Monarch Airlines License for Package Holiday Charters Might be Revoked

• October 2, 2017
• By Pete Nisbet
• 0

Monarch Airlines license for package holiday charters is under threat.  The company has until midnight of 1^st October to renew its license with ATOL – or it may request more time from the Civil Aviation Authority (CAA).

Monarch Airlines is the UK chartered airline company providing flights for package holiday operators. It also operated flights for other companies seeking a chartered airline.

Too Many Airlines – Not Enough Demand

The CAA could call a deadline on the operation of the company. So what is the problem with Monarch? The terrorist operations in Egypt and Turkey have resulted in a lack of demand for vacations in these parts of the world. This forced Monarch Airlines to compete for business in the popular Greece and Spain market.

This is a lucrative market for travel companies. However, they have their own preferred airlines.  There are just too many airlines with insufficient bums on seats to keep them all viable.

Monarch Airlines License Essential for Its Business

Monarch Airlines is not totally dependant on the holiday business for its income. However, if the CAA revokes its license to provide flights for package holidays, then it would be in trouble.  Having lost the cash cow of holiday flights, the company would then have some issues to sort out.  Monarch Airlines would have to get client confidence, and also that of airports and key suppliers. Fail there, and the company would likely collapse.

Monarch Holiday Charters

This may not be to the benefit of consumers. The cost of holiday flights might become higher as competition drops. That said, holiday charters comprise just a small proportion of the flights Monarch fly. Founded in 1968, the company also operates a scheduled airline and engineering division with a total workforce of around 2,500.

According to Monarch, its flights are still operating and it is working on plans to resolve its problems. Its financial statement has shown that the company lost £317 million to last October and it has received a going concern warning from Deloitte, Monarch Airline’s auditor. Time will tell how the company responds to its issues, even though there are valid reasons for them.