This will include 30 Boeing 737 MAX 8s, for delivery from Q2 2018
The new aircraft will be a milestone in Monarch Group’s transformation and renewal
Efficiency and size of aircraft will help Monarch create a European operation which maximises year round profitability
(Farnborough/Luton, UK – 14, July 2014) – The Monarch Group, the UK’s leading independent travel group, today announces that it has chosen Boeing as its preferred bidder for its narrow-bodied fleet replacement. The Group is in the process of finalising terms and working towards signing a Purchase Agreement with Boeing for the purchase of 30 next-generation Boeing 737 MAX 8 aircraft, with options on a further 15 aircraft.
The announcement with Boeing represents the latest major milestone in the transformation and renewal of The Monarch Group, and is integral to realising the opportunity for Monarch Airlines to differentiate itself in its market whilst bringing back warmth and a personal touch to European air travel.
The key points of today’s announcement are:
• Potential contract – At list prices, the 30-aircraft deal would be worth US$3.1 billion, with options on a further 15 aircraft. The Monarch Group has been evaluating all options for re-equipping its aircraft fleet.
• Monarch Airlines repositioning – Monarch Airlines is completing its transition from a traditional charter carrier to a European scheduled low cost airline. Over the last three years, Monarch has made significant progress, which has included:
Relentless customer service improvement, building on the Airline’s heritage and differentiation. This has been underpinned in 2014 by the introduction of Olympics-inspired ‘WorldHost’ customer service training.
A continuing drive for further efficiencies in the Airline in order to bring unit operating costs into line with its low-cost competitors over the medium term. Monarch Airlines’ fleet has been undergoing a progressive rejuvenation over recent years. This process, and the plans announced today, will contribute significantly to both objectives, improving service levels and providing cost savings through fuel economy and better asset utilisation.
The appointment in April 2014 of a new Managing Director for the Airline, Andrew Swaffield, whose 25 years’ management experience in travel, aviation and airline loyalty will help Monarch to deliver its commitment to providing superior customer service and value.
Iain Rawlinson, Executive Chairman of the Monarch Group, said: “Today’s announcement is an important milestone in an exhaustive three year evaluation process, and a key part of The Monarch Group’s transformation and renewal. Boeing truly understood our business and put together a complete package that fits extremely well with our ambitions for the Group. With this announcement, we begin another chapter in our long and fruitful relationship with Boeing – something which now stretches over 40 years.”
Andrew Swaffield, Managing Director of Monarch Airlines, said: “I joined Monarch Airlines because I saw that it has a unique brand, and exceptional people. We see an opportunity to bring back warmth and a personal touch to a very commoditised European aviation market. Our size enables us to deliver on this promise. With this fleet replacement we are choosing the correct number of aircraft and the correct size of aircraft to help us create a year round efficient European operation which maximises profitability. Our process has been rigorous and fair and I am delighted to have been given the opportunity to lead it to a successful conclusion.
“Having reviewed all of the options in the marketplace, we concluded that the Boeing 737 MAX 8 is the aircraft that best fits our future route network strategy, enabling us to tightly control our unit costs whilst offering a superior service to our customers.”
Ray Conner, President and CEO, Boeing Commercial Airplanes said: “We are delighted that Monarch intends to structure its future fleet around the 737 MAX. We look forward to finalizing the order and can’t wait to see the Monarch livery on 737s once again. Today is a proud moment for everyone at The Boeing Company, as we welcome back a prestigious U.K. operator, and we are confident that the 737 MAX will play a significant role in Monarch’s continued success.”