Yahoo Finance Monarch Airlines collapse: Everything you need to know
In the biggest-ever failure of a British airline Monarch has gone bust after it lost its licence to sell holidays. We run through everything customers need to know.
What has happened to Monarch?
Monarch’s demise comes as the airline was just about to celebrate its 50th anniversary.
The company, which had 2,100 workers, fell victim to a price war over flights to the Mediterranean. Mounting costs saw it suffer a period of sustained losses until collapsing early on Monday morning.
The firm’s finances deteriorated in 2016, after security concerns deterred travel to Tunisia, Turkey and Egypt and brought increased capacity for routes to Iberia. The decline in the value of the pound, following the UK’s momentous decision to leave the EU, has also compounded its problems.
The airline was bailed out by its owner Greybull Capital a year ago.
All future flights with the firm from Monday 2 October have been cancelled.
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How many people are affected?
More than 100,000 people are currently overseas on a Monarch trip. Meanwhile around 750,000 people have 300,000 bookings with the firm, which will not now be honoured.
The Civil Aviation Authority (CAA) said it had been asked by the government to charter more than 30 aircraft to bring the passengers home, with transport secretary Chris Grayling calling it the “biggest peacetime repatriation” effort.
A plane carrying 165 passengers from Ibiza was the first to arrive, landing at Gatwick on Monday morning, hours after the airline’s board called in administrators KPMG.
Who can I contact if I’m affected?
See below, but if you are affected by the collapse of Monarch airlines you should check the advice on www.monarch.caa.co.uk. The Civil Aviation Authority also has a 24-hour helpline: 0300 303 2800 from the UK and Ireland and +44 1753 330330 from overseas.
I’m on a Monarch trip. How will I get home?
The government has told Monarch customers to continue their holidays and has organised for an emergency fleet of 30 airplanes have been chartered to get all holidaymakers home safely, at no extra cost. That’s been arranged under the travel industry’s Atol scheme, which refunds passengers if a travel firm collapses and makes sure no travellers are stranded overseas.
At least 48 hours before you are due to return home you should visit monarch.caa.co.uk, call the helpline on 0300 303 2800 if calling from the UK or +44 1753 330330 if calling from overseas to confirm your new flight details. Repatriation flights are for all passengers who purchased tickets with Monarch irrespective of their nationality.
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The Civil Aviation Authority says: “All customers already overseas and due to travel back to the UK on or before 15 October 2017 will have a new flight home arranged at no extra cost to you, as close as possible to your original return date and time.”
How do I find out about my rearranged flight?
Visit Monarch’s website to get confirmation of your new flights. Details of your return flight should be available a minimum of 48 hours before your original Monarch flight time.
What happens if I haven’t yet flown?
You won’t be flying with Monarch. If you have separate accommodation booked then you need to try and find alternative flights. Sadly prices are already rising and you won’t find many cheap deals, particularly if your flight was in the next few weeks.
Can I get my money back for my cancelled flights?
While UK travel companies which sell air holidays have to hold an Atol licence, which protects consumers if they go bust, Monarch only had a licence for package holidays. That means customers who only booked flights are unlikely to get any money back from Monarch.
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However, if you used a credit card to buy flights worth more than £100 you can seek a refund from your card company under section 75 of the Consumer Credit Act 1974. It says the credit card provider has a joint legal liability with the retailer for the goods or services you buy so you can claim the full cost back from your plastic card company.
How do I get a refund from my credit card company?
Contact your company as soon as possible and explain your position. You won’t be the only person getting in touch about Monarch flights so your credit card firm should be ready for your call. Your case will be sent to the disputes department which should respond within seven working days. They will try and get the money back from Monarch’s liquidators but once they’ve tried that, should refund you as long as your booking was for more than £100.
What if I used a debit card?
You may well be able to get your money back through what is known as chargeback. It effectively gives you the same rights as section 75. Ask your card provider about chargeback for your Monarch flights and it should try and get your money back from Monarch or its administrators. “While it’s not a legal protection like Section 75, this is a core protection in Visa, Mastercard and American Express’ rules and it can swiftly help people get their money back,” said Martin Lewis of Moneysavingexpert.com.
Can I claim on my travel insurance for my cancelled flights?
That’s unlikely unless the travel insurance policy you bought includes rare ‘travel abandonment’ cover. It’s worth checking your terms and conditions for this but very few policies include it, and it’s definitely not part of budget plans.
