Monarch – all you need to know (situation, rights and refunds)

 

 

 

 

 

 

 

What has happened?
On the 2nd October 2017 Monarch Airlines and Monarch Holidays went into administration including those companies trading as:

  • Monarch Airlines Ltd
  • Monarch Holidays Ltd (ATOL Number 2275)
  • First Aviation Ltd (ATOL Number 4888) previously trading as Monarch Airlines
  • Avro Ltd (ATOL Number 1939)
  • Somewhere2stay Ltd

Customers were informed at 4.00am on the 2nd October. The administrators, KPMG said it had to wait until all of the airline’s planes had landed before issuing the statement, as it does not itself have a licence to operate planes and therefore could not take control of the company until aircraft had landed.

How did this happen?
In the year to October 2016, Monarch made a loss of £291m compared with a profit of £27m for the previous 12 months. It carried 5.7 million passengers in 2015 a 19% drop from 2014.

On the 24th October 2014, Monarch Holdings was acquired from the Globus Travel Group by private investment company and turnaround specialist Greybull Capital for a nominal sum just hours before Monarch’s licence with the Civil Aviation Authority expired.

Security threats and terrorism in Tunisia, Egypt and Turkey has contributed to the downfall of the airline, there aren’t enough bums for seats in the highly competitive short haul market.

On the 25th September 2016, there were numerous online rumours about Monarch Airline’s imminent bankruptcy. And in the days that followed, Monarch obtained additional funds from shareholders, and on 30th September 2016 its Civil Aviation Authority ATOL licence was temporarily extended until 12th October 2016. Monarch Airlines retained it after Greybull Capital provided £165m in investment funding.

However, it wasn’t enough to save the airline. On the 30th September 2017, the Civil Aviation Authority (CAA) extended Monarch’s licence for 24 hours due to financial issue but on the 2nd October 2017 at 4.00am the airline went into administration.

What now?
The airline’s website is now managed by the CAA, and corporate and staff affairs directed by KPMG.

What about passengers?
110,000 Monarch passengers were/are stranded overseas and 300,000 future bookings have been cancelled. Although the CAA is keen to point out that passengers are not stranded as they have plans to bring everyone home.

What to do if affected
From The CAA website:

“Flights booked directly with Monarch Airlines from 15 December 2016 onward
Customers with these bookings are not ATOL protected and are not entitled to make a claim to the CAA. You are advised to contact your card issuer, insurer or PayPal for advice on how to claim a refund.

Flights booked on or before 14 December 2016 directly with First Aviation Ltd trading as Monarch Airlines
If your flight was booked with Monarch Airlines on or before 14 December 2016 and you received an ATOL Certificate stating that your flight is protected with First Aviation, you are ATOL protected. We are making arrangements for refunds to be made as soon as possible to these UK customers.

We will be providing more information on how you should claim shortly. You will be able to submit a claim when we make the Monarch claim form available. Please do not submit a claim until advised to do so.

Bookings made directly with Monarch Airlines from 15 December 2016 onward are not protected by ATOL. For further information please read how do I know if I am ATOL protected.

Holidays booked directly with Monarch Holidays
Customers booked directly with Monarch Holidays are ATOL protected and will have received an ATOL Certificate when they made their booking. We are making arrangements for refunds to be made on these bookings as soon as possible, and we aim to complete this by the end of 2017 at the latest. We will be providing more information on how you should claim shortly. You will be able to submit a claim when we make the Monarch claim form available. Please do not submit a claim until you are advised to do so.

Monarch flights and Monarch Holidays booked through another travel company or travel agent
If you booked a flight or holiday with another travel company or travel agent you should contact them directly about your arrangements.

Stranded overseas?
The UK Government has requested that the CAA charter more than 30 aircraft to bring UK passengers home at no cost. It is expected that holiday makers will not have to cut short their holiday.

Yet to go, what are your rights?
Don’t go to the airport as there is no point.

  1. Tour operators must use an ATOL License for package holidays abroad. So your package should be covered by ATOL so you will be able to claim a refund
  2. If you have booked a hotel (worth up to £200) or car hire (worth up to £300) with the flight you should be able to get a refund under ATOL . This is known as a Flights Plus booking, protected by ATOL when booked through a tour operator. Flight-Plus is part of the ATOL Regulations 2012
  3. If you did not receive an ATOl certificate and you are not covered by ATOl (see above) then you are not entitled to any refund. However, if the flight cost was more than £100 you may be able to claim under Section 75 of the Consumer Credit Act 1974. If you purchased the tickets on a debit card or they cost less than £100 you may still be able to claim from the bank under their voluntary Chargeback scheme.
  4. You may be able to claim on your travel insurance but it would need to be a high level cover policy.

