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You can find the current article at its original source at https://www.theguardian.com/business/2017/oct/16/monarch-owner-should-help-to-fly-tourists-home-says-chris-grayling
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| Monarch owner should help to fly tourists home, says Chris Grayling | Monarch owner should help to fly tourists home, says Chris Grayling |
| (21 days later) | |
| The investment firm behind the collapsed Monarch airline should help repay the £60m cost of the repatriation of its customers, the transport secretary has told MPs. | The investment firm behind the collapsed Monarch airline should help repay the £60m cost of the repatriation of its customers, the transport secretary has told MPs. |
| The Civil Aviation Authority operated more than 500 flights over the past two weeks to return 110,000 Monarch passengers home after the airline went into administration on 2 October. | The Civil Aviation Authority operated more than 500 flights over the past two weeks to return 110,000 Monarch passengers home after the airline went into administration on 2 October. |
| Chris Grayling told the Commons transport select committee that he thought Greybull Capital had a “moral obligation” to contribute. But he admitted that the government would have no power to compel the firm to do so. | Chris Grayling told the Commons transport select committee that he thought Greybull Capital had a “moral obligation” to contribute. But he admitted that the government would have no power to compel the firm to do so. |
| Monarch’s staff lost thousands in pension cuts when Greybull took over the airline in 2014, and 750,000 passengers had forward bookings when the airline collapsed. While administrators have yet to reveal how much money will be returned to creditors, including the pension protection fund, MPs have raised concerns that Greybull could profit as a secured creditor while the taxpayer loses out. | Monarch’s staff lost thousands in pension cuts when Greybull took over the airline in 2014, and 750,000 passengers had forward bookings when the airline collapsed. While administrators have yet to reveal how much money will be returned to creditors, including the pension protection fund, MPs have raised concerns that Greybull could profit as a secured creditor while the taxpayer loses out. |
| Asked whether Greybull should meet some of the cost of the repatriation, Grayling said: “There’s no formal legal mechanism that we can use, but in terms of the principle I completely agree. I would hope that if any of the creditors end up with money in pocket, whether they might indeed consider doing that.” | Asked whether Greybull should meet some of the cost of the repatriation, Grayling said: “There’s no formal legal mechanism that we can use, but in terms of the principle I completely agree. I would hope that if any of the creditors end up with money in pocket, whether they might indeed consider doing that.” |
| He said that there were direct discussions on the issue with Greybull, while there were also “good discussions” with card payment and travel companies over sharing the costs. | He said that there were direct discussions on the issue with Greybull, while there were also “good discussions” with card payment and travel companies over sharing the costs. |
| Graham Stringer MP said that while Greybull “look financially OK, the staff had their pensions reduced and people were sold tickets when there was no reasonable expectation that they ever would have got on the aeroplanes … Doesn’t it look like a conspiracy against the staff and the passengers? Doesn’t it stink?” | Graham Stringer MP said that while Greybull “look financially OK, the staff had their pensions reduced and people were sold tickets when there was no reasonable expectation that they ever would have got on the aeroplanes … Doesn’t it look like a conspiracy against the staff and the passengers? Doesn’t it stink?” |
| Grayling said it was “a very unhappy state of affairs”, adding: “If I were in their position I would want to make a contribution if only to demonstrate goodwill. I would hope in a world where social responsibility is important to corporate reputation they might feel a moral obligation to contribute.” | Grayling said it was “a very unhappy state of affairs”, adding: “If I were in their position I would want to make a contribution if only to demonstrate goodwill. I would hope in a world where social responsibility is important to corporate reputation they might feel a moral obligation to contribute.” |
| More than 1,850 Monarch staff were made redundant on the day of the collapse. Grayling said that the government had been made aware in early September that Monarch was in renewed difficulties and had started to make contingency plans. | More than 1,850 Monarch staff were made redundant on the day of the collapse. Grayling said that the government had been made aware in early September that Monarch was in renewed difficulties and had started to make contingency plans. |
| But he denied that the government had refused a bridging loan that could have helped the airline survive. He said that there was “an exploratory discussion” between the company and his department on Tuesday 26 September, but added: “There was in the end no formal request for me to consider or turn down.” | But he denied that the government had refused a bridging loan that could have helped the airline survive. He said that there was “an exploratory discussion” between the company and his department on Tuesday 26 September, but added: “There was in the end no formal request for me to consider or turn down.” |
| The transport secretary has pledged to consider reforms to allow insolvent airlines to continue flying. However, he told the committee: “We could not have done that this time ... It was cheaper to hire an alternative fleet of planes, or risk taking on a much larger liability.” | The transport secretary has pledged to consider reforms to allow insolvent airlines to continue flying. However, he told the committee: “We could not have done that this time ... It was cheaper to hire an alternative fleet of planes, or risk taking on a much larger liability.” |
| Grayling, a leading pro-Brexit campaigner, also dismissed the aviation industry fear that leaving the EU without a trade deal could disrupt flights. He said that talks were being held “to make sure there will be a seamless arrangement” after Britain’s proposed exit from the EU in March 2019. | Grayling, a leading pro-Brexit campaigner, also dismissed the aviation industry fear that leaving the EU without a trade deal could disrupt flights. He said that talks were being held “to make sure there will be a seamless arrangement” after Britain’s proposed exit from the EU in March 2019. |
| He added: “I know nobody bar one exception who says there is a danger that planes will stop flying” – a reference to Ryanair’s chief executive, Michael O’Leary, who has consistently warned of the possibility of Brexit halting flights between Britain and Europe. | He added: “I know nobody bar one exception who says there is a danger that planes will stop flying” – a reference to Ryanair’s chief executive, Michael O’Leary, who has consistently warned of the possibility of Brexit halting flights between Britain and Europe. |
| The transport committee chair, Lilian Greenwood, asked: “Can people buy a flight with confidence next year without a transitional deal in place?” | The transport committee chair, Lilian Greenwood, asked: “Can people buy a flight with confidence next year without a transitional deal in place?” |
| Grayling replied: “Yes. I would buy a flight myself.” He added: “It is inconceivable that there will not be planes [flying to Europe].” | Grayling replied: “Yes. I would buy a flight myself.” He added: “It is inconceivable that there will not be planes [flying to Europe].” |
| Monarch Airlines | Monarch Airlines |
| Airline industry | Airline industry |
| Chris Grayling | Chris Grayling |
| Air transport | Air transport |
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