Up to 1,000 jobs will be cut at Monarch as the UK travel group attempts an overhaul that will reposition it as a low-cost airline competing with easyJet and Ryanair.
The private company, which is currently controlled by the Swiss-Italian Mantegazza family, has been undertaking a strategic review of its business that is aiming to attract new investors.
It will drop its charter flights to focus on short-haul scheduled flying and its fleet will shrink from 42 to 30 aircraft. The proposed cuts comprise about a third of its workforce.
The airline has warned of excess capacity in the market, which has increased competitive pressure on airlines.
Monarch will retain its focus on holiday destinations such as Spain, the Canary Islands and Turkey but add more European cities and skiing destinations. Overall, it will fly more frequently to fewer destinations.
The review is being led by Andrew Swaffield, chief executive, who was previously at International Airlines Group and took over the lead role in managing the airline from executive chairman Iain Rawlinson in July. Sir Roy McNulty has replaced Mr Rawlinson.
Last month, Monarch Airlines announced a fleet order of 30 aircraft at the Farnborough air show.
Its Boeing 737 MAX aircraft, worth $3.1bn at list prices, are due to enter service from 2018.
The group, which has its headquarters at Luton airport, is made up of Monarch Airlines, tour operator Cosmos Holidays and an aircraft maintenance division.
It has been pursuing a turnround and had moved into profit in the past financial year.
“The company has previously stated that the new management team is conducting a strategic review of the group’s businesses, including in relation to their operations, ownership and financing,” Monarch said in a statement.
“That review is ongoing and further announcements will be made upon its conclusion or as otherwise appropriate.”
- Source: http://www.ft.com
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