Monarch Airlines (1968) (London Luton) parent, Monarch Group, has confirmed it is undergoing a strategic review with all aspects of its business - from operations to ownership and financing - currently being scrutinized.
The Telegraph reports that the reforms are being overseen by newly appointed chairman, Roy McNulty, and CEO Andrew Swaffield, and are expected to lead to significant changes in the Group's shareholding.
"The review covers all areas of the business from operations to ownership and financing, with the objective of determining the optimum structure to realise the significant opportunity to build on the respected Monarch brand and distinctive offer to its customers in the budget airline market," Monarch said in a statement.
Quoting anonymous sources close to Monarch's operations, the paper says various distressed and private equity investors, including Better Capital, HIG Europe, Towerbrook and Indigo (of Frontier Airlines (F9, Denver International) and Wizz Air (W6, Budapest) fame), are considering injecting cash into the company, which is owned by billionaire Swiss businessman, Sergio Mantegazza. Should the fund raising drive fail, Mantegazza has appointed restructuring specialists, PwC, to craft a rescue plan.
As previously reported, Monarch requires GBP60million (USD102.2million) in capital to help fund Monarch Airlines' fleet renewal plan which will see thirty B737 MAX 8s being bought from Boeing (BOE, Washington National).
Monarch intends to compete with the likes of Ryanair (FR, Dublin International) and easyJet (London Luton) in the budget market by offering improved onboard service.
