Monarch is faced with a horrendous £317m loss – around $400mUS. This has been known for some time but the size surprised most of us, and is related to what Monarch describe as egregiously high lease costs.
Last year the UK CAA put Monarch on a watch list because it had to prove it could meet its 30 day obligations with operating cash, and that renewal is up for review again this year. In 2016 Greybull Capital and Boeing saved the company with a £163 million cash injection and the deal for 45 738 Max’s.
It’s going to take more than that this time and an equity deal is expected with easyJet or possibly Jet2.com to fully push Monarch into safe ground.
Monarch has moved away from the charter business and now operates a scheduled flights operation to European holiday destinations and some major cities.
Here’s hoping this iconic British Airline manages to keep its identity if not its full independence.