Monarch Airlines

Monarch Airlines
	File:Monarch Airlines logo.svg Monarch Airlines logo
Company type	Private
Industry	Airline
Founded	June 5, 1967; 59 years ago
Founder	Bill Hodgson, Don Peacock
Defunct	2017
Headquarters	London–Luton Airport, United Kingdom
Area served	United Kingdom, Europe
Products	Charter and scheduled airline services

Monarch Airlines, commonly referred to as Monarch, was a British airline offering both charter and scheduled services. Established by Bill Hodgson and Don Peacock with financial support from the Swiss Mantegazza family, owners of Cosmos Tours, Monarch shifted to a low-cost carrier model in 2004, ultimately discontinuing its charter flights. The airline’s headquarters were situated at London–Luton Airport, with operational bases at Birmingham, Leeds/Bradford, London–Gatwick, and Manchester airports.

The airline's entry into administration in 2017 represented the largest collapse of a UK airline up to that point, leaving almost 100,000 travelers stranded. This figure was later exceeded in 2019 following the collapse of Thomas Cook Group, which impacted around 150,000 passengers. Monarch possessed a United Kingdom Civil Aviation Authority (CAA) Type A Operating Licence, authorizing it to transport passengers, cargo, and mail on aircraft seating 20 or more individuals.

1960s

Monarch Airlines was established on 5 June 1967 by British entrepreneurs Bill Hodgson and Don Peacock, both formerly directors at British Eagle. Unlike many contemporaneous airlines that catered predominantly to affluent clientele, Monarch focused on providing travel options for British families heading to popular holiday spots across Europe.

As a subsidiary of Globus Getaway Holdings, Monarch benefited from investment by the Swiss Mantegazza family, proprietors of the UK tour operator Cosmos Tours. Its affiliate company Engineering Limited—later renamed Monarch Aircraft Engineering Limited—was responsible for aircraft maintenance. Operations commenced on 5 April 1968 with a charter flight from London Luton Airport to Madrid utilizing a Bristol 175 Britannia 300 turboprop previously operated by Caledonian Airways.

Initially, the fleet consisted of two ex-Caledonian Bristol Britannias maintained at Luton. In 1969, Monarch expanded its fleet by purchasing additional Britannias from British Eagle’s administrators. That year marked the carriage of approximately 250,000 passengers over twelve months while operating six Britannia aircraft.

1970s

In 1971, Monarch embraced the jet age by acquiring three Boeing 720B jets and launching its inaugural commercial jet service on 13 December that year. Co-founder Bob Hodgson lauded the Boeing 720 for its quiet operation, dubbing them "whispering giants." This period also saw the introduction of a refreshed paint scheme.

The decade witnessed robust growth in demand for package holidays within the UK market, which Monarch leveraged effectively by transporting half a million passengers in 1972. Nonetheless, the 1970s energy crisis and escalating oil prices posed significant financial pressures across the aviation sector. Competitor Court Line collapsed into receivership, with Monarch subsequently absorbing some of its workforce; however, Monarch itself encountered operational challenges during this time.

By 1976, Monarch had fully transitioned to an all-jet fleet following the sale of its remaining Britannia aircraft. The last passenger-configured Britannia was retired in 1974 after completing Europe’s final commercial flight using that model. This fleet modernization included acquiring two additional pre-owned Boeing 720Bs along with two BAC One-Eleven 500 jets sourced from British Caledonian and Court Line’s administrators.

1980s

At the close of 1980, Monarch Airlines expanded its fleet by acquiring two new Boeing 737-200 Advanced jets through an operating lease from Bavaria Leasing. One of these aircraft was stationed at West Berlin's Tegel Airport during the 1981 summer season, operating Mediterranean and Canary Islands charter flights under contract with Flug-Union Berlin, a company Monarch had taken over from Laker Airways. This addition brought Monarch's total jet fleet to 11, which included one Boeing 707-320C, five Boeing 720Bs, three BAC One-Eleven 500s, and the two newly acquired 737-200 Advs.

In 1981, Monarch inaugurated new bases at Gatwick, Glasgow, Manchester, and Berlin Tegel. That year marked a milestone as Monarch carried over one million passengers for the first time. Additionally, Monarch became the pioneer charter airline to place an order for the Boeing 757-200—a medium-haul, high-capacity single-aisle aircraft equipped with Rolls-Royce RB211-535C engines. The initial Boeing 757 entered service in spring 1983, accompanied by a refreshed livery. Midway through the decade, Monarch Aircraft Engineering Limited, a sister company, expanded its maintenance facilities at Luton to support in-house servicing of the Boeing 757 fleet.

