Monarch Airlines To Cease Trading?

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ChopsyOpsy
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Monarch Airlines To Cease Trading?

Post by ChopsyOpsy »

Strong rumours doing the rounds that Monarch will cease trading in the next few hours.

United, Miami Air, Atlas etc aircraft are positioning in the UK and Med in what looks like a controlled close down, with these aircraft being used to repatriate passengers.

If true it will be a sad day for the civil scene.

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Brevet Cable
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Re: Monarch Airlines To Cease Trading?

Post by Brevet Cable »

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boff180
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Re: Monarch Airlines To Cease Trading?

Post by boff180 »

Seems hard to believe to be honest, Monarch have major RAF contracts too including Voyager deep maintenance alongside Atlas too (I think).

They also appear to maintain KC-47/330MRTT on behalf of the UAE.

Andy

jules48
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Re: Monarch Airlines To Cease Trading?

Post by jules48 »

I work in the travel industry and this is tosh.They are in a much better position then people make out and are adding new routes for winter and next summer

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boff180
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Re: Monarch Airlines To Cease Trading?

Post by boff180 »

Something does appear to going on, reports that this mornings Monarch flight is being operated by Air Transat.

Rather than Monarch going bump could it be another major tour operator is about to go under and Monarch have produced its slots to larger capacity aircraft in order to assist in the repatriation?


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Brevet Cable
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Re: Monarch Airlines To Cease Trading?

Post by Brevet Cable »

And if proof were needed , just look on the likes of FR24 & you'll see Monarch flights currently operating as normal.

Unfortunately , such ill-founded rumours have the ability to cause a lot of damage to companies these days.
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Dragon Rapide
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Re: Monarch Airlines To Cease Trading?

Post by Dragon Rapide »

Quite so. Yet again social media rumour mongering fuels speculation and apprehension. What is wrong with people?
Listen to that Gipsy music.....

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DerekF
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Re: Monarch Airlines To Cease Trading?

Post by DerekF »

So that UKAR cannot be accused of joining in and fuelling the speculation, I would suggest that the thread is locked or deleted.

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bigfatron
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Re: Monarch Airlines To Cease Trading?

Post by bigfatron »

Brevet Cable wrote:And if proof were needed , just look on the likes of FR24 & you'll see Monarch flights currently operating as normal.

Unfortunately , such ill-founded rumours have the ability to cause a lot of damage to companies these days.


Although (happily) things seem to continue as normal, it still looks like the rumours weren't without some justification. BBC report talks that went on with the CAA overnight and of Monarch having to get additional investment in. No one has yet come forward either with an innocent explanation of why these charters suddenly appeared (and certainly at least some of the planes had got as far as positioning in).

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Re: Monarch Airlines To Cease Trading?

Post by Dragon Rapide »

But if neither of those "reports" is corroborated they should not be placed in the public domain. The rush to the scoop destroys any semblance of responsible reporting.
Listen to that Gipsy music.....

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planenuttoo
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Re: Monarch Airlines To Cease Trading?

Post by planenuttoo »

Monarch state that all is well, and are trying to scotch these rumours.
http://www.bbc.co.uk/news/business-37469743

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bigfatron
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Re: Monarch Airlines To Cease Trading?

Post by bigfatron »

Dragon Rapide wrote:But if neither of those "reports" is corroborated they should not be placed in the public domain. The rush to the scoop destroys any semblance of responsible reporting.


The bit about additional investment quoted a Monarch statement. And with regard to the CAA talks bit generally the BBC will say if a rumour is a rumour, and they were pretty specific that those talks did happen.

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Re: Monarch Airlines To Cease Trading?

Post by Dragon Rapide »

Ah but it's all about context and interpretation. Monarch said "significant investment" would be announced. So that's either a positive statement and a ringing endorsement or a suggestion that it needs investment to save it. Likewise the talks with the CAA probably did take place but unless the context is also published the statement is open to interpretation and speculation.

