Monarch Airlines’ aircraft fleet that is on lease will be returned to operating lessors, say joint administrators Blair Nimmo, Jim Tucker and Mike Pink from KPMG.
“We will also be speaking to all of the group’s employees today (2 October 2017), and commencing the process of returning the Group’s leased aircraft fleet to its owners.”
According to Airfinance Journal’s Fleet Tracker, Monarch 35-aircraft all narrowbody fleet includes one Boeing 737-800, 25 Airbus A321s and nine A320s.
AerCap is the most exposed lessor to the UK low-cost carrier with one A320 and eight A321s.
Avolon has one A320 and three A321s.
Archway has two A321s, Castlelake has two A321s, AerGen has two A321s, Pacific Airfinance has one A320, Apollo Aviation Group has one A320 and two A321s, Aviation Capital Group has four A321s, Deucalion has one A320 aircraft, Aircastle has one A321, SMBC Aviation Group has one A320, Wings Capital Partners has one A320 and one A321, Investec has one A320, while one A320 and the 737-800 are leased from Air Lease.
Monarch Airlines also has a 45 Boeing 737 Max 8 order. In June the carrier finalised an agreement with BOC Aviation for 13 deliveries to be financed in a sale and leaseback transaction.
KPMG was appointed joint administrators to Monarch Airlines. As a result of the insolvency proceedings, Monarch Airlines is no longer able to fly as its air operating certificate.
The UK Civil Aviation Authority (CAA) suspended the airline Aircraft Operating certificate on 1 October.
Blair Nimmo, partner at KPMG and joint administrator to Monarch Airlines and Monarch travel group, said: “Mounting cost pressures and increasingly competitive market conditions in the European short-haul market have contributed to the Monarch Group experiencing a sustained period of trading losses.”
“Our primary focus for the next 48 hours is to work with the Civil Aviation Authority to provide the infrastructure and information needed to help the Government and CAA with the safe repatriation of approximately all the 110,000 customers who are currently overseas and due to travel back to the UK within the next two weeks.”