In spring 1985, the Civil Aviation Authority (CAA) awarded Monarch scheduled service licenses to Málaga, Menorca, and Tenerife. The airline commenced its inaugural scheduled flight on 5 July 1986 from Luton to Menorca under the "Monarch crown service" brand, marking its entry into scheduled passenger competition.

Monarch introduced its first Boeing 737-300 in 1986. Starting November 1988, four of these aircraft were leased to Euroberlin France—a Franco-German joint venture based in Berlin and jointly owned by Air France and Lufthansa—with Monarch supplying flight deck crews and maintenance services. By 1990, seven Boeing 737-300s were operating under this wet lease arrangement.

On 1 May 1988, Monarch achieved a milestone by conducting the first ETOPS transatlantic flight under CAA regulations using a Boeing 757-200ER from Luton to Orlando via Gander. Carrying 235 passengers, it became the first British twin-engine jet to cross the North Atlantic with paying customers. That same year, Monarch transported over two million passengers.

Between 1989 and 1990, Monarch wet leased two Boeing 757s to Australian Airlines during a pilots’ strike. These aircraft were operated by Monarch pilots alongside Australian cabin crew and primarily served routes along Australia's east coast.

1990s

In 1990, Monarch introduced its first wide-body aircraft—the Airbus A300-600R—and established a new headquarters at Luton featuring a Boeing 757 flight simulator. During the early part of the decade, Monarch operated several Boeing 767-300ER wide-bodies on behalf of Italy’s Alitalia Team through wet-lease agreements. The Airbus A320 joined the fleet in 1993, followed by the larger Airbus A321 in 1997, which replaced the Boeing 737-300s.

Following 1995, Monarch encountered increasing competition from emerging budget carriers. This shift in market dynamics eventually led to the discontinuation of all charter operations by 2005 as customers gravitated towards low-cost seat-only offerings.

In May 1997, Monarch began scheduled flights connecting Gibraltar with Luton and later expanded these services to include Birmingham, Gatwick, and Manchester. These Gibraltar-Luton flights continued until the airline's eventual failure. Toward the end of the decade, Monarch introduced "Monarch Plus," a premium in-flight service that offered pre-assigned seating, complimentary headsets, and upgraded meal options for an additional charge.

In 1998, as an interim solution before receiving new Airbus A330-200s in 1999, Monarch leased two McDonnell Douglas MD-11 wide-body aircraft from World Airways for long-haul operations. Upon delivery of the A330s, Monarch returned the MD-11s and commenced long-haul charter services featuring a two-class seating layout—a first in the airline’s history.

2000s

In 2002, Monarch retired its only McDonnell Douglas DC-10 and donated the aircraft to the Manchester Airport Aviation Viewing Park. That year also saw the introduction of Monarch’s fourth livery and the rebranding of Monarch Crown Service to Monarch Scheduled, which continued to offer a full-service experience including complimentary meals, bar service, hot towels, newspapers, and in-flight entertainment (IFE).

Monarch Scheduled expanded its operations in 2003 by establishing a base at Gatwick Airport on 1 May, initially operating flights to Alicante, Faro, and Málaga. In December 2004, the airline announced a new base at Birmingham Airport, which commenced in April 2005 with routes to Málaga and Tenerife.

In response to the growing competition from low-cost carriers such as easyJet, Monarch adopted a hybrid low-cost approach in 2004 by introducing additional fees for food and beverages. Between 2005 and 2010, Monarch leased a Boeing 767-300ER from MyTravel Airways (which later became Thomas Cook Airlines) to expand its long-haul fleet.

November 2005 marked the opening of a base at Málaga Airport, where Monarch stationed an Airbus A320 and launched scheduled flights to Aberdeen, Blackpool, and Newquay. However, due to insufficient passenger demand, these services were gradually discontinued by late 2007, resulting in the closure of the Málaga base.

To bolster scheduled operations from Manchester, Monarch acquired an Airbus A321. By 2005, it had become Manchester Airport’s second-largest airline by passenger numbers, handling 1.72 million travelers. Overall passenger traffic increased from 4.55 million in 2002 to 6.5 million by 2008.

In August 2006, Monarch placed an order for six Boeing 787-8 Dreamliners aimed at expanding its long-haul network. Initially expected for delivery in 2010, these were postponed until 2013. However, in September 2011, the airline canceled this order to concentrate strategically on short- and medium-haul markets.

On 27 April 2007, Monarch collaborated with club brand HedKandi to introduce "FlyKandi" flights to Ibiza. One Boeing 757 (registration G-MOND) was painted with special FlyKandi livery. This partnership continued through summer 2008, operating flights from four UK airports and featuring onboard music sales.

