Four Reasons why Monarch failed(according to the BBC):-
Yet again the BBC seeks to have a go at Brexit again, listing the dollar pound ratio as number one for the sad demise of Monarch Airlines. If one reads the article this should be number four on the list. Because the dollar - pound ratio has affected all UK airlines.
More significant is item No.3 - Greybull moving away Monarch from long haul to short hall, right into the teeth of the opposition; Rynair, EasyJet and Whizz etc. One simply cannot copy established competitors thinking it is possible to do the job better. Just look at the passenger numbers from 2015. IMHO, Greybull took a decision, possibly because of the problems in Tunisia, Sharm el Sheik etc
Which also affected the competitors. They realised the mistake too late.
Monarch had a 45 airliner order with Boeing, neither Greybull or Boeing will want to lose their investments.
Could Monarch rise again like a Phoenix from the ashes ? Or are the markets full with capacity already ?
"As soon as the money men think of planes, common sense takes flight."
Is the headline from the City Editor, Jim Armitage of the Evening Standard.
He argues that Greybull was dazzled by the airline business and pumped money into a losing situation. Perhaps to an extent that is true, but there are other factors. Trying to compete with the EasyJets and Ryanairs of this world, was always going to be near impossible, British Airways, Air France etc, have been finding it rather difficult themselves.
It was all down to finding a different model, this takes someone special, someone with a great knowledge of aviation and the tourist business in general. That is why I agree with Jim Armitage's headline.
Something in a similar way happened to me in 1987. I met a young high level financier, an American working for Pacific Investments or some such name like that. He told me confidently that he was financing a new airline, that was to fly from Glasgow and Edinburgh to some Baltic states. "What aircraft will you use?" I enquired.
"A Bae 748." He replied.
"What ! That can only fly at 200 knots with a tailwind and flies at about 10,000 feet. Slow and bumpy all the way!" I was shocked.
"We got a great deal from Bae." He arrogantly asserted, looking down at me. I was not a whizz-kid financer. I sent him a few options for suitable aircraft. It was ignored.
Six weeks later the airline failed.
The government claims there is not a crisis in aviation?
Well......
Air Berlin is insolvent.
Alitalia is insolvent.
Only the EU system allows Air Berlin and Alitalia to continue to fly.
Ryanair cancels many flights, allegedly because of a problem with crew annual leave.
British Airways has two computer crashes.
Crisis, what crisis ?
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