The privately-owned Monarch Airlines has collapsed and filed for insolvency. The act has left the UK Civil Aviation Authority (CAA) looking for replacement flight for nearly 110,000 customers.
According to Chris Grayling, Transport Secretary, the CAA will need to charter about 30 aircraft in order to compensate for the airline’s collapse.
All five businesses under the Monarch Group: Monarch Airlines, Monarch Holidays, First Aviation, Avro and Somewhere2Stay have ceased trading and have entered administration. The insolvency process will be headed up by two KPMG Alumni.
Monarch Airlines got into trouble because it failed to renew its Air Travel Organisers Licence and also had its air operators certificate suspended. As a result, 20,000 flights were cancelled and 300,000 bookings will be refunded.
The collapse of the carrier came shortly after it was granted a temporary 12-day extension to its Air Traffic Organisers Licensing (Atol) license less than four hours before its expiration and despite the claims that new funding was about to fuel the company in the following days.