Collapsed Monarch Airlines faced £100m loss, says CEO Andrew Swaffield

By: | Published: October 3, 2017 2:55 PM

British short-haul carrier Monarch Airlines faced an annual loss in excess of £100 million ($133 million, 113 million euros) when it went bust, chief executive Andrew Swaffield said today.

Monarch Airlines, Collapsed Monarch Airlines,  Andrew Swaffield, Civil Aviation Authority, Britain, Turkey, tunisiaMonarch has been badly hit by a legacy of weak demand in previously key markets Turkey, Tunisia and Egypt that have each suffered terrorist attacks in recent years. (Reuters)

British short-haul carrier Monarch Airlines faced an annual loss in excess of £100 million ($133 million, 113 million euros) when it went bust, chief executive Andrew Swaffield said today. The airline declared bankruptcy on Monday after failing to secure fresh capital or sell the business, leaving British authorities racing to rescue tens of thousands of customers stranded abroad, while Monarch staff were made redundant.

“Yesterday was a heart-breaking day as 2,000 people lost their jobs and we are all absolutely devastated for the customers and for all of us,” Swaffield told BBC Radio 4. The Civil Aviation Authority regulator launched an emergency repatriation scheme on Monday to fly back 110,000 Monarch customers to Britain at an estimated cost to taxpayers of £60 million.

Monarch has been badly hit by a legacy of weak demand in previously key markets Turkey, Tunisia and Egypt that have each suffered terrorist attacks in recent years. In turn, the events have sparked fierce competition and oversupply for popular destinations Portugal and Spain. Consequently, the airline suffered a 25-percent reduction in ticket prices which created a “massive economic challenge” for the group, Swaffield said.

Monarch therefore faced the daunting prospect of a huge loss for the next financial year. “The figure was well over £100 million” (that the group was projected to lose next year) … and we could not figure out a way of reducing those losses significantly,” Swaffield said. “We couldn’t find a way in the end and we reached the end of the road on Saturday night, made the decision and filed on Monday morning.”
He added: “We spoke to a variety of sources, trying to leave no stone unturned, including raising capital to fund trading losses, selling the company and part of the company, and concluded that we had no prospect.”

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition