Monarch 4
The interesting point about the failure of A1 travel is that the bookings have been taken over by Broadway Travel. The non-exec chairman of Broadway is Hugh Morgan, who is also a director of Cosmos, the latter still being owned by the Mantegazza family.
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Frankly it stinks. And it's not the first time that Greybull, and I feel sure, other venture capitalist companies have attempted to make money from the bankruptcy of a business they own.
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KPMG in Court (London) on Monday in effort to secure benefit of any landing slot money goes to them rather than Airport Coordination ...
COURT 1
Before LORD JUSTICE GROSS and MR JUSTICE LEWIS
Monday 6 November, 2017
At half past 10
Applications for Permission
CO/4934/2017 The Queen on the application of Monarch Airlines Ltd (in Administration) v Airport Coordination Ltd
COURT 1
Before LORD JUSTICE GROSS and MR JUSTICE LEWIS
Monday 6 November, 2017
At half past 10
Applications for Permission
CO/4934/2017 The Queen on the application of Monarch Airlines Ltd (in Administration) v Airport Coordination Ltd
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Can't help but feel KPMG will 'win' this one and if they don't bound to go to Court of Appeal so will drag out even longer. Doubt Airport Coordination will appeal if they lose out although there is obviously a significant amount at stake.
Airport slots are “use them or lose them”. If you don’t fly on 80% I’d your allocated slots, they revert to ACL.
As we are now into winter season, this means they’ve got (if my maths works) until about mid December to sort it all out before the slots revert under the “use it or lose it” rule.
And the law grinds slowly...
As we are now into winter season, this means they’ve got (if my maths works) until about mid December to sort it all out before the slots revert under the “use it or lose it” rule.
And the law grinds slowly...
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Once in court that effectively freezes the date which is why KPMG pushed for an early hearing so we now have what amounts to an open ended date subject to the ramifications of the legal process. Whilst I believe your December calculation to be correct this would only be the case if there was no court application/hearing in place.
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What I do not quite comprehend is the CAA action. As I understand it the CAA suspended the Monarch AOC thus 'leaving' the slots with Monarch/KPMG. TTR84 is correct in that the 80% rule therefore applies even though the AOC is suspended and this is no doubt the argument the KPMG barrister will refer to in Court. If KPMG/Greybull Capital 'win' (which I suspect they will on legal technicality) the slot value will revert to KPMG and subsequently Greybull Capital whereas if they were to revert to Airport Coordination they would benefit.
I do not know where the proceeds of any slot value Airport Coordination realise goes to (?) however unlikely to go in Greybull's direction and surely the thoughts of this forum is that the money should be used to cover repatriation (taxpayer) costs, staff redundancies and pension shortfalls.
I fail to understand therefore why the CAA did not just revoke the Monarch AOC as surely it was very very unlikely someone would step in and buy Monarch as a 'going concern' thus their need for an AOC. If the CAA had revoked the licence rather than suspend then perhaps the slot sale wouldn't seem to be tilting in Greybull's favour.
Just my opinion and would appreciate comment from those who understand better than I.
I do not know where the proceeds of any slot value Airport Coordination realise goes to (?) however unlikely to go in Greybull's direction and surely the thoughts of this forum is that the money should be used to cover repatriation (taxpayer) costs, staff redundancies and pension shortfalls.
I fail to understand therefore why the CAA did not just revoke the Monarch AOC as surely it was very very unlikely someone would step in and buy Monarch as a 'going concern' thus their need for an AOC. If the CAA had revoked the licence rather than suspend then perhaps the slot sale wouldn't seem to be tilting in Greybull's favour.
Just my opinion and would appreciate comment from those who understand better than I.
I do not know where the proceeds of any slot value Airport Coordination realise goes to
KPMG are going into bat with a heavyweight QC . https://news.sky.com/story/administr...s-off-11111587
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I think this is case without much merit. Nobody owns slots, they are allocated under grandfather rights if 80% used or returned to the pool. Slots can't be sold, they are traded for another slot at an unattractive time together with a cash consideration. For a trade to take place, both parties have to hold a VALID Operating Licence. This clearly isn't the case for Monarch Airlines Ltd.
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Runway30 - The current Monarch licence is 'suspended' .... does this mean it is not valid? I thought this was the crux of the Court case tomorrow ie KPMG believe they have a right to sell on as although suspended it is still in effect valid (as 80% of allocation has being used within the statutory period) or as Airport Coordination suggest the slots are not now allocