Monarch Airlines

[Dobbo]

Seems there is fire to the ZB long haul smoke.

https://www.ch-aviation.com/portal/news/59558-monarch-considering-return-to-longhaul-ops

Lord knows whether it will end up as anything other than talk. As I recall, ZB ditched a 787 order and is taking on a number of 737 (max?). Will this lead to them switching back to the 787 in time? The air tanker lease seems a bit far fetched (they are placed with TCX and Jet2).

 

[User001]

https://twitter.com/yourgibraltartv/status/914499063122399233

Seems Gibraltar expect the worst. Know the link isnt directly MAN related but Monarch do serve MAN-GIB.

 

[Aviador]

Definitely news not deserving "thanks" for that news and wishfully hoping it's not true.

 

[Brum X]

https://twitter.com/yourgibraltartv/status/914499063122399233

Seems Gibraltar expect the worst. Know the link isnt directly MAN related but Monarch do serve MAN-GIB.

 

[EGCC_MAN]

MONARCH AIRLINES has entered administration. Desperately sad news. My thoughts are with their excellent staff in particular. I hope that former competitors will scramble to offer you alternative employment with them.

A two-week 'rescue' airlift to repatriate Monarch customers currently abroad is being administered by the CAA.

Terrible news for all associated with Manchester Airport as well. Monarch had 7 x A321 and 2 x A320 based here.

 

[Dobbo]

Seems to be a reasonable amount of interest in the assets of Monarch. Obviously we very much hope the crews and employees are one of those "assets" the circling cultures will want to offer new employment to.

At MAN, there would be strong synergies with EasyJet and Vuelling's operations (e.g. Similar route profiles, aircraft and staff requirements) so this might offer a quick fix.

Regretfully, it is clear that much of Monarch was loss making. Sadly, this will mean job losses but hopefully this can be mitigated by Monarch's erstwhile competitors.

 

[Land23R]

Although the issues have affected MON with dire consequences, I don't believe the problems are confined to MON. Haven't easyjet and RYR reported a significant drop in earnings?

It seems to me that over-capacity, the lower pound, higher fuel costs, competition and cheap fares have made for a very unstable situation in the short haul market. I would be surprised if other carriers rush to fill the gap in capacity created by the demise of MON, although the acquiring of slots at LGW & possibly MAN may be tempting. Another possibility is that the other no-frills airlines might review the allocation of a/c at their bases.

That said, it's a very sad day for British aviation and Monarch and their employees.

 

[Dobbo]

Looks like the ex Monarch aircraft are starting to depart MAN.

 

[Brum X]

Looks like the ex Monarch aircraft are starting to depart MAN.

 

[Dobbo]

Monarchs administrators (KPMG) are seeking a judicial review as they may be stripped of the take off and landing slots.

This is described as one of the most valuable assets worth £60m.

I understand ACL's deadline for S18 slots is today.

(NB - above is paraphrased from the FT).

 

[Land23R]

Have a nasty feeling the slots issue could be bogged down in legal disputes.

It doesn't preclude though airlines applying for other available slots i.e. not MON slots, at MAN, does it?
So, are there slots still available at MAN in the peak morning period for example that from a runway perspective would enable some more based a/c? Terminal and stand capacity is another matter.

 

[User001]

Monarch only 'owned' slots at LGW and MAN due to them being a slot restricted airport. This is why we have seen stories of capacity quickly replaced at BHX/LTN/LBA but not MAN/LGW yet. It's taking a while, but it's getting there and all will be back on track soon.

 

[Coathanger16]

but not MAN/BHX yet

I take it you meant MAN/LGW there?

I assume the Monarch slots will eventually become available, its just a matter of how long all the legal 'stuff' takes?

 

[User001]

indeed, good spot.

Yes the slots will be released eventually, it was just a side note to explain why the likes of BHX/LTN/LBA had a large chunk of capacity replaced very quickly, while all of the MAN/LGW slots are still waiting to be filled (extra aircraft from Jet2/TUI and Thomas Cook were using existing slot allocations regardless.

 

[Scottie Dog]

This is an area of which I have very little knowledge, however are any of the slots held by any airline at Manchester actually "owned" as in purchased?

I understand that slots at both Gatwick and Heathrow have considerable value and seem to be traded by the airlines without being put back into the pool for ACL to reallocate. This does not, as far as I'm aware, seem to be the case at Manchester and therefore where does the question of financial value enter the Monarch situation?

 

[Dobbo]

I understand the Judicial Review, answering the question of whether KPMG (as administrator of Monarch) have the right to sell their slots in the pool of assets, is due to be heard today.

I don't know how many days this will last, and the outcome may not be known for a number of weeks. However, this is progress and slightly faster than expected.

 

[Dobbo]

This has moved quickly. Seems like KPMG have lost the right to sell the slots which are now back in the pool for allocation.

 

[Jerry]

This has moved quickly. Seems like KPMG have lost the right to sell the slots which are now back in the pool for allocation.

Can they appeal the decision?

 

[Dobbo]

Hi @Jerry - they cannot. It's a last resort.

 

[Jerry]

If i remember correctly new airlines will now get priority to those slots? Might not effect MAN as much but LGW may well be a different story.