This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/2017/oct/09/monarch-collapse-chris-grayling-investigation-airline

The article has changed 4 times. There is an RSS feed of changes available.

Version 0 Version 1
Ministers plan reforms to prevent repeat of Monarch collapse Ministers plan reforms to prevent repeat of Monarch collapse
(35 minutes later)
Reforms to let financially stricken airlines keep flying, and protect passengers from being stranded by a sudden collapse, will be sought by the government following the demise of Monarch.Reforms to let financially stricken airlines keep flying, and protect passengers from being stranded by a sudden collapse, will be sought by the government following the demise of Monarch.
The transport secretary, Chris Grayling, told the Commons he would focus his efforts on finding ways for airlines to “wind down in an orderly manner and look after customers” rather than be simply grounded in the event of insolvency. The transport secretary, Chris Grayling, told the Commons on Monday he would focus his efforts on finding ways for airlines to “wind down in an orderly manner and look after customers” rather than be simply grounded in the event of insolvency.
The pledge came as Labour and unions demanded a full investigation into Monarch’s failure, including the eventual costs to the taxpayer of repatriating 110,000 Monarch passengers from foreign destinations. The pledge came as the Labour party and unions demanded a full investigation into Monarch’s failure, including the costs to the taxpayer of repatriating 110,000 Monarch passengers from foreign destinations.
Grayling said: “All parties considered options to avoid the collapse of the company. Ultimately, however, Monarch’s board took the decision to place it into administration.”Grayling said: “All parties considered options to avoid the collapse of the company. Ultimately, however, Monarch’s board took the decision to place it into administration.”
He said that once Monarch passengers had been returned to the UK, “our efforts will turn to working through the reforms necessary to ensure passengers do not find themselves in this position again”.He said that once Monarch passengers had been returned to the UK, “our efforts will turn to working through the reforms necessary to ensure passengers do not find themselves in this position again”.
Britain’s longest-surviving airline brand was placed into administration early last Monday morning, leaving 110,000 customers abroad and 750,000 future bookings cancelled. The government took the responsibility of flying passengers home, most of whom had no protection under the Atol scheme – which covers people who book with holiday companies – or travel insurance. Britain’s longest-surviving airline brand was placed into administration early last Monday morning, leaving 110,000 customers abroad and 750,000 future bookings cancelled. The government took the responsibility of flying passengers home, most of whom had no protection under the Atol scheme, which covers people who book with holiday companies, or travel insurance.
Grayling said: “We need to look at all the options, not just Atol, but also whether it is possible for airlines to be able to wind down in an orderly manner and look after their customers themselves without the need for government to step in. This is where we will focus our efforts in the weeks and months ahead.”Grayling said: “We need to look at all the options, not just Atol, but also whether it is possible for airlines to be able to wind down in an orderly manner and look after their customers themselves without the need for government to step in. This is where we will focus our efforts in the weeks and months ahead.”
More than 1,800 employees were made redundant, with several hundred more head office staff also set to lose their jobs. More than 1,800 employees were made redundant, and several hundred more head office staff are set to lose their jobs.
But Labour said Monarch collapsed “because of a litany of failure by government and regulators”. The shadow transport secretary, Andy McDonald, said the bankruptcy had “left huge losses on the shoulders of the public ... staff, pensioners, customers and taxpayers rather than shareholders who will pay the price.” Labour said Monarch collapsed “because of a litany of failure by government and regulators”. The shadow transport secretary, Andy McDonald, said the bankruptcy had “left huge losses on the shoulders of the public ... staff, pensioners, customers and taxpayers rather than shareholders who will pay the price.”
McDonald said the sudden collapse meant assets such as landing slots risk not being realised. “Instead assets will go to the secured creditor, Greybull Capital, while the public purse gets nothing,” he added. McDonald said the sudden collapse meant assets such as landing slots risked not being realised. “Instead assets will go to the secured creditor, Greybull Capital, while the public purse gets nothing.”
