Aviation news analysis
50 SKY SHADES - World aviation news

EasyJet announces 'shock' bid to snap up budget airline rival Monarch

Download: Printable PDF Date: 18 Apr 2016 04:31 category:
Publisher:
EasyJet announces 'shock' bid to snap up budget airline rival Monarch - Airlines publisher
Krista Kuznecova
Country: United Kingdom Aircraft: Airplanes Airline: EasyJet
Source: IBTimes

 

EasyJet is reportedly making a surprise takeover bid for rival British budget airline Monarch, it was reported on Sunday, 17 April. A takeover would signal a further upturn in the ailing British aviation company's fortunes after it came close to collapse in 2014, due in part to an "outdated business model" and stiff competition from rival budget airlines.

Monarch – which was previously restructured by Swiss-Italian billionaire family and private equity firm Mantegazza – are now owned by Greybull Capital, the same family investment fund that is reportedly buying Tata Steel's Scunthorpe plant.

According to a Sunday Times business report, hefty cuts in costs and overheads saw Greybull turn Monarch from a £94m ($139.5m) loss to a £40m profit in the year running up to October 2015. A major factor in the company's reversal of fortune has been attributed to a recent slump in fuel prices – although prices had increased by an average of 1p a litre in March 2016.

The report states that the turnaround saw 700 jobs axed, cut staff pay by 30%, and a reduction in the service's aircraft fleet from 42 to 34.

"The continued success of Monarch has generated inbound interest and Deutsche Bank is continuing to work with us to evaluate both inbound and outbound opportunities" said Monarch in an official statement.

However, EasyJet is going head-to-head a range of other bidders, including China's HNA group, although the rival bidders would only be allowed to take a 49% stake in the business due to restrictions on foreign ownership of airlines. If EasyJet's bid succeeds it would acquire 100% of Monarch and its assets, the Sunday Times reported further.

The airline service currently shares EasyJet's main terminal of Luton Airport, UK. The budget airline's proposed bid also follows on from its acquisition of GB Airways in 2007 and a £20m payment for defunct airline Flybe's Gatwick 'slots' in 2013.

EasyJet has so far declined to comment on its proposed takeover bid.



Loading comments for EasyJet announces 'shock' bid to snap up budget airline rival Monarch...


Recommended

The year 2018 for Lithuanian Airports – the year of the leap: records have been hit in both number of the passengers and flights

The year 2018 will be recorded among the best aviation years for the company Lithuanian Airports, since new records were reached - 6.3 million passengers were served and 61 thousand flights were condu...

Following 2018 success London Biggin Hill eyes up 2019 development

London Biggin Hill is predicting an exciting 2019, hot on the heels of the latest WingX Advance report identifying the airport as one of the fastest growing in Europe over the past 12 months. ...

FBO RIGA launched Embraer authorized service center

FBO RIGA, an operator of business aviation center at the Riga Airport, and Jet Flight Service, an international MRO provider for business aviation, announce the launch of an Embraer authoriz...

Emirates network updates for 2019

Emirates has announced adjustments to its operational schedules in 2019 to minimise the impact of the closure of Dubai International Airport’s Southern Runway in April and May 2019, and to respo...