50,000 could miss out on Monarch delay payouts

THOUSANDS of Monarch passengers owed money for flight delays could miss out on compensation because of the airline’s collapse.

Passengers who are awaiting refunds for lost or damaged luggage over the past year are also at risk of losing out.

Under EU law, holidaymakers are entitled to compensation from their airline if their flight is delayed by more than three hours or cancelled.

Figures provided to Money Mail show that passengers who flew on 326 Monarch flights over the past year qualify for a payout. But with the airline in administration, there is no guarantee that there will be money left to pay these claims once the firm is wound up.

Some passengers may already have received compensation. But experts say that many of those who travelled this year won’t have claimed. Others may not yet have realised they are entitled to these payouts. Claims often take weeks or even months to process — so some customers’ details may be left stuck in the system.

And KPMG, the administrator in charge of settling Monarch’s accounts, says customers waiting for a response need to submit their claim again. The same applies to anyone claiming for damaged or lost luggage on Monarch flights.

In total up to 53,500 passengers could miss out on £17.7 million in compensation, according to figures from law firm Bott & Co. Compensation for delays and cancellations under EU regulation 261 can be as much as €600 (£536) per person.

What you get depends on how far you are travelling and the length of the delay or, for cancellations, how much notice you were given and the length of your journey. Firms do not have to pay out if the reason for the delay was out of their control, such as bad weather or crew strikes.

The law firm says there were an average of 209 seats available on each of the 326 Monarch flights where passengers had a valid claim, so around 68,000 in total.

By looking at the firm’s average loading figures — how full each flight was — it estimates that 53,500 people flew on these flights. With the average compensation payout being £330 per person, this works out at £17.7 million, which could be up for grabs.

Bott & Co says its firm alone has 947 Monarch claims outstanding. All compensation claims will now be dealt with by KPMG.

The accountancy firm told Money Mail it has already received claims, but does not yet know how many are outstanding or what the total compensation bill will be.

Customers will be at the bottom of a very large pile of creditors. When a company goes bust, an administration company such as KPMG is brought in to audit the accounts and sell off any assets it can.

Any cash salvaged is then dealt out in order of priority. Banks get their share first, then preferential creditors such as employees and finally unsecured creditors — the customers. This means that any compensation claims will only be paid if there is enough cash left after all the other debts are settled.

Customers should be aware that claims previously submitted to Monarch will not automatically be passed on to KPMG. They will need to submit a new one as their claim is now against the administrators rather than itself.

All claims should be sent to: KPMG, 15 Canada Square, Canary Wharf, London, E14 5GL.

If customers who were overseas when Monarch went bust and expe- rienced a delay on a repatriation flight run by the Civil Aviation Authority (CAA), they will not be entitled to compensation.

The CAA has, however, said it will consider claims for out- of-pocket expenses such as extra accommodation. Any claims for lost or damaged luggage on one of these flights should also be sent to the CAA. Call its helpline for Monarch customers on 0300 303 2800.

Passengers can find more information at kpmg.co.uk/monarch and monarch.caa.co.uk. v.bischoff@dailymail.co.uk