Monarch Airlines
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White Heather
Elite Pro-Member
SNOWMAN 1 said:
Yes you are correct Snowman, but I recall seeing a report in which Monarch stated they would be carrying no charter passengers at all, including Cosmos/Avro. Their new operating model was low cost airline. If they carry charter passengers booked through any tour operator (including companies in the Monarch group) then instantly they cease to be a dedicated low cost carrier and their business model is compromised. Effectively they are back where they started! Maybe they have changed their mind - after all as a company they are still a work in progress - but for sure that is what they stated at that time.
- Moderator
- #764
Along with Monarch own Holidays arm, http://www.monarch.co.uk/holidays I can confirm that Cosmos are definitely offering both flight only and holidays from Leeds/Bradford next summer 2015 season using Monarch Airlines flights. If you don't believe me just try out there holidays website here http://www.cosmos.co.uk/ and flight only deals here http://www.cosmos.co.uk/flights
The Cosmos holidays and flights may be with Monarch from LBA but they will be on Monarch scheduled flights with ZB flight codes not MON codes which means that Cosmos are buying their seats (as they always will have done but probably on slightly different terms than before) from Monarch the same as any other holiday company does. Therefore Monarch are, at the moment at least, doing exactly as they said they would and not be operating any charter flights next summer. Even when booking flights only from the Monarch website you will be offered ZB flights and those on Small Planet Airlines via Avro. I will quickly add before someone picks me up on it that there are still Manchester - Preveza flights showing with MON codes but I expect them to disappear in the not too distant future as the remainder of the flight programme is loaded onto their computer.
I have seen the Monarch (ZB) / Small Planet option for Manchester flights to Crete from MAN but not LBA. Both Cosmos and Avro, are as we know, currently Monarch companies but who knows for how much longer. We don't know as yet what will happen to them and MAEL in the coming months so Monarch is positioning itself as it said it would do as a purely low cost scheduled operation.
I have seen the Monarch (ZB) / Small Planet option for Manchester flights to Crete from MAN but not LBA. Both Cosmos and Avro, are as we know, currently Monarch companies but who knows for how much longer. We don't know as yet what will happen to them and MAEL in the coming months so Monarch is positioning itself as it said it would do as a purely low cost scheduled operation.
White Heather
Elite Pro-Member
user001 said:
Indeed they do!
- Moderator
- #767
Just to emphasise what has been said about flying "charter" passengers. Tour operators book passengers on all the major airlines as well as easyjet and Ryanair who are regarded as "low cost airlines".
Monarch are offering scheduled flights and any tour operator can book passengers on them. Look at the brochures/on-line for Newmarket/Travelsphere/Mercury direct for example.
Monarch are offering scheduled flights and any tour operator can book passengers on them. Look at the brochures/on-line for Newmarket/Travelsphere/Mercury direct for example.
Seasider said:
It does raise the question of what is the difference between Charter and Scheduled services these days doesn't it? It is a question that I was contemplating last evening when I went to bed (it beats counting sheep, you should try it). I didn't find an answer. Maybe someone can enlighten me.
Once upon a time, in the bad old days, there was quite a clear distinction. Charter flights took people on pre-arranged package holidays. Scheduled flights (the Legacy carriers mainly) sold you a seat to wherever and you made your own arrangements thereafter. Then some bright spark, fresh from college no doubt, came up with the wheeze of selling just seats on charter flights but in order to get round whatever regulations were in force at the time also provided you with an accommodation voucher for the duration FOC. Now the accommodation could be a tent in a field somewhere and you were not expected to redeem the voucher even if you found the place where the so called accommodation was. But it worked and we more or less saw the dawn of low cost flying at that moment. (Maybe the boy fresh from college was called O'Leary!)
This dodge, quite sensibly, disappeared after a period and seats were sold on Charter flights without the need to buy a holiday. To me this was the end of Charter flights per se.
So the question is why do we still talk about Charter and Scheduled flights as though they are different? And I suppose the supplementary question has to be "are they different or exactly the same masquerading under a different name"?
eastcoaster
Active Member
- Jan 31, 2009
- 181
- 16
In a nutshell Schedule = The airline organises the flight and covers all the cost and fixes the fares. Charter/IT = A Tour Operator or Travel broker buys a series of flights using the whole plane, and they fix the fares and yield. This way, the airline that is used gets the agreed rate for use of the flight and they need not worry how many pax are on it, as selling seats is not their problem. They just supply the aircraft and take the money that was in the contract.
