Monarch - User Forum 2016

• Monarch Airlines began operations in 1968.
• In 2014 the Swiss owners decided to sell.
• October 24th 2014: Saved with 10 minutes left to seal the sale to Greybull Capital.
• Complete Re-Structure needed to make the airline competitive.
• OUT: Long Haul, Charter Flying, ‘Legacy’ way of operation.
• IN: New Aircraft, Low-Cost Leisure Flights, New Way of Thinking.
We could start 2015 with a CLEAN SHEET!
• Optimise fleet from 42 to 34 aircraft, and revised agreements with lessors to either mark-to-market or early
return of 10 aircraft from the current fleet
• Securing a new Boeing fleet order for 30 737 MAX 8 aircraft with deliveries from 2018 to 2020.
• Both long-haul and charter flying to end by April 2015
• Airline network to specialise on Monarch’s ‘heartland’ of scheduled short-haul European leisure routes, with
increased average frequencies, aircraft utilisation, productivity and profitability
• Focus on five UK airport bases – London Gatwick, Manchester, Birmingham, London Luton and LeedsBradford – and closure of East Midlands from summer 2015
• Material concessions agreed with employees across the Group to enable the successful restructuring,
including reductions in pay of up to 30%, with more than 90% of unionised staff voting to accept changes,
and some 700 redundancies, two-thirds of which were voluntary
• Reduction of the Group’s operating cost base, in line with other low-cost carriers, and increased efficiencies
across the business
• Resolution of the Group’s pension deficit through agreement with the Pensions Regulator, PPF and the
Trustee of the Monarch Airlines Limited Retirement Benefits Plan which will result in the Plan being assessed
for entry into the PPF.
• Two Stand-by Units
• Single Fleet type
• Improved scheduling: Stagger Slot 1 & 2
departures
• Improved Block Time Planning
• Do not delay for late cargo or late passengers
• Incentivise to meet OTP Targets
• OTP Workshops
• THINK OTP!!
OAGandpunctuality
Luton-based OAG,theairtraveldatasupplier, hasbeen quickto announce theresults ofthe airline/airport punctuality leaguefor2015.
Top 10 EMEA Airlines
1
2
3
4
5
6
7
8
9
10
Average Delay (mins.)
Monarch
Scheduled
flybe
Ryanair
Jet2
Wizz Air
easyJet
Norwegian Air
Shuttle
Within 15 mins (%)
airBaltic
Finnair
Austrian Airlines
LOT- Polish
Airlines
KLM
BT
AY
OS
94.39%
89.52%
89.28%
LO
88.88%
KL
88.45%
SAS
Monarch
Airlines
SK
88.21%
ZB
88.18%
Iberia
Flybe
Qatar Airways
IB
BE
QR
87.53%
87.47%
87.12%
Over 1 hour late (%)
2015 JanJun
Flights 2014
Analysed Jan(Sample Dec
%)
2015
Rank
2012
JanDec
2013
JanDec
2014
JanDec
2015
JanJun
2012
JanDec
2013
JanDec
2014
JanDec
2015
JanJun
2012
JanDec
2013
JanDec
1st
25.9
18.0
15.6
10.2
63.4
71.1
76.1
81.9
9.7
6.7
5.9
2.7
2nd
10.6
9.5
10.4
10.3
83.3
84.7
82.1
82.9
4.1
3.5
3.7
4.2
3rd
9.2
9.3
11.2
10.8
83.3
83.9
79.2
80.3
2.1
2.4
2.7
2.6
4th
17.8
15.3
13.6
13.3
72.6
74.4
78.5
77.3
6.2
5.5
4.8
4.2
5th
15.6
13.6
13.6
13.7
75.5
76.6
75.5
73.4
5.2
4.4
4.1
4.3
6th
9.2
9.9
12.2
14.0
84.3
83.7
78.3
74.5
3.1
3.4
4.2
5.2
7th
10.0
9.6
11.6
14.5
81.5
82.1
79.5
75.0
3.1
2.8
3.3
4.6
2015
JanJun
14,632
(100%)
65,089
(96%)
98,800
(98%)
14,630
(100%)
13,750
(100%)
124,502
(100%)
12,199
(100%)
Trading Update for the year to 31 October 2015:
• £130 million turnaround at Monarch
• Restructuring successfully completed
• Return to profit this year
Monarch, a leading independent UK leisure airline group, has returned strongly to profit in its first full year of
trading under new ownership. The Group expects underlying earnings for the year to 31 Oct 2015 to be in excess of
£40m before interest and tax (EBIT). That represents a turnaround of £130m compared to the losses suffered in the
previous year. Monarch expects EBITDAR to exceed £140m.
•
•
•
•
•
•
•
•
•
•
•
•
•
French Industrial Action in April (OTP & Re-routing)
High Delay in Nicosia FIR (increased traffic growth/Military activity)
Severe Weather (especially Germany, Croatia & London TMA)
Technical Issues (Rome FCO Fire, Reims & Lisbon ACC outages)
Change in traffic Demand following Tunisia terrorist attack
Balearic Capacity issues at the weekend
High Traffic Demand / Staffing Issues in Greece & Cyprus
High Traffic Demand and revised MUAC Flows (DFS Unit Rate)
Airspace Issues: Bordeaux/Barcelona Interface (Ponent Sector)
Withdrawal of French FMP’s from the Collaborative Process
Lack of Flexibility in French airspace / RAD Measures
Staffing Issues at Brest ACC affecting Early Morning Slot 1 Departures from the UK
Reims ACC industrial action Nov 2015 (opposition to Project SE SWAP airway/airspace
changes)
• ERATO Training in Brest
OverallOTPD15=77%- A15=80%(UKD15=80%/A1582%)/D0=35%A0=55%
AugustMonthlyOTPD15
100%
90%
85%
81% 81%
80%
77%
71%
82%
71%
63%63%
60%
62%
84%
73%75%
67%
47%
40%
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Target OTP82%
81 ATC
Top 10 Monthly Delay by Amount (S15)
78
76 71
89 GMC
92
737
95
93H REACT
HEADWINDS
41 AIRCRAFT DEFECTS
87 AIRPORT
FACILITIES
32 LOADING
123
Aug
Top 10 Monthly Delays by Minutes (S15)81 ATC
1349
1199
1146 1109
449
93T REACT
TECHNICAL
93G REACT GMC
93A REACT ATC
41 AIRCRAFT DEFECTS
2249
10815
2677
93T REACT TECHNICAL
89 GMC
46 A/C CHG TECH REASONS
5366
87 AIRPORT FACILITIES
16 PAX CONV
420
Reactionary Delay - Amount
August
93A REACT ATC
78
500
400
300
200
100
0
2
2
4
2
11
2
3
6
9
7
10
9
4
11
14
12
17
16
19
16
9
18
20
30
38
30
64
40
96
70
88
76
102
123
50%
84%
77%
424
448
74%
70%
73%
71%
70%
85%
Delays:- 3033 TotalAmount:61,549Min:AverageDelay 20Min
94%
91%
85%
10400
7597
93W REACT WEATHER
93H REACT HEADWINDS
67 CABIN CREW SHORTAGE
Jul
500
0
21
23
24
26
26
29
31
32
35
42
43
43
45
46
46
46
52
52
53
53
57
58
59
62
66
74
80
82
83
85
88
94
107
108
111
113
115
121
131
133
140
141
142
154
178
202
205
211
311
336
364
383
436
542
547
596
698
1000
93A
1500
1628
2000
81
89
93A
93H
41
19
87
93T
16
32
93G
85
93AF
36
35
65
93P
93L
15
93PR
82
31
93W
93C
34
46
39
71
63
93R
86
93S
83
55
43
01
13
93O
66
93F
18
68
89M
93CL
37
62
99
19N
84
96
09
15G
64
95
67
61
93CI
32N
93
42
2500
2413
3000
3204
81
Delays by Delay code - Summer 2015
3500
Code 81: Air Traffic Control Delays
Code 93A: Reactionary Air Traffic Control Delays
• Communicate
• Collaborate
• Be prepared
• Trust & Respect each other
• Strengthen relationships
• Better mutual understanding
• Learn lessons and act on them
Our goal is to achieve a safe on-time departure and ontime arrival at the lowest cost
We cannot prevent Industrial Action
but we can mitigate its effects through:
• Being Prepared / Better Planning / Tactical RAD to increase route options /
Increased Flexibility to reduce disruption during ATC strikes
• Give the Network Manager the tools and authority to manage the network and
understand the effects and impact of any industrial action from a network
perspective
• Work Together. Collaboration beats Competition in such situations!