In October 2007, Monarch became the first European carrier to offer PayPal as an online payment option.

The airline refreshed its website branding in 2008 from flymonarch.com to monarch.co.uk and adopted the tagline "The Low Fare Airline That Cares."

Also in 2008, Monarch provided an Airbus A321 for ITV2’s series CelebAir, where celebrities trained as cabin crew on scheduled routes including Málaga, Alicante, Tenerife, Faro, Ibiza, Mahón, and Larnaca. The show premiered on September 2nd with Lisa Maffia emerging as the winner.

2010 to 2014

Following years of profitability, Monarch Group—the parent company of Monarch Airlines and Cosmos Holidays—reported a significant pre-tax loss of £32.3 million in 2009. This led to a £45 million capital injection from the Mantegazza family, co-founders since the beginning. Monarch Airlines shifted its focus away from predominantly charter flights toward mainly scheduled leisure services, targeting an increase from 20% scheduled operations in 2005 to 80% by 2011. This strategic pivot included launching new scheduled routes to destinations such as Egypt, Turkey, Greece, Spain, and Portugal; notably introducing thrice-weekly flights from London Luton to Corfu in May 2011.

To better compete with low-cost rivals EasyJet and Ryanair, Monarch removed debit card fees but implemented a flat £10 charge for credit card payments. The airline also refreshed its brand identity by reinstating its classic capital "M" with crown logo alongside a new livery and adopted the slogan Fly Your Way Every Day.

Despite achieving a modest profit of £1.4 million in 2010, Monarch recorded a £45 million loss for the fiscal year ending October 2011 due largely to rising jet fuel expenses and political unrest in the Middle East. Fuel costs increased by £50 million annually. In November 2011, Monarch secured a £75 million financial rescue package and announced plans for fourteen new routes across Italy, Croatia, and Greece for summer 2012. To support growth toward a fleet target of forty aircraft and an annual passenger volume of ten million—aiming for economies of scale—two Airbus A320s were added.

In May 2012, Monarch revealed plans for a new base at East Midlands Airport following bmibaby’s closure of certain routes. The airline also commenced services from Leeds Bradford Airport featuring winter destinations Munich and Grenoble while preparing for significant summer expansion in 2013. The Leeds/Bradford base officially opened in March 2013 offering twelve destinations. By mid-2012, Globus Travel shareholders included Amerald Investments (88%), Atlantic Financial Services (7%), and Abaco Holdings (4%). In December that year, Monarch became an official sponsor of Leeds United FC to promote its Leeds Bradford hub and associated routes.

On 1 July 2013, Monarch placed an order for two Airbus A321 aircraft; this was later revised to one A320 delivered in April 2015. In December 2013, the airline reported returning to profitability for the year ending October with passenger numbers increasing by 9.5% to seven million and forecasts projecting over ten million travelers by 2016. Plans were announced for a $6 billion procurement of sixty new aircraft through to 2024 with final selection among Airbus, Boeing or Bombardier expected early in 2014.

By July 2014, Monarch had chosen Boeing’s 737 MAX as its preferred supplier for thirty aircraft and confirmed this order in October with deliveries commencing in the second quarter of 2018.

2014 to 2017: Challenges and Cessation of Operations

In August 2014, Monarch launched a strategic assessment aimed at reducing expenses, which involved shutting down its East Midlands hub and implementing major staff cuts, particularly within cabin management, in preparation for a prospective sale. On 24 October 2014, private equity firm Greybull Capital purchased Monarch Holdings from Globus Travel Group for a nominal amount, just before the expiration of the Civil Aviation Authority (CAA) licence. Greybull acquired a 90% ownership stake, with the pension fund retaining 10%, and injected £125 million in fresh capital. The airline intended to shrink its fleet from 42 to 34 aircraft, renegotiate leasing agreements, discontinue long-haul and charter flights starting April 2015, and reposition itself as a low-cost carrier focused on short-haul leisure travel. Despite these plans, Monarch placed an order for 30 Boeing 737 MAX 8 aircraft at the 2014 Farnborough Air Show.

During 2015, Monarch transported 5.7 million passengers, marking a 19% decrease compared to the previous year, largely due to weakened demand on critical routes to Egypt and Turkey amidst regional instability and security issues. In September 2016, bankruptcy speculations surfaced but were refuted by Monarch. The CAA prepared contingency measures by arranging standby aircraft from other carriers. Monarch secured additional shareholder financing that extended its ATOL licence until October 12, 2016. Subsequently, it raised £165 million in investment—initially believed to be from Greybull Capital but later disclosed as predominantly funded by Boeing—to maintain operations.

