To be honest they could have been FR/EZY but they've lacked vision and have just decided they're going to morph into a low cost airline when FR/EZY have long since reached critical mass. They're way late to the party. They're promising better service, but they're ULCC just like FR/EZY.
They've lacked focus and direction and have operated in a very haphazard way. Like a state airline they haven't been very efficient, and like a state airline they have had money behind them only this time the money isn't so forthcoming. Perhaps the Mantegazzas have grown tired of piling funds into this black hole.
I really cannot see where they can go from here. The product is bare bones. It'll take more than slimline pleather seats with an ipad holder to get me onto one of their jets. And that's the problem. I like me see planes as busses. They're all much of a muchness down the back and therefore flights are selected on price. Monarch has a higher cost base due to chronic inefficiencies and can't compete profitably on price.
Unless they really do go premium and add in catering, bags and the like. Maybe become the JetBlue of Europe - where the focus is on service and extras. They're up against some very stiff competition, now more than ever.