Monarch in turbulence
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Swaffield said: “My goal is to get the business in a really strong shape financially ... That’s going to happen not by taking money from the shareholders, that’s going to happen by generating money ourselves."
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Talking about generating money it looks like someone is after it already! Didn't take Olympic long to try and grab some 'Greybull money'.
Olympic Holidays parent starts legal action against Monarch - www.travelweekly.co.uk
Some 'outline' pension details here >
http://www.professionalpensions.com/...-restructuring
http://www.shlegal.com/press/2014_Pr...narch_Airlines
Olympic Holidays parent starts legal action against Monarch - www.travelweekly.co.uk
Some 'outline' pension details here >
http://www.professionalpensions.com/...-restructuring
http://www.shlegal.com/press/2014_Pr...narch_Airlines
Last edited by 111KAB; 29th Oct 2014 at 06:47.
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My heart goes out to those staff who have over their careers put their hard earned into a pension scheme only to see it taken way from them at the last minute.
I flew with them a few times. Best of the charters by a mile. Brilliant staff.
I wish them well in the future and look forward to flying with them again.
I flew with them a few times. Best of the charters by a mile. Brilliant staff.
I wish them well in the future and look forward to flying with them again.
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Good that it gets a fresh chance, but i do wonder just how much all of this is about clearing the pension black hole off the family's books. It appears that it has cost them around £50m to clear a £150m liability.
I note the comments above about moving money around for tax purposes, but i still think there is more money in fixing aircraft than flying them
I note the comments above about moving money around for tax purposes, but i still think there is more money in fixing aircraft than flying them
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Olympic are going after the PLI (Passenger liability charge). The charge is also known as YQ, and still charged by many airlines, especially Italian and Eastern European airlines. PLI (also known as YQ) was charged to recover additional insurance premiums airlines had to pay as a result of 9/11. I doubt that aviation insurers are still charging premiums as a result of 9/11, but some airlines (and it seems Monarch as well) are still charging YQ to tour operators. Airlines who are still charging this, are taking the piss. If Olympic win this in court, this will have serious consequences for other charter airlines who still charge it. If the seat rate is £201, then it is £201, not £198 plus YQ !!!! As for Olympic, they have never been the same since Monarch stopped flying for them. Now that Monarch have anounced an end to charter flying, Olympic launched their court action. Draw your own conclusions !!! If Olympic do win their case, I hope that George will have the decency to contact all his passengers and equally refunded the PLI (YQ) charge to them. FAT CHANCE.
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Turbulence smoothing?? Will surely need some exrta people to crew these??
Boeing, Monarch Airlines Finalize Order for 30 737 MAX 8s
Airline transitions to all-Boeing single-aisle fleet
LUTON, United Kingdom, Oct. 31, 2014 /PRNewswire/ -- Boeing [NYSE:BA] and Monarch Airlines today finalized an order for 30 737 MAX 8s worth more than $3.2 billion at current list prices. The order, originally announced at the Farnborough International Airshow in July when Monarch selected Boeing as its preferred bidder for fleet replacement, includes options for 15 additional 737 MAX 8s and marks the beginning of the British carrier's transition to an all-Boeing single-aisle fleet.
"Seven days after welcoming new owners into the business, this order is a demonstration of our commitment to the future and the evolution of Monarch as a distinctive European scheduled leisure carrier," said Andrew Swaffield, CEO of the Monarch Group. "The 737 MAX 8 fits our network strategy of serving our traditional European leisure routes in greater frequency, providing increased choice and service for Monarch customers, with significantly improved unit costs to our business."
The 737 MAX has accumulated 2,325 orders to date from 48 customers and is the fastest selling airplane in Boeing history.
"The 737 MAX is the perfect airplane for Monarch as it moves its business model from a traditional charter carrier to a European scheduled leisure airline, offering improved efficiencies, high reliability and an outstanding passenger experience," said Todd Nelp, vice president of European Sales, Boeing Commercial Airplanes. "We are honored that Monarch has chosen Boeing as its future partner and are dedicated to ensuring this iconic operator's continued success."
The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. The 737 MAX will be 14 percent more fuel-efficient than today's most efficient Next-Generation 737s – and 20 percent better than the original Next-Generation 737s when they first entered service. The 737 MAX 8 will have an 8 percent per seat operating cost advantage over the A320neo.
