BA owner buys Monarch’s old Gatwick rights

BRITISH Airways owner IAG has snapped up prized take-off and landing slots at Gatwick Airport.

The slots were put up for sale by the administrator of collapsed airline Monarch in a multimillion pound deal.

It is believed the group has secured the majority of the ill-fated carrier’s slots at Britain’s second busiest airport after tabling a significant bid that trumped rival airlines. Monarch’s runway slots at both Gatwick and Luton were reportedly worth about £60million, with the most valuable being at the West Sussex airport.

Shares in IAG were up more than one per cent in afternoon trading on the London Stock Exchange, while easyJet was two per cent ahead.

The move comes after IAG chief executive Willie Walsh said last month the firm was mulling over a swoop for the slots to boost its long-haul budget airline Level, which the organisation launched in June.

IAG, which also owns British Airways, Vueling and Aer Lingus, has been stepping up its position in the low-cost long-haul market as it looks to fend off some fierce competition from the likes of Norwegian Air Shuttle.

A string of airlines had been linked with the runway slots since Monarch’s collapse in October, with easyJet, Norwegian, Wizz Air and Jet2 all understood to have made enquiries about taking over. The administrators KPMG won a court battle to sell the “valuable” slots last Wednesday after managing to overturn a High Court ruling earlier this month.

The collapse of Monarch in October, which was owned by private equity firm Greybull Capital, led to 1,858 workers being made redundant and the flights and holidays of about 860,000 people being cancelled.

Alongside Gatwick, Monarch’s runway slots at Luton Airport are also being auctioned off. IAG, easyJet, Norwegian, and KPMG declined to comment on the reports.

‘Monarch’s slots at Luton are also being auctioned’