Monarch staff back plans for 700 redundanciesOct 28, 2014
Staff have agreed to the plans, which also include salary reductions of up to 30%. Two-thirds of the redundancies will be voluntary.
Monarch owners the Mantegazza family have also sold a 90% stake to investment firm Greybull Capital, which has provided £125 million of permanent capital and liquidity facilities underpinned by £50 million capital commitment.
The group has also completed its strategic review and is to reduce its fleet of aircraft from 42 to 34 and end its long-haul and charterflights, choosing to concentrate on the short-haul European routes and to compete with budget airlines easyJet and Ryanair.
Chief executive Andrew Swaffield said: “I would personally like to thank all Monarch employees who have been hugely supportive of the initiatives which were essential to complete this transaction.
"I am very proud to be leading such a team – together we will be building a great future for the group.”
Monarch is to close its base at East Midlands Airport in the summer of next year, concentrating its flights on London Luton, London Gatwick, Birmingham, Manchester and Leeds-Bradford airports.
The aim of the review has been to create the optimum structure to build on Monarch’s respected brand and distinctive offer to its customers in the European scheduled leisure carrier market, Mr Swaffield said.
Greybull partner Marc Meyohas said: “We are delighted to acquire Monarch and invest our capital into a very strong brand with great potential in all its markets and are grateful for the selling shareholders’ support in achieving this transaction.
"We see this as a long-term investment and hope we can be very supportive shareholders throughout Monarch’s next chapter.”
Greybull has acquired the 90% stake from the Mantegazza family, which has owned Monarch since the 1960s.
On behalf of the selling shareholders, Fabio Mantegazza said: “We are very proud to have created one of the most loved aviation brands in the UK over the last 46 years.
"We think that now is an appropriate time to allow new shareholders to take Monarch into the future, with secure financial backing and clear strategic goals and we wish the group every success.”