Monarch - 3
Join Date: Jan 2008
Location: Switzerland ... oh wait: Swaziland
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OK, extension granted, let's assume that the licence will be renewed eventually.
Now, what does the future hold? Not very rosy expectations on UK package holidays (brexit, GBP x-rate, Egypt, Turkey, Tunisia, ISIS, you name it); fuel price most probably up after the recent developments; rather pricey type change to the 737 (trainings, double spare stock etc); fierce competition from other LoCos. What will be the selling point of Monarch if things did not work out in recent "better" times?
Now, what does the future hold? Not very rosy expectations on UK package holidays (brexit, GBP x-rate, Egypt, Turkey, Tunisia, ISIS, you name it); fuel price most probably up after the recent developments; rather pricey type change to the 737 (trainings, double spare stock etc); fierce competition from other LoCos. What will be the selling point of Monarch if things did not work out in recent "better" times?
Join Date: Jan 2000
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If a new trade investor comes in, it can only get much better .
The current shambles brought it 4 hours hours away from disaster, so a new shareholder base and management team can only improve it.
The current shambles brought it 4 hours hours away from disaster, so a new shareholder base and management team can only improve it.
Join Date: Aug 2007
Location: West Yorkshire
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Indeed it is, but without a high level of satisfaction that the new finance deal will be got across the line and with multiple aircraft on standby to repatriate, I think its highly unlikely that such an extension would have been granted, don`t you agree?
Join Date: May 2000
Location: I'm somewhere where I don't know where I am.
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How is a 12 day extension 'fantastic news'? It's good news yes, but is it a stay of execution or a real commitment by Greybull? I really hope Monarch survive but this limbo status is not helping anyone whether they be consumer or employee.
Join Date: Apr 2011
Location: Lancashire
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How is a 12 day extension 'fantastic news'?
On the one hand, this is good news all round. I've been through the redundancy thing and had a prolonged period out of work - I know it's not fun.
However this is a heavily regulated company for which safety is critical and which relies on consumer long term confidence to pay up front on a non-refundable basis for a service they will receive in several months time.
Maybe Greybull is the right owner to do major surgery on the company, but the whole set up right now leaves me feeling distinctly uneasy about the long term direction of Monarch. When hedge funds are cutting deals, you can be certain that asset stripping or taking large dividends out of the company in the short term will be on the agenda - long term investment in staff will be low on the priority list
However this is a heavily regulated company for which safety is critical and which relies on consumer long term confidence to pay up front on a non-refundable basis for a service they will receive in several months time.
Maybe Greybull is the right owner to do major surgery on the company, but the whole set up right now leaves me feeling distinctly uneasy about the long term direction of Monarch. When hedge funds are cutting deals, you can be certain that asset stripping or taking large dividends out of the company in the short term will be on the agenda - long term investment in staff will be low on the priority list
Join Date: Aug 2013
Location: London
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The fact they've got an extension suggests the CAA has a degree of confidence about their financial stability going forward. With promises of major investment due to be announced let's hope they're heading into a happier place.
I know there's no room for sentiment in aviation but I've got a huge spot for
Monarch. They're one of the airlines I grew up with. They started at Luton in the year I was born and I've seen them in all their guises, from the Britannia's, Boeing 720's & BAC1-11's of the early fleets to the Airbuses of today.
Good luck to all at Monarch. Long may they remain!!
I know there's no room for sentiment in aviation but I've got a huge spot for
Monarch. They're one of the airlines I grew up with. They started at Luton in the year I was born and I've seen them in all their guises, from the Britannia's, Boeing 720's & BAC1-11's of the early fleets to the Airbuses of today.
Good luck to all at Monarch. Long may they remain!!
Join Date: Apr 2004
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Great to hear Monarch is potentially on the verge of getting another truck load of money to burn, for the next year or two.
I'm sure they'll have another business plan in place, to make things better. 😂
While Sky News, mentions the investment, it is barely a positive news report to quash passengers worry...
http://news.sky.com/story/monarch-airlines-handed-reprieve-to-fly-package-holidays-10600155
I'm sure they'll have another business plan in place, to make things better. 😂
While Sky News, mentions the investment, it is barely a positive news report to quash passengers worry...
http://news.sky.com/story/monarch-airlines-handed-reprieve-to-fly-package-holidays-10600155
Join Date: Jan 2000
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Everyone needed this to happen and not least government .
