Monarch quadruples prices as airline fights to survive
Travel Organiser’s Licence (ATOL) which allows it to sell holidays with the protection that if it goes bust, customers will be protected. The low-cost airline originally had a deadline of midnight Saturday before its ATOL expired.
The Civil Aviation Authority was yesterday understood to be considering a second 24-hour extension.
If the licence is removed, Monarch could continue to trade as most of its business is flight-only, which does not need an ATOL.
Meanwhile, accountants KPMG are thought to be lined up to handle any potential administration.
Yesterday Monarch stressed it was business as usual while offering no insight to passengers with future travel plans. Responding to concerned customers on Twitter, the company repeatedly replied: “Our flights are operating as scheduled today. Any changes to the forward schedule will be communicated to all customers.”
The CAA has leased 10 A320 aircraft from Qatar Airways in case Monarch’s planes are grounded by regulators and its customers left stranded overseas.
Industry insiders claimed Monarch and the short-haul travel industry have suffered due to holidaymakers’ budgets being increasingly squeezed and fears over terrorist attacks.
Yesterday the CAA said: “The ATOL renewal process is ongoing. We will not comment on the specifics of any ATOL holder’s application until such time as the process has reached a resolution.
“However, we can confirm that ATOL protection will remain available for eligible holiday bookings made with Monarch on Sunday.
“The CAA will provide a daily update with regard to the protection that is available to Monarch’s customers.”
It is Monarch’s second temporary licence extension in two years and follows repeated concerns about the carrier’s finances.
Monarch, based at Luton Airport, employs 2,750 predominantly Britishbased staff.