Monarch - 3
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http://blog.monarch.co.uk/monarch-reaches-atol-licence-agreement-and-secures-funding/
Monarch reaches ATOL licence agreement and secures funding
(Luton, UK – 30 September 2016) Monarch has successfully concluded discussions with the Civil Aviation Authority (“CAA”) to extend its ATOL licence, for which it thanks the CAA. The company has also received significant further investment from shareholders and is close to announcing the largest investment in its 48-year history.
Monarch continues to fly and looks forward to welcoming customers on board.
Andrew Swaffield, Chief Executive Officer of The Monarch Group, commented:
“I am delighted that we have been able to come to an agreement with the CAA on the extension of Monarch’s ATOL licence and am excited about the additional capital coming into the group which will help us fund our future growth. I am immensely proud of the professionalism of the Monarch team.”
(Luton, UK – 30 September 2016) Monarch has successfully concluded discussions with the Civil Aviation Authority (“CAA”) to extend its ATOL licence, for which it thanks the CAA. The company has also received significant further investment from shareholders and is close to announcing the largest investment in its 48-year history.
Monarch continues to fly and looks forward to welcoming customers on board.
Andrew Swaffield, Chief Executive Officer of The Monarch Group, commented:
“I am delighted that we have been able to come to an agreement with the CAA on the extension of Monarch’s ATOL licence and am excited about the additional capital coming into the group which will help us fund our future growth. I am immensely proud of the professionalism of the Monarch team.”
Depends what you mean by dishonest, but certainly incomplete - I don't see any mention of 12 days?
The CAA statement is below (my underlining)
https://www.caa.co.uk/News/CAA-state...ptember-2016)/
The CAA statement is below (my underlining)
CAA statement on the extension of Monarch ATOL licences (30 September 2016)
The CAA has granted Monarch a 12 day extension to its existing ATOL licences. The extended licences will now expire at 23:59 on 12 October 2016.
“The CAA has granted Monarch a 12 day extension to its existing ATOL licences. The extended licences will now expire at 23:59 on 12 October 2016. The CAA was able to do this by requiring the shareholder to provide additional funding and because customers' money will be protected.
“Monarch now has 12 days to satisfy the CAA that the group is able to meet the requirements for a full ATOL licence. Monarch will remain ATOL licensed until this extension expires.
“The CAA always advises consumers to ensure they book ATOL-protected air holidays and consumers who choose to book an ATOL-protected flight or holiday with the company during this time will continue to be protected by the ATOL scheme.
“During this period of extension, the CAA will continue to monitor the company.”
The CAA has granted Monarch a 12 day extension to its existing ATOL licences. The extended licences will now expire at 23:59 on 12 October 2016.
“The CAA has granted Monarch a 12 day extension to its existing ATOL licences. The extended licences will now expire at 23:59 on 12 October 2016. The CAA was able to do this by requiring the shareholder to provide additional funding and because customers' money will be protected.
“Monarch now has 12 days to satisfy the CAA that the group is able to meet the requirements for a full ATOL licence. Monarch will remain ATOL licensed until this extension expires.
“The CAA always advises consumers to ensure they book ATOL-protected air holidays and consumers who choose to book an ATOL-protected flight or holiday with the company during this time will continue to be protected by the ATOL scheme.
“During this period of extension, the CAA will continue to monitor the company.”
https://www.caa.co.uk/News/CAA-state...ptember-2016)/
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The language, and phrases like "Monarch reaches ATOL licence agreement and secures funding" and "successfully concluded discussions" wouldn't lead the reader to think of an extension of less than two weeks.
As I said, it isn't dishonest. But it would have yhe effect that someone who didn't know about the issues would think it was saying that the problem was permanently resolved. And for that reason they wouldn't go posting updates until it actually was.
As I said, it isn't dishonest. But it would have yhe effect that someone who didn't know about the issues would think it was saying that the problem was permanently resolved. And for that reason they wouldn't go posting updates until it actually was.
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Tough times ahead
Firstly, best wishes to all at Monarch and hopefully the restructured deal provides a secure platform for the future for all.
The currency instability Ł / $ (1.55 down to 1.25) sets out much of the present difficulty and the trend, if it continues, shows what lies ahead. Irrespective of how well your fuel is hedged or how good a deal you struck with a manufacturer, if you face an adverse currency shift to the tune of 25%, it presents a serious challenge to all UK operators.
The cost of leisure travel to the US is now out of reach for many in the UK and that will impact on us all.
The currency instability Ł / $ (1.55 down to 1.25) sets out much of the present difficulty and the trend, if it continues, shows what lies ahead. Irrespective of how well your fuel is hedged or how good a deal you struck with a manufacturer, if you face an adverse currency shift to the tune of 25%, it presents a serious challenge to all UK operators.
The cost of leisure travel to the US is now out of reach for many in the UK and that will impact on us all.
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More detail here.
Monarch is understood to be close to agreeing a revised aircraft order with Boeing that could help to secure the company’s future.
Sky News reports that Monarch is putting the final touches on a refinancing deal centred around the purchase of 45 aircraft announced in 2014.
The financial restructuring is understood to include sale and lease-back agreements which would free up crucial cashflow for the carrier.
Monarch was granted a 12-day extension on its Atol renewal on Friday last week, in order for it to confirm further financial investment and reassure the CAA that it was in a sound position to continue trading.
The Sky News report says the refinancing with Boeing was likely to contribute to Ł165 million investment package which will also see Monarch’s owners Greybull Capital inject more capital into the company.