We need to COMMUNICATE &
COLLABORATE
Good Examples:
•
•
•
•
NATS OPA
MUAC Annual Customer Forum
NM AOG
South West FAB Stakeholders Forum
States/Airspace User’s/ANSP’s:
Be Involved
(Attending RNDSG would be a good start!)
Top 10 Monthly Delays by Mins
1146
Slot 1 is the key to a SUCCESSFUL DAY.
1349
10815
2249
The Yellow segment is REACTIONARY ATC Delay to
Monarch flights March-October 2015.
1109
2677
1199
10400 minutes (173 Hours). Most of this is reactionary delay to a
lack of ATC staff during the morning peak.
• Prioritise Staffing levels to meet Traffic Demand at the busiest times.
• Ensure Airline customers have the best start to the day – they are better able to manage the
rest of the days operation if Slot 1 departs on time.
• Ensure sufficient Controllers and Support Staff are available – airlines are concerned that
some States may lack the staff required to meet traffic demand this summer – both in Enroute
and Terminal airspace
5366
10400
7597
Not every day will be a Blue Sky day but with
enhanced met tools and a greater understanding
of the impact of Severe Weather we can reduce the impact
of weather on our operations.
The Eurocontrol Weather Resilience Workshop in October
2015 and work undertaken by NATS and others on Mass
Diversions due to weather are the way forward.
Communicate & Collaborate. The Network Manager must
be allowed to address the impact of severe weather on
specific traffic flows to ensure the impact on the overall
network is kept to a minimum.
We all share the airspace – and we
should understand each others needs
and requirements.
In 2015 we had late notification of
the impact of some military exercises
and airspace closures for vague
military reasons.
The Airspace Users and the Network Manager depend on the timely and accurate availability of all relevant
Information.
This ensures in Tactical operations, that Clawbacks by the military on the day may not result in last-minute
Re-routing and Re-filing and allows Aircraft Operators to make reliable Safety Risk Assessments
As Customers who pay significant sums in Unit Rates we expect our Service Providers to keep us
informed of
any issues, in good time, that may have a significant impact on our business and to work with us to
mitigate the impact.
ERATO Training in Brest resulted in the following level of performance for us in December 2015:
Flights Delayed due ATC: 111 (5%) Dec 2014 / 414 (25%) Dec 2015
Average ATC Delay: 8 minutes (Dec 2014) / 12 minutes (Dec 2015)
ATC Delays above 15 minutes: 31 (December 2014) / 121 (December 2015)
CostofRe-Routes(Dec2015)toavoidBrestERATORegulations:
401tonnesfuel/8127minutesextraflying
For 2016 we expect to see delivery of the
Service we are paying for and we need a better
understanding of the impact of service
delivery failure on our Customers and our
Bottom Line.
July 2015: 2.1% network traffic increase / 37.1% ATFM Delay Increase
Aug 2015: 2.0% network traffic increase / 47.7 ATFM Delay increase
July 2016:
?????
Aug 2016:
?????
(compared to July 2014)
(compared to August 2014)
Pleasehelpusachieveour2016