Monarch into admin

[Rugrat]

I used to regularly fly to Tenerife for £80 return train from London to Leicester £60

You can get Tenerife for £30 one way if not too fussy on dates. I suspect the collapse of Monarch will push prices up a fair bit

 

[Ernest]

Another shining example of capitalism at work

 

[GreersElbow]

You cannot tell me, that no one has seen this coming?
Surely there would have been some sort of social media / media leak, rather than just the recent reports of a license extension.

We've been anticipating this for a while at my company, we've had a huge amount of forward contracts for FX with Monarch, we had murmurs that they were desperate to cancel the contracts.

Market conditions truly went against Monarch.

Another shining example of capitalism at work

Ah, I guess you know capitalism is at fault for the Syrian crisis and Turkey's internal crises.

A friend and I were only discussing this yesterday lunchtime. I recently flew from Gatwick to Limassol for about £60. How sustainable was that?

Air Asia don't make any money on their flights, instead their profit is from leasing their planes - I wonder if Monarch did anything similar. If not, makes you wonder about how sustainable their model was.

 

[beorhthelm]

Another shining example of capitalism at work

if it wasn't for capitalism, this business wouldn't exist in the first place.

 

[stugbhafc1]

My misses has worked for them for 18 years absolutley gutted for her she loved her job

 

[knocky1]

You can get Tenerife for £30 one way if not too fussy on dates. I suspect the collapse of Monarch will push prices up a fair bit

Hence the £600 gain on my TCG shares this morning.

 

[Titanic]

Another shining example of capitalism at work

Has Comrade Corbyn promised to nationalise it yet?

 

[knocky1]

My misses has worked for them for 18 years absolutley gutted for her she loved her job

Put my twatty post into perspective. Apologies. All the best for her and your future.

 

[beorhthelm]

I'm struggling to understand why, having been bailed out by private investment last year the same has happened again so 'suddenly' I'd have thought that investment would have come with a ton of conditions and scrutiny and yet the business has just gone pop. Even if they couldn't make the business work from a financial perspective they would have known it ages ago and could have jacked up prices, lost share and gone about it in a much more sensible and controlled way.

I don't see any suggestion that their demise is down to a creditor, it appears they couldn't get more funding but kept going until they completely ran out of cash

i may be mixing with another troubled business (though they often share the same issue), the banks/investors do apply rules, covenants, to the loans they make to the business. i.e. maintaining certain cash flow or margins. aircraft are a high capital investment they are leased otherwise a loan taken out to buy, so maybe relating to those arrangements (news report noted the announcement occurred once all planes had returned to UK to ensure they where secured). nothing happened suddenly, this has been bubbling away for a year, they keep details out of the public domain as long as possible as otherwise people dont book with them and financial difficulty becomes a self fulfilling problem.

 

[stugbhafc1]

Put my twatty post into perspective. Apologies. All the best for her and your future.

Not a problem she dashed off early to gatwick this morning to find out whsa happens next very sad times

 

[Beach Hut]

Another shining example of capitalism at work

Indeed Aeroflot anyone ?

Air Italia which is being bailed out as going bust by their Government ?

 

[Rugrat]

i may be mixing with another troubled business (though they often share the same issue), the banks/investors do apply rules, covenants, to the loans they make to the business. i.e. maintaining certain cash flow or margins. aircraft are a high capital investment they are leased otherwise a loan taken out to buy, so maybe relating to those arrangements (news report noted the announcement occurred once all planes had returned to UK to ensure they where secured). nothing happened suddenly, this has been bubbling away for a year, they keep details out of the public domain as long as possible as otherwise people dont book with them and financial difficulty becomes a self fulfilling problem.