Headquartered at London Luton Airport, but also operating from five other U.K. bases – London Gatwick, Manchester, Birmingham, East Midlands and Leeds-Bradford – Monarch predominantly serves holiday destinations around the Mediterranean and the Canary Islands as well as European ski resorts. Founded in 1968, the British carrier will move to a cost effective and uniform fleet of 737 MAX 8s within the next decade.
On October 24, Monarch Airlines and other parts of Monarch Holdings Limited, the UK's leading independent leisure travel group, completed a restructuring program and sale of 90 percent of the group to Greybull Capital LLP under which it secured £125 million of permanent capital and liquidity facilities.
Contact:
Daniel Mosely
European Communications
Boeing Commercial Airplanes
+44 208 235 5665
[email protected]
Airline transitions to all-Boeing single-aisle fleet
LUTON, United Kingdom, Oct. 31, 2014 /PRNewswire/ -- Boeing [NYSE:BA] and Monarch Airlines today finalized an order for 30 737 MAX 8s worth more than $3.2 billion at current list prices. The order, originally announced at the Farnborough International Airshow in July when Monarch selected Boeing as its preferred bidder for fleet replacement, includes options for 15 additional 737 MAX 8s and marks the beginning of the British carrier's transition to an all-Boeing single-aisle fleet.
"Seven days after welcoming new owners into the business, this order is a demonstration of our commitment to the future and the evolution of Monarch as a distinctive European scheduled leisure carrier," said Andrew Swaffield, CEO of the Monarch Group. "The 737 MAX 8 fits our network strategy of serving our traditional European leisure routes in greater frequency, providing increased choice and service for Monarch customers, with significantly improved unit costs to our business."
The 737 MAX has accumulated 2,325 orders to date from 48 customers and is the fastest selling airplane in Boeing history.
"The 737 MAX is the perfect airplane for Monarch as it moves its business model from a traditional charter carrier to a European scheduled leisure airline, offering improved efficiencies, high reliability and an outstanding passenger experience," said Todd Nelp, vice president of European Sales, Boeing Commercial Airplanes. "We are honored that Monarch has chosen Boeing as its future partner and are dedicated to ensuring this iconic operator's continued success."
The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. The 737 MAX will be 14 percent more fuel-efficient than today's most efficient Next-Generation 737s – and 20 percent better than the original Next-Generation 737s when they first entered service. The 737 MAX 8 will have an 8 percent per seat operating cost advantage over the A320neo.
Headquartered at London Luton Airport, but also operating from five other U.K. bases – London Gatwick, Manchester, Birmingham, East Midlands and Leeds-Bradford – Monarch predominantly serves holiday destinations around the Mediterranean and the Canary Islands as well as European ski resorts. Founded in 1968, the British carrier will move to a cost effective and uniform fleet of 737 MAX 8s within the next decade.
On October 24, Monarch Airlines and other parts of Monarch Holdings Limited, the UK's leading independent leisure travel group, completed a restructuring program and sale of 90 percent of the group to Greybull Capital LLP under which it secured £125 million of permanent capital and liquidity facilities.
Contact:
Daniel Mosely
European Communications
Boeing Commercial Airplanes
+44 208 235 5665
[email protected]
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BN2A
The airbus crews will be converted on to the 737, so not sure extra crew will be needed.
Only recruitment that will be happening will be to replace all those leaving due to the recent shake up, future uncertainty and the raping of t&c's.
The airbus crews will be converted on to the 737, so not sure extra crew will be needed.
Only recruitment that will be happening will be to replace all those leaving due to the recent shake up, future uncertainty and the raping of t&c's.
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I suspect they will, but with some of the worst t&c's in the country now, why would anyone join. If I was voting, I would have agreed to the changes for short term security but applied elsewhere immediately.
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http://www.travelweekly.co.uk/Articles/2014/11/26/51263/pilots-union-calls-for-rethin
Pilots' union calls for rethink on pension cap after Monarch deal
By Phil Davies | 26 November 2014 at 08.35 GMT
Pilots’ union Balpa is calling for a cap on pension payments to be rethought as 67 of its members who fly for Monarch Airlines face missing out £10 million in retirement payouts after the carrier was sold.
The pilots are facing the loss after the Mantegazza family handed over the airline last month to investment fund Greybull Capital, The Telegraph reported.