By September 2017, financial strains resurfaced as the CAA granted only a 24-hour extension of the operating licence amid doubts about the airline’s sustainability. The CAA once again arranged backup planes from other operators including Qatar Airways. Monarch sharply increased ticket prices in what appeared to be a tactic to limit market exposure and reduce financial liabilities. On 1 October 2017, flights were cancelled as the licence deadline neared. Monarch’s final flight landed early on 2 October; shortly thereafter, the CAA announced the airline’s immediate closure and entry into administration. This left roughly 110,000 passengers stranded overseas and resulted in the cancellation of around 300,000 bookings.

To repatriate affected customers, the UK government chartered 38 aircraft from European, Middle Eastern, and Canadian airlines—including Qatar Airways, Titan Airways, Air Transat, Freebird Airlines, and Wamos Air—utilizing aircraft ranging from Boeing 737-300s to Boeing 747-400s. The operation cost £60 million and was financed by the Air Travel Trust Fund through levies imposed on airlines and passengers. At that time, this represented the largest post-war repatriation effort undertaken by the UK.

Monarch stood as the largest airline collapse in the UK until Thomas Cook ceased operations in 2019. Contributing factors to Monarch’s failure included fierce competition and excess capacity on southern European routes from budget carriers; reduced passenger demand due to terrorism threats across North Africa and Europe; and escalating operating expenses caused by Brexit-related depreciation of the pound affecting fuel costs, lease payments, and airport fees.

In April 2021, Monarch Airlines was formally dissolved following its exit from administration.

Cabin and services

Monarch, operating as a budget airline, provided a range of optional add-on services for an additional charge. These included checked baggage, extra baggage allowance, pre-assigned seating, priority boarding options, and onboard food and drink.

Cabin

The airline’s fleet was configured exclusively with economy seating, featuring seats with extra legroom positioned at the front of the cabin and near emergency exits.

In-flight entertainment

Passengers had access to Monarch’s in-flight publication, Passport, which contained travel articles, destination maps, interviews, and updates about the airline.

Onboard catering and retail

All flights offered purchasable food and drinks such as hot meals, cold snacks, alcoholic beverages, and soft drinks. Moreover, travelers could shop duty-free items via the Love to Shop magazine available during the flight.

Vantage Club loyalty program

The Vantage Club rewarded frequent flyers through a tiered system comprising Indigo, Silver, and Gold levels, granting various travel-related perks and advantages.

Corporate affairs

At the time of its closure, Monarch's main office along with Monarch Group’s headquarters were situated at Prospect House within London Luton Airport’s premises.

Ownership and structure

Monarch Airlines operated under the Monarch Group umbrella. The holding company Monarch Holdings Ltd. was predominantly owned by Greybull Capital at 90%, with the remaining 10% held by the group's pension fund.

The group included subsidiaries such as Monarch Holidays (previously Cosmos Holidays before reverting to Globus in 2017), Monarch Hotels, Avro Flights, and Monarch Aircraft Engineering Limited (MAEL). Following the airline’s collapse, MAEL continued independently for 15 months concentrating on third-party maintenance services before financial difficulties forced its closure on 4 January 2019. Its assets were subsequently acquired by competitors.

Business trends

Operational statistics reveal a transition from charter operations towards scheduled services over recent years:


Year	Scheduled				Charter				Total services
Year	Passengers	Flights	Load factor	Year-over-year change	Passengers	Flights	Load factor	Year-over-year change	Passengers	Flights	Load factor	Year-over-year change
2005	2,558,218	16,473	74.1%		2,794,378	12,773	87.7%		5,352,596	29,246	82.5%
2006	3,134,230	19,834	76.2%	increase of 22.5%	2,654,004	12,422	86.3%	decrease of 5.0%	5,788,234	32,256	82.0%	increase of 8.1%
2007	3,625,732	22,443	78.9%	increase of 15.7%	2,521,233	11,849	85.9%	decrease of 5.0%	6,146,965	34,292	82.6%	increase of 6.2%
2008	3,870,298	23,158	81.0%	increase of 6.7%	2,630,528	12,449	86.1%	increase of 4.3%	6,500,826	35,607	83.6%	increase of 5.8%
2009	3,668,528	21,581	81.3%	decrease of 5.2%	2,453,557	12,598	85.8%	decrease of 6.7%	6,122,085	34,179	83.6%	decrease of5.8%
2010	3,691,355	20,640	84.6%	increase of0.6%	2,103,347	10,576	85.9%	decrease of14.3%	5,794,702	31,216	85.2%	decrease of5.3%
2011	4,541,172	24,468	85.6%	increase of23.0%	1,391,291	7,660	80.9%	decrease of33.9%	5,932,463	32,128	84.1%	increase of2.4%
2012	5,355,252	29,112	87.7%	increase of17.9%	943,935	6,416	79.0%	decrease of32.2%	6,299,187	35,528	85.6%	increase of6.2%
2013	6,032,879	33,916	86.0%	increase of12.7%	788789	4505	80.6%	decreaseof16.4%	6821668	38421	85.1%	increaseof8.3%
2014	6,,269,,624	37,,806	81,.8 %	increaseof3..9 %	757,,956	4,,537	77..1 %	decreaseof3..9 %	7,,027,,580	42,,343	81..1 %	increaseof3..0 %
2015	5,,496,,455	33,,409	82,.7 %	decreaseof12..3 %	226,,780	1,,387	70..7 %	decreaseof70..0 %	5,,723,,235	34,,796	82..3 %	decreaseof18..6 %
2016	n/a								5,,434,,081	35,,619	75,.9 %	decreaseof5..0 %
2017	n/a								3,,403,,637	21,,133	80,.5 %	decreaseof37..4 %

