Monarch Airlines

[Bigman]

I did wonder who would go first, Monarch or the LUFC coach. Bye Bye Hockaday!!

It's a shame we can't get the clockwork orange boys in. A cursary glance at their route map shows that they operate to the likes of Madrid, Lisbon, Bordeaux, Marseilles, Zurich, Munich, Brussels, Berlin, Stockholm and Cologne. Oh to have some of these routes!!

 

[Tarn Spotter]

Be careful of what we wish for. I can see a couple of destinations not yet served from Leeds being ideal for Easyjet as they now chase business customers, however, they like Ryanair will not have a pricing policy that resonates with those of us who grew up with the LCC dream of the late 90's.

 

[White Heather]

Personally I dont care which airline operates routes out of LBA or what they charge as long as there is an LBA option. If Easyjet could be persuades to have a greater presence at LBA to operate some of the routes we have never had, or have had and lost in the past, then I would be delighted. We do not want to be in a position where we have total dependence on Jet2 and Ryanair. If either airline withdrew (or worse) in the future, LBA would be in serious trouble overnight. I have been surprised really that Easyjet have not introduced any new routes from LBA since they started their Geneva service in the winter - I doubt they have many airports on their network that sustain a single destination in winter only.

 

[airforced]

Easyjet would be a welcome addition to LBA irrespective of whether Monarch stay or go. They, like Ryanair, do operate a competitive pricing policy wherever they fly from. That is why they have been so successfull. How anyone can suggest otherwise puzzles me. Last year I booked Vienna, Zagreb and Budapest with them, unfortunately from LGW, but I can assure you that their pricing was very attractive and having them here would keep everyone else honest too. We live in hope!

 

[TheLocalYokel]

I doubt they have many airports on their network that sustain a single destination in winter only.

easyJet Switzerland operates a winter only Geneva service from Bournemouth and easyJet operates winter services to Geneva and Grenoble from Birmingham with a fairly recent addition from BHX to Belfast Int year-round.

 

[Tarn Spotter]

Airforced: Of course Easyjet try to maintain a competitive pricing policy but only on their terms.
They withdrew all 8 based aircraft from Madrid last year as their returns insufficient against the competition, so they walked away. They moved some resources to Switzerland as they enjoy a higher seat price in this country.
The success of seat allocation has shown Easyjet that then money is in the business and retired travellor. Its their stated aim this year to get a minimum 5% after cost increase in revenues this year, double inflation.
They no longer have to look at their rivals as they feel the advantage they hold of scare peak time slots built up over the last 20 years keeps them in prime position. The purchase of the 20 slots at gatwick from Flybe, showed them the value of slots they held. They specifically state it is hard for them to create new routes due to available slot times at a new base to them.
Rather then compete with them Ryanair has joined them, making a big play for the business travellor and those who want all the creature comforts, not to be treated as cattle.
There are no market forces to keep price down, all airlines want to drop flights that are depressing aircraft capicity. There one interest is that they achieve over 90% loading on every flight. Average loads of below 80% on a route have to go.
There are no enough destinations where they all can have over 90% loads.

 

[lbaspotter]

Just noticed that Thomas Cook Holidays website is now no longer taking any bookings on Monarch flights from Leeds/Bradford for summer 2015. All holidays now using Jet2 flights instead paving the way for Monarch to announce there base closure.

 

[Aviador]

It's written in stone by the looks of things.

 

[White Heather]

Why is it written in stone? Monarch have already stated that they will carry no charter passengers after this year, so even their own Cosmos pax are being put on other carriers. Thomas Cook moving to Jet2 had to happen whether they stay at LBA or leave, and isn't that obviously why Jet2 have announced an increased flying programme from LBA with promises of more to come?? I agree it isn't looking good, but there remains the possibility that Monarch could operate as a low cost airline out of LBA in competition with Ryanair, and even if they closed their base there is also the option of operating some W sector flights into LBA using aircraft based at their main bases.

As far as I am concerned, it aint over until the fat lady sings! Monarch dumping their charter passengers was always going to happen.

 

[Tarn Spotter]

Totally agree with White Heather, Monarch made clear their new passenger policy when I was at the Farnborough show, no charter passengers for Summer 2015 or ever more.
Therefore Thomas Cook etc have to find another airline to take their passengers or do the job themselves.
THis is not an indicator of Leeds as a base, more worrying is the failure for anyone to come forward with the funds Monarch needs to continue. I would imagine we are now close to the point, that without new funds they will have to take steps to protect themselves from creditors pressure.

 

[Hull City Fan]

Totally agree White Heather! As usual, people are jumping to conclusions Monarch are definitely leaving before anything has been formally announced.

