9 October 2014 |
travelweekly.co.uk business Essential news, comment and analysis TOP STORY
MONARCH ON RUNWAY TO
RESTRUCTURE
Monarch Airlines is reducing its fleet by 12 aircraft, and 900 jobs are being axed across the group
TROUBLED GROUP SAYS IT IS MAKING GOOD PROGRESS TO
CUT COSTS AHEADOF PLANNED TAKEOVER IN TWO WEEKS’ TIME. IAN TAYLOR REPORTS
Monarch is “on track” to complete a group restructure and cut more than 900 jobs by October 24 when new owner Greybull Capital is due to take over from long-time owners the Mantegazza family. The group declined to give
further details ahead of the deadline as it rushes to meet the conditions of the £75 million share purchase agreement with Greybull announced last month. But the agreement is conditional on Monarch delivering a series of cost-cutting measures and not just reductions in head count and wages. Monarch has
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travelweekly.co.uk — 9 October 2014
already said the fleet will be cut from 42 aircraft to 30. No changes are expected to
the group’s executive committee, which includes group managing director Phil Boggon, chief commercial officer Adrian Tighe and chief operations officer Nils Christy. But redundancies extend to senior management, with departures expected imminently. The company is seeking
904 redundancies, including compulsory job losses, but expects about two-thirds to be voluntary. However, a spokeswoman said: “We don’t want everyone to go.” The October 24 deadline
coincides with Monarch’s move from its summer to winter schedule and would see the Mantegazzas exit and Greybull in control for the start of the new financial year on November 1. The rush to complete the
process and axe one in three jobs has the support of unions representing Monarch Airlines and engineering staff. Pilots’ union Balpa and cabin crew and engineering union Unite issued a joint statement with Monarch announcing staff support for pay cuts and changes in working
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