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Monarch airlines plans to slash workforce by up to 30% | Monarch airlines plans to slash workforce by up to 30% |
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Monarch Airlines may cut as many as 1,000 jobs as part of a major strategic review that aims to cuts costs and may lead to the end of long haul flights. | Monarch Airlines may cut as many as 1,000 jobs as part of a major strategic review that aims to cuts costs and may lead to the end of long haul flights. |
The airline will instead aim to compete with low cost airlines Ryanair and Easyjet and concentrate on short-haul flights to Europe. | The airline will instead aim to compete with low cost airlines Ryanair and Easyjet and concentrate on short-haul flights to Europe. |
The job losses amount to around a third of the airline's workforce. | The job losses amount to around a third of the airline's workforce. |
The airline has not yet officially announced the cuts, but sources told the BBC jobs would be lost. | The airline has not yet officially announced the cuts, but sources told the BBC jobs would be lost. |
Despite increased capacity the airline said passenger demand was flat. | Despite increased capacity the airline said passenger demand was flat. |
It is retiring three Boeing 757s this Autumn and will have replaced its whole fleet in the next five years. | It is retiring three Boeing 757s this Autumn and will have replaced its whole fleet in the next five years. |
In July, it confirmed a £1.75bn order for 30 new Boeing 737 aircraft to be delivered by 2020. It is likely to mean a reduction in the size of its fleet from 42 to 30, although the airline does have an option with Boeing to buy a further 15 aircraft. | In July, it confirmed a £1.75bn order for 30 new Boeing 737 aircraft to be delivered by 2020. It is likely to mean a reduction in the size of its fleet from 42 to 30, although the airline does have an option with Boeing to buy a further 15 aircraft. |
A statement released by Monarch on Monday said: "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. | A statement released by Monarch on Monday said: "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. |
"That review is on-going and further announcements will be made upon its conclusion or as otherwise appropriate." | "That review is on-going and further announcements will be made upon its conclusion or as otherwise appropriate." |
Strategic review | Strategic review |
In an interview with Travel Weekly, Andrew Swaffield, who took over as Monarch chief executive in July, said: "We're on a trajectory of changing from a charter airline to a scheduled European low-cost carrier. We need to operate as efficiently as a low-cost carrier." | In an interview with Travel Weekly, Andrew Swaffield, who took over as Monarch chief executive in July, said: "We're on a trajectory of changing from a charter airline to a scheduled European low-cost carrier. We need to operate as efficiently as a low-cost carrier." |
He added he expected Monarch to be competing with Easyjet and Ryanair within the next year to 18 months. Mr Swaffield added it was "difficult" for Monarch to operate a long-haul business with only two aircraft. | He added he expected Monarch to be competing with Easyjet and Ryanair within the next year to 18 months. Mr Swaffield added it was "difficult" for Monarch to operate a long-haul business with only two aircraft. |
Earlier in August, Monarch announced it will stop flying from East Midlands Airport next year. | Earlier in August, Monarch announced it will stop flying from East Midlands Airport next year. |
The company began operating from East Midlands after low-cost airline BMI Baby ceased trading in September 2012. | The company began operating from East Midlands after low-cost airline BMI Baby ceased trading in September 2012. |
It currently operates 34 flights a week from the airport to nine destinations, mainly in and around the Mediterranean. | It currently operates 34 flights a week from the airport to nine destinations, mainly in and around the Mediterranean. |
A spokesman said the decision came after a review of services. The final Monarch flight will take place at the end of April 2015. | A spokesman said the decision came after a review of services. The final Monarch flight will take place at the end of April 2015. |
Analyst Howard Wheeldon said the change in strategy at Monarch would come "as little surprise" for many given the strength of competition, high costs and industry overcapacity. | |
He added many believed the "continuing rise in airport passenger duties....have and will continue to depress and further damage the UK airline industry". |