Monarch into admin

[Rugrat]

Particularly bad new for '000's away at moment and booked.

It will be a big hole to fill and I'd expect a chunk of their business and slots to get taken by one of the other carriers and the rest ditched. Bad news for pricing for sure with a big player 'removed overnight'

Very surprised there wasn't some sort of (further) bailout ... I assume their investors deemed it to be beyond help which is odd given that the low cost carrier model is 'proven' and other tour operators appear to be surviving OK. Will be interesting to see what emerges once information starts to flow

 

[Chicken Run]

Their CEO advises passenger uplift of 14% over last year for £100,000,000 less revenue [emoji15][emoji15]

 

[Rugrat]

Their CEO advises passenger uplift of 14% over last year for £100,000,000 less revenue [emoji15][emoji15]

I know their CEO ... I'd most certainly question that statement

 

[osgood]

Big loss, never had a bad flight with Monarch..

 

[AmexRuislip]

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.

 

[Chicken Run]

I know their CEO ... I'd most certainly question that statement

From the Sky News In a statement, Monarch CEO Andrew Swaffield blamed a number of things for the airline's demise, saying: "Since 2015 we've seen yields collapse by a quarter, resulting in £160m less revenue.

"This has especially affected Spain and Portugal which is 80% of our business.

"This year the airline is carrying 14% more passengers than last year for £100m less revenue.

The root cause is the closure, due to terrorism, of Sharm-El- Sheikh and Tunisia and the decimation of Turkey."

 

[Chicken Run]

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.

You mean like this one last year?

Monarch to go bust?

https://r.tapatalk.com/shareLink?sh...dchat.com/showpost.php?p=7604844&share_type=t

 

[Leekbrookgull]

Maybe this is what Micheal O'Leary was waiting for in as much that it could go some way to solving Ryanair's crew shortage ?

 

[AmexRuislip]

https://monarch.caa.co.uk

As a result, we are sorry to inform you that, as of 2 October 2017, all future holidays and flights provided by these companies have been cancelled and are no longer operating.

This is an unprecedented situation and because there are up to 110,000 passengers abroad, the UK Government has asked the CAA to coordinate flights back to the UK for all Monarch customers currently overseas. These new flights will be at no extra cost to you.

 

[AmexRuislip]

You mean like this one last year?

Monarch to go bust?

https://r.tapatalk.com/shareLink?sh...dchat.com/showpost.php?p=7604844&share_type=t

Thank you

 

[Rugrat]

From the Sky News In a statement, Monarch CEO Andrew Swaffield blamed a number of things for the airline's demise, saying: "Since 2015 we've seen yields collapse by a quarter, resulting in £160m less revenue.

"This has especially affected Spain and Portugal which is 80% of our business.

"This year the airline is carrying 14% more passengers than last year for £100m less revenue.

The root cause is the closure, due to terrorism, of Sharm-El- Sheikh and Tunisia and the decimation of Turkey."

I wasn't doubting that he made the statement! I just don't necessarily buy it. Yes, Sharm and Turkey would have hit them as it would all the others. That would have hit their top line number but they've replaced that (and more) with other business. They look like they've been buying that for market share and have been very successful but seemingly at the cost of the entire business.

I'm sure there's a whole lot more to this and it wasn't just a matter of being a total basket case that went on selling seats and holidays which it knew it was losing money on without having an understanding why (e.g further investment lined up, growing profitable sales quicker etc) .. and yes I very much appreciate they wouldn't be the first

 

[beorhthelm]

as i recall it from last year, their business is built on debt. the banks own everything so even though they announce a tidy profit they need to meet certain cash outflows and have bonds in place otherwise they cant fly.

 

[Steve in Japan]

Leaves a big hole for people who want flights only. I used them a fair bit and will miss the service. No doubt any slack will get picked up in time, but in the interim it's chaotic.

 

[Rugrat]

as i recall it from last year, their business is built on debt. the banks own everything so even though they announce a tidy profit they need to meet certain cash outflows and have bonds in place otherwise they cant fly.

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

 

[murciagull]

Booked with Monarch to come over for the Palace game!

Have to rebook now!

 

[Mackenzie]

Sad news. They were a good airline.

 

[Binney on acid]

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

 

[WATFORD zero]

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

So it's your fault !

Am i right in thinking all airline fuel is bought and sold in dollars ?

 

[Justice]

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

 

[Beach Hut]

Sadly they nearly went down 12 months ago and have serious trading issues, still more honourable than Ryanair