860,000 grounded by Monarch
Biggest peacetime repatriation begins as UK airline collapses with tens of thousands stranded overseas
MONARCH imploded yesterday leaving 860,000 customers high and dry and prompting the UK’s biggest peacetime repatriation.
Some 110,000 customers overseas are being flown home after the firm became the largest airline ever in the UK to plunge into administration.
A further three quarters of a million held future bookings with the firm and many now face a nail-biting wait to discover if they will be left out of pocket.
Last night it emerged that Monarch, the UK’s fifth biggest airline, bombarded passengers with adverts for cheap flights shortly before calling in the administrators.
To prevent passengers being stranded abroad, the CAA has organised flights to repatriate 110,000 people currently abroad over the next two weeks. So far 55,793 have notified the Civil Aviation Authority that they are stranded overseas.
Chartering 34 planes, borrowed from rival airlines such as Qatar Airlines and EasyJet, will cost the taxpayer £60million.
Around 700 flights will operate over the next two weeks, but Monarch customers who are abroad after that will have to pay for their own flights. The biggest numbers will be through Spanish airports.
The Department for Transport said that by 9pm last night 6,125 passengers had been repatriated on 35 flights. Another 31 late night flights were scheduled to carry a further 5,718.
Transport Secretary Chris Grayling said: ‘This is a hugely distressing situation for British holidaymakers abroad – and my first priority is to help them get back to the UK.
‘That is why I have immediately ordered the country’s biggest ever peacetime repatriation to fly about 110,000 passengers who could otherwise have been left stranded abroad. This is an unprecedented response to an unprecedented situation.’ The Government said it plans to recoup much of the money spent on the repatriation by securing refunds from card providers.
The CAA estimated that only half of the 860,000 Monarch passengers affected have ATOL protection, meaning many could be left out of pocket.
The company, which officially went bust at 4am yesterday, launched a major sales push in a bid to stave off collapse. This continued as it teetered on the brink.
One promotional offer by the company – seen by the Daily Mail – was sent to thousands via text message and email on Friday.
It stated: ‘Hooray for payday! Find the feeling with 1000s of seats at £30 to Spain and Portugal.’
Similar emails and text messages were sent to those on Monarch’s customer mailing list in the preceding weeks as the airline fought for survival.
Another – titled ‘Escape to Sunny Tenerife’ – advertised tickets to the popular holiday destination for £39. Monarch finally quadrupled the price of flights on Sunday to stop more people buying them.
The cynical sales offensive came despite the fact that Monarch’s owners Greybull Capital had already appointed KPMG to explore options for the airline, including selling it off or putting it into administration. This became clear after the CAA yesterday revealed that the airline had alerted it more than a month ago that it was in difficulty.
Its chief executive, Andrew Haines, stressed that the CAA only had a ‘clear indication’ that Monarch was about to go into administration late on Saturday.
‘Only Monarch’s directors could be responsible for deciding how to price their products, and on the basis of their pricing decisions, whether Monarch had a viable future,’ he said. ‘Neither the Government nor any public body has the power to intervene in these decisions.’
Consumer experts expressed disbelief that Monarch went to such lengths to push its flights despite knowing it could collapse.
Guy Anker, managing editor of website Moneysavingexpert, said: ‘If Monarch actively was trying to flog thousands of seats at a time when it knew its future was in the balance, those who paid in good faith will understandably be utterly furious and should immediately check their rights.’
Monarch passengers revealed how their plans had been wrecked. Those arriving at airports across the UK for early morning flights yesterday said they were greeted with the news of the airline’s collapse when they reached the terminal or queued to check in. Others woke up to text messages telling they would not be able to fly.
It also emerged that the former boss of Monarch, Andrew Swaffield, set up a business consultancy firm on Friday as the airline battled for survival.
Administrators confirmed last night that 1,858 Monarch staff have been made redundant, with the remaining 250 staying on to help repatriate customers and wind down the company.
Mr Grayling has urged other airlines to keep their prices ‘reasonable’ amid claims they have inflated prices to cash in on Monarch’s demise. Furious passengers who rushed to book flights yesterday morning complained that the fares jumped dramatically.
Mr Swaffield said the ‘root cause’ of the fall in Monarch’s revenue was terror attacks in Egypt and Tunisia, and the ‘decimation’ of the Turkish tourist industry. It has since lost out in a price war for Mediterranean tourist hotspots with rivals such as EasyJet and Ryanair.
Monarch could not be reached for comment. Greybull said the decision to promote cheap flights as late as Friday was a matter for Monarch.
‘Understandably utterly furious’