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Julian Bray provides: Opinion, comment, forward thinking speculation, keynote presentations and workshops for corporate organisations on Travel, Cruise & Aviation: conflict zones, terrorist impact, drone (UAV) issues, safety (black boxes, emergencies), airline operations, aviation finance, political implications, and all forms of incident risk. He operated at board level with several airline and aviation groups, including Alitalia, British Island Airways, British Airways, Galileo , British Aerospace, Skyways, former CEO City firm Leadenhall Assoc. Founder CNS City News Service. Director NTN Television News (joint co. with ITV Wales TWW) Debretts People 2017 and in launch edition of PRWeek Black Book. Journalist and Broadcaster. After-dinner speaker and presenter.

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Monday, 2 October 2017

MONARCH BUST! Wednesday UPDATE: HUGE shadow CAA airline repatriates Monarch Airlines passengers. Airline now in Administration.

THIS STORY IS BEING UPDATED
 throughout the day.
Return often.
 
 Update 07:00 hrs Wednesday
 
+++ Monarch administrators KPMG are already making arrangements to send back Monarchs leased aircraft fleet to their lease company owners.
 
+++ CITYAM is reporting: The boss of collapsed airline Monarch Andrew Swaffield has already opened up a new aviation consultancy business...
 
+++ According to Companies House, Andrew Swaffield's new firm Alcedo Consulting Services (named after his Polo team -and a Kingfisher bird species...) was established yesterday, with Swaffield listed as one of the directors.The second director, is his live-in partner William Low,51.

+++
Monarch Airlines ceased trading on Monday, with  chief executive Swaffield telling the BBC's Today programme earlier that it was a "heartbreaking day", but the airline was facing an annual loss of over £100m.

+++ Although heartbroken, Mr Swaffield still found time, sitting in his old office, to set up his future business! 

 
 
Update 10:10 hrs Tuesday
+++ Could this be the cause of Monarch Airlines collapse? New data shows their market share stagnated over the years...
 
 
Update 07:50 hrs Tuesday
 
+++ 56,000 passengers will be repatriated this week and of those, 11k back in UK by Monday.
 
+++ 34 chartered jets from 16 airlines including Qatar and EasyJet being used.
 
+++ CAA says costs in region of £60million.
 
+++ 1,900 job losses confirmed.
 
+++ More than half of passengers for repatriation are in Spain and the Balearics.
 
+++ Monarch pensioners 'not affected by collapse'.
 
+++ Revised (new) information on:
 
 
Update 14:30 hrs Monday
+++ CAA confirm ATOL protected passengers will be returned to the UK in accordance with their return flight details.
 
+++ Some ATOL bonded repatriation flights/seat bookings may, for example, be operated as much as six months into the future +++
 
 
 
CLICK ON PICTURE to enlarge
 
CAA RESCUE HELPLINE FOR MONARCH PASSENGERS is on 0300 303 2800 and a CAA / Monarch website is at www.monarch.caa.co.uk  
 
Customers in the UK: 0300 303 2800
Customers overseas: +44 1753 330330
 
DO NOT HEAD FOR A UK AIRPORT AS ALL MONARCH FLIGHTS ARE CANCELLED AND THE AIR OPERATING LICENCE CANCELLED
 
 


Monarch Airlines, the UK's fifth largest airline has collapsed and has been put into administration, and has immediately ceased trading. 
 
All Monarch flights have been cancelled and those passengers holding tickets are strongly advised NOT to travel to the airport.  

Julian Bray will be live on BBC5Live, BBC Scotland, BBC World Service, BBC News and individual BBC Local radio stations at various times from 9 am this morning.

Meanwhile on the first day of the Conservative Party Conference, the Department of Transport has unusually asked the Civil Aviation Authority [CAA] to extend (for two weeks) to none ATOL clients, rescue plan to return some 110,000 passengers (currently abroad) at some 40 world destinations to the UK, at the end of their booked holiday period.

Monarch passengers (ie individual flyers and those not protected by the ATOL/CAA bonding scheme) are now also to be short-term covered by a CAA/ATOL rescue package, and those not within the ATOL bonding scheme will for the next 2 weeks only have their repatriation flight funded by the UK Department of Transport.  ·

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 (CAA) 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 (October 15th is the cut-off point).

So far over 30 charter aircraft have been secured by the CAA, who have also launched a helpline on
0300 303 2800
and a CAA / Monarch website at
www.monarch.caa.co.uk

Julian Bray Broadcaster Aviation Expert says. This is one of the largest UK airlines to 'suddenly' collapse. A KPMG administrator Blair Nimmo speaking on BBC News said: "There is no prospect of the airline being sold as a 'going concern' as it has been offered for sale for some months now."

