I'm guessing it is much easier to be a budget carrier right from the off with T&Cs to match, than to turn into a budget airline in terms of ticket prices and a 'on the way to budget airline but higher costs from a past life' cost for crews etc.
Definitely, although Monarch was really a budget airline from a bygone era i.e. a leisure charter airline from the days when far fewer people travelled without a package to a beach/ski holiday or even city break. Monarch was set up by Cosmos Tours who would have really set the flying programme.
I remember their A300s which were the equivalent of flying on a class 350/2 or 450 in terms of ambience and comfort. Sure, you maybe got fed and they showed a film but it was still a pile them high sell them cheap type operation. They did introduce 'Monarch Scheduled' with 'Crown Service' in the early 2000s which was supposedly a more premium offering as charter was always associated with less frills (and delays), so flight only went more upmarket.
Personally though, I think the main issue was that they were not backed by a major tour operator. Cosmos (the original tour operator portion) and Monarch went separate ways in 2014 and Monarch was heavily reliant on flight only. I think this is a dangerous place to be for that type of carrier, Jet2 even set up their own full package tours offering Jet2Holidays (a proper operator with reps etc) which shields them from the likes of EasyJet and Ryanair who don't offer that but allows them compete against Thomson, Thomas Cook etc.
I know people like to think the package holiday is dead etc but I do think they still carry a certain amount of influence in the one week on the beach market...