Tag Archives: Med Holidays

Monarch denies previous refinancing ‘failed’

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Monarch denies previous refinancing ‘failed’

By Ian Taylor |  Nov 03, 2011 12:30PM GMT

The Monarch Group has denied a £75-million refinancing of its loss-making airline was necessary because a previous financial restructure had failed.

Monarch executive chairman Iain Rawlinson said: “The 2009 refinancing was a success. It allowed the business to return to profitability last year.”

The group announced the £75 million cash injection from its controlling shareholders, the Swiss-based Mantegazza family, on Thursday. The move followed a £45-million refinancing two years ago.

Rawlinson reported a £45 million loss for the year to October 31. But he told Travel Weekly: “What we are looking at here is a response to a long-term re-shaping of the market.

“We made a decision in May this year, when oil prices had been $110 a barrel for several months, that high oil prices were here to stay and we had to reshape the business. That was the priority.

“We spent May to July developing a plan for a changed, higher-price environment and that is what the shareholders have accepted. We are taking the initiative to ensure the business can operate successfully in a changed environment.”

Rawlinson said he did not expect market conditions to improve next year and consumers would have to adjust to paying higher fares.

He said: “It is inevitable the cost of flying is going to rise. Fuel costs have increased on average 25%-30% this year – although I’m not suggesting all that will be passed through to consumers. It is incumbent on all of us in the industry to run our businesses more efficiently.”

Rawlinson conceded: “We made a substantial loss [on the current year]. We are very cautious about 2012. But prospects for recovery in 2013 are better. We expect the market in 2013-14 should show some signs of recovery, based on a hopeful return of consumer confidence.”

He attributed the losses for 2010-11 solely to Monarch Airlines, reporting tour operator Cosmos and the group’s aviation engineering business, Monarch Aircraft Engineering, had been profitable.

BA parent agrees €355 million bid for BMI

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BA parent agrees €355 million bid for BMI

Nov 04, 2011 08:30AM GMT

BA parent agrees €355 million bid for BMI

British Airways/Iberia parent company International Airlines Group has agreed to buy loss-making Heathrow rival BMI from Lufthansa.

The deal, which will be seen as a major coup for IAG chief executive Willie Walsh, is expected to be completed early next year. Today’s announcement will come as a major blow to Virgin Atlantic which faces being further marginalised at the London hub.

BMI controls 9% of valuable take-off and landing slots at Heathrow, which is now operating at full capacity after plans to build a third runway were scrapped.

But the deal with IAG is likely to attract a competition probe over potential dominance of slots at Heathrow. BMI has 300 flights a week operating from Heathrow and recently sold six sets of slots to BA.

“It gives BA the opportunity to grow in the UK,” said Walsh, who admitted that the deal, reported to be worth €355 million, had yet to be finalised.

Walsh said the deal will mean IAG will have around half of the slots at Heathrow but this is still less than Lufthansa at Frankfurt and Air France/KLM has at Paris. The takeover of BMI will enable BA to expand its long-haul network.

Virgin Atlantic said: “British Airways’ hold over Heathrow is already too dominant and we are very concerned – as the competition authorities should also be – that BA’s purchase of BMI would be disastrous for consumer choice and competition.”

Speaking on BBC Radio 4’s Today programme this morning Walsh ruled out a bid for ailing Italian carrier Alitalia.

IAG said: “The sale and closing of the deal remain subject to conditions including a binding purchase agreement, further due diligence and regulatory clearances. It is envisaged that the purchase agreement will be signed in the coming weeks and the aim is for the transaction to be completed in the first quarter of 2012.”

BMI reported a loss of €154 million in the first nine months of 2011.

Weddings at Sea – How much?! Find out with our exclusive comparison chart!

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Smile Weddings at Sea – How much?! Find out with our exclusive comparison chart!

A big traditional white wedding at home can cost an arm and a leg, so it’s not surprising that more and more couples are choosing to get married abroad or at sea.

Not only does a cruiseship wedding offer great value for money, but for those of us who hate planning it’s a great way to get someone else to organise all the nitty gritty details for you too!

Here is an easy comparison of what the top cruise lines offer and most importantly the costs involved 

The average wedding cost includes the price of the cruise based on 2 adults sharing a balcony cabin on a 12 night Mediterranean Cruise (flights included where applicable), the wedding package, wedding license fee, photographs, hand held bridal flowers and one tier wedding cake.

Please note some of the cruise lines charge dollars onboard so these prices are correct as of 7 October when the prices where converted to pounds.

 Did you get married at sea, or ever attended a cruise ship wedding? Maybe you’re considering it? What do you think of these prices? Who do you think you’d book with?