If they had waited and obtained a statement of clarification from Monarch there would have been no problem. It's that easy!!
Listen to that Gipsy music.....

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Mooshie1956
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Re: Monarch Airlines To Cease Trading?

Post by Mooshie1956 »

From what I've read this morning as a catch up from last night, it's something to do with Greybull who have pulled out of there investment in Monarch. Greybull informed the CAA of this, hence causing the CAA to think Monarch had gone bust. There are theories/rumours behind this, which to be honest I'm not repeating on here.
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bigfatron
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Re: Monarch Airlines To Cease Trading?

Post by bigfatron »

Dragon Rapide wrote:Ah but it's all about context and interpretation. Monarch said "significant investment" would be announced. So that's either a positive statement and a ringing endorsement or a suggestion that it needs investment to save it. Likewise the talks with the CAA probably did take place but unless the context is also published the statement is open to interpretation and speculation.

If they had waited and obtained a statement of clarification from Monarch there would have been no problem. It's that easy!!


Well talks on a Sunday night certainly suggest it wasn't something routine. I take your point and there is indeed no confirmed fire, but by golly there is still an awful lot of smoke.

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Re: Monarch Airlines To Cease Trading?

Post by Dragon Rapide »

The smoke's not there unless someone, intent on mischief making, lights a fire...!! :roll: :wat:
Listen to that Gipsy music.....

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bigfatron
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Re: Monarch Airlines To Cease Trading?

Post by bigfatron »

Dragon Rapide wrote:The smoke's not there unless someone, intent on mischief making, lights a fire...!! :roll: :wat:


'Mischief making' would infer that any speculation that all was not well was totally without any grounds, which doesn't appear to be the case.

Anyway, we appear to be going round in circles so i'll leave it there.

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Mooshie1956
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Re: Monarch Airlines To Cease Trading?

Post by Mooshie1956 »

Read into this what you want. From BBC website.

Monarch has been majority-owned by investment firm Greybull Capital since 2014, when it bought a 90% stake in the airline. Greybull also bought a division of Tata Steel this year, as well as 140 M Local convenience stores from Morrisons, which subsequently went into administration.


I know Morrisons Local's near us have subsequently been sold on.
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Slappywag
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Re: Monarch Airlines To Cease Trading?

Post by Slappywag »

Mooshie1956 wrote:Read into this what you want. From BBC website.

Monarch has been majority-owned by investment firm Greybull Capital since 2014, when it bought a 90% stake in the airline. Greybull also bought a division of Tata Steel this year, as well as 140 M Local convenience stores from Morrisons, which subsequently went into administration.


I know Morrisons Local's near us have subsequently been sold on.

Let's not forget, M Locals weren't even close to being profitable in that sector. Contrary to Monarch, based on their statement above and earlier.

Think there's been enough stirring of this pot for now.

Nige321
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Re: Monarch Airlines To Cease Trading?

Post by Nige321 »

Pot stirring...?
Who's doing the stirring?
The CAA positioned 747s from the US to the Med and then assigns them flight numbers for today similar to Monarch numbers.

Did they think nobody would notice?
It appears that discussions between Monarch, Greybull, banks and the CAA went on overnight.
Their ATOL bond runs out on Sept 30th, and it's around £5M to renew...

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Re: Monarch Airlines To Cease Trading?

Post by Dragon Rapide »

bigfatron wrote:'Mischief making' would infer that any speculation that all was not well was totally without any grounds, which doesn't appear to be the case.

.


Well it would certainly IMPLY that all was not well. For which, of course, there is not a shred of evidence....
Listen to that Gipsy music.....

Dragon Rapide

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bigfatron
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Re: Monarch Airlines To Cease Trading?

Post by bigfatron »

Dragon Rapide wrote:
bigfatron wrote:'Mischief making' would infer that any speculation that all was not well was totally without any grounds, which doesn't appear to be the case.

.


Well it would certainly IMPLY that all was not well. For which, of course, there is not a shred of evidence....


