The engineering division of airline Monarch, which collapsed in 2017, escaped closure when the rest of the group went into administration.
But work to restructure the Luton-based operation by its owner Greybull Capital, which acquired MAEL in October, has failed, say administrators KPMG.
The union Unite described the news as a "terrible blow" to the Luton economy and intends to launch legal acation over a failure to consult.
The company announced earlier this week that its operations at Luton will be taken over by Storm Aviation. Its maintenance work at Gatwick, Birmingham, East Midlands, Newcastle and Glasgow had been taken over by Morson Group.
KPMG restructuring partner David Pike said MAEL has worked to build its customer base and replace business lost after the Monarch Group collapsed in 2017.
"Through the insolvency of the airline however, the company inherited significant debts and claims,” he added.
“Every effort has been made to turn around the business, including launching a CVA which sought to resolve these legacy debts. Unfortunately, following the CVA, a number of customers reduced or sought to terminate their relationship with MAEL, further adversely impacting the business."
A "terrible blow" for Luton’s economy, say union leaders
Unite said it would be offering its members maximum support and pursing legal action for compensation over a failure to consult after Monarch Aircraft Engineering Limited collapsed into administration today (Friday), with the loss of 450 jobs at its Luton base.
Describing the news as a “terrible blow” to the Luton economy, Unite, Britain and Ireland’s largest union representing aviation workers, called for an urgent meeting with the administrators KPMG.
Unite regional officer Paul Bouch said: “This is terrible news and a terrible way to start the new year for a group of highly skilled workers. Unite will be offering our maximum support to help those affected by this announcement.
“Unite will also be seeking an urgent meeting with the administrators KPMG and launching legal action on behalf of our members for compensation over a failure to consult.
“The workers concerned have skills that are in short supply and we would urge other aviation engineering firms to step in to ensure vital engineering knowledge is not lost to industry.
“Over the coming days Unite will be engaging with the buyers of the other parts of the business to ensure that our members’ terms and conditions are protected during the transfer process and that jobs are safeguarded going forward.”
Describing the news as a “terrible blow” to the Luton economy, Unite, Britain and Ireland’s largest union representing aviation workers, called for an urgent meeting with the administrators KPMG.
Unite regional officer Paul Bouch said: “This is terrible news and a terrible way to start the new year for a group of highly skilled workers. Unite will be offering our maximum support to help those affected by this announcement.
“Unite will also be seeking an urgent meeting with the administrators KPMG and launching legal action on behalf of our members for compensation over a failure to consult.
“The workers concerned have skills that are in short supply and we would urge other aviation engineering firms to step in to ensure vital engineering knowledge is not lost to industry.
“Over the coming days Unite will be engaging with the buyers of the other parts of the business to ensure that our members’ terms and conditions are protected during the transfer process and that jobs are safeguarded going forward.”
