Monarch 4
Plumbum Pendular
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"Monarch ceased to be an airline, therefore ceased to have a right to the slots."
It wasn't quite as simple as that, the AOC was suspended not cancelled and so the complications as to whether the slots were tradable or not.
It wasn't quite as simple as that, the AOC was suspended not cancelled and so the complications as to whether the slots were tradable or not.
Facts found by the Administrative Court were:
(1) Monarch had effectively ceased to function (no planes or for practical purposes pilots).
(2) Board and Administrator admitted that there was pretty well zero chance of return as going concern.
On that basis it had no entitlement to slots.
(1) Monarch had effectively ceased to function (no planes or for practical purposes pilots).
(2) Board and Administrator admitted that there was pretty well zero chance of return as going concern.
On that basis it had no entitlement to slots.
The article says the Administrators want to appeal, but it doesnt say if the High Court have given leave. Its not automatic, but given only if the lower court thinks such an appeal has merit or a point of law needs to be further debated and decided on.We shall see, but I think the Judges in this hearing were clear as to why the application failed
https://www.judiciary.gov.uk/wp-cont...r-15112017.pdf
Not seen anything more about an appeal and if one was in prospect it would need to be expedited and possibly 'leapfrog' to Supreme Court. Difficult to see any merits for an appeal though.
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Having read the full judgement it appears it was an application for Judicial review which was granted and heard immediately. The reasons given are clear and reasonable. I would be suprised if KPMG flog this particular dead horse any further. In any case it appears that the CAA revoked Monarch`s AOC on the 9th November. Game over I`m afraid.
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You might want to read that full judgement again. The AOC is subject to a hearing on the 28th November to determine if it should be revoked. Currently it remains suspended.
It was the Route Operating Licences that had been revoked (but remain subject to appeal and therefore currently also suspended). Monarch held two separate Operating Licences (OL) one for Schedule services and one for the Holiday Charter services.
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Monarch’s slots at Luton and Gatwick were seen as being one of the failed company’s most valuable assets - worth an estimated £60 million - following the airline going into administration on October 2, with other airlines particularly interested in Monarch’s slots at Gatwick.
Administrators KPMG initially lost their High Court battle to be able to sell the Monarch’s airport slots earlier this month.
However they were granted permission for it to be heard in the Court of Appeal and Blair Nimmo, partner at KPMG and joint administrator, confirmed today its appeal to sell the slots had been won.
In a statement Nimmo said: “We are delighted with the ruling and are very grateful to the court for dealing urgently with both the initial hearing and our appeal.
“We will now progress the slot exchange transactions we have underway, whose buyers will be announced at completion".
He warned creditors: "We must stress there will be no immediate distributions to any creditors; indeed our statutory proposals to creditors summarising the status of the administrations have not yet been published," he said, but added: "The significance of today’s ruling for both the airline and restructuring industries cannot be underestimated".
Administrators KPMG initially lost their High Court battle to be able to sell the Monarch’s airport slots earlier this month.
However they were granted permission for it to be heard in the Court of Appeal and Blair Nimmo, partner at KPMG and joint administrator, confirmed today its appeal to sell the slots had been won.
In a statement Nimmo said: “We are delighted with the ruling and are very grateful to the court for dealing urgently with both the initial hearing and our appeal.
“We will now progress the slot exchange transactions we have underway, whose buyers will be announced at completion".
He warned creditors: "We must stress there will be no immediate distributions to any creditors; indeed our statutory proposals to creditors summarising the status of the administrations have not yet been published," he said, but added: "The significance of today’s ruling for both the airline and restructuring industries cannot be underestimated".
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Begs the question whether Wizzair have bought slots from Administrators at KPMG for their expanded Luton operation or are the 4 slot pairs still up for grabs?
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One thing that confuses me about these slot assets is that there's been no mention of Leeds in most of the articles, only the 4 larger bases, so I wonder if the Leeds slots also went back to the slot pool?
Join Date: Dec 2012
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Does the judgement mean that ACL is under an obligation to facilitate a slot exchange eg by the creation of dummy slots? Or does it mean only that if another operator at Gatwick (say) wishes to exchange less valuable real slots for more valuable Monarch slots with a cash payment, it is free to do so?
What happens to the less valuable slots which are exchanged? Do they go back into a pool which other operators can then access?
What happens to the less valuable slots which are exchanged? Do they go back into a pool which other operators can then access?
What are the chance of the CAA deciding to cancel Monarch's AOC tomorrow on the grounds they cannot afford to or do not have the capacity to maintain operations in a safe manner ?
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The way I read it, ACL have said that they have no intention of issuing any new slots at Gatwick so if someone wants to buy the Monarch slots they'll have to exchange slots they already own. The court judgment doesn't oblige ACL to issue those new slots, only the slots that Monarch have requested.
I find this an extraordinary judgment, I have come across the what is an 'air carrier' question before in relation to PSO routes and the accepted view has always been if the licence is suspended then you are not an 'air carrier'.
I find this an extraordinary judgment, I have come across the what is an 'air carrier' question before in relation to PSO routes and the accepted view has always been if the licence is suspended then you are not an 'air carrier'.
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I don't know, but a key part of this ruling is that you can still be an air carrier for the purpose of the slot regulations even if you don't have an AOC or operators licence. So, given that Monarch and KPMG say Monarch have no intention of resuming operations, and given that ACL are not appealing, it may not make a whole lot of difference now.