Monarch Airlines could shed up to 1,000 jobs as the result of a strategic review now underway.
New Monarch Group chief executive Andrew Swaffield confirmed the review of the business last week in an exclusive interview with Travel Weekly.
Swaffield said the review would focus on Monarch Airlines and made clear he had already decided to end charter flying and was likely to ditch long-haul operation.
The airline would be transformed into “a low-cost scheduled European carrier”, he said.
Monarch also announced last week it would cease operating from East Midlands airport next April.
The Sunday Times reported yesterday that more than 1,000 jobs are at risk at the airline, about one third of the total workforce.
The newspaper also suggested the airline was likely to lose £60 million this year.
Monarch declined to comment on the story.
In a statement, the Monarch Group said: “The Company has previously stated that the new management team is conducting a strategic review of the group’s businesses, including in relation to their operations, ownership and financing.
“That review is on-going and further announcements will be made upon its conclusion or as otherwise appropriate.”
Travel Weekly understands decisions have yet to be taken on the number of jobs likely to be affected.
US firm Seabury Capital is advising Monarch in the search for new investors and accountancy giant PwC is also involved.
The Sunday Times suggested the group and its owners the Mantegazza family are keen to find new investors by the end of the year.
The Monarch group comprises tour operating and aircraft engineering businesses as well as the airline and both have been reported as profitable.
Monarch has stressed that tour operator Cosmos would continue operating as now, selling seats on third-party carriers including to long-haul destinations.