I understand why but are all their planes in the UK? if so then this news should have broken last night when they would have had to cancel all their last flights out I'd have thought

I watched Grayling on the Beeb this morning and he was talking about it being a regulated industry ... I think that's tosh. If Monarch were burning cash at that rate and had no workable plan to reverse or secure funding then (no matter how tricky) surely the business could have been wound down in a more controlled way even though it might have had to telegraph it's intentions

Oh and here's a piece from their CEO less than 3 weeks ago in Travel Weekly

Dismissed suggestions the airline is in trouble again after group accounts for the year to October 2016 showed pre-tax losses of £291 million. He blamed this on a write-off of the costs of the carrier’s current lease arrangements.

Monarch is due to take delivery of the first of 45 Being 737 Max aircraft next March and will replace its entire existing fleet over three years.

Swaffield said: “We pulled all the costs into one set of accounts.”

He described it as “the last legacy of the old Monarch” and said: “Monarch’s business will be so much more profitable with the new aircraft. There is a £100-million benefit on the bottom line.”

 

[GreersElbow]

i may be mixing with another troubled business (though they often share the same issue), the banks/investors do apply rules, covenants, to the loans they make to the business. i.e. maintaining certain cash flow or margins. aircraft are a high capital investment they are leased otherwise a loan taken out to buy, so maybe relating to those arrangements (news report noted the announcement occurred once all planes had returned to UK to ensure they where secured). nothing happened suddenly, this has been bubbling away for a year, they keep details out of the public domain as long as possible as otherwise people dont book with them and financial difficulty becomes a self fulfilling problem.

Someone made a thread about this some time ago, I cannot remember when but someone made a thread about hearing Monarch's in financial trouble.


edit: here we https://nortr3nixy.nimpr.uk/showthread.php?343432-Monarch-to-go-bust&highlight=monarch

 

[Surrey Seagull]

My misses has worked for them for 18 years absolutley gutted for her she loved her job

If the worst happens, I hope your missus finds a job she'll love just as much.

 

[Rugrat]

Air Italia which is being bailed out as going bust by their Government ?

Isn't their Government bust too

 

[GreersElbow]

Isn't their Government bust too

They could organise a big party, sell tickets to the biggest stars and have a load of hotties available for the guests. I wonder what politician would be capable of organising such an event?

That should raise some cash

 

[Lower West Stander]

Another shining example of capitalism at work

There are times when you speak sense and then ruin it with utter gunk like this.

What do you suggest? Nationalise every single airline in the world? This is not capitalism - its basic economics.

 

[stugbhafc1]

If the worst happens, I hope your missus finds a job she'll love just as much.

Thanks funnily enough due to the recent troubles at monarch over the last few yeras she has started a TA course and a placement at the school where our kids go so maybe thats the new direction for her

 

[atomised]

I understand why but are all their planes in the UK? if so then this news should have broken last night when they would have had to cancel all their last flights out I'd have thought

I watched Grayling on the Beeb this morning and he was talking about it being a regulated industry ... I think that's tosh. If Monarch were burning cash at that rate and had no workable plan to reverse or secure funding then (no matter how tricky) surely the business could have been wound down in a more controlled way even though it might have had to telegraph it's intentions

Oh and here's a piece from their CEO less than 3 weeks ago in Travel Weekly

Dismissed suggestions the airline is in trouble again after group accounts for the year to October 2016 showed pre-tax losses of £291 million. He blamed this on a write-off of the costs of the carrier’s current lease arrangements.

Monarch is due to take delivery of the first of 45 Being 737 Max aircraft next March and will replace its entire existing fleet over three years.

Swaffield said: “We pulled all the costs into one set of accounts.”

He described it as “the last legacy of the old Monarch” and said: “Monarch’s business will be so much more profitable with the new aircraft. There is a £100-million benefit on the bottom line.”

Their planes tend to return to UK bases overnight. The last one last night landed an hour or so before the announcement I believe.

 

[JCL666]

This sucks for those who have booked flights/holidays and also for people who work for them.

It's been badly managed for a while partly by a reluctance to modernise from senior management.

Plus the employee were screwed over by the Mantegazza family prior to the sale.