Monarch has been taking on easy and Ryan on its core routes for 10 years and holding its own in a shift from charter to scheduled over that period that is already 90%+ complete. Now with a realigned cost base and unencumbered by the pension deficit the future looks much better than it potentially did last week.
Let's not pretend Greybull aren't in it to make money. Of course they are - any investor would be. But with the 737 MAX 8s being delivered between 2018 and 2020, in order to maximise the gain on their investment, 2020 or later looks like a far more likely exit point at which to float the airline. In the meantime the fleet will continue to modernise with new Airbus a/c continuing to arrive. Greybull will only be able to sell the airline on if it is a viable business, at which point hopefully the staff will see some payback from an IPO if that is what happens.
As for the maths, yes the revenue will be reduced by operating less aircraft, but the cost savings in staff pay, lease rates, and the various other compromise deals are very significant and now make Monarch a very lean single type operator from S15.
Last edited by Rushed Approach; 26th Oct 2014 at 16:49.