 

[Aviador]

I admire your optimism but sadly I disagree. There is absolutely no evidence at all to suggest the Monarch base is staying open in fact on the contrary, the evidence is stacking up towards a base closure.

 

[a300boy]

Only thing is if they intend to abandon Lbia why wait so long to announce it when they have done the deed at Ema. I suspect they may be assessing the prospect of operating low cost flights as opposed to tour company flights which must be low yield.

 

[stevolba]

The requirements I have seen still show 3 based aircraft, I would expect a dramatic overhaul in routes... Watch this space...

 

[Aviador]

The requirements I have seen still show 3 based aircraft, I would expect a dramatic overhaul in routes... Watch this space...

I sincerely hope you are right but I have my doubts. I just wish Monarch would put us all out of our misery and spill the beans, whatever it is they have decided to do.

 

[Tarn Spotter]

One would imagine that LBA will be the cheapest to run of all their 5 u.k. bases, Gatwick, Luton, B'ham and Manchester you would think a higher cost site.
Very soon Monarch are going to run as a true LCC, it may be easier to get rid of the charter customers at Leeds. I wonder is the delay to allow them to join Ryanair and Easyjet with a business package which seems the only way to get up yield.
Not sure I can agree that getting rid of charter customers will reduce yield, must put up revenue as they must have given the customer a share of the seat revenue. Replacing with business customers with their higher seat prices could be the way forward

 

[lbaspotter]

I received a link to following article this morning and it would seem that there is still along way to go for Monarch Airlines to get out off this mess. Pilots are been balloted on pay cuts of up to 25% and 35%. That's on top of the reported 900 job losses. The current swiss owners the Mantegazza family continues to absorb the £158 million black hole in its pension fund and has even threatened to close the airline down. But the new management team has been able lure in new private equity investors.

Pilots' association to ballot members on Monarch changes

Pilots' association to ballot members on Monarch changes
Monarch Airlines staff are being asked for pay cuts and productivity improvements of between 25% and 35%, on top of 900 job losses from the 3,300-strong workforce, a report this morning claims.

Monarch is likely to ask members of its pension scheme to vote on accepting cuts to their retirement incomes, according to the Times. Continue to read on see: http://www.travelweekly.co.uk/Artic...ion+to+ballot+members+on+monarch+changes.html

It will be interesting to what Monarch will look like afterwards and what routes they will operate, especially if they remain at LBA!! But I've also heard rumours that Easyjet might be interested in acquiring Monarch as a going concern and that Jet2 have expressed interest in the Boeing 757's and Airbus A330's..

 

[Tarn Spotter]

Cant see Easyjet getting involved, why do they need the mess. Certainly can see Jet2 buying the 757 and the A330 especially as Airbus announced at Farnborough they can start soon taking in the A330 produced from 1992 onwards, total revamp with new fuselage, new wings and new engines all at 10% of the cost of a new airframe, with 14% better fuel economy on todays model.
Both Boeing (737) and Airbus (A330) stated revamping these two aircraft the way to go, no longer financially viable to design new aircraft, revamping old the way forward. The 787 and the A380 have crippled both manufactuers
Must have been music to the ears of Philip Meeson, aircraft with a minimum 45 year lifespan, not good for those trolls who bleat about the age of the Jet2 fleet.

 

[lbaspotter]

What I meant to say or get across is that Easyjet are said to be possibly interested in acquiring Monarch as a going concern due to all the slots they own down at London Gatwick and at Manchester. Plus both airlines have a presence at London Luton which they could further grow. What that would mean for both Leeds and Birmingham it don't know, but they do have a small presence at both airports so they might be interested in to adding them to there list of bases!!

Easyjet would also get the added bonus off be able to grow quickly by adding the 10x A320's & 27x A321's that belong or are operated by Monarch to a fleet of 138x A319's, 65x A320's that Easyjet currently own, Plus they have new orders in of a further 42x A320's, 100x A320NEO's and 2x A321 due.

 

[Tarn Spotter]

Monarch cannot seek help from the Pension Protection scheme for the pilots unless there is a qualifying insolvency in respect of the employer i.e. Monarch.
This is a fund to support workers whos companies have become insolvent, remember the Maxwell workers.
If this is the route the company is going (there area rumours that accountants are on standby), I cant see the company been sold as a going concern. The slots and any owned aircraft will just be sold off.
Most in the city see the maintenance division being sold and the airline closed, like Morrisons Supermarket the group software is not fit for purpose and the airline too deep in debt, with the redundancy cost of the 900 to be laid off not available as they would not be able to reclaim from the state unless they fold the lot.