This dataset illustrates a substantial reduction in charter passengers from over two million in earlier years to fewer than half a million by the mid-2010s while scheduled service passenger numbers expanded until a significant decline prior to cessation.

Source: UK Civil Aviation Authority

Fleet at shutdown

At the time of its cessation, Monarch Airlines' fleet consisted of the following aircraft:

**Monarch Airlines fleet**
Aircraft	Active	On order	Seating capacity	Remarks
Airbus A320-200	9	—	174	Intended to be replaced by Boeing 737 MAX.
Airbus A321-200	25	—	214	Replacement planned with Boeing 737 MAX. Four A321s were moved to Thomas Cook Airlines in 2018; remaining units sold to other operators. Monarch was the launch customer.
Boeing 737-800	1	—	186	Operated under lease from Pegasus Airlines.
Boeing 737 MAX 8	—	45	—	Deliveries scheduled to commence in Q2 2018.
Total	35	45

Former fleet

Throughout its operational history, Monarch maintained a varied fleet, including:

Monarch Airlines former fleet
Aircraft type	Quantity	Entry into service	Withdrawal year
Airbus A300-600R	4	1991	2014
Airbus A330-200	2	1999	2015	Subsequently leased for CAA repatriation flights in 2017.
BAC One-Eleven 500	3	1974	1986
Boeing 707-120B	4	1978	1981
Boeing 707-320C	1	1981	1981
Boeing 720B	7	1971	1983
Boeing 737-200	6	1981	1987
Boeing 737-300	12	1988	1997	Replaced by Airbus A320 family models.
Boeing 757-200	11	1983	2015
Boeing 767-300ER	1	2005	2010	Operated under lease from MyTravel Airways for five years.
Bristol Britannia 300	8	1967	1976
McDonnell Douglas DC-10-30	1	1996	2002	The nose and forward fuselage section are preserved at Manchester Airport Viewing Park.
McDonnell Douglas MD-11	1	1998	1998	Short-term lease from World Airways.

Awards

FlightOnTime.info – Most Improved UK Charter Airline for Punctuality, Summer 2007
Travel Trade Gazette – Leisure Airline of the Year, awarded in both 2006 and 2007
TravelWeekly Globe Travel Awards – Best Charter Airline for three consecutive years: 2009, 2010, and 2011
ITB Berlin – Recognized as World's Greenest Airline in 2011
TravelMole – Best Airline Website, awarded in 2012

Accidents and incidents

On 14 January 1985, Monarch Flight 390, operated by Boeing 757 G-MOND on a route from Tenerife to Luton, encountered two explosions mid-flight caused by leaking lavatory fluid coming into contact with electrical wiring. This led to severe electrical arcing, cabin smoke, and loss of electronic flight instruments, necessitating an emergency landing in Portugal. This was the first British-operated aircraft to suffer a significant Kapton-related electrical failure.
On 22 May 2002, Boeing 757-200 G-MONC experienced structural damage near the nose landing gear during landing at Gibraltar Airport. The incident resulted from the captain’s improper application of full nose-down elevator input, causing an excessive pitch-down rate before touchdown that exceeded structural limits. No casualties occurred.
On 17 March 2006, Boeing 757-200 G-MONE lost visual contact with the runway after passing the Visual Decision Point at Gibraltar Airport. During the subsequent go-around maneuver, the crew failed to adhere to correct missed approach procedures; however, air traffic control provided heading guidance to prevent terrain collision. Following this event, both ATC and Monarch Airlines updated procedures to minimize future risks.

External links

Monarch website hosted by KPMG