The collapse comes immediately after Monarch managed to extend its ATOL 'holiday' flight licence, and the airline announced it would in future concentrate on its long haul business, selling off its short haul interests.

In the early hours of Monday morning KPMG administrators were called in by the board.   Some 300,000 future Monarch clients will now have to talk to their travel agents, travel insurance firms in order to establish if they will be refunded any, all or part of their costs.
 
Monarchs operational base at Luton will see a flurry of activity as officials will seize and secure Monarch aircraft as they land, physically attaching a writ to the aircraft and placing an airport tug on its nosewheel, so the aircraft cannot be moved.

As soon as all Monarch flights landed safely overnight, the airline effectively lost its Operating Licence and insurance cover. It was only then the Administrators, could be appointed and start the formal process. 

All Monarch clients are advised to contact the CAA website and helpline. Some 2,100 Monarch employees have effectively now lost their jobs, and they will be told this by the administrators at a mass meeting starting at 9am in Luton. Staff were emailed at 3am this morning, by the new administrators.
 
Monarch carried just 6.3 million passengers last year from Gatwick, Luton, Birmingham, Leeds-Bradford and Manchester airports.
 
The firm posted a loss of £291m in the financial year ending in October.

NOTE: All customers who have paid (all or part of the total invoice, but a credit card debit amount of over £100**) using a credit card or VISA Debit Card can ADDITIONALLY apply to the credit card company directly for a possible refund under the UK Consumer Credit Act Section 75, or a 'voluntary' chargeback arrangement for debit card holders.

** say your invoice is for £3,000, and you pay say £150 using your credit card, as its over a £100 payment you can then claim the FULL £3,000 directly from the credit card company citing Consumer Credit Act: Sect 75, even though in our example, the balance £2,850 of the invoice was paid in cash! You will also have a possible claim against the travel agent  who accepted the original booking.

KMPG STATEMENT
 
Administrators appointed to Monarch Airlines Limited and Monarch Travel Group Limited

All flights from the UK, operated by Monarch Airlines, have been cancelled and will not be rescheduled
All Monarch flights to the UK today and for the next two weeks will be replaced with alternative flights, organised by the Civil Aviation Authority (CAA) with assistance from the administrators
 
A dedicated website and two helplines have been set up for customers in the UK and customers overseas:
 
monarch.caa.co.uk
Customers in the UK:    0300 303 2800
Customers overseas:     +44 1753 330330

Monday 2 October 2017

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 <http://www.kpmg.co.uk/monarch>
 

About Monarch:
Monarch comprises a scheduled airline, in-house tour operator and an engineering division. The airline, founded in 1968, flew to over 40 destinations from five UK bases: London Gatwick, Birmingham, Manchester, Leeds-Bradford and Luton, where it is headquartered.  The airline offered six million sector seats to leisure destinations, while the tour operating division offered package holidays across the airline's scheduled network.
 
The following companies from within the Monarch Group are in administration:
Monarch Holdings Limited 
Monarch Airlines Limited
Monarch Travel Group Limited
First Aviation Limited
Avro Aviation Limited
Avro Limited
MH Aviation Transport Limited (formerly Cosmos Aviation Limited)
Monarch Holidays Limited (formerly Cosmos Holidays Limited)
somewhere2stay Limited
Monarch 2011 Limited
 
Monarch Aircraft Engineering Limited and Monarch Aircraft Engineering LLC (Monarch Ukraine) are not in administration and continue to trade as normal.

Employees:
The Airline and Tour Group employ approximately 2,100 people between them.
Monarch Airlines Limited, employs 1,948 staff across the following locations:
Location MAL
Birmingham 389
Bromley, Kent 8
Gatwick 420
Leeds Bradford 60
Luton 645
Manchester 425
Stockport, Greater Manchester 1
 
Monarch Travel Group limited employ 153 staff across the following locations:

Location Monarch Travel
Bromley, Kent 72
Manchester 2
Stockport, Greater Manchester 39
Overseas (Faro & Malaga) 40
 

JULIAN BRAY +44(0)1733 345581, Journalist & Broadcaster, Aviation Security & Airline Operations Analyst/expert  ... Travel & Holiday Guru www.aviationcomment.com, ... http://www.freelancedirectory.org/user.php?user=8121 ... www.freelancedirectory.org?name=Julian.Bray.aviation.comment, ... Aviation / Travel / Maritime & Cruise Industries, NUJ, EQUITY, LIVE ISDN LINK, Broadcast ISDN COOBE ++44 (0)1733 345020 ... SKYPE: JULIAN.BRAY.UK e&oe Old faithful NOKIA: 07944 217476
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