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Monarch Airlines collapse: UK’s biggest peacetime repatriation under way Monarch Airlines collapse: UK’s biggest peacetime repatriation under way
(35 minutes later)
The UK’s biggest peacetime repatriation is under way after the collapse of Monarch Airlines, with 110,000 customers to be brought back home on specially chartered planes.The UK’s biggest peacetime repatriation is under way after the collapse of Monarch Airlines, with 110,000 customers to be brought back home on specially chartered planes.
The accountants KPMG announced in the early hours of Monday that Monarch, Britain’s longest-surviving airline, had been placed into administration and that all further flights from the UK had been cancelled and would not be rescheduled. The accountants KPMG announced in the early hours of Monday that Monarch, Britain’s longest-surviving airline brand, had been placed into administration and that all further flights from the UK had been cancelled and would not be rescheduled.
The Civil Aviation Authority said it had launched a programme to bring Monarch customers home over the next fortnight, chartering 30 planes for the rescue operation. Monarch has gone into administration after failing to gain a renewal of its Air Travel Organiser’s Licence (Atol) from the Civil Aviation Authority. This meant it was no longer able to sell Atol-protected holidays from midnight on Monday and, accordingly, it announced it had appointed KPMG as liquidators. The CAA has taken over Monarch's website and the Department for Transport has set up two helplines: for passengers in the UK, 0300 303 2800; for passengers abroad, +44 1753 330 330.  
All Monarch customers who are abroad and due to return to the UK in the next two weeks will be flown home at no extra cost and they do not need to cut short their stay, according to the regulator. But it said the “harsh message” was that 300,000 future bookings had been cancelled and anyone who had booked holidays leaving the UK would not be able to travel. If you bought a package holiday while the licence was still in – up until midnight on Sunday/Monday – you will be Atol-protected. That means if you are abroad, you will be put on an alternative flight home with another carrier. If you are in the UK, you will be entitled to a refund.
It is unlikely you will be Atol-protected. However, if you paid with a credit card and the cost was more than £100, the credit card company is liable and you can claim the money back.
Passengers who are already abroad awaiting a Monarch flight home will be returned at no cost to them, by the government via one of 30 planes being chartered by the CAA.
The Civil Aviation Authority said it had launched a programme to bring Monarch customers back to the UK over the next fortnight on 30 chartered 30 planes.
All Monarch customers who were due to return to the UK in the next two weeks would be flown home at no extra cost and did not need to cut short their stay, the regulator said. However, 300,000 future bookings had been cancelled.
The CAA chief executive, Andrew Haines, said: “We know that Monarch’s decision to stop trading will be very distressing for all of its customers and employees. This is the biggest UK airline ever to cease trading, so the government has asked the CAA to support Monarch customers currently abroad to get back to the UK at the end of their holiday at no extra cost to them.The CAA chief executive, Andrew Haines, said: “We know that Monarch’s decision to stop trading will be very distressing for all of its customers and employees. This is the biggest UK airline ever to cease trading, so the government has asked the CAA to support Monarch customers currently abroad to get back to the UK at the end of their holiday at no extra cost to them.
“We are putting together, at very short notice and for a period of two weeks, what is effectively one of the UK’s largest airlines to manage this task. The scale and challenge of this operation means that some disruption is inevitable. We ask customers to bear with us as we work around the clock to bring everyone home.”“We are putting together, at very short notice and for a period of two weeks, what is effectively one of the UK’s largest airlines to manage this task. The scale and challenge of this operation means that some disruption is inevitable. We ask customers to bear with us as we work around the clock to bring everyone home.”
Speaking on the BBC Today programme, the CAA chair, Dame Deirdre Hutton, said no one was “stranded” abroad, but she said for people yet to travel with Monarch, the news was not good, adding: “I’m conscious that people who have booked holidays will be distressed ... I’m afraid the harsh message is that they must not go to the airport, there will not be a flight for them.” Speaking on the BBC Today programme, the CAA chair, Dame Deirdre Hutton, said no one was “stranded” abroad, but the news for people yet to travel with Monarch was not good.
Customers affected by the company’s collapse have been urged to check hte dedicated website monarch.caa.co.uk for advice and information on flights back to the UK. It also provides information for passengers that have future bookings with Monarch but are yet to leave the UK. “I’m conscious that people who have booked holidays will be distressed ... I’m afraid the harsh message is that they must not go to the airport, there will not be a flight for them.”
The government has warned passengers to expect disruption and delays as it works to ensure there are enough flights to return the “huge number” of passengers. Customers affected by the company’s collapse have been urged to check the dedicated website monarch.caa.co.uk for advice and information on flights back to the UK. It also provides information for passengers who have future bookings but are yet to leave the UK.
The government has told passengers to expect disruption and delays as it works to ensure there are enough flights to repatriate customers.
Commenting on the “extraordinary operation”, the 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.Commenting on the “extraordinary operation”, the 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.
“Nobody should underestimate the size of the challenge, so I ask passengers to be patient and act on the advice given by the CAA.”“Nobody should underestimate the size of the challenge, so I ask passengers to be patient and act on the advice given by the CAA.”
The CAA had been expected to announce on Monday whether Monarch would be able to continue selling package holidays. The low-cost airline and holiday company previously had a deadline of midnight on 30 September before its Air Travel Organiser’s Licence (Atol) expired.The CAA had been expected to announce on Monday whether Monarch would be able to continue selling package holidays. The low-cost airline and holiday company previously had a deadline of midnight on 30 September before its Air Travel Organiser’s Licence (Atol) expired.
