Call me a troll if you want, but that is not my intention and I just wanted to state some very clear facts that I heard on LBC lastnight, when they were interviewing an Aviation Analyst on the current situation of Monarch, and his views on the airlines future were not positive...
- It was pointed out how the airline has had numerous cash injections for the last few years. and each time they received this. They advised the airline had a plan to reverse its bad fortunes everytime, but this still seems to be continuing where they cannot stand on their own two feet with the money they have.
- The airline is not attractive to investors as they have an order for Boeing 737s outstanding and this will cost a huge amount to convert the fleet over to the new type, and cost of canceling the order would be immense too...
- He also pointed out with Monarch now becoming a LCC, they are fighting against Ryanair and easyJet who are on average 20-30% cheaper per ticket, and they don't offer the frequency of flights of these carriers. While having almost no USP to separate them from these carriers, is a very price sensitive market.
- Oil prices are currently low compared to years gone by, and inevitably at some point these prices will be going back up. With these lower prices in oil, this is when the airline should be bringing the money in.