Jump to content
House Price Crash Forum
TheCountOfNowhere

Monarch...again.

Recommended Posts

I thought not went bust or into some sort of bankruptcy protection recently (I may be wrong).

 

Seems to have ran out of cash at the end of the season, so a bit of a Ponzi there.

Share this post


Link to post
Share on other sites

 

11 hours ago, reddog said:

I thought not went bust or into some sort of bankruptcy protection recently (I may be wrong).

 

Seems to have ran out of cash at the end of the season, so a bit of a Ponzi there.

It looks like it's a keep the plates spinning arrangement- zombie. I would have thought they could have resolved cash flow issues as this keeps happening! 

Edit: should say It appears they get the extension to ATOL protections get cash in to allow them operate long enough to find a buyer?

Edited by Ash4781

Share this post


Link to post
Share on other sites
2 hours ago, Mrs Bear said:

We flew Monarch recently.  Have to say we were very impressed - crew v pleasant and cheerful and service v good. 

Will be sad for them if they go under. 

Ryanair next then .....

Share this post


Link to post
Share on other sites

Fatally undermined by Brexit and Ryanarse.

https://www.yahoo.com/news/monarch-went-wrong-165851531.html

Quote

“We take nearly all of our revenue in pounds and a lot of our costs go out in dollars and euros,” explained Mr Swaffield.

“We pay for aircraft leases and fuel in dollars and things like navigation and ground handling in euros. So we get no revenue benefit from a decline in the pound but we get a big cost increase.”

Quote

Bookings for summer 2017 initially looked promising, but as the peak months of July and August approached, the spree of high-yielding sales did not materialise. With Ryanair cutting August fares between Leeds Bradford and Ibiza to just £40 return, the market was savage. And new routes such as Manchester to Stockholm failed to grip the public imagination, with planes reportedly half-full even with fares at £30 each way.

https://www.yahoo.com/news/monarch-went-wrong-165851531.html

 

 

Share this post


Link to post
Share on other sites

That’s my holiday cancelled, Scunthorpe it is then.. 

anyone get the feeling this is the start of unemployment figures shifting into reverse.. 

on a serious note though this is our governments policy starting to unravel.. our sham economy is going to implode and innocent people are going to get screwed.. I feel sorry for all the employees that are going to get shafted.. this is just a reminder of how shite being laid off is! 

F690A310-EE96-428D-A013-6FCF6D26585F.jpeg

Edited by macca13

Share this post


Link to post
Share on other sites

Been happening regularly since 2008, many sectors have 'quietly' been letting go of thousands of people, finance, retail, pharmaceutical, oil.....

and of course unemployment is at an all-time low.........my ****.

markets have been saturated for years...monopolisation doesnt create jobs...small businesses do, which have been left to struggle, in favour of propping up asset bubbles...which in turn takes even more expendable income not going to local economies....

I think we are still in a deflationary spiral with puffs of high inflation due to lower demand, inverse law?

Happy to be corrected, as one thing I am not or never would have wanted to be is an economist ahaha

Share this post


Link to post
Share on other sites

Now official, bankrupt...shame as this is now probably going to resolve Ryanairs problem I.e all these laid off pilots are going to need a new job and the effect of the recent bad publicity I.e. customer sales will be negated by ra hoovering monarchs old routes/customers. 

Share this post


Link to post
Share on other sites
23 minutes ago, Maximus Skepticus said:

Been happening regularly since 2008, many sectors have 'quietly' been letting go of thousands of people, finance, retail, pharmaceutical, oil.....

and of course unemployment is at an all-time low.........my ****.

markets have been saturated for years...monopolisation doesnt create jobs...small businesses do, which have been left to struggle, in favour of propping up asset bubbles...which in turn takes even more expendable income not going to local economies....

I think we are still in a deflationary spiral with puffs of high inflation due to lower demand, inverse law?

Happy to be corrected, as one thing I am not or never would have wanted to be is an economist ahaha

Top post......that is how I see it, not difficult if you open your eyes.......I am no economist either, no need to be.;)

Share this post


Link to post
Share on other sites

I can vaguely recall flying with them as a child back in the day; very sad to hear them going under.

A few years back somebody said the elephant in the room about our advanced economy imploding was the global airline industry scaling back dramatically since 9/11.

Share this post


Link to post
Share on other sites
4 hours ago, macca13 said:

That’s my holiday cancelled, Scunthorpe it is then.. 

anyone get the feeling this is the start of unemployment figures shifting into reverse.. 

on a serious note though this is our governments policy starting to unravel.. our sham economy is going to implode and innocent people are going to get screwed.. I feel sorry for all the employees that are going to get shafted.. this is just a reminder of how shite being laid off is! 

 

Manufacturing PMI out at 9.30.

http://www.foxbusiness.com/markets/2017/10/01/leaving-eu-with-no-trade-deal-will-hit-uk-industries-hard.html

858.png?w=620&q=55&auto=format&usm=12&fi

Share this post


Link to post
Share on other sites
3 hours ago, Maximus Skepticus said:

markets have been saturated for years...monopolisation doesnt create jobs...small businesses do, which have been left to struggle, in favour of propping up asset bubbles...which in turn takes even more expendable income not going to local economies....

But that's because small businesses are more inefficient and unproductive compared to one big one doing the same thing. The inevitable result - more unemployment, more centralisation, more traffic etc. If you're lucky more cheap tat available when it's going well.

Share this post


Link to post
Share on other sites

https://monarch.caa.co.uk/

 

Monarch has confirmed that the following companies have ceased trading and now entered administration:

 

I'd say it was pretty easy to see this coming, yet people still booked with them.

 

I for 1 will miss monarch, they were very good.

 

So much for a soft landing for the economy.

Share this post


Link to post
Share on other sites
3 hours ago, winkie said:

Top post......that is how I see it, not difficult if you open your eyes.......I am no economist either, no need to be.;)

 I find primary school arithmetic must more powerful that economic models :lol: 

Share this post


Link to post
Share on other sites
4 hours ago, Maximus Skepticus said:

Been happening regularly since 2008, many sectors have 'quietly' been letting go of thousands of people, finance, retail, pharmaceutical, oil.....

and of course unemployment is at an all-time low.........my ****.

markets have been saturated for years...monopolisation doesnt create jobs...small businesses do, which have been left to struggle, in favour of propping up asset bubbles...which in turn takes even more expendable income not going to local economies....

I think we are still in a deflationary spiral with puffs of high inflation due to lower demand, inverse law?

Happy to be corrected, as one thing I am not or never would have wanted to be is an economist ahaha

Yes we are i agree 100%.Its been a long dis-inflation cycle (1982) and the affects of stopping the business cycle ending last time will prove a disaster.Margins everywhere are being crushed.The end of a dis-inflation cycle usually sees a very sharp collapse as companies slash prices simply for cash flow and run at a loss.This sees the whole industry sector move down where only companies with the lowest debt and lowest costs out of the sector survive.The rest you see a huge debt deflation (and alongside it wealth destruction).The mass of zombie companies are using debt to survive and this is making sure the good companies cant make a profit or invest.Most of these companies should have had to pay coupons of 14% but have been able to issue at 5% and also cheap bank debt.Take a look at the pub companies (not spoons) who have free cash flow of £60 mill per £1 billion of debt.

https://markets.ft.com/data/equities/tearsheet/financials?s=MARS:LSE

£1.2 billion net debt,free cash flow around £60 million if you take off expansion capital.

We are now entering,or very close to the point earnings start to go below the debt repayments for many companies and a balance sheet recession kicks in.The only thing to consider is how bad it gets.Due to the leverage on the system and the huge structural issues in the world economy id say we will see a deflationary downturn the worst since WW2.I think people are going to be shocked when whats ahead unfolds.

Share this post


Link to post
Share on other sites
1 hour ago, Errol said:

What was the debt profile of this company?

The gaffer said they would be debt free in 3 years on October 27th 2014.He was telling the truth 100%.They are now debt free,100% debt free,he just didnt mention the equity would go to zero at the same time :lol:

http://www.travelweekly.co.uk/articles/50863/monarch-boss-well-be-debt-free-within-three-years

They also off loaded the pension scheme back then to the government.

Share this post


Link to post
Share on other sites
1 hour ago, Riedquat said:

But that's because small businesses are more inefficient and unproductive compared to one big one doing the same thing. The inevitable result - more unemployment, more centralisation, more traffic etc. If you're lucky more cheap tat available when it's going well.

Totally disagree RQ. Small businesses are usually honed down to the bone. I help people that are SMEs - their staff are very efficient at multi-tasking. They have to be.

The main problem is that they can't compete with debt-fueled powerhouses like Amazon or corporates that are swilled by bank loans/tax avoidance or dealing with increasing rentier overheads. It's very difficult.

There is far more fat on the bone in large companies.

Small business is critical to an economy

https://www.fsb.org.uk/media-centre/small-business-statistics

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 292 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.