Reports of hotels making holidaymakers pay again
The CAA says “There are a few cases affecting passengers on Monarch package holidays who are ATOL protected. Some hoteliers wrongly think that they will not get their money for the Monarch booking and therefore ask the customer for payment. When this happens the CAA steps in to reassure the hotel that payment will be made. We have done this with two hotels in Lanzarote today and the situations have been resolved.”

All you need to know about booking/complaining about holidays/flights for links to posts regarding various issues you may have with flights and holidays. Your rights, guidelines, laws and information on how to complain effectively.

Comments
Think I may turn these off given that so many people can’t even say “please” or “thank you” when asking for help!

All you need to know about booking/complaining about holidays/flights/travel

Links to information, consumer rights and advice on complaining effectively regarding most problems with holidays and flights

Look out timber frame on a beach "researching, booking and complaining aabout holidays and flights. Tips, ideas and your rights"

Booking

Make sure your holiday in the sun doesn’t burn a hole in your pocket advice on how to book a holiday and your legal rights

Don’t get blue this Monday, get away from it all… Money bloggers look at lots of ways to beat the holiday companies and save money when booking holidays

How to prevent problems when booking a holiday let (plus what to do when things go wrong)

The essential knowhow regarding medical care when you book a holiday! all about health

How to complain when booking a service based in the EU booking on a non UK but within EU site

Hotels

How not to be ripped off by a hotel your rights when you have a bad stay

Where there’s blame there’s a claim (even when there isn’t?) details on complaining about food poisoning real and fake

Your rights when your hotel overbooks your rights and what to do

The ultimate guide to complaining when eating out your rights when booking and eating out

Packages

The Minimalist Guide to Complain your consumer rights, ATOL and ABTA

Not got the holiday you booked? What to do good example of misrepresentation and not supplying what you paid for, getting nearly  a full refund even when not an ABTA member!

How to Get an Extra 3 Hours on Your Holiday! story about transfers

All you need to know about the Package Travel and Linked Travel Arrangements 2018 all your rights

Lake mountains canoeists

Flight delays

What to do when your flight is delayed – the full guide all you need for complaining, your rights, what to do and how to do it.

Landing in court with Ryanair Summer of 2018 and strikes what was/is happening and what you can do if Ryanair doesn’t pay up with warnings about the ADR process.

What to do when your flight is delayed information regarding flight delays

BA powercut debacle: Airline keeps passengers in the dark about their rights 2017 B/H over 70k passengers affected, article on the mis informationa nd lack of information provided and what you should do.

Airline claim compensation letter template for use with any airline plus all the amounts to which you are entitled depending on length of delay and length of flight

ECJ ruling on flight delays: Consumer champion warns against third-party claim firms – do it yourself to get 100%

Other flight issues

BA flies in the face of consumer law and decency what to do if you bought your tickets before free food change and fly after the date comes into force!

Plane greedy – Are airlines holding families to ransom? – details on the main airlines and their charges including Ryanair which has mandatory charge, looking at inaction of regulatory body

How to Win When EasyJet’s Customer Service Fails helping someone get refund when had to return early

Flying in the face of poor customer service other things can go wrong with a flight, not getting what you paid for, poor customer service etc. Here’s a story and what you can do to get redress.

Monarch – Everything you need to know details about situation with airline going into administration

Other forms of travel

Rail your rights with cancellations and delays

Your rights and how to complain about ferries and cruises

All you need to know about complaining about car hire – how to prevent problems and what to do if you get them

Other related holiday and flight legal rights

How to ensure banks don’t break the Misrepresentation Act – regarding travel money and commission when taking money back

Quick guide to lost luggage – your rights

All you need to know about roaming charges your rights and what you can complain about

How not to pay a charge made after transaction (and why!) not – template letter and further information for if you have been charged a fee after booking

The Consumer Rights Act 2015 for services relating to any purchase or service

Further help for complaining effectively

Top 20 Tips for complaining effectively

ceoemail.com for contact details for CEOS

From October 1st 2016 airlines are covered by The Consumer Rights Act 2015

How to Complain: The Essential Consumer Guide to Getting Refunds, Redress and Results!

For more advice, tips, information and template letters covering holidays and more: GET THE BOOK! How To Complain: The ESSENTIAL Consumer Guide to Getting REFUNDS, Redress and RESULTS!