The report quotes from an email sent by chief executive Andrew Swaffield to Monarch employees, which strikes an upbeat tone but warns that a final announcement on the company’s Atol renewal was unlikely to be made before the deadline day of Wednesday this week.
The email said: "I was at the CAA on Monday and have been spending a lot of time over the last two days with our legal and finance teams, as we dot the i's and cross the t's on the largest investment in our history - on the back of which we expect the CAA to renew our licences and which will help us move into the next stage of our growth and development.
"It's been another busy week for all of us following the events of last Friday and the extension to our Atol licences.
"All parts of the business are working hard, both to keep things 'business as usual' and maintain consumer and customer confidence, in the face of continued media and social media commentary and speculation.
"As soon as we are able to give details of our investment and confirm the renewal I will.
"But to manage your expectations, this will be on the 12th (Wednesday).
"As said before, there is a process the business must follow and this takes time."
Monarch, Boeing and Greybull were all unavailable for comment, Sky reported.
Monarch is understood to be close to agreeing a revised aircraft order with Boeing that could help to secure the company’s future.
Sky News reports that Monarch is putting the final touches on a refinancing deal centred around the purchase of 45 aircraft announced in 2014.
The financial restructuring is understood to include sale and lease-back agreements which would free up crucial cashflow for the carrier.
Monarch was granted a 12-day extension on its Atol renewal on Friday last week, in order for it to confirm further financial investment and reassure the CAA that it was in a sound position to continue trading.
The Sky News report says the refinancing with Boeing was likely to contribute to Ł165 million investment package which will also see Monarch’s owners Greybull Capital inject more capital into the company.
The report quotes from an email sent by chief executive Andrew Swaffield to Monarch employees, which strikes an upbeat tone but warns that a final announcement on the company’s Atol renewal was unlikely to be made before the deadline day of Wednesday this week.
The email said: "I was at the CAA on Monday and have been spending a lot of time over the last two days with our legal and finance teams, as we dot the i's and cross the t's on the largest investment in our history - on the back of which we expect the CAA to renew our licences and which will help us move into the next stage of our growth and development.
"It's been another busy week for all of us following the events of last Friday and the extension to our Atol licences.
"All parts of the business are working hard, both to keep things 'business as usual' and maintain consumer and customer confidence, in the face of continued media and social media commentary and speculation.
"As soon as we are able to give details of our investment and confirm the renewal I will.
"But to manage your expectations, this will be on the 12th (Wednesday).
"As said before, there is a process the business must follow and this takes time."
Monarch, Boeing and Greybull were all unavailable for comment, Sky reported.
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Brigantee
You can't seem to decide what you think! It's been back and forth with your opinions as I have observed these last few weeks!
So much pontification going on here, do folks not have anything better to do??
The reason it will run through until the 12th is because this date was preset as an announcement date within Monarch even before it was public news!
There is lots going on behind the scenes that no one here has a clue about but keep pontificating and calling it 'bizarre' if that's your penchant!
You can't seem to decide what you think! It's been back and forth with your opinions as I have observed these last few weeks!
So much pontification going on here, do folks not have anything better to do??
The reason it will run through until the 12th is because this date was preset as an announcement date within Monarch even before it was public news!
There is lots going on behind the scenes that no one here has a clue about but keep pontificating and calling it 'bizarre' if that's your penchant!
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Sorry ive upset you , However bizzare to me sums up the whole episode , And i guess as this is a rumour website then its going to be rife with rumour .....
Not noticed much pontificating occuring TBH more like people simply expressing their view on the matter in a fairly level and reasoned manner
Not noticed much pontificating occuring TBH more like people simply expressing their view on the matter in a fairly level and reasoned manner
It`s not bizarre knowing what can happen in business or not even, have seen the what can happen
recently to 2 companies that have been turned upside down and if we knew the real story
we would just keep quiet because it will be settled when it can be.
recently to 2 companies that have been turned upside down and if we knew the real story
we would just keep quiet because it will be settled when it can be.
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Could someone who knows about these matters please explain what boeing are actually doing to give monarch new funding ? i'm afraid how aircraft are bought is something i know zilch about
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Supplier financing is a creative solution. I suppose what is Boeing's/finance house's downside - if the company goes bust, it's got the aircraft.
It can't be cheap money though, otherwise other airlines may throw their toys out.
It can't be cheap money though, otherwise other airlines may throw their toys out.
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I believe this type of arrangement is used by other UK airlines like Easyjet and Ryanair. Great for building up cash reserves to ride out the winter and possible downturns.
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Could someone who knows about these matters please explain what boeing are actually doing to give monarch new funding ? i'm afraid how aircraft are bought is something i know zilch about
- Flexibility on the aircraft deliveries, by delaying them without financial penalties.
- Possibly improved payment terms, there the airline can pay for each aircraft on delivery instead of a huge payment up-front.
The person writing this in the other forum suggested, by the airline having more flexible terms to take the aircraft, could improve the airlines cash balance, on how much is in the bank at anyone time.
Seems to make a lot of sense.
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Well reading the various press reports it beggars belief that this is going to the wire, but at least no news of 747's flying all over Europe to pre position which i guess must be positive.
Fingers crossed we don't wake up to bad news...
Fingers crossed we don't wake up to bad news...
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Reading the email sent to staff its clear id say they have no choice in the matter for whatever reason
As you say no rescue flights arranged so the CAA must expect everything to be sorted albeit at the death
As you say no rescue flights arranged so the CAA must expect everything to be sorted albeit at the death