Sad News As Monarch Airlines Goes Bust

Monday the 2nd of October 2017 is a sad day with the loss of the UK’s 5th largest airline. It really hits home to me as i was on a Monarch package holiday less than 2 weeks ago., but the CAA have announced that they have ceased trading with immediate effect.

The Monarch group, which consists of Monarch Holidays as well as Monarch Airlines is now in administration. Rumours over the last day or so have been rife and a number of aircraft from Qatar Airways were standing by ready to pick up people who are abroad and due to return on Monarch flights. Strangely enough almost exactly 12 months ago the same thing happened, however Monarch were given a reprieve after an investment company gave them a £165 million cash injection.

Monarch was originally set up by a Swiss family in 1967, the Mantegazzo’s with just 2 ex-Caledonian aircraft. The 1970’s saw the dawn of jet engines on commercial aircraft and by 1976 it was an all-jet fleet.  Throughout the decades the airline grew and grew, taking it’s passenger numbers up to over 7 million annually and initially making a healthy profit. The company (and the travel industry in general) has had it’s fair share of challenges to deal with such as terrorism affecting tourist destinations, a huge increase in fuel costs due to problems in the Middle East and competition from budget airlines. In 2009 the company posted a deficit of £32 million which saw the need for a cash injection from the Mantegazza’s of £45 million. The following year saw a profit, but this was short lived as they were back in the red in 2011 to the tune of £45 million. 2014 was the first year that Monarch’s CAA license looked in any kind of doubt, but they managed to continue trading with a buyout from Greybull Capital, who bought the company for a nominal fee and made £125 million of investment available. Unfortunately, however this time there is nobody here to step in and rescue the company.

It makes me feel sad as I have flown with Monarch many times. They feel like part of aviation heritage. Obviously I feel for people who have been inconvenienced and put out of pocket because of the situation, but my heart goes out to the employees who now find themselves out of a job with the festive period fast approaching.

RIP Monarch.