It looks like Monarch are really struggling with cash flow problems at the moment.
They are owned by the Mantegazza family who have given £45m and then £75m to keep the company running in recent years, it now needs another injection of cash of around £60m.
It looks like Monarch may pull out of LBA
and could reduce the fleet size too.
I'm not aware of any changes at Man yet but it's one to keep an eye on.
I already have flights booked with them next July as they are my airline of choice for flights around the Med resorts. Fingers crossed they can pull through this bad period.
The article in the Telegraph Business section included this:
"Monarch and its owners are this weekend working to put together a proposal for a dramatic shake-up that is expected to see Monarch streamline its operations by shrinking its fleet, pulling out of unprofitable routes and scaling back from some bases"
The figures that OltonPete provided on another site indicated a reduction of 20-25 weekly departures for s2015 at LGW
compared to this summer. It is not clear whether all schedules have been loaded. If they have, it would suggest at least 1 less a/c based at each of those 3 bases, so it may be too early to predict they will pull out of LBA
completely, although in the circumstances it must be a possibility.
The article reiterates that excess capacity in the market has led to lower yields while operating costs have risen. I'm surprised if costs have risen all that much as I doubt staff costs have increased dramatically and the price of oil has been fairly stable for a while - unless airlines got it wrong buying forward. As to the costs of handling agents, well judging from the comments on here and elsewhere as to how agents are treated, it's unlikely those costs have spiraled. I'm not sure what's happened to airport charges.
Edit: I suppose that while wage rates may not have risen, Monarch will have taken on extra crew to fulfil their program which will have meant higher costs, but the additional flying should have brought in extra revenue.
Briefly, by way of explanation, this thread has been moved to the Civil Aviation Forum because it is not specifically MAN
-related and, indeed, it looks as if Monarch's streamlining proposals could potentially affect a number of UK
Anyone placing bets that the owners might insist on the 737MAX deal not happening?
The last thing they need is a new pile of liabilities, but at the same time the fleet is all leased and leases end.
One major hit ZB
are taking is in Spain. AENA have jacked up airport charges hugely in the last year or two. I've also read elsewhere that this search for investment is actually to fund the fleet rollover and I suppose it depends on which article you are reading and who has written it. The Telegraph is basically the Daily Mail without tits and isn't exactly the most credible source for news nowadays.
Interesting. If that happens, what happens to the A330s? No more SFB
or Sharm charter work?
I just read on A.net that MON
are getting rid of some of the 330's. Maybe it's time to retire the 757s and replace with 321s or 737s
More a.net logic. If enough of them repeat something it automatically becomes fact.
A330s are on a lease from Guggenheim. They can't just hand the keys back. If anything Monarch will use them like the A300s were used, next year and any remaining part of the lease. It wouldn't be such a bad idea as those A332s are high density 9-abreast and the fuel burn is comparable to the A300 whilst seating a lot more people. The original A330 was designed to do routes of four to seven hours duration so it isn't really much of an abuse.
Until Monarch actually say they are returning them and negotiate an end to the lease (which may still have years to run) then don't believe anything you read at a.net. They are fifteen years old now so there may be some flexibility but ZB
also employ a lot of A330 crews who would also need to be looked after. Not all would welcome a downgrade (and pay cut) to flying the A321.
The 757s are going, that much is confirmed and has been for a while now. All 3 are due to be retired in the coming months at the end of the current summer season. Monarch have been shopping them around for ACMI or dry leases as apparently the 757s are owned.
Glad to see ZB
is safe for now, new owners injecting some liquidity and also renegotiating several aircraft leases.
Confirmed that the two A330s are to go back to Guggenheim in April 2015, and several other aircraft including the two A320S that operated out of LBA
are to be returned to lessors. Full list is:
A320 fleet (winter 2014/15)
A321 fleet (winter 2014/15)
A330 fleet (April 2015)
two A321S to be acquired in April/May 2015
All 3 757s due for impending withdrawal.
(Thanks and credit to www.jethros.org.uk for latest ZB
fleet changes list)
Might as well add that I didn't think Guggenheim would easily let ZB
out of their A330 contract, but then again demand for that plane is high and lease values will reflect this