Guide to airline insolvency—Monarch Airlines case study
Produced in partnership with Mark Craggs of Norton Rose Fulbright
Guide to airline insolvency—Monarch Airlines case study

The following Restructuring & Insolvency guidance note Produced in partnership with Mark Craggs of Norton Rose Fulbright provides comprehensive and up to date legal information covering:

  • Guide to airline insolvency—Monarch Airlines case study
  • Background and lead-up to administration
  • Lessons-learned

This Practice Note forms part of a set of Practice Notes on airline insolvency. For further information, see Practice Notes:

  1. Guide to airline insolvency—introduction

  2. Guide to airline insolvency—insolvency proceedings and use of receivership

  3. Guide to airline insolvency—international considerations

Background and lead-up to administration

Prior to its entry into administration on 2 October 2017, Monarch Airlines was an airline operating scheduled flights to tour operators, travel agents and directly to consumers to and from five UK airports (Birmingham, Leeds-Bradford, Gatwick, Luton and Manchester), to and from 44 destinations, most of which were in the Mediterranean and the Canary Islands. Along with many airlines worldwide, it had encountered difficult market conditions and, in 2014, it underwent an extensive restructuring process. In 2015, the group returned to profitability. However, continued challenging conditions in the European aviation market (including terrorist attacks in Western Europe, Turkey and key North African destinations to which Monarch operated routes) led to further deterioration in the group’s financial position in the course of 2016. Monarch redeployed planes to other European destinations in an attempt to counter the difficulties faced but its performance was further blighted by fierce competition and oversupply in certain key destinations, leading to a decline in ticket prices. A further difficulty was the fact that the group’s revenue was principally in sterling and its main operating