Monarch’s Flights Will Soon Lose Protection From UK Licensing Scheme
Photo Credit: A Monarch A320 aircraft. From January 1 2017, the company's flight only sales will no longer be covered by the CAA's ATOL scheme. Flickr / Andy Mitchell
Skift Take
Monarch had been brought into the Civil Aviation Authority’s ATOL scheme following its near collapse in 2014. Although on the surface its departure might look worrying, it is actually reassuring that it is now able to start behaving like other airlines.
Flights provided by UK airline Monarch will no longer be covered by the Civil Aviation Authority’s licensing scheme from the start of 2017.
The change follows a new $203 million (£165 million) investment from owners Greybull Capital, which helped avert a financial collapse, and is a significant vote of confidence in the Luton-based firm.
Monarch had been in the highly-unusual situation of having its non-holiday offering included in the Air Travel Organizer's License (ATOL) scheme.
Other scheduled airlines such as EasyJet and British Airways are not required to obtain an ATOL for their flight-only sales.
The likely reason for Monarch's inclusion was a struggle over who would be liable for refunds in the event of it becoming insolvent, which was obviously a real concern given that it made a $52 million (£42 million) loss in 20
