This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-41464934
The article has changed 18 times. There is an RSS feed of changes available.
| Version 9 | Version 10 |
|---|---|
| Monarch flights cancelled as airline ceases trading | Monarch flights cancelled as airline ceases trading |
| (35 minutes later) | |
| Monarch Airlines has ceased trading and its 300,000 future bookings for flights and holidays have been cancelled, the Civil Aviation Authority has said. | Monarch Airlines has ceased trading and its 300,000 future bookings for flights and holidays have been cancelled, the Civil Aviation Authority has said. |
| More than 30 planes are being sent to bring back about 110,000 customers who are overseas - described as the UK's "biggest ever peacetime repatriation". | More than 30 planes are being sent to bring back about 110,000 customers who are overseas - described as the UK's "biggest ever peacetime repatriation". |
| Terror attacks in Tunisia and Egypt, increased competition, and the weak pound have been blamed for its demise. | |
| Monarch employs about 2,100 people and reported a £291m loss last year. | Monarch employs about 2,100 people and reported a £291m loss last year. |
| The airline - the UK's fifth biggest and the country's largest ever to collapse - was placed in administration at 04:00 BST - a time when there were no Monarch planes in the air. | The airline - the UK's fifth biggest and the country's largest ever to collapse - was placed in administration at 04:00 BST - a time when there were no Monarch planes in the air. |
| Passengers were then sent text messages informing them flights had been cancelled - but some were already at airports. | |
| In all, the 300,000 cancellations could affect up to 750,000 people, administrators said. | |
| What have passengers said? | What have passengers said? |
| Mike Olley had been due to fly back to Birmingham from Malaga, in Spain, on Monday. | Mike Olley had been due to fly back to Birmingham from Malaga, in Spain, on Monday. |
| "We got a text this morning saying that Monarch had gone out of business," he told the BBC. | "We got a text this morning saying that Monarch had gone out of business," he told the BBC. |
| "I thought it was a prank. Our flight is at 12:15 back home today. We haven't got any information on our flight yet." | "I thought it was a prank. Our flight is at 12:15 back home today. We haven't got any information on our flight yet." |
| Katie Ode drove to Manchester Airport from Anglesey, north Wales, for a flight on Monday morning, but received a text message about Monarch when she was 10 minutes away. | Katie Ode drove to Manchester Airport from Anglesey, north Wales, for a flight on Monday morning, but received a text message about Monarch when she was 10 minutes away. |
| She told BBC Radio 5 live the approach to the terminal was "chaotic", adding: "Stewards were stopping every car saying there was no point going into the airport." | She told BBC Radio 5 live the approach to the terminal was "chaotic", adding: "Stewards were stopping every car saying there was no point going into the airport." |
| John Shepherd, from Tamworth, had been due to fly to Cyprus on Tuesday with his 92-year-old father. | John Shepherd, from Tamworth, had been due to fly to Cyprus on Tuesday with his 92-year-old father. |
| He said they had already managed to book flights on another airline - costing a "fair bit of money", but he added: "I'm worried we've lost all the money on the flights. " | He said they had already managed to book flights on another airline - costing a "fair bit of money", but he added: "I'm worried we've lost all the money on the flights. " |
| Advice to Monarch customers | Advice to Monarch customers |
| What has gone wrong? | What has gone wrong? |
| Monarch reported a loss of £291m for the year to October 2016, compared with a profit of £27m for the previous 12 months, after revenues slumped. | Monarch reported a loss of £291m for the year to October 2016, compared with a profit of £27m for the previous 12 months, after revenues slumped. |
| It had been in last-ditch talks with the CAA about renewing its licence to sell package holidays, but failed to reach a deal | It had been in last-ditch talks with the CAA about renewing its licence to sell package holidays, but failed to reach a deal |
| Blair Nimmo, from administrator KPMG, said its collapse was a result of "depressed prices" in the short-haul travel market, alongside increased fuel costs and handling charges as a result of a weak pound. | Blair Nimmo, from administrator KPMG, said its collapse was a result of "depressed prices" in the short-haul travel market, alongside increased fuel costs and handling charges as a result of a weak pound. |
| The transport secretary said it was a victim of a "price war in the Med". | |
| However, Monarch chief executive Andrew Swaffield said the "root cause" was terrorism in Egypt and Tunisia, as well as the collapse of the market in Turkey. | However, Monarch chief executive Andrew Swaffield said the "root cause" was terrorism in Egypt and Tunisia, as well as the collapse of the market in Turkey. |
