Jobs under threat as Monarch reviews operational structure

MONARCH Airlines, which has a large operation at Birmingham Airport, may be on the verge of cutting hundreds of jobs as part of a review of its operations.

The BBC has claimed that as many as 1,000 jobs – a third of the airline’s workforce – may be under threat as part of a restructure that aims to cut costs and scrap long-haul flights.

The airline has already announced that it will end flights out of East Midlands Airport from next year.

It is thought the company wants to consolidate operations on the short-haul sector, for which Birmingham is a major hub.

It was only last year that the company invested in a major new maintenance facility at Birmingham Airport, creating 150 new jobs.

The reason for the review is thought to be that despite increased capacity in the airline sector, passenger demand remains flat.

In October last year it announced it was to invest heavily in new aircraft and staff training. The move was aimed at doubling the size of the airline’s fleet by 2020.

Just last month, it confirmed a £1.75bn order for 30 new Boeing 737 aircraft – a mainstay of the short-haul sector – which are due to be delivered by 2020.

In a statement, the airline confirmed it would move completely to scheduled flying from summer 2015, as it continued with its transformation to become a scheduled European low-cost carrier.

The short-haul sector already accounts for around 85% of the airline’s business.

“The continuation of charter services is now incompatible with operating the efficient schedule that Monarch is planning for the future. The decision to withdraw fully from charter flying is part of a strategic review being led by Andrew Swaffield, who was recently appointed Chief Executive of The Monarch Group,” it said.

A number of the routes Monarch currently operates on a charter basis may become part of the airline’s scheduled programme for summer 2015, though this is a subject of the review.

It said it aimed to complete its transformation to a completely European low-cost carrier by the time its new narrow-bodied aircraft fleet of 30 Boeing 737 MAX8s started entering service in 2018.

Andrew Swaffield said: “Changes in our market convince us that there is now a real opportunity for a scheduled low cost carrier that knows how to work in the leisure travel sector. We hope to continue growing our relationships with our travel trade partners and meet many of their needs through our scheduled services in future.

“Monarch’s success depends upon us delivering the best possible operation and quality of service for our customers – and at sustainable levels of profitability.  It is for these reasons that we are taking important decisions to reshape our base network and flying schedule next year.”

The airline has eight aircraft based at Birmingham Airport and flies 28 services from the hub.

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