Charter/IT flights are so regular and easily bookable now that it does seem like they are scheduled flights, and as was mentioned, the accommodation restrictions that used to be in place right up to the 70s and 80s have now gone. There was a time when you arrived at your Spanish airport, that government officials would or could stop all or any passengers and demand you show them the hotel accommodation details, with airline being fined and you being sent back home if they were not in place.
Charter/IT flights are so regular and easily bookable now that it does seem like they are scheduled flights, and as was mentioned, the accommodation restrictions that used to be in place right up to the 70s and 80s have now gone. There was a time when you arrived at your Spanish airport, that government officials would or could stop all or any passengers and demand you show them the hotel accommodation details, with airline being fined and you being sent back home if they were not in place.
Yes - that makes perfect sense eastcoater. Must admit that I was only looking at it from the pax point of view and not the airline perspective.
That brings me back to Monarch. They have said, as discussed on here and elsewhere, that they are ceasing Charter flights and will only operate Scheduled services from S15. So far so good. I mentioned in my 15 Oct post that would mean us not seeing any more MON coded flights as that was the prefix Monarch used for their 'charter' flights. I'm having second thoughts about that now after digesting your post.
Would it make sense for MON flights to still be around in S15 if Avro chartered aircraft from Monarch for their use? And as Avro are currently still a sister company of Monarch the MON code would indicate an Avro as opposed to a Monarch flight which is likely to create quite a bit of confusion all round I feel.
If that assumption is correct I take back my previous assertion that the MON code will be a thing of the past.
Any thoughts on that anyone?
That brings me back to Monarch. They have said, as discussed on here and elsewhere, that they are ceasing Charter flights and will only operate Scheduled services from S15. So far so good. I mentioned in my 15 Oct post that would mean us not seeing any more MON coded flights as that was the prefix Monarch used for their 'charter' flights. I'm having second thoughts about that now after digesting your post.
Would it make sense for MON flights to still be around in S15 if Avro chartered aircraft from Monarch for their use? And as Avro are currently still a sister company of Monarch the MON code would indicate an Avro as opposed to a Monarch flight which is likely to create quite a bit of confusion all round I feel.
If that assumption is correct I take back my previous assertion that the MON code will be a thing of the past.
Any thoughts on that anyone?
- Moderator
- #771
Ticketing and everything associated to Monarch schedule for the passengers will continue to use the 2 letter "ZB" code whilst the airline operations will still continue to use the three letter ICAO code "MON" for flight operations and ATC purposes.
Quite right lbaspotter but I think the thing that is confusing me and others is that on the Monarch website they are still showing either ZB or MON codes against their flights at the booking stage. NB - not from LBA as they are all ZB codes but from, say, MAN the MON code is still evident.
I've just come across a press release from Monarch which explains the move they are making in the Charter v Scheduled services but it doesn't, as far as I can see, clarify anything on the flight code front. What do others think?
Link here http://www.monarchholdingslimited.com/m ... g-in-2015/
I've just come across a press release from Monarch which explains the move they are making in the Charter v Scheduled services but it doesn't, as far as I can see, clarify anything on the flight code front. What do others think?
Link here http://www.monarchholdingslimited.com/m ... g-in-2015/
dmrodgers
Active Member
- Jun 22, 2010
- 412
- 113
Monarch formally announce its future has been secured today and the good news for us is that LBA base's long term future seems to have been secured beyond 2015 being one of their 5 strategic airports.
2014 News - Flights - MONARCH SECURES £125 MILLION OF PERMANENT CAPITAL AND LIQUIDITY FACILITIES THROUGH SALE TO GREYBULL CAPITAL
24 10 2014
Monarch secures £125 million of permanent capital and liquidity facilities through sale to Greybull Capital
Monarch achieves £200 million annual reductions – facilitating network restructuring and permanent competitive cost structure
24 October 2014 - THE BOARD of Monarch Holdings Limited (“Monarch” or the “Group”), the UK’s leading independent leisure travel group, is pleased to announce today the completion of its strategic review and restructuring programme under which it has secured £125 million of permanent capital and liquidity facilities provided by Greybull Capital LLP (“Greybull”) anchored by a £50 million capital commitment, with contributions from the Group’s prior shareholders, principally the Mantegazza family. Greybull also acquired 90% ownership interest in Monarch, with the remaining 10% passing to the Group’s defined pension scheme and ultimately the Pension Protection Fund (“PPF”).
The Civil Aviation Authority has renewed the Group’s ATOL licence.
Greybull is a family office that manages investments in private companies across a diversified range of industry sectors. Greybull will provide significant capital to Monarch in order to grow the Group and build on its long-established heritage and trusted brand name.