Hopefully someone will come forward and announce that the charters that came to light over the weekend were just a massive coincidence then. Although I expect the fuller story and statement of position will have to come forth anyway just to reinforce consumer confidence.

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boff180
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Re: Monarch Airlines To Cease Trading?

Post by boff180 »

Monarch was today scrambling to finalise a multi-million pound rescue package in a bid to allay fears that the 50-year-old airline is teetering close to collapse.

The Luton-based carrier, which employs almost 3000 people, said its flights are operating as normal and that it is trading well despite both “negative speculation about Monarch’s financial health” and “a difficult period for the holiday industry due to terrorist incidents, Brexit and the resulting devaluation of sterling”.

The airline, which flies almost seven million passengers a year from five UK bases, spent the weekend trying to quash social media concerns of its demise as “rumours”.

But Monarch admitted that it had had to seek out “significant investment” in a bid “to weather tougher market conditions and to fund its ongoing growth”.

Industry insiders claimed it had been close to going bust before shoring up extra funding.

The airline is protected by the Air Traffic Organisers’ Licensing (Atol) scheme, so it has to hold at least three months’ cash in reserve. One industry expert said: “Monarch’s admission that it is putting extra money in is very significant. Since airlines have to have a lot of cash on their balance sheet under Atol requirements, this is a big warning sign.”

Plane-watchers also noticed US carrier United Airlines appeared to launch services on the same routes, at the same times, as Monarch flights, sparking rumours that the Civil Aviation Authority was preparing to repatriate passengers from across Europe in case Monarch could not bring them home. The CAA said it could not comment.

One Monarch passenger told the BBC the carrier’s “engineers were tipped off at 3pm yesterday and went and got their tools before they were to be impounded”.

The airline however said: “Our flights are carrying Monarch passengers as scheduled” and pointed out that it’s set to make more than £40 million in underlying earnings in its financial year to October.

Monarch was bought by investment firm Greybull Capital — which bought Comet and M Local convenience stores before putting both into administration — in a £100 million rescue deal.

Monarch’s finances had improved — it posted a £26 million pre-tax profit, after a £210 million dive into the red the year before, although revenues fell 14% to £655 million last year.

But in June, accounts filed with Companies House showed parent firm Monarch Holdings was seeking £35 million in secure facilities from either Greybull Capital or an outside lender, and the airline issued a ‘going concern’ warning in its annual report.

A rival airline said: “This has been a really tough year for airlines, Monarch is particularly exposed — it had a big presence in Egypt and North Africa, and then there was Brexit.”


http://www.standard.co.uk/business/mona ... 53991.html

ChopsyOpsy
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Re: Monarch Airlines To Cease Trading?

Post by ChopsyOpsy »

DerekF wrote:So that UKAR cannot be accused of joining in and fuelling the speculation, I would suggest that the thread is locked or deleted.

Why the sudden urge to lock down anything that fuels any sort of reasonable speculation? I understand it if there is an accident or fatality but an airline potentially ceasing ops, really? Is that where we're at?

At the end of the day, something was going on and it certainly appears that Monarch were on the brink of ceasing operations.

There could have been very few, if any ways to explain the sudden arrival of all of those airliners in the Med area other than planning for repatriation of tourists of a failed airline. United flights scheduled to depart at the same time and to the same place as Monarch flights? Tourists told there flight was now being operated by Air Transat?

Their PR machine didn't help themselves either. A constant denial of any problems, even when asked about the coincidental arrival of a United 747 or passengers being advised their airline had changed. Granted the PR department may have been in the dark.

Anyway, 20 years ago they may have got away with this without it leaking. The advent of the net and things like FR24 has made this almost impossible. People shouldn't underestimate the power of social media and the more importantly the aircraft enthusiast!

Lastly, those who still have their blinkers on and still think this is some sort of rumour with no truth should look at the facts surrounding the events of the last 24 hours. People will sometimes put two and two together and get five, least night they may not have got four but they were as close as matters.

Too much smoke for there not to have been a fire.

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