STS Aviation Hangar and Expected Movements

[Ray Finkle]

MAEL have gone into administration

 

[Ianbutty]

There should be an investigation into all of this. Greybull need to be held to account. If, as the FT reported, they walked away with a straight £15 million profit from Monarch going bust thousands losing jobs and cancelled holidays and trips for hundreds of thousands, then something is seriously wrong with free market capitalism. I will refrain from swearing. but cometh the revolution.....

 

[mullion]

It`s Greybull they are the problem not the free market as they have a reputation for sucking the money and walking away

 

[rollo]

Speechless!

 

[Coathanger16]

Before jumping on the Greybull bashing bandwagon (though I wouldn't be surprised if their handling has somehow led to this), how much of this could be attributed to other factors? Namely:

- airlines themselves going into administration
- airlines bringing maintenance 'in-house' (not just airlines that currently use MAEL, but prospective future clients)
- Boeing's facility at Gatwick - I may be wrong but it looks like a lot of MAEL's business is currently with the 787. Might Boeing have a preference for airlines to use their own facilities rather than competitors and incentivize them to do so? I can certainly see Norwegian wanting to use it for their Gatwick based 787 fleet. I imagine their must be a large cost saving for them from not having to ferry the aircraft up to BHX.

Does anyone know what this means for MAEL? Is it a definite goodbye to them or could they still be saved?

 

[BHXsupporter]

Re Ianbutty's 'then something is seriously wrong with free market capitalism. '

Something is seriously wrong but the majority still buy into it.

 

[Scottie Dog]

That is really bad news about MAEL and I just hope that a buyer can be found - although I'm not too hopeful under the circumstances.

 

[smithy108]

Here is a bit more background but focuses on job losses at Luton and Birmingham

Job losses expected following Monarch Aircraft Engineering collapse
Hundreds of job losses are expected following the collapse of Monarch Aircraft Engineering Limited (MAEL).
The former engineering arm of bankrupt holiday carrier Monarch Airlines had been put up for sale by its majority owner, private equity group Greybull Capital, in December. However, no buyer could be found.
As a result, administrators from KPMG’s restructuring practice were called in earlier.
The majority of the company’s staff at Luton and Birmingham airports are being made redundant while other jobs within the 553-strong workforce have been saved.
Established in 1967 and headquartered at Luton Airport, the company provided aircraft maintenance services across four main divisions.

The company had completed a restructuring in October 2018, following which several customers sought alternative suppliers.
“This presented the business with significant challenges, making it unsustainable in its present form,” explained a statement from KPMG.
UK line maintenance operations at Gatwick, Birmingham, East Midlands, Newcastle and Glasgow Airports have largely transferred to Morson Group, with Luton Airport line maintenance operations transferring to Storm Aviation. Certain Gatwick-based employees have also transferred to Boeing.
Further operations at Manchester and Birmingham Airports, including related employees, were transferred to Flybe following the cessation of their maintenance contract in late November 2018. Collectively, these acquisitions ensure continuing employment for 182 employees. However, 250 employees at Luton and Birmingham will be made redundant.

David Pike, restructuring partner at KPMG, said: “Following the administration of other Monarch entities in 2017, MAEL sought to build its customer base to replace the loss of business from the former airline.
“Through the insolvency of the airline however, the company inherited significant debts and claims. “Every effort has been made to turnaround the business, including launching a CVA which sought to resolve these legacy debts. “Unfortunately, following the CVA, a number of customers reduced or sought to terminate their relationship with MAEL, further adversely impacting the business.”

He added: “As a result, MAEL recently entered into talks with a number of potential parties with a view to selling all or parts of the business. “While it is pleasing agreements with several operators have been secured to ensure continuity of service at the majority of MAEL’s line maintenance stations, with only partial offers forthcoming for the rest of the business, the directors have taken the difficult step to appoint administrators.”

 

[JENNYJET]

As I understand things, MAEL is still trading whilst under Administration. Therefore as it is a legal process One must take care what comments are made on a public forum.