Under the leadership of new Chief Executive Andrew Swaffield, Monarch has undertaken a comprehensive strategic review of all areas of the business, from operations to ownership and financing. The aim of the review has been to create the optimum structure to realise the significant opportunity to build on Monarch’s respected brand and distinctive offer to its customers in the European scheduled leisure carrier market.
The main outcomes of Monarch’s strategic review and restructuring, which have led to the successful transaction with Greybull, are:
• Optimise fleet from 42 to 34 aircraft, and revised agreements with lessors to either mark-to-market or early return of 10 aircraft from the current fleet
• Securing a new Boeing fleet order for 30 737 MAX 8 aircraft with deliveries from 2018 to 2020, providing a cost-effective and uniform fleet by late 2020
• Both long-haul and charter flying to end by April 2015
• Airline network to specialise on Monarch’s ‘heartland’ of scheduled short-haul European leisure routes, with increased average frequencies, aircraft utilisation, productivity and profitability
Focus on five UK airport bases – London Gatwick, Manchester, Birmingham, London Luton and Leeds-Bradford – and closure of East Midlands from summer 2015
• Material concessions agreed with employees across the Group to enable the successful restructuring, including reductions in pay of up to 30%, with more than 90% of unionised staff voting to accept changes, and some 700 redundancies, two-thirds of which were voluntary
• Reduction of the Group’s operating cost base, in line with other low-cost carriers, and increased efficiencies across the business
• Resolution of the Group’s pension deficit through agreement with the Pensions Regulator, PPF and the Trustee of the Monarch Airlines Limited Retirement Benefits Plan which will result in the Plan being assessed for entry into the PPF. The PPF would then hold a 10% stake in the Group, in line with its principles in restructurings such as this. The Pensions Regulator has cleared the restructuring. The pension deficit as per the company’s balance sheet was previously £158 million and the current estimated shortfall to secure full benefits is around £660 million.
Monarch Group CEO, Andrew Swaffield, said: “I am delighted to welcome the Greybull team as the new owners of the Monarch Group. We have a shared vision for the strategic direction and prospects for the business, and I am looking forward to working with them to implement the exciting plans for building our future.” “I would personally like to thank all Monarch employees who have been hugely supportive of the initiatives which were essential to complete this transaction. I am very proud to be leading such a team – together we will be building a great future for the Group.”
Commenting on behalf of the selling shareholders, Fabio Mantegazza said: “We are very proud to have created one of the most loved aviation brands in the UK over the last 46 years. We think that now is an appropriate time to allow new shareholders to take Monarch into the future, with secure financial backing and clear strategic goals and we wish the Group every success.”
Said Greybull Partner Marc Meyohas: “We are delighted to acquire Monarch and invest our capital into a very strong brand with great potential in all its markets and are grateful for the selling shareholders’ support in achieving this transaction. We see this as a long-term investment and hope we can be very supportive shareholders throughout Monarch’s next chapter.”
Advisers:
Seabury Securities (UK) Ltd., a unit of Seabury Group, acted as lead investment banker, along with co-adviser Dean Street Advisers, to the Monarch Group on the transaction with Greybull Capital LLP. Seabury Advisors LLC served as Monarch’s lead restructuring adviser and industrial consultant with respect to crafting the turnaround plan with Monarch’s management group. KPMG LLP and Short Partners LLP served as additional restructuring advisers. Freshfields Bruckhaus Deringer LLP and Bird and Bird LLP served as legal advisers to Monarch.
Greybull was advised by Zolfo Cooper LLP as financial adviser and Forsters LLP as legal counsel. PricewaterhouseCoopers served as adviser to the selling shareholders.
Notes to Editors:
About Monarch’s strategic review
In August 2014, Monarch confirmed it was undergoing a strategic review with the objective of determining the optimal structure to take the company forward. The Group sees a significant opportunity to build on the respected Monarch brand and distinctive customer offer, in order to create a focused and efficient scheduled European leisure carrier. Part of this strategy involves a major investment into its aircraft fleet. In July 2014, Monarch announced Boeing was the preferred bidder for its narrow-bodied fleet replacement, with 30 Boeing 737 MAX 8s for delivery from Q2 2018. At current list prices, this aircraft deal would be worth $3.1 billion. This transformational investment will enable Monarch to operate as efficiently as any European low-cost carrier.
As part of the strategic review, the Board of Monarch identified a number of cost-reduction initiatives that needed to be addressed in order to compete effectively in its chosen markets, specifically the scheduled European short-haul leisure market. With the strong support of all of Monarch’s stakeholders, including its employees, unions, third-party suppliers and regulators, a number of initiatives were set in motion and have been agreed to create a far stronger Group.
