Administrators announce 1,858 redundancies at MonarchOct 03, 2017
Of these, 1,760 were employees of Monarch Airlines, while 98 were employed by Monarch Travel Group.
The companies employed a total of around 2,100 staff. The remainder have been retained by the joint administrators to assist in the administration process and to help collate critical information to assist the Civil Aviation Authority with the repatriation of customers who are currently overseas.
KPMG partner and joint administrator Blair Nimmo said: “We know that today has been a very sad and difficult day for the Monarch employees.
“Regrettably, with the business no longer able to fly, a significant number of redundancies were made.
"Shortly before the appointment of the joint administrators, all employees received an email from the company confirming that it was about to enter administration. Following this, the absolute priority for me and my team was to try and make contact with all members of staff as soon as possible, in order that we could communicate what the administration means for them.
“Over the coming days, my team will be doing all it can to assist the employees in submitting claims to the Redundancy Payments Office for monies owed.”
The group’s engineering operation, Monarch Aircraft Engineering Ltd, is not in administration and continues to trade normally.
MAEL employs more than 730 staff at six locations in the UK and four overseas. The company, also headquartered in Luton, has hangars at London Luton and Birmingham airports and line maintenance stations at London Gatwick, London Luton, Birmingham, Manchester, Leeds Bradford, Edinburgh, Nice, Malaga, Warsaw and Kiev.
While Monarch Airlines was a significant customer for MAEL, its focus is now on servicing its other existing clients and securing new contracts.
In the last two weeks MAEL has won a new significant contract from Virgin Atlantic Airlines to carry out checks for Virgin’s Boeing 787-9 fleet between 2017 and 2021.
At the Paris Air Show in June, MAEL announced a joint venture partnership with Boeing Global Services.
Managing director Chris Dare said: “MAEL has always been a standalone business within the Monarch Group, holding its own cash, employees and property.
"Despite what has happened at Monarch Airlines and Monarch Tour Group, MAEL continues to trade as normal with renewed focus on servicing our existing clients and winning new contracts. It is business as usual.”