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Unless the slots were transferred in advance to another corporate entity which also holds an AOC and Operating Licence, they cannot be sold now that Monarch is in administration. Lots of precedent for this being the case and if an auditor of the ilk of KPMG believes otherwise, then they are being badly advised. There was certainly no sign of a transfer to another entity.
The Boeing deal has shades of the support for Laker from McDD and the engine manufacturers almost three decades ago. I can't imagine other Boeing customers would be too happy about it. On that subject, most airlines like easyJet and TUI are openly referring to the reasons for adding extra capacity and talking openly about Monarch. Is it just me, or do Jet2 seem unable to even utter the M-word in any of their multitude of press releases about expansion and extra seats? Their inability to mention it could almost signal a small element of contrition on their part there, were it not for the fact that it is such a ridiculous notion given the characters involved. |
The administrator and thus creditors of the administration.
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I have some shares in the On The Beach Group, which retails travel, holidays etc. Here is a statement by them, made on 2nd October, which told me something I didn't know, ie that a good retailer insures against airline failure and the costs of repatriating their clients.
Here's the statement in full; On the Beach Group plc, (LSE: OTB), the UK's leading online retailer for beach holidays, notes the recent announcements by the Monarch group and the Civil Aviation Authority that Monarch Airlines Ltd and other companies in the Monarch group have entered administration. On the Beach is contacting customers that are currently in resort to assist with their return travel and also those customers booked to fly with Monarch Airlines in the coming weeks and months. The Group has Scheduled Airline Failure Insurance in place which covers the failure of Monarch Airlines Ltd including monies paid to Monarch Airlines Ltd and also the costs to repatriate customers currently in resort. The Board anticipates that there will be a one-off exceptional cash cost associated with helping customers to organise alternative travel arrangements or providing refunds and will update shareholders in due course. The Group has no exposure to Monarch Holidays Ltd bookings as it only offered Monarch Airlines Ltd seat-only flight options on its website |
Into storage
321 ZBAM heading for Newquay.
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If I was an airline changing from an all Airbus fleet to an all Boeing fleet I would want Boeing to pick up the costs of introducing the new fleet which would give a substantial discount off the list price. If that order was converted into a sale and leaseback it would leave the discount for fleet transition that could be paid in cash and fund new investment in the airline. However the costs of introducing the new fleet would now have to be taken as a provision against future profits. It would mean cash now but create future liabilities. Anyone with an interest in the strength of the balance sheet, such as the CAA, would probably be misled and probably not very happy.
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Originally Posted by toon22
(Post 9919806)
321 ZBAM heading for Newquay.
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I am not a businessman but I am confused about what happened here.
So, the CAA were not mined to grant an ATOL licence for the next year to support that part of Monarch's business - and that was used by Greybull to trigger closure with money in the bank. I thought that private equity was about risky chaps who earn a lot of money because they took a lot of risk- these chaps just look like crafty money manipulators with little responsibility towards the people in the businesses they run. Am I being naïve? Dan Air/Court Line etc. were massively in debt when they failed/were bought for peppercorn weren't they. |
You're not naive. Monarch is at least the fourth business they have managed into bankruptcy, and you can be sure they didn't lose money on them. Using management fees and secured loans they got their hands on the dough, leaving an empty shell to got bust. Rather like BHS.
Have Greybull ever 'saved' a company? I mean got it to a state where it could be sold on as a sustainable business. |
"The unpleasant and unacceptable face of capitalism" to quote former Prime Minister Edward Heath. And back in his day capitalism was far less unpleasant and unacceptable that, at it's worst, it is today.
Given their track record I think if my employer was taken under the wing of Greybull or any other of the venture capitalist sharks I'd be jumping ship PDQ - they're in it for themselves and their gain, never for the long term benefit of the employees. |
Further to above posts another report in the Times yesterday (Monday - can't link - firewalled) that Boeing subbed Monarch's finance provider (Greysomething or other) a very hefty bung when Monarch were planning to buy 30 No. 737 Maxs. Makes their hounding of Bombardier even nastier.
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Originally Posted by runway30
(Post 9919926)
If I was an airline changing from an all Airbus fleet to an all Boeing fleet I would want Boeing to pick up the costs of introducing the new fleet which would give a substantial discount off the list price. If that order was converted into a sale and leaseback it would leave the discount for fleet transition that could be paid in cash and fund new investment in the airline. However the costs of introducing the new fleet would now have to be taken as a provision against future profits. It would mean cash now but create future liabilities. Anyone with an interest in the strength of the balance sheet, such as the CAA, would probably be misled and probably not very happy.
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Originally Posted by Black Pudding
(Post 9918388)
Any chance you can copy and paste the Times article please
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TTFN...
(Posted on the Luton forum, but thought might like to see hear too. The airport has paid tribute to the airline on YouTube and Social Media.)
Originally Posted by gilesdavies
(Post 9920907)
After nearly 50 years of making LTN its home, the final Monarch bird left for the last time today... :sad:
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Pretty sure G-MARA is still sat on the ground in LTN
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That video doesn't look like LTN to me.
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They do seemed to have planted a lot of trees overnight! I'm not sure which one, but there was certainly one Monarch Airbus on the apron this morning.
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There was one on the apron this morning - A321 G-MARA - but it's since positioned to Shannon. Monarch at Luton are no more. :{
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I suppose we'll be talking about Monarch in the Aviation History and Nostalgia forum within a short time.
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where did they fly all the Monarch planes to ? I saw they left Luton.
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