Greybull took control of 90% of Monarch after agreeing to pump in £125 million of capital and liquidity facilities, anchored by a £50 million investment.
Monarch’s pension fund – thought to have a deficit of more than £500 million – was not part of the deal.
In return for taking on the liabilities, the fund was transferred into the Pensions Protection Fund (PPF), the state-backed lifeboat which bails out underfunded pension schemes in companies which have collapsed or cannot afford to meet their liabilties.
The PPF also got a 10% stake in the airline and £30 million from the Mantegazzas for taking on Monarch's pension.
However, payments from the PPF are limited to just over £26,500 a year, meaning that many of the airline’s pilots will seen their pensions slashed as a result, according to the newspaper.
Balpa says the cap means 67 pilots face losing £10 million between them – an average of more than £156,000 each – and 13 of them will lose more than half of their expected pension.
General secretary Jim McAuslan said: “This cap was meant to stop highly-paid company bosses being reckless and then walking away with a huge pension when things went wrong.
“The reality is it is hitting middle-earning professional people like pilots and costing them a big chunk of their retirement fund.”
In a letter to the government, Balpa says the current system is having a “hugely deterimental impact” on the financial well-being of a group who “followed good government advice and saved a substantial proportion of their income in order to enjoy a decent retirement”.
The union adds that while its members hit by the cap are well paid, they are not “fat cats” or directors or managers able to influence the company’s pension scheme or commercial matters – the group the cap was intended to target when it was implemented a decade ago.
By Phil Davies | 26 November 2014 at 08.35 GMT
Pilots’ union Balpa is calling for a cap on pension payments to be rethought as 67 of its members who fly for Monarch Airlines face missing out £10 million in retirement payouts after the carrier was sold.
The pilots are facing the loss after the Mantegazza family handed over the airline last month to investment fund Greybull Capital, The Telegraph reported.
Greybull took control of 90% of Monarch after agreeing to pump in £125 million of capital and liquidity facilities, anchored by a £50 million investment.
Monarch’s pension fund – thought to have a deficit of more than £500 million – was not part of the deal.
In return for taking on the liabilities, the fund was transferred into the Pensions Protection Fund (PPF), the state-backed lifeboat which bails out underfunded pension schemes in companies which have collapsed or cannot afford to meet their liabilties.
The PPF also got a 10% stake in the airline and £30 million from the Mantegazzas for taking on Monarch's pension.
However, payments from the PPF are limited to just over £26,500 a year, meaning that many of the airline’s pilots will seen their pensions slashed as a result, according to the newspaper.
Balpa says the cap means 67 pilots face losing £10 million between them – an average of more than £156,000 each – and 13 of them will lose more than half of their expected pension.
General secretary Jim McAuslan said: “This cap was meant to stop highly-paid company bosses being reckless and then walking away with a huge pension when things went wrong.
“The reality is it is hitting middle-earning professional people like pilots and costing them a big chunk of their retirement fund.”
In a letter to the government, Balpa says the current system is having a “hugely deterimental impact” on the financial well-being of a group who “followed good government advice and saved a substantial proportion of their income in order to enjoy a decent retirement”.
The union adds that while its members hit by the cap are well paid, they are not “fat cats” or directors or managers able to influence the company’s pension scheme or commercial matters – the group the cap was intended to target when it was implemented a decade ago.
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DooblerChina "I suspect they will, but with some of the worst t&c's in the country now, why would anyone join. If I was voting, I would have agreed to the changes for short term security but applied elsewhere immediately."
That's exactly what happened! About 90% of pilots. Management might be getting slightly concerned?
That's exactly what happened! About 90% of pilots. Management might be getting slightly concerned?
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Another thought:
If Easy wanted to get rid of potential future competition (Monarch have stated that they are going head to head with the LCCs by getting rid of Longhaul and charter) without the need for a costly price war, all they'd have to do is expand, offer DECs and FO positions in the UK and hey presto, no more pilots left at Mon.
Simples.
If Easy wanted to get rid of potential future competition (Monarch have stated that they are going head to head with the LCCs by getting rid of Longhaul and charter) without the need for a costly price war, all they'd have to do is expand, offer DECs and FO positions in the UK and hey presto, no more pilots left at Mon.
Simples.