Blair Nimmo, Jim Tucker and Mike Pink from KPMG have this morning, Monday 2 October 2017, been appointed joint administrators to Monarch Airlines Limited. At the same time, Blair Nimmo, Jim Tucker and Steve Absolom from KPMG have been appointed joint administrators to Monarch Travel Group Limited.
The Group’s engineering operation, Monarch Aircraft Engineering Limited, is not in administration and continues to trade normally.
As a result of the insolvency proceedings, Monarch Airlines is no longer able to fly as its Air Operating Certificate has been suspended.
Consequently, all flights operated by Monarch Airlines from the UK, and all future holidays booked with Monarch Travel Group, are cancelled with immediate effect.
Monarch will not be able to reschedule these flights or holidays. Passengers due to fly with Monarch from the UK are advised not to travel to their airport, unless they have booked alternative arrangements.
The Civil Aviation Authority (CAA), with assistance from the administrators and employees of the company, and at the request of the Government, will be coordinating the repatriation of Monarch customers who are currently overseas and who are scheduled to fly to the UK over the next two weeks at no cost to them.
These customers are advised to NOT TRAVEL TO THE AIRPORT until they have seen confirmation of their new flight on monarch.caa.co.uk
The CAA’s headline intention, today and in the next two weeks, is to seek to repatriate passengers to the UK as close to their scheduled return date as possible.
The monarch.caa.co.uk website also contains details of how customers can apply for refunds.
Blair Nimmo, Partner at KPMG and Joint Administrator to the companies, 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 each 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.”
Together, the Group offered airline capacity of over six million sector seats and tour operator passenger volumes of over 200,000 per year. The Group is headquartered in Luton. The Airline and Tour Group employ approximately 2,100 people between them.
Important information for customers:
· Two dedicated helplines have been set up for customers in the UK and customers overseas:
Customers in the UK: 0300 303 2800
Customers overseas: +44 1753 330330
· It is likely that customers who booked a package holiday via Monarch Travel Group are ATOL protected. Customers who have booked package holidays including flights with Monarch Airlines via other tour operators will likely also be ATOL protected.
· Customers who have booked a flight only with Monarch Airlines are not ATOL protected, unless they bought their travel before 15 December 2016.
· The Civil Aviation Authority will arrange for the repatriation of ATOL protected customers who are currently overseas back to the UK. The Civil Aviation Authority has also been asked by the Department for Transport to repatriate UK customers who are currently overseas but are not protected by ATOL and who are due to return to the UK within the next two weeks.
· Non-ATOL protected customers may be able to claim for additional costs, such as the cost of additional accommodation, from their credit card provider.
· Customers who are yet to travel may be able to claim a refund from their credit or debit card provider, or if they are ATOL protected, from the CAA or their travel company if they booked through another travel provider.
· Further customer information can also be found on the CAA’s website: monarch.caa.co.uk
· Information can also be found at www.kpmg.co.uk/monarch