I shall await the outcome before any further comments or speculation.

 

[Ianbutty]

Forgive my anger. But this sadly is not the first time nor the last that this has or will happen. People are losing good jobs.

Once MAEL was saddled with Monarch's debt, it was doomed. It will be interesting to see where the cost of that debt will now fall in addition to the 250 people whose lives have been turned upside down. I feel for them.

 

[Brum X]

Im totally gutted and also speechless

More bad news for people who work at Birmingham Airport and its followers.

My thoughts are with all those involved.

 

[Jerry]

Apparently 182 jobs at BHX and MAN will be saved by Flybe with the staff transfering to them.
https://www.telegraph.co.uk/busines...brEsPdOjIDwlgDd46aLe0iEyeEFED36aFOZBYmcxG4D3M

 

[jfy1999]

Apparently 182 jobs at BHX and MAN will be saved by Flybe with the staff transfering to them.
https://www.telegraph.co.uk/busines...brEsPdOjIDwlgDd46aLe0iEyeEFED36aFOZBYmcxG4D3M

Good for them, however, one wonders about Flybe's own finances. I hope they have better fortune than the former Monarch staff who signed on with Primera Air

 

[GliderPilot]

Terrible news, I'm gutted for all those who have lost their jobs. I hope they all find employment swiftly and have prosperous careers

I don't want to speculate, but I am however left wondering what will happen to that almost brand new state of the art hanger.

 

[Brum X]

Terrible news, I'm gutted for all those who have lost their jobs. I hope they all find employment swiftly and have prosperous careers

I don't want to speculate, but I am however left wondering what will happen to that almost brand new state of the art hanger.

Your not the only one Glider, surely somebody will snap it up ?

It is a state of the art facility joined to an airport with a 3000 metre runway capable of handling big jets ?

 

[David_itl]

I do wonder how many airlines did MAEL attempt to stitch up like they did with Flybe. All the brouhaha that I saw on social media about the "lack" of Flybe's finances causing a change in business relationship yet MAEL was the one with actual real loss making financial position... any company going through the type of reorganisation they did needs to maintain the goodwill of companies they work with. Very sorry for the staff but the boardroom needs to have a word with themselves.

As for the hangar, maybe there's a possibility of BA/IAG looking at it. Yes they have a Cardiff hangar but I wonder how readily that could be expanded whereas they would have an instant "fix" and perhaps look at getting some 3rd party work in.

 

[Ray Finkle]

When they initially put MAEL up for sale there were rumours that Boeing and Lufthansa were both interested.

As has been suggested there are most likely a large number of financial and legal issues to be sorted before anything happens. I do hope that it won't be empty for too long.

 

[GliderPilot]

I just hope it doesn't reach worst-case scenario where the hanger comes back down!

 

[Deleted member 8277]

I do wonder how many airlines did MAEL attempt to stitch up like they did with Flybe. All the brouhaha that I saw on social media about the "lack" of Flybe's finances causing a change in business relationship yet MAEL was the one with actual real loss making financial position... any company going through the type of reorganisation they did needs to maintain the goodwill of companies they work with. Very sorry for the staff but the boardroom needs to have a word with themselves.

As for the hangar, maybe there's a possibility of BA/IAG looking at it. Yes they have a Cardiff hangar but I wonder how readily that could be expanded whereas they would have an instant "fix" and perhaps look at getting some 3rd party work in.

BHX line's 3 remaining customer contracts were given email notice on Christmas eve to say they could not support from the 26th December, hence all 3 had to make arrangements for there own engineers to cover there own services at very short notice. MAEL management said nothing to the line engineers who were totally unaware of the notice given until they had had calls from the customers directly to the line office on Xmas day and boxing day.
Their was interest in the hangar but obviously no one made a bid or successful bid, maybe waiting to buy cheaper from administrator who knows, they will have to act fast though as the engineers have been made redundant so will look elsewhere for jobs so any potential new owners will have to employ again from scratch. Greybull special again by the looks of it.

 

[Seasider]

How do they get away with it?