
The 47-year-old airline is a stalwart of the British holiday scene, carrying 6m passengers a year to destinations in the Mediterranean.
It is headquartered at Luton airport and with its aircraft maintenance division and Cosmos tour-operator arm has 3,300 employees.
It is owned by Switzerland’s billionaire Mantegazza family. The Mantegazzas, who have regularly injected cash in recent years to make good losses, have accountant PwC standing by to take charge if a new investor is not found. Swaffield was recruited from British Airways’ parent company IAG to run the airline in April. He was promoted to chief executive of Monarch Group in July after the abrupt departure of executive chairman Iain Rawlinson.
Monarch declined to comment yesterday, but potential investors have been given an outline of Swaffield’s plan. He will ditch Monarch’s historic “hybrid” model, which saw it mix charter flying — one-off flights for tour operators — with scheduled services.
Charter flights will end and the company will become a budget carrier operating only scheduled flights.
Large cost cuts, to bring the airline’s overheads in line with those of big rival easyJet, are to be announced in the next few months.
Last week the airline said it would shut its base at East Midlands airport, and the base at Leeds/Bradford is also under review.
Swaffield and chairman Sir Roy McNulty — the Northern Irish businessman who has chaired the Civil Aviation Authority — hope to find new investors by Christmas. It is understood the Mantegazzas would be prepared to relinquish control if the right deal can be found.
The management are pursuing a “solvent” sale — they do not want to put the company into administration to ditch legacy costs, including the pension scheme.
Dean Street, a City investment banking boutique, is helping in the hunt for new funds, and KPMG, the accountant, has prepared an information pack for investors.
Industry experts say that, while the cost cuts are promising, Monarch will still struggle to compete against easyJet and Ryanair, the two titans of the low-cost airline world.
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Industry experts say that, while the cost cuts are promising, Monarch will still struggle to compete against easyJet and Ryanair, the two titans of the low-cost airline world.
I wish them and their staff luck but this doesn't bode well.
Sunday Times ,reporting 1000 jobs to go ,fleet reduction from 42 to 30 aircraft and all Charter and Longhaul flying to cease ,in an attempt to stem losses estimated at £60m this year.
Is the CEO's office leaking - doubt it; are potential investors leaking - unlikely? Is the reporter reading press releases and threads such as this, putting 2 + 2 together and coming up with a number as likely to be 5 as 4? More likely.
As per PPRuNe Pop careless talk can cost jobs.
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ATNotts
I very much doubt that ill informed chitter chatter on here will have any effect on the prospect for jobs at Monarch or its bookings
The real damage comes from newspaper reports such as that in The Time's today, stating 1000's of jobs to be cut, these will not in my experience be dreamt up figures
The real damage comes from newspaper reports such as that in The Time's today, stating 1000's of jobs to be cut, these will not in my experience be dreamt up figures
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Monarch at LBA
Official response from Monarch:-
We are conducting a review of all our UK bases. The review of Leeds Bradford has not yet been completed. Our estimated time for completion is in the Autumn.
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David 1994 even if it is "fact" according to your sources. Why would you spout it on here before even their own personnel are in the know, just so you can have your 5 min of "fame"......
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My thoughts go out to all at Monarch tonight. I speak with experience as I work for Flybe, It is not a nice time. Please take with a pinch of salt what you read on here. 99.9% of it will NOT be true and only galley FM speaking. I have friends who left Flybe for Monarch, I hope it works out for everybody there!
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Having being connected with the media over many years never ever believe what you read in the press as gospel. The old maxim stands - never let the facts get in the way of a good story! Bus alas I fear there is some truth in the Sunday Times piece.
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Having had some connection professionally with Monarch on the flying side, whilst I wouldn’t say it is a ‘job for life’, once you join the family, you tend to stay long-term. I understand that is also true of the admin and support staff. A thousand redundancies is going to be a huge hit to the bottom line on redundancy pay-outs that is why I really am sceptical of any figures until a formal announcement. A troubling time for all staff and not helped by newspaper 'leaks'!
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Numbers...
3198 staff employed last year. 42 aircraft = 76.14 staff per aircraft. 12 aircraft reduction = 913 staff, rounded up to 1000 by the newspapers.
The numbers are out there if you know where to look.
3198 staff employed last year. 42 aircraft = 76.14 staff per aircraft. 12 aircraft reduction = 913 staff, rounded up to 1000 by the newspapers.
The numbers are out there if you know where to look.
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The 3,000 plus number relates to Group employees prior to EMA closure and includes Monarch Airlines, Monarch Aircraft Engineering and Monarch Travel Group, which includes tour operators Cosmos Holidays, Avro and somewhere2stay.com so the aircraft to employee relationship should only be applied (if required) to Monarch Airlines Ltd.
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pabloc totally agree however if nothing else their PR department/consultants, IMO, seem to be lacking. Perceived adverse news and rumours are rich food for journalists and the internet - you either sit back and let it happen and possibly have an impact on your business or you counter act it in the hope the steam/rumour is taken out of any comments.
This is either undertaken by straight forward denial or spin. Unfortunately neither seem to be taking place. If hub/staff/Director/plane/route reductions do occur then put out press releases (incidentally these should be prior to any 'bad' news which hasn't been the case thus far) that provide the positive side for those loyal customers, who, like most people read the dailies so as to both allay their 'fears' and support your reorganisation.
Taking Chidken Sangwich's post as an example someone soon may make a press comment between say a Monarch Group figure of 76 staff per plane to FR which is around 29 personnel and indicate a staff reduction must be achieved to satisfy the City if Monarch's desire to raise £60 mil is be achieved. It must be on the books that the analysts are going to be going through the Monarch accounts etc looking for anomalies and facts to make their press comments etc and Monarch should be ready (if not ahead of the 'gun') to deny/spin this to their advantage - at the moment I have my doubts that (other than possibly the 'travel' press) that this is being, in any way, achieved.
This is either undertaken by straight forward denial or spin. Unfortunately neither seem to be taking place. If hub/staff/Director/plane/route reductions do occur then put out press releases (incidentally these should be prior to any 'bad' news which hasn't been the case thus far) that provide the positive side for those loyal customers, who, like most people read the dailies so as to both allay their 'fears' and support your reorganisation.
Taking Chidken Sangwich's post as an example someone soon may make a press comment between say a Monarch Group figure of 76 staff per plane to FR which is around 29 personnel and indicate a staff reduction must be achieved to satisfy the City if Monarch's desire to raise £60 mil is be achieved. It must be on the books that the analysts are going to be going through the Monarch accounts etc looking for anomalies and facts to make their press comments etc and Monarch should be ready (if not ahead of the 'gun') to deny/spin this to their advantage - at the moment I have my doubts that (other than possibly the 'travel' press) that this is being, in any way, achieved.
Last edited by 111KAB; 19th Aug 2014 at 05:42.
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