Monarch in trouble again

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Monarch in trouble again

Post by crewmeal »

The folk at poor old Monarch must be wondering if they'll be working next week after all the financial problems with the airline. The CAA have just granted a 24 hour extension ATOL expiring Sunday midnight. There are plenty of forums speculating about the future of the airline. I for one wish it a successful outcome so it can continue operations. However it looks like the vultures are in the wings ready to take the pickings if things fail. What with Ryanair's ongoing crewing issues, Wizz Air pulling out of Sofia - UK due to lack of interest, the industry is having a bad week.



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Re: Monarch in trouble again

Post by newcastle »

Is Monarch on the brink again? Concern among passengers as airline holds last-ditch talks over its finances
Monarch airlines is fighting to retain its air travel operator's licence

The Civil Aviation Authority can deny an airline permission to do business if it believes it does not have enough cash to keep it going.The airline has until tonight to prove it can meet the regulator’s demands

Monarch, which flies six million passengers to more than 40 destinations, has until tonight to prove it can meet the regulator’s demands. Without an Atol licence, the airline would have to stop offering, booking or receiving payments for package holidays immediately.

Monarch, which is owned by private equity firm Greybull Capital, is understood to be in talks with rival airlines to sell off bits of its business.

Budget carriers Norwegian and Wizz Air are both thought to have already held discussions with the firm. Greybull has hired accountants KPMG to review the airline’s finances and put in place a plan for a possible sale.

Last year, Monarch was forced to turn to Greybull for a £165million rescue package to keep flying. And last month Monarch chief executive Andrew Swaffield hit back after Ryanair boss Michael O’Leary said in an interview: ‘It is an open secret that Monarch and Norwegian will not make it through the winter.’

The Mail understands that the CAA has warned staff they may be called on to help the tens of thousands of Monarch customers who would be left stranded overseas, or who have flights over the next week.

Sources close to the airline said bosses were involved in talks with the CAA which were expected to run into the night. Rumours of the chaos at Monarch have even spread to passengers with two tweeting the firm yesterday about its future.


Monarch replied: ‘Nothing has been confirmed and we continue to look at a number of options. We will of course keep our customers updated.’

Monarch is the third major European airline this year to run into financial trouble. Italy’s national carrier Alitalia has already gone bust and earlier this month Germany’s Air Berlin went into administration. And its woes come after Ryanair cancelled more than 20,000 flights, with more than 750,000 passengers affected.

Monarch’s problems will further dent the reputation of the aviation industry, which has also been blighted with complaints that cost-cutting has led to a fall in service standards at British Airways.

Last night a spokesman for Monarch said: ‘We have made an application to the regulator for a standard renewal of our Atol licence. The CAA will publish its renewal notices as normal. In recent months we have undertaken, and continue to undertake, a comprehensive review of Monarch, designed to determine its optimal future shape, size and strategy. We are having positive discussions on a number of options with potential strategic partners and we will announce any material developments, if and when they happen.’

Last September Monarch was forced to beg for a 12-day Atol licence extension from the CAA while it sought emergency funds. This may happen again.

Any airlines that fly package holidaymakers need an Atol licence from the CAA to operate. This protects passengers in the event a company goes bust.

Luton-based Monarch has been operating since 1968 and employs around 2,800 staff. It is understood around 100,000 of its customers may currently be abroad, of which 10,000 are on package holidays.

A further half a million holidaymakers have booked to travel with Monarch in the coming months.

Sources close to the CAA told how staff had been asked to work overtime over the next few days in the event Monarch holidaymakers need to find new flights home.

They have been drafted in to answer the phones when passengers call to ask for advice. Other staff are being despatched to the airports Monarch flies from to advise passengers on the ground.

Last night customers were still able to make bookings for Monarch over the phone and online. A CAA spokesman said: ‘We do not comment on Atol renewals or the financial strength of companies.’


http://www.dailymail.co.uk/news/article ... z4uCJd8VPW

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Re: Monarch in trouble again

Post by Horus »

Never mind, it will give Michael O’Leary a few more pilots he can recruit to fly his planes.
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Re: Monarch in trouble again

Post by crewmeal »

A sad day for aviation. Monarch have ceased trading as an airline. The CAA are organising repatriation flights. Qatar have sent 8 aircraft for rescue missions to the UK. Not sure how holiday makers will get from Hughada to the UK, but seat only passengers will loose out completely.

Who remembers flying into Luxor with Monarch back in the good old days?

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Re: Monarch in trouble again

Post by newcastle »

crewmeal wrote:A sad day for aviation. Monarch have ceased trading as an airline. The CAA are organising repatriation flights. Qatar have sent 8 aircraft for rescue missions to the UK. Not sure how holiday makers will get from Hughada to the UK, but seat only passengers will loose out completely.

Who remembers flying into Luxor with Monarch back in the good old days?
Not if they paid by credit card. I was under the impression the credit card company is liable if the loss is over 100GBP

I think Monarch stopped flying to Hurghada some time ago.

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Re: Monarch in trouble again

Post by crewmeal »

True - they'll get their money back from credit card companies, but many holidays ruined. i have 2 friends trying to get to Barcelona on a couple of weeks, rather than loose out on accommodation they'll now pay a fortune for a scheduled carrier.

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Re: Monarch in trouble again

Post by newcastle »

crewmeal wrote:True - they'll get their money back from credit card companies, but many holidays ruined. i have 2 friends trying to get to Barcelona on a couple of weeks, rather than loose out on accommodation they'll now pay a fortune for a scheduled carrier.
Barcelona's pretty cheap with Easyjet......50-100GBP going.....around 20GBP coming back! (plus luggage etc. of course)

I think the financial cost, for individual travelers, of the Monarch debacle will be minimal. Of course it's difficult to put a price on ruined holiday arrangements.

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Re: Monarch in trouble again

Post by carrie »

I flew Monarch a couple of times Manchester -Luxor in the good old days when there was plenty of choice. Monday and Wednesday (change over days) The boys would all be out on the Corniche Thursday and Tuesday looking for the fresh meat.

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Re: Monarch in trouble again

Post by newcastle »

carrie wrote:I flew Monarch a couple of times Manchester -Luxor in the good old days when there was plenty of choice. Monday and Wednesday (change over days) The boys would all be out on the Corniche Thursday and Tuesday looking for the fresh meat.
The more enterprising ones had already had the pick of the arrivals (especially independent travelers) at the airport :lol:

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Re: Monarch in trouble again

Post by crewmeal »

That's it blame Egypt for the collapse.

http://www.telegraph.co.uk/news/2017/10 ... e-airline/

The management blame everything and everyone but themselves. What a disgraceful shower to allow this to happen.

PS I can't see Qatar coming on a rescue mission to Hughada (if any)

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Re: Monarch in trouble again

Post by newcastle »

To be fair, it was the downturn in the tourism numbers for Turkey & Egypt that put the final nail in Monarch's coffin.

Tourists switched to the highly competitive routes to Spain etc...where margins are tiny. Most carriers operating these routes have seen a sharp rise in customers...but a fall in revenues. It would have been impossible for Monarch to replace its Turkey/Egypt profits by adding flight to this market.

Look at the price I mentioned to get to and from Barcelona.

You can get a late Oct return to Ibiza for less than 50 quid!

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