This is the biggest ever UK airline failure. The CAA and Government are working together to support #Monarch customers. pic.twitter.com/YsXrGdj5FB If you're abroad see https://t.co/buw8yPzDGY for details of your new flights which will be available a mini-mum of 48hrs in advance. pic.twitter.com/ozT4QRaxMV
Monarch, whose headquarters are at London Luton airport, was founded in 1968. It operates from four other UK bases – London Gatwick, Manchester, Birmingham and Leeds Bradford – travelling to more than 40 destinations around the world.Monarch, whose headquarters are at London Luton airport, was founded in 1968. It operates from four other UK bases – London Gatwick, Manchester, Birmingham and Leeds Bradford – travelling to more than 40 destinations around the world.
The company employs about 2,750 predominantly UK-based staff, its website stated. Monarch said it would work with the administrators, and the unions Balpa and Unite to help its employees find new jobs as quickly as possible.The company employs about 2,750 predominantly UK-based staff, its website stated. Monarch said it would work with the administrators, and the unions Balpa and Unite to help its employees find new jobs as quickly as possible.
Unite accused the government of “sitting on its hands” while Monarch went bust. The union, which represents about 1,800 engineers and cabin crew working for Monarch, said potential investors and buyers were deterred by the continuing uncertainty surrounding Brexit and whether British airlines could continue flights around Europe.Unite accused the government of “sitting on its hands” while Monarch went bust. The union, which represents about 1,800 engineers and cabin crew working for Monarch, said potential investors and buyers were deterred by the continuing uncertainty surrounding Brexit and whether British airlines could continue flights around Europe.
Unite said ministers had rebuffed requests by Monarch for a bridging loan of the kind the German government recently gave to prop up Air Berlin.Oliver Richardson, a Unite national officer, said: “Monarch’s workforce has worked tirelessly and loyally, with great sacrifice, to try and turn the airline around in the last year. “Their hard work has been undone by a government seemingly content to sit on its hands and allow one of the UK’s oldest airlines go into administration.” Unite said ministers had rebuffed requests by Monarch for a bridging loan of the kind the German government recently gave to prop up Air Berlin.
Oliver Richardson, a Unite national officer, said: “Monarch’s workforce has worked tirelessly and loyally, with great sacrifice, to try and turn the airline around in the last year. “Their hard work has been undone by a government seemingly content to sit on its hands and allow one of the UK’s oldest airlines go into administration.”
Monarch enjoyed a good reputation for customer service but its long-term future rarely looked assured. In 2014, its Swiss family owners sold the company to the investment firm Greybull Capital, a deal that resulted in airline staff being forced to agree to pay cuts.Monarch enjoyed a good reputation for customer service but its long-term future rarely looked assured. In 2014, its Swiss family owners sold the company to the investment firm Greybull Capital, a deal that resulted in airline staff being forced to agree to pay cuts.
A Greybull spokesman said: “We are very sorry that we have not been able to turn around the Monarch Group, and for all the inconvenience and distress that this administration will cause customers, employees and the many people who are associated with Monarch.”A Greybull spokesman said: “We are very sorry that we have not been able to turn around the Monarch Group, and for all the inconvenience and distress that this administration will cause customers, employees and the many people who are associated with Monarch.”
Greybull said the airline had been “buffeted by factors outside of its control”. Terrorism and the collapse of sterling following the Brexit vote were the two main factors, it said. Greybull said the airline had been “buffeted by factors outside of its control”. Terrorism and the collapse of the pound after the Brexit vote were the two main factors, it said.
Egypt and Tunisia, two of Monarch’s biggest markets, were closed to tourists after terrorist attacks, while a resulting flood of seats across airlines to its core business in Spain and Portugal meant cheaper fares, which were unsustainable for Monarch. Two of Monarch’s biggest markets, in Egypt and Tunisia, were closed to tourists after terrorist attacks. The Foreign Office advised against travel to Tunisia and Egypt’s Red Sea resorts after the shooting in Sousse and the bombing of a Russian airliner in 2015, stopping charter flights from the UK. Unrest in Turkey also badly hit Monarch’s holiday business. A resulting flood of seats across airlines to its core business in Spain and Portugal meant cheaper fares, which were unsustainable for Monarch.
The fall of the pound left Monarch paying £50m a year more for fuel and aircraft, purchased in dollars.The fall of the pound left Monarch paying £50m a year more for fuel and aircraft, purchased in dollars.
In a letter to staff, its chief executive, Andrew Swaffield, said the airline was carrying 14% more passengers than last year for £100m less revenue. He said the “root causes” of its declining revenue were terror attacks in Egypt and Tunisia and the decline of its Turkey business.In a letter to staff, its chief executive, Andrew Swaffield, said the airline was carrying 14% more passengers than last year for £100m less revenue. He said the “root causes” of its declining revenue were terror attacks in Egypt and Tunisia and the decline of its Turkey business.
Its engineering arm, Monarch Aircraft Engineering, a joint venture with Boeing, continues to trade and is operating as normal.Its engineering arm, Monarch Aircraft Engineering, a joint venture with Boeing, continues to trade and is operating as normal.
The administrators said they were considering breaking up the company as no buyer had been found. Blair Nimmo of KPMG said: “While there have been some expressions of interest, in reality no offers for the business as a whole have been forthcoming, so we now are looking for who might be interested in certain parts of business, whether it be physical assets or whether it be slots, i.e. routes that they currently operate.” The administrators said they were considering breaking up the company because no buyer had been found.
Blair Nimmo, of KPMG, said: “While there have been some expressions of interest, in reality no offers for the business as a whole have been forthcoming, so we now are looking for who might be interested in certain parts of business, whether it be physical assets or whether it be slots, ie routes that they currently operate.”