Monarch 4
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In terms of continuing to operate I believe the board decided that it would not be feasible to continue normal operations as the demands of "money up front" would not be sustainable.
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I have watched the course of this thread from day one with ever increasing dismay.
In any business cash flow is 'king', as any business man will tell you.
I once worked for a company (not in the airline business) which went bust with a full order book, and had a team of the leading experts in our field. The bank pulled the plug by refusing to extend our overdraft even though we had invoices outstanding from customers which equalled our output for six months. If you cannot pay your wages on a Friday it is ILLEGAL to continue trading. This is what hit Monarch. They had no cash in the till and they had to file for administration - that is the law. 630 skilled engineers, many with good honours degrees, and technicians with centuries of experience between them, all went out on the street at one go. At the time (it was in the wake of the Rolls-Royce bankruptcy) jobs were hard to find. I am delighted that the Monarch folk, not just the pilots, are at least in some demand. Good luck to them.
In any business cash flow is 'king', as any business man will tell you.
I once worked for a company (not in the airline business) which went bust with a full order book, and had a team of the leading experts in our field. The bank pulled the plug by refusing to extend our overdraft even though we had invoices outstanding from customers which equalled our output for six months. If you cannot pay your wages on a Friday it is ILLEGAL to continue trading. This is what hit Monarch. They had no cash in the till and they had to file for administration - that is the law. 630 skilled engineers, many with good honours degrees, and technicians with centuries of experience between them, all went out on the street at one go. At the time (it was in the wake of the Rolls-Royce bankruptcy) jobs were hard to find. I am delighted that the Monarch folk, not just the pilots, are at least in some demand. Good luck to them.
Last edited by Olympia 463; 7th Oct 2017 at 18:53. Reason: typo
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An interesting article with the breakdown in ZB capacity and competition
Monarch ceases trading ? why did the airline go bust? :: Routesonline
Monarch ceases trading ? why did the airline go bust? :: Routesonline
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... and the point at which they decide that "the game is up" is, of course, the point at which there is no money left to pay the administrators any more.
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Sunday Times
Sunday Times indicating that Greybull didn't pump the reported £165 million into Monarch last year - The secretive owner of Monarch Airlines, which collapsed last week, drastically cut its exposure to losses through a back-door deal with aerospace giant Boeing; Monarch received the bulk of the money to fund a £165 million bailout one year ago from the Chicago-based plane maker — not from its private equity owner Greybull.
Death Cruiser Flight Crew
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The Sunday Times
I suggest you all invest in today's copy of The Sunday Times. In the business section, in two articles, there it is. 'Revealed: Monarch owner's secret deal with Boeing' and 'Monarch:the sting in the tale.' - pun intended, presumably!
It was all to do with the glorious carve-up of the sale and lease-back of the seriously underpriced Boeing 737 Max 8s on order (allegedly).
It was all to do with the glorious carve-up of the sale and lease-back of the seriously underpriced Boeing 737 Max 8s on order (allegedly).
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Keeping Danny in Sandwiches
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I suggest you all invest in today's copy of The Sunday Times. In the business section, in two articles, there it is. 'Revealed: Monarch owner's secret deal with Boeing' and 'Monarch:the sting in the tale.' - pun intended, presumably!
It was all to do with the glorious carve-up of the sale and lease-back of the seriously underpriced Boeing 737 Max 8s on order (allegedly).
It was all to do with the glorious carve-up of the sale and lease-back of the seriously underpriced Boeing 737 Max 8s on order (allegedly).
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"The US aerospace giant (boeing) is understood to have injected the money via Monarch’s offshore holding company, Petrol Jersey Ltd.
That deal, plus a potential £60 million sale of lucrative runway slots – including 20 at Gatwick – and £48 million of cash in Monarch’s bank account, means Greybull is likely to walk away from the failure of the airline and travel group with losses that are a fraction of the £250 million shortfall it has been widely reported as facing, according to The Sunday Times.
"Questions have been raised about timing. Monarch went down with £48 million of cash in the bank, over which Greybull has a strong claim as primary secured creditor"
"Greybull’s Marc Meyohas said the timing of the collapse “was influenced by Atol, not by us running out of cash"
"Greybull said it is owed debt, equity, interest and fees totalling more than £100 million, which will be offset by the proceeds from the administration"
http://www.travelweekly.co.uk/articl...s-165m-bailout
That deal, plus a potential £60 million sale of lucrative runway slots – including 20 at Gatwick – and £48 million of cash in Monarch’s bank account, means Greybull is likely to walk away from the failure of the airline and travel group with losses that are a fraction of the £250 million shortfall it has been widely reported as facing, according to The Sunday Times.
"Questions have been raised about timing. Monarch went down with £48 million of cash in the bank, over which Greybull has a strong claim as primary secured creditor"
"Greybull’s Marc Meyohas said the timing of the collapse “was influenced by Atol, not by us running out of cash"
"Greybull said it is owed debt, equity, interest and fees totalling more than £100 million, which will be offset by the proceeds from the administration"
http://www.travelweekly.co.uk/articl...s-165m-bailout
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All very odd, looks like Monarch are continuing to employ the required post holders so they can claim their AOC is still active, therefore they still own the slots at the UK airfields......wonder who will then benefit from their sale ?
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".... a potential £60 million sale of lucrative runway slots – including 20 at Gatwick – and £48 million of cash in Monarch’s bank account, means Greybull is likely to walk away from the failure of the airline and travel group with losses.......
"Greybull said it is owed debt, equity, interest and fees totalling more than £100 million, which will be offset by the proceeds from the administration"
"Greybull said it is owed debt, equity, interest and fees totalling more than £100 million, which will be offset by the proceeds from the administration"
Please excuse my naivety here but if Greybull say they are owed more than £100 million but they receive £60 million from slots and £48 million cash plus retain MAEL then surely there is no loss?
In addition I read that Greybull are first in line to recoup monies when the slots are sold on by the receiver but KPMG can only sell whilst the Monarch licence (currently suspended) is held however surely this could be revoked by the CAA thus the receiver would not be able to sell same. The money could then go some way to offsetting repatriation costs, redundancy payments and ATOL cover.
Grateful for comment (as a newby) where I'm going wrong!
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Is anyone with insider knowledge able to now expand on what Monarch were actually trying to sell in terms of the short haul business.
The brand, crew, routes, slots? Less or more?
The brand, crew, routes, slots? Less or more?
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