Monarch go bust! What does that mean for the 100,000+ passengers effected? FDP explains…
- Flights returning 110,000 holidaymakers from overseas after Monarch’s collapse will cost about £60m, according to the UK airline regulator. Source BBC
- Four Reasons behind Monarchs failure. Source BBC
- Why there’s a ‘crisis coming up’ for budget airlines. Source NewsBeat
Today, 2nd October Monarch Airline has gone into administration and called in KPMG to handle the process. The following companies have therefore ceased trading:
- Monarch Airlines Limited
- Monarch Holidays Limited (ATOL Number 2275)
- First Aviation Limited (ATOL Number 4888) previously trading as Monarch Airlines
- Avro Limited (ATOL Number 1939)
- Somewhere2stay Limited
The Civil Aviation Authority has cancelled the operating license at 3am today when all the Monarch fleet were grounded.
— Rick Kelsey (@RickKelsey) October 2, 2017
All future holidays and flights provided by the above companies have been cancelled and will not operate.
The UK Government together with the CAA have leased aircraft for a two week period to repatriate passengers who are currently overseas this is estimated to be 110,000. Chris Crayling the Transport Secretary described the situation as:
“Biggest ever peacetime repatriation”
The Civil Aviation Authority has chartered 34 aircraft in order to repatriate UK passengers. This repatriation exercise is applicable to customers who: Booked a package holiday including flights and hence are ATOL protected.
The government has asked the CAA to include customers currently overseas but not protected by ATOL and are due to return to the UK in the next two weeks
Will customers get their money back?
If you booked a holiday through Monarch Travel or other Travel Agencies, then you will be ATOL protected and will be able to get a full refund
If you booked a flight only then you will become an unsecured creditor. However, if you used a credit card to buy the flight you will be protected by Section 75 of the Consumer Credit Act and will be able to claim your money back from the credit card company.
What will happen to those customers currently awaiting a payment under EU261/2004? This is complicated but once Monarch has investigated the claim if exceptional circumstances do not apply they will simply be another unsecured creditor. The administrators will eventually get round to dealing with these claims but it is unlikely they will be paid in full. We are advising those customers with a claim with Monarch to expect a delay of up to three months.
Two helplines have been set up
Customers in the UK: 0300 303 2800 | International Customers +44 1753 330330
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