Monarch Airlines looking at dramatic overhaul - eTurboNews.com
LONDON, England - Monarch is looking at a dramatic overhaul of its operations, potentially taking an axe to routes and retreating from bases, as several distressed investors, including Jon Moulton, circle the travel group.
New chairman Sir Roy McNulty and chief executive Andrew Swaffield are scrutinising every part of the company’s operations as part of a sweeping strategic review, which is expected to lead to significant changes in the ownership structure.
The group on Sunday confirmed that it is reviewing “all areas of the business from operations to ownership and financing” after The Sunday Telegraph revealed that a number of distressed and private equity investors, including venture capitalist Jon Moulton’s Better Capital, HIG Europe, Towerbrook and Indigo Capital, are considering injecting cash into the company, which is controlled by the Swiss billionaire Mantegazza family.
Monarch is understood to need as much as £60m of fresh capital, despite the Mantegazzas pumping £120m into the group since 2009.
Dean Street Advisers is leading the search for an external investor but the Mantegazzas have also appointed restructuring specialists from PwC, who are working on a rescue plan in case Monarch is unable to strike a deal to bring in fresh capital.
Monarch said in a statement: “The group confirms it is undergoing a strategic review under the leadership of new non-executive chairman Sir Roy McNulty and chief executive Andrew Swaffield. The review covers all areas of the business from operations to ownership and financing, with the objective of determining the optimum structure to realise the significant opportunity to build on the respected Monarch brand and distinctive offer to its customers in the budget airline market.”