Let's get the new serious funding done, and a new team in place , and move on, as the brand has taken a massive hit . Equally the latest press release by monarch is not entirely clear , but I'd expect nothing more from the cow boys.
The caa should have a degree of comfort for this big funding, but it must have been close given only 4 hours left .
Let's get the new serious funding done, and a new team in place , and move on, as the brand has taken a massive hit . Equally the latest press release by monarch is not entirely clear , but I'd expect nothing more from the cow boys.
The caa should have a degree of comfort for this big funding, but it must have been close given only 4 hours left .
Join Date: Aug 2014
Location: BHX
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Any news on who the other investor is and I wonder whats behind it all? Ploughing huge amounts into a airline that clearly has a fight on its hands in a very competive market is not a decision i imagine is taken lightly
They must see some opportunities in buying in .
They must see some opportunities in buying in .
Join Date: Oct 2008
Location: UK
Age: 43
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Yes it is intriguing who the new investor(s) might be but whoever they are, there will have to be significant investment and they will have to be committed to the airline's long term future.
Despite the fact Monarch has been scraping along the bottom for the last 2 years, it has a good brand, the oldest AOC, ETOPS approval, desirable slots, well trained crews and world class aircraft engineering. Apparently management has always been patchy but hopefully the not so capable will move on and leave those only competent in charge. Despite what some say here, I understand that Andrew Swaffield is one of the more capable at Monarch - his record is quite impressive at other companies.
However the fact remains, Monarch nearly went bust but thankfully they didn't and hopefully this is the dawn of a new era.
Despite the fact Monarch has been scraping along the bottom for the last 2 years, it has a good brand, the oldest AOC, ETOPS approval, desirable slots, well trained crews and world class aircraft engineering. Apparently management has always been patchy but hopefully the not so capable will move on and leave those only competent in charge. Despite what some say here, I understand that Andrew Swaffield is one of the more capable at Monarch - his record is quite impressive at other companies.
However the fact remains, Monarch nearly went bust but thankfully they didn't and hopefully this is the dawn of a new era.
Join Date: Jun 2008
Location: Europe
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A I understand, a holiday comany covered by ATOL has bookings protected when they are made, so a 2017 booking made up to 12th October will be covered (but Worth checking before you book).
It is still not obvious to me why some people seem to be mixing Monarch holidays with Monarch airline. If the claim is correct that there are 100000 holidaymakers currently on site, and there are 133 flights per day (presumably return flights) then around 4 days of return flying is needed for the Monarch fleet. This could suggest that over 50% of seats are actually for the Holidays arm, which is way above numbers I have seen elsewhere, and would suggest that the transition from IT to scheduled airline has not progressed as rapidly as some thought. I actually believe that the 100000 above may include traveller on other Airlines or with other Holiday companies suggestig that a higher percentage of seats are airline only.
As regards investors, from what I have read, there are only two, Greybull and the pension fund, so presumably addtional "current investors" money must have come from these two. However, are their investments in Monarch Holdings or split between the different parts of Monarch. Will the new investor replace one or other or be in addition to them.
Finally as the entire Monarch fleet is currently leased I would expect the 737s to be also, even if they are currently shown as an order for which commitment payments have probably been made. One way to release funds is to do some form of lease deal which could involve the lessor (or financier) making any future payments up to delivery. That said, the aircraft are for Monarch airline, not the Holiday company.
It is still not obvious to me why some people seem to be mixing Monarch holidays with Monarch airline. If the claim is correct that there are 100000 holidaymakers currently on site, and there are 133 flights per day (presumably return flights) then around 4 days of return flying is needed for the Monarch fleet. This could suggest that over 50% of seats are actually for the Holidays arm, which is way above numbers I have seen elsewhere, and would suggest that the transition from IT to scheduled airline has not progressed as rapidly as some thought. I actually believe that the 100000 above may include traveller on other Airlines or with other Holiday companies suggestig that a higher percentage of seats are airline only.
As regards investors, from what I have read, there are only two, Greybull and the pension fund, so presumably addtional "current investors" money must have come from these two. However, are their investments in Monarch Holdings or split between the different parts of Monarch. Will the new investor replace one or other or be in addition to them.
Finally as the entire Monarch fleet is currently leased I would expect the 737s to be also, even if they are currently shown as an order for which commitment payments have probably been made. One way to release funds is to do some form of lease deal which could involve the lessor (or financier) making any future payments up to delivery. That said, the aircraft are for Monarch airline, not the Holiday company.
Last edited by daikilo; 1st Oct 2016 at 09:04. Reason: typos