| He said it had been carrying 14% more passengers than last year - but for £100m less revenue. | He said it had been carrying 14% more passengers than last year - but for £100m less revenue. |
| Monarch's owner, Greybull Capital, had been trying to sell part or all of its short-haul operation so it could focus on more profitable long-haul routes, and said it was "very sorry" it had not been able to turn around its fortunes. | Monarch's owner, Greybull Capital, had been trying to sell part or all of its short-haul operation so it could focus on more profitable long-haul routes, and said it was "very sorry" it had not been able to turn around its fortunes. |
| What have the authorities said? | What have the authorities said? |
| The CAA said the situation was "unprecedented". | The CAA said the situation was "unprecedented". |
| Chairwoman Dame Deirdre Hutton said there would inevitably be some disruption as the authority was having to effectively create one of the UK's largest airlines from scratch, adding: "It is a huge undertaking." | Chairwoman Dame Deirdre Hutton said there would inevitably be some disruption as the authority was having to effectively create one of the UK's largest airlines from scratch, adding: "It is a huge undertaking." |
| Passengers from as far away as Tel Aviv will require repatriation, and two "rescue flights" from Ibiza have already landed at Gatwick, the CAA said. The vast majority of customers due to fly on Monday are expected return by the end of the day. | Passengers from as far away as Tel Aviv will require repatriation, and two "rescue flights" from Ibiza have already landed at Gatwick, the CAA said. The vast majority of customers due to fly on Monday are expected return by the end of the day. |
| Mr 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." | Mr 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." |
| The transport secretary said the Department for Work and Pensions would give support to those affected and other airlines had already told him they may seek to employ Monarch staff. | The transport secretary said the Department for Work and Pensions would give support to those affected and other airlines had already told him they may seek to employ Monarch staff. |
| Mr Nimmo, from KPMG, said Monarch employees had not been told before the firm went into administration and advised them to go to work as usual on Monday. | Mr Nimmo, from KPMG, said Monarch employees had not been told before the firm went into administration and advised them to go to work as usual on Monday. |
| Where are Monarch holidaymakers? | Where are Monarch holidaymakers? |
| Last year, Monarch carried 6.3 million passengers to 40 destinations from Gatwick, Luton, Birmingham, Leeds-Bradford and Manchester airports. | Last year, Monarch carried 6.3 million passengers to 40 destinations from Gatwick, Luton, Birmingham, Leeds-Bradford and Manchester airports. |
| According to the CAA, the 110,000 holidaymakers currently overseas are in at least 11 countries, including Spain, Portugal, Italy and Greece. | According to the CAA, the 110,000 holidaymakers currently overseas are in at least 11 countries, including Spain, Portugal, Italy and Greece. |
| Replacement flights are currently scheduled to fly to 33 airports. | Replacement flights are currently scheduled to fly to 33 airports. |
| Analysis: By Joe Lynam, BBC business correspondent | Analysis: By Joe Lynam, BBC business correspondent |
| Monarch has experienced the perfect storm of challenges in recent years. | Monarch has experienced the perfect storm of challenges in recent years. |
| The terror attacks in Turkey and Egypt have deprived the airline of a large chunk of its annual revenues, and forced it to compete on heavily congested traditional routes to Spain and Greece. | The terror attacks in Turkey and Egypt have deprived the airline of a large chunk of its annual revenues, and forced it to compete on heavily congested traditional routes to Spain and Greece. |
| That has forced down prices and profits on top of weaker demand from UK travellers - for whom a less valuable pound has made travelling costlier. | That has forced down prices and profits on top of weaker demand from UK travellers - for whom a less valuable pound has made travelling costlier. |
| The short-haul market has been described as "horrendous" by senior aviation industry figures. It has already resulted in the collapse of Air Berlin and placed huge pressure on other airlines. | The short-haul market has been described as "horrendous" by senior aviation industry figures. It has already resulted in the collapse of Air Berlin and placed huge pressure on other airlines. |
| Put simply, there are too many seats and not enough bums to put on them to make a profit for all major carriers. | Put simply, there are too many seats and not enough bums to put on them to make a profit for all major carriers. |
| Have you got a flight booked with Monarch? Are you Monarch staff? Email us at haveyoursay@bbc.co.uk. | Have you got a flight booked with Monarch? Are you Monarch staff? Email us at haveyoursay@bbc.co.uk. |
| Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |
| Or use the form below | Or use the form below |