Deal for 30 aircraft worth more than US$3.2 billion at list price
Deliveries from Q2 2018 with options for an additional 15 aircraft
31 October 2014, Luton, UK – Monarch Airlines today announces the confirmation of a narrow body fleet order with Boeing for a new generation fleet of 30 737 MAX 8s, worth more than $3.2 billion at current list prices. The order, originally announced at the Farnborough International Airshow in July, includes options for 15 additional 737 MAX 8s and marks the beginning of Monarch’s transition to an all-Boeing single-aisle fleet.
Said Andrew Swaffield, CEO of the Monarch Group: “Seven days after welcoming new owners into the business, this order represents a demonstration of our commitment to the future and the evolution of Monarch as a distinctive European scheduled leisure carrier. The Boeing 737 MAX 8 fits our network strategy of serving our traditional European leisure routes in greater frequency, providing increased choice and service for Monarch customers, with significantly improved unit costs to our business.”
Todd Nelp, vice president of European Sales, Boeing Commercial Airplanes, said: “The 737 MAX is the perfect airplane for Monarch as it moves its business model from a traditional charter carrier to a European scheduled leisure airline, offering improved efficiencies, high reliability and an outstanding passenger experience. We are honoured that Monarch has chosen Boeing as its future partner and are dedicated to ensuring this iconic operator’s continued success.”
Headquartered at London Luton Airport with five additional U.K. bases – London Gatwick, Manchester, Birmingham, East Midlands and Leeds-Bradford – Monarch predominantly serves holiday destinations around the Mediterranean and the Canary Islands as well as European ski resorts. Founded in 1968, Monarch will move to a cost effective and uniform fleet of 737 MAX 8s by 2020.
On October 24, Monarch Airlines and other parts of Monarch Holdings Limited, the UK’s leading independent leisure travel group, completed a restructuring programme and sale of 90% of the group to Greybull Capital LLP under which it secured £125 million of permanent capital and liquidity facilities.
Greybull, a family office that manages investments in private companies across a diversified range of industry sectors, has provided significant capital to Monarch in order to grow the Group and build on its long-established heritage and trusted brand name.
A comprehensive strategic review of all areas of the business, from operations to ownership and financing, aims to build on Monarch’s respected brand and distinctive customer offer in the European scheduled leisure carrier market.
Added Mr Swaffield: “By 2020 Monarch will have the most cost-effective and uniform fleet serving Monarch’s heartland of scheduled short-haul European leisure routes, with increased average frequencies, aircraft utilisation, productivity and profitability. This order is part of a new strategic direction and exciting plan for the future of Monarch.”
The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. The 737 MAX will be 14 percent more fuel-efficient than today’s most efficient Next-Generation 737s – and 20 percent better than the original Next-Generation 737s when they first entered service. The 737 MAX 8 will have an 8 percent per seat operating cost advantage over the A320neo.