He said that the role of accountants KPMG, which was called in to find buyers but was now the administrator, was “a glaring conflict of interest” while passengers would want to know why the Civil Aviation Authority did not stop Monarch selling flights in the days before it went bust. He said that the role of accountants KPMG, which was called in to find buyers but was now the administrator, was “a glaring conflict of interest” and passengers would want to know why the Civil Aviation Authority did not stop Monarch selling flights in the days before it went bust.
Grayling said Labour should praise the government for arranging the return of passengers abroad, an operation that is expected to cost the taxpayer £60m. He said constructive conversations were taking place with credit card companies to recoup costs: “We will be very focused on a clear burden-sharing exercise taking place.”Grayling said Labour should praise the government for arranging the return of passengers abroad, an operation that is expected to cost the taxpayer £60m. He said constructive conversations were taking place with credit card companies to recoup costs: “We will be very focused on a clear burden-sharing exercise taking place.”
Grayling said the government would give thought to reforming an insolvency framework that left Monarch planes on the ground, while airlines from other European countries have continued to operate after filing for administration. Citing examples of recent airline failures on the continent, he added: “We need to look at what happened with Air Berlin and Alitalia.” Grayling said the government would give thought to reforming an insolvency framework that left Monarch planes on the ground, while airlines from other European countries continued to operate after filing for administration. Citing examples of recent airline failures on the continent, he said: “We need to look at what happened with Air Berlin and Alitalia.”
The transport secretary said he would also press the case for change with the insurance industry, with many passengers’ policies not covering airline collapse. He said: “I feel deepest for those who’ve made bookings and lost holidays ... I know it’s a deeply traumatic time.” The transport secretary said he would press the case for change with the insurance industryas many passengers’ policies did not cover airline collapse. He said: “I feel deepest for those who’ve made bookings and lost holidays ... I know it’s a deeply traumatic time.”
There were angry exchanges over whether Brexit had played a role in Monarch’s demise – with sterling’s decline cited by the administrators and airline executives. McDonald said a “further backdrop is the foggy skies of Brexit and a total lack of certainty” in aviation. The SNP’s consumer affairs spokesperson, Patricia Gibson, said that Monarch was a “stark example of the realities of Brexit beginning to bite”, with a drop in the pound affecting bookings and deterring investors. There were angry exchanges over whether Brexit had played a role in Monarch’s demise – with sterling’s decline cited by the administrators and airline executives. McDonald said a “further backdrop is the foggy skies of Brexit and a total lack of certainty” in aviation. The SNP’s consumer affairs spokesperson, Patricia Gibson, said Monarch was a “stark example of the realities of Brexit beginning to bite”, with a drop in the pound affecting bookings and deterring investors.
Grayling insisted: “Let me clear: this airline did not fail because of Brexit.” He said aviation remained strong and referred to huge investment in the UK by Norwegian – another airline that industry figures have suggested may struggle financially. Grayling said: “Let me be clear: this airline did not fail because of Brexit.” He said aviation remained strong and referred to huge investment in the UK by Norwegian – another airline that industry figures have suggested may struggle financially.
Meanwhile Balpa, the union representing about 400 pilots who lost their jobs at Monarch, called on the transport select committee to investigate the circumstances of the airline’s collapse. The Mantegazza family sold the airline to Greybull in 2014 in a deal that saw pilots take pay cuts of up to 30% and incur massive pension losses. Balpa, the union representing about 400 pilots who lost their jobs at Monarch, called on the transport select committee to investigate the circumstances of the collapse. The Mantegazza family sold the airline to Greybull in 2014 in a deal that resulted in pilots taking pay cuts of up to 30% and incurring massive pension losses.
The CAA has now brought back the majority of Monarch customers abroad in its two-week operation. More than 79,000 customers have been returned and a further 38 flights were planned on Monday, bringing back a further 5,500 people. The CAA has brought back the majority of Monarch customers abroad in its two-week operation. More than 79,000 customers have been returned and a further 38 flights were planned on Monday, bringing back a further 5,500 people.