About Greybull Capital LLP
Greybull has private equity investments in various sectors including pharmaceuticals, semiconductors, energy, industrials, retail and leisure. It is a long-term active investor with significant or controlling stakes in all of its companies. Within its portfolio Greybull owns significant assets including:
• Plessey Semiconductors Limited, where since 2010 Greybull has supported management’s plans to restructure and re-develop the company and has financed add-on acquisitions
• New Era Petroleum Inc. Since 2010 Greybull has backed New Era with both working capital to develop its activities and capital to acquire and re-develop oil fields in the US
• Arc Specialist Engineering Limited is a conglomerate of businesses in the steel industry. Greybull fully financed Arc and has been successfully trading the company since becoming its majority shareholder in 2013
Printed in full as it is the airlines Press Release.
2014 News - Flights - MONARCH SECURES £125 MILLION OF PERMANENT CAPITAL AND LIQUIDITY FACILITIES THROUGH SALE TO GREYBULL CAPITAL
24 10 2014
Monarch secures £125 million of permanent capital and liquidity facilities through sale to Greybull Capital
Monarch achieves £200 million annual reductions – facilitating network restructuring and permanent competitive cost structure
24 October 2014 - THE BOARD of Monarch Holdings Limited (“Monarch” or the “Group”), the UK’s leading independent leisure travel group, is pleased to announce today the completion of its strategic review and restructuring programme under which it has secured £125 million of permanent capital and liquidity facilities provided by Greybull Capital LLP (“Greybull”) anchored by a £50 million capital commitment, with contributions from the Group’s prior shareholders, principally the Mantegazza family. Greybull also acquired 90% ownership interest in Monarch, with the remaining 10% passing to the Group’s defined pension scheme and ultimately the Pension Protection Fund (“PPF”).
The Civil Aviation Authority has renewed the Group’s ATOL licence.
Greybull is a family office that manages investments in private companies across a diversified range of industry sectors. Greybull will provide significant capital to Monarch in order to grow the Group and build on its long-established heritage and trusted brand name.
Under the leadership of new Chief Executive Andrew Swaffield, Monarch has undertaken a comprehensive strategic review of all areas of the business, from operations to ownership and financing. The aim of the review has been to create the optimum structure to realise the significant opportunity to build on Monarch’s respected brand and distinctive offer to its customers in the European scheduled leisure carrier market.
The main outcomes of Monarch’s strategic review and restructuring, which have led to the successful transaction with Greybull, are:
• Optimise fleet from 42 to 34 aircraft, and revised agreements with lessors to either mark-to-market or early return of 10 aircraft from the current fleet
• Securing a new Boeing fleet order for 30 737 MAX 8 aircraft with deliveries from 2018 to 2020, providing a cost-effective and uniform fleet by late 2020
• Both long-haul and charter flying to end by April 2015
• Airline network to specialise on Monarch’s ‘heartland’ of scheduled short-haul European leisure routes, with increased average frequencies, aircraft utilisation, productivity and profitability
Focus on five UK airport bases – London Gatwick, Manchester, Birmingham, London Luton and Leeds-Bradford – and closure of East Midlands from summer 2015• Material concessions agreed with employees across the Group to enable the successful restructuring, including reductions in pay of up to 30%, with more than 90% of unionised staff voting to accept changes, and some 700 redundancies, two-thirds of which were voluntary
• Reduction of the Group’s operating cost base, in line with other low-cost carriers, and increased efficiencies across the business
• Resolution of the Group’s pension deficit through agreement with the Pensions Regulator, PPF and the Trustee of the Monarch Airlines Limited Retirement Benefits Plan which will result in the Plan being assessed for entry into the PPF. The PPF would then hold a 10% stake in the Group, in line with its principles in restructurings such as this. The Pensions Regulator has cleared the restructuring. The pension deficit as per the company’s balance sheet was previously £158 million and the current estimated shortfall to secure full benefits is around £660 million.
Monarch Group CEO, Andrew Swaffield, said: “I am delighted to welcome the Greybull team as the new owners of the Monarch Group. We have a shared vision for the strategic direction and prospects for the business, and I am looking forward to working with them to implement the exciting plans for building our future.” “I would personally like to thank all Monarch employees who have been hugely supportive of the initiatives which were essential to complete this transaction. I am very proud to be leading such a team – together we will be building a great future for the Group.”
Commenting on behalf of the selling shareholders, Fabio Mantegazza said: “We are very proud to have created one of the most loved aviation brands in the UK over the last 46 years. We think that now is an appropriate time to allow new shareholders to take Monarch into the future, with secure financial backing and clear strategic goals and we wish the Group every success.”
Said Greybull Partner Marc Meyohas: “We are delighted to acquire Monarch and invest our capital into a very strong brand with great potential in all its markets and are grateful for the selling shareholders’ support in achieving this transaction. We see this as a long-term investment and hope we can be very supportive shareholders throughout Monarch’s next chapter.”
Advisers:
Seabury Securities (UK) Ltd., a unit of Seabury Group, acted as lead investment banker, along with co-adviser Dean Street Advisers, to the Monarch Group on the transaction with Greybull Capital LLP. Seabury Advisors LLC served as Monarch’s lead restructuring adviser and industrial consultant with respect to crafting the turnaround plan with Monarch’s management group. KPMG LLP and Short Partners LLP served as additional restructuring advisers. Freshfields Bruckhaus Deringer LLP and Bird and Bird LLP served as legal advisers to Monarch.
Greybull was advised by Zolfo Cooper LLP as financial adviser and Forsters LLP as legal counsel. PricewaterhouseCoopers served as adviser to the selling shareholders.
Notes to Editors:
About Monarch’s strategic review
In August 2014, Monarch confirmed it was undergoing a strategic review with the objective of determining the optimal structure to take the company forward. The Group sees a significant opportunity to build on the respected Monarch brand and distinctive customer offer, in order to create a focused and efficient scheduled European leisure carrier. Part of this strategy involves a major investment into its aircraft fleet. In July 2014, Monarch announced Boeing was the preferred bidder for its narrow-bodied fleet replacement, with 30 Boeing 737 MAX 8s for delivery from Q2 2018. At current list prices, this aircraft deal would be worth $3.1 billion. This transformational investment will enable Monarch to operate as efficiently as any European low-cost carrier.
As part of the strategic review, the Board of Monarch identified a number of cost-reduction initiatives that needed to be addressed in order to compete effectively in its chosen markets, specifically the scheduled European short-haul leisure market. With the strong support of all of Monarch’s stakeholders, including its employees, unions, third-party suppliers and regulators, a number of initiatives were set in motion and have been agreed to create a far stronger Group.
About Greybull Capital LLP
Greybull has private equity investments in various sectors including pharmaceuticals, semiconductors, energy, industrials, retail and leisure. It is a long-term active investor with significant or controlling stakes in all of its companies. Within its portfolio Greybull owns significant assets including:
• Plessey Semiconductors Limited, where since 2010 Greybull has supported management’s plans to restructure and re-develop the company and has financed add-on acquisitions
• New Era Petroleum Inc. Since 2010 Greybull has backed New Era with both working capital to develop its activities and capital to acquire and re-develop oil fields in the US
• Arc Specialist Engineering Limited is a conglomerate of businesses in the steel industry. Greybull fully financed Arc and has been successfully trading the company since becoming its majority shareholder in 2013
Printed in full as it is the airlines Press Release.
- Admin
- #774
There must be huge sighs of relief by all the crew and engineers involved at LBA. It was such a long wait to know the airlines fate but at least it's the news we all wanted to hear.
Onwards and upwards as they say. :rockon:
Onwards and upwards as they say. :rockon:
TheLocalYokel
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- #775
Excellent news for LBA. :clapping:
Our "mostly resident" A320's AA & AB (the airlines youngest A320s) are leaving the Monarch fleet after just over a year of service.
It is widely believed that they will be put out to lease however it could just be winter storage, time will tell...
The addition of Sharklets and other newer build economics - plus the young age and low hours makes them much more attractive on the second hand lease market, they will budge quicker than Monarchs other - already second hand machines.
Its a shame to see these smart new birds go after such a fanfare arrival and delight to get new builds opening a new base but the changes they are making will hopefully secure the future of this iconic company.
It will also be nice to see more registrations pass through LBA as we have seen of late from Monarch.
Also of note, Monarch confirm the A330's will be disposed of at the end of Spring marking the end of wide body & long haul operations for the airline.
It is widely believed that they will be put out to lease however it could just be winter storage, time will tell...
The addition of Sharklets and other newer build economics - plus the young age and low hours makes them much more attractive on the second hand lease market, they will budge quicker than Monarchs other - already second hand machines.
Its a shame to see these smart new birds go after such a fanfare arrival and delight to get new builds opening a new base but the changes they are making will hopefully secure the future of this iconic company.
It will also be nice to see more registrations pass through LBA as we have seen of late from Monarch.
Also of note, Monarch confirm the A330's will be disposed of at the end of Spring marking the end of wide body & long haul operations for the airline.
Do we know if Monarch's S15 program will be operated by A320's or are some A321's likely to appear, especially if AA and AB are disappearing?
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- #780
Ideally we need the A320 if Monarch equipment can autoland on 32.
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