What happens if Monarch loses its Atol package holiday licence? | Business

What happens if the regulator does not renew Monarch’s Air Travel Organiser’s Licence (Atol)?

The Civil Aviation Authority could decide to offer Monarch another 24-hour extension while talks continue. However, if the CAA does not offer a renewal or an extension, Monarch will no longer be able to sell Atol-protected holidays from midnight. In such an event, Monarch is expected to appoint administrators for its package holiday business – accounting for 5% of revenues – as early as Monday.

What would happen to the rest of Monarch’s business?

Monarch also has an airline and an engineering business. In theory, if the package holiday business goes into administration, the other parts of the group could continue to operate. It would be up to the company’s board to decide whether or not this would be viable. Industry insiders suggest the whole group could be placed into administration, with the hope that a buyer could be found for all or parts of the business.

What if I have booked a package holiday with Monarch?

If you have bought a package holiday through Monarch while the licence is still in effect, you will be Atol-protected. That means if Monarch goes into administration while you are abroad, you will be put on an alternative flight home with another carrier. If you are in the UK, you will be entitled to a refund.

What if I have booked a flight only with Monarch?

If the airline business goes into administration and you have booked a flight only with Monarch, it is unlikely you will be Atol-protected. However, if you paid with a credit card and the cost was more than £100, the credit card company is liable and you can claim the money back.

How will I get home if I have a flight only with Monarch?

It is possible that other airlines would step in and offer flights at discounted prices to Monarch’s flight only customers already abroad. Some travel insurance companies will cover the extra cost, depending on whether your policy offers cover for the collapse of an airline.

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