Monarch into admin

[AmexRuislip]

Unlikely, Greybull injected just over £150m last year to pay for ATOL and other projects to try and make it efficient. Unfortunately...that failed

How about your circumstances, what happens to your 'financial' stability, in regards to future employment?

 

[GreersElbow]

How about your circumstances, what happens to your 'financial' stability, in regards to future employment?

I'm partially unaffected - if anything my company saves a fair amount of money as we had forward contracts due to mature this month with Monarch. We're monitoring the situation constantly and in talks with Greybull - I won't disclose who I work for but it wouldn't take much to figure out who it is. Nonetheless, my department manages our liquidity and exchange rate risk and this is something we've had an eye on for a while.

 

[Rugrat]

Not really, somebody in the gov must've been keeping an eye out on Monarchs activities!

You could easily convince them that black's white. Any kind of dodgy Management Accounts would have done it. That's part of my angst when these things crop up ... two weeks ago they're talking up the business and saying how there's nothing of substance in the rumours of financial difficulty and then they go bang, take down a whole bunch of creditors, passengers and staff. If they (regulator, investors) had even the basic checks and balances in place they would have seen this coming clear as day. Everyone in Snr Mangement knew and they'll walk away with the story they've been rehearsing the past few weeks and a 'clear conscience' no doubt

Grayling on TV did a good impression of a piece of soggy lettuce, and as for saying the DWP were ready to deal with staff who were losing their jobs, he made it sound like some sort of favour. Grrrrrrrrrrrrrrrrr!

 

[AmexRuislip]

I'm partially unaffected - if anything my company saves a fair amount of money as we had forward contracts due to mature this month with Monarch. We're monitoring the situation constantly and in talks with Greybull - I won't disclose who I work for but it wouldn't take much to figure out who it is. Nonetheless, my department manages our liquidity and exchange rate risk and this is something we've had an eye on for a while.

Cheers for that, at least you have breathing space and foresight

 

[GreersElbow]

Cheers for that, at least you have breathing space and foresight

Much needed for us too - I hated the FX deals, I'm not going to disclose much. Mark-to-market just was not pretty with our forward contracts, they were getting about 15% higher than the current spot rate.

 

[AmexRuislip]

You could easily convince them that black's white. Any kind of dodgy Management Accounts would have done it. That's part of my angst when these things crop up ... two weeks ago they're talking up the business and saying how there's nothing of substance in the rumours of financial difficulty and then they go bang, take down a whole bunch of creditors, passengers and staff. If they (regulator, investors) had even the basic checks and balances in place they would have seen this coming clear as day. Everyone in Snr Mangement knew and they'll walk away with the story they've been rehearsing the past few weeks and a 'clear conscience' no doubt

Grayling on TV did a good impression of a piece of soggy lettuce, and as for saying the DWP were ready to deal with staff who were losing their jobs, he made it sound like some sort of favour. Grrrrrrrrrrrrrrrrr!

I suppose this kind of on par with Mr Green and BHS staff pensions!

 

[Bob!]

Friend was meant to be going to Ibiza with Monarch in a few days, which is now not happening. All the other airlines have sky rocketed their prices as people are looking for alternative flights.

I booked a Jet2com package on Friday for the November international break for under £1000.
Same holiday today would be over £1200.

 

[Balders]

Did I not hear on the news that they are hopeful that somebody will buy them out so that they can continue trading?
One would expect under the ATOL guarantee they would put them on other airlines flights with ATOL standing the extra cost.

Only 5% of their business was covered under ATOL - the package holiday part of the business. Last year when Monarch were going through the same shenanigans with the CAA, the latter made them also take an ATOL contribution on their seat only fares (the other 95% of the business) By December last year, the CAA were satisfied with their financial restructuring and removed the requirement to make a contribution on the Seat Only fares (go figure!! Hindsight etc) So basically if 95% of the business after Dec last year wasn't ATOL guaranteed, there is no protection to pay for other airlines flights.

ATOL under it's different guises for protection takes some figuring out - trust me!!

 

[BensGrandad]

Their assets, BG.....

Yes, they could - if someone wants to buy them, but from what I'm hearing it's unlikely to find a buyer.

What would their assets be as I would assume the planes are leased and the HQ office block etc rented. Which if correct would suggest their assets are very minimal.

 

[Balders]

What would their assets be as I would assume the planes are leased and the HQ office block etc rented.

Slots at airports basically - worth a fortune!!

 

[BensGrandad]

Slots at airports basically - worth a fortune!!

and routes I suppose.

 

[clippedgull]

Only 5% of their business was covered under ATOL - the package holiday part of the business. Last year when Monarch were going through the same shenanigans with the CAA, the latter made them also take an ATOL contribution on their seat only fares (the other 95% of the business) By December last year, the CAA were satisfied with their financial restructuring and removed the requirement to make a contribution on the Seat Only fares (go figure!! Hindsight etc) So basically if 95% of the business after Dec last year wasn't ATOL guaranteed, there is no protection to pay for other airlines flights.

ATOL under it's different guises for protection takes some figuring out - trust me!!

All passengers will be flown home at no extra cost to themselves under the governments guarantee. People are not being asked to buy tickets on other airlines as the government have told the CAA to lease planes to repatriate all Monarch customers.

 

[Rugrat]

I suppose this kind of on par with Mr Green and BHS staff pensions!

If the fools don't get you the criminals will

 

[Rugrat]

All passengers will be flown home at no extra cost to themselves under the governments guarantee. People are not being asked to buy tickets on other airlines as the government have told the CAA to lease planes to repatriate all Monarch customers.

The other 650,000 who haven't yet gone and didn't buy a package holiday are at risk of losing their money (those who paid by debit card or where flights were purchased for less than £100)

 

[BensGrandad]

All passengers will be flown home at no extra cost to themselves under the governments guarantee. People are not being asked to buy tickets on other airlines as the government have told the CAA to lease planes to repatriate all Monarch customers.

That being the case why couldnt the government have given Monarch a 14 day extention or just pay to use their planes etc to bring people home with no outgoing flights permitted.

 

[GreersElbow]

What would their assets be as I would assume the planes are leased and the HQ office block etc rented. Which if correct would suggest their assets are very minimal.

Literally anything owned by Monarch, valuable to any company and as above poster suggests - slots too. Very lucrative

 

[BensGrandad]

Literally anything owned by Monarch, valuable to any company and as above poster suggests - slots too. Very lucrative

You must realize that I am only your average joe with no real knowledge of the industry but just interested in what is happening and how it will affect me in the future when I fly.

 

[Balders]

That being the case why couldnt the government have given Monarch a 14 day extention or just pay to use their planes etc to bring people home with no outgoing flights permitted.

In theory Monarch could have carried on flying without the ATOL Licence (only covers the package holiday arm of the business) but that would spook their Creditors not getting the licence due to financial issues and it would spiral into a Contigent Effect. Flying people back on their own planes would in that situation likely rile Creditors.

14 day extension - happened last year when the finances were in better shape, but I guess this year it was obvious to a blind man and a dog that the situation wasn't recoverable.

 

[stugbhafc1]

My misses has just come back from her meeting at gatwick (very tearful one) and said that both easyjet and norweigen both offered to buy monarch from greyball but turned it down

 

[BensGrandad]

My misses has just come back from her meeting at gatwick (very tearful one) and said that both easyjet and norweigen both offered to buy monarch from greyball but turned it down

Who turned it down Greyball or the airlines, not clear. Even so could a 2nd approach be made?