Monarch Airlines crisis gets severe after it stops trading. The Monarch Airlines has canceled over 300,000 future bookings. One-third of all the customers whose flights got canceled are overseas.
The British Government tasked the CAA to fly 30 planes to get those people back to the UK. Aviation experts term it as one of the biggest peacetime repatriations that the Civil Aviation Authority has to undertake.
Losses Behind Monarch Airlines Crisis
Monarch Airlines crisis has become more evident with the losses. The airline could not continue with the same profitability. Monarch Airlines last year’s losses amounted to £291 million. Around 2,100 employees may lose their jobs.
Monarch Airlines crisis is a warning signal for other airlines. It is the fifth largest airline in the country and the biggest to have ever undergone a collapse. The passengers already at the airport were only informed via a text message.
The 300,000 cancellations will potentially impact around 750,000 customers. The company was trying to reach a deal with British Civil Aviation Authority. But, it could not agree, resulting in a shutdown.
Potential Reasons Behind Monarch Airlines Crisis
Some aviation experts blame the rise in fuel prices make it difficult for the airlinef to continue. Whereas, others blame the extra handling charges. However, the company’s Chief Executive blamed a collapse of the Turkish market resulting in reduced number of flights to Tunisia and Egypt.
What Should Monarch Airlines Customer Do?
- The Civil Aviation Authority asks clients in the UK not to go to the airport. They will get a refund for the tickets.
- The customers who have booked a flight with Monarch Airlines will be brought back, and they will not have to pay anything extra.
- The clients who recently went overseas will have to see the company’s website to get a status update.
The CAA has stated that due to the overwhelming tasks of bringing back hundreds of thousands of customers, there will be disruptions. The clients of the airline are spread in 11 different countries.
Furthermore, Work & Pensions department has already indicated giving support to the affected employees. Some airlines are showing a willingness to re-employee ex-employees of the airline.
Future of Monarch Airlines
It is a tough ask to find a come around after this massive crisis. The airlines can no longer sell the holiday packages to its customers. KPMG is appointed as company’s liquidator. It is up to the board to decide about the future of the enterprise. Besides, holiday packages, the company also has stakes in the engineering business. Therefore, we may see this part of the business operating profitably.
Airlines are coming together to compete in a highly competitive market. The increase in fuel prices with a lack of lucrative destinations, terrorism, and a gloomy economic outlook are some of the reasons behind their downfall.