Monarch Airlines goes BUST: Scramble to rescue 110,000 stranded passengers

Up to 750,000 MORE furious customers face losing their money as all flights are cancelled.

By Nehanda Radio On Oct 2, 2017 4,225

Monarch Airlines has ceased trading and its 300,000 future bookings for flights and holidays have been cancelled, the Civil Aviation Authority in the UK has said.

A fleet of jets has been chartered to rescue up to 100,000 British holidaymakers who are stranded

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.

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 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.

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.

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.

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.

What have the authorities said?

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.”

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.”

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.