Monarch collapses as 110,000 passengers left overseas

Troubled airline Monarch has slipped into administration, leaving flights axed, some 110,000 customers currently overseas and 2,100 jobs in the balance.

The future of the UK’s fifth biggest airline has been was in the balance all last week after talks with the Civil Aviation Authority (CAA) over the airline’s eligibility to sell package holidays came under question.

Monarch tweeted last at 4.20am this morning: “Monarch customers in the UK: don’t go to the airport. There will be no more Monarch flights. This page will no longer be monitored.”

A statement from the CAA said: “As of 2 October 2017, all future holidays and flights provided by these companies have been cancelled and are no longer operating.

“This is an unprecedented situation and because there are up to 110,000 passengers abroad, the UK Government has asked the CAA to coordinate flights back to the UK for all Monarch customers currently overseas. These new flights will be at no extra cost to you.”

Blair Nimmo, partner at KPMG and joint administrator, said: “Mounting cost pressures and increasingly competitive market conditions in the European short-haul market have contributed to the Monarch Group experiencing a sustained period of trading losses. This has resulted in Management appointing us as administrators in the early hours of this morning.

“While this timing is unusual in insolvency situations, it was necessary for the appointment to be made once all Monarch aircraft were on the ground. This only occurs in the early hours of the morning. Once the company entered insolvency, the Air Operating Certificate it needs to be able to fly was effectively suspended, which is why all outbound flights were cancelled with immediate effect.

“Our primary focus for the next 48 hours is to work with the Civil Aviation Authority to provide the infrastructure and information needed to help the Government and CAA with the safe repatriation of approximately all the 110,000 customers who are currently overseas and due to travel back to the UK within the next two weeks. This includes all those whose trip is not specifically covered by ATOL protection. The CAA has provided funding to enable the Group to retain a number of employees to assist us with the provision of this information.

“We understand that this will be a difficult and distressing time for many, and we anticipate a large volume of calls and queries from customers who are affected. We therefore kindly request that passengers who are not scheduled to travel within the next 48 hours to refer to the CAA website (monarch.caa.co.uk) in the first instance for further information. This will allow us to assist the CAA and prioritise to ensure the safe repatriation of all customers located overseas who were scheduled for immediate travel back to the UK.

“We will also be speaking to all of the Group’s employees today, and commencing the process of returning the Group’s leased aircraft fleet to its owners.”

Transport Secretary Chris Grayling has commissioned the extraordinary operation to return passengers who would otherwise have been left stranded by a lack of capacity in the aviation market to deal with such a significant demand.

The response means the government has agreed that passengers will not be charged for repatriation flights. Work is underway to recoup costs from the ATOL scheme and card providers.

The government says it is working closely with the Civil Aviation Authority (CAA) to build a temporary airline from scratch that would be one of the UK’s biggest carriers if operating permanently.

Transport Secretary Chris Grayling said: “This is a hugely distressing situation for British holidaymakers abroad – and my first priority is to help them get back to the UK.

“That is why I have immediately ordered the country’s biggest ever peacetime repatriation to fly about 110,000 passengers who could otherwise have been left stranded abroad.

“This is an unprecedented response to an unprecedented situation. Together with the CAA, we will work around the clock to ensure Monarch passengers get the support they need.

“Nobody should underestimate the size of the challenge, so I ask passengers to be patient and act on the advice given by the CAA.

Monarch stopped flights from East Midlands Airport in 2015 citing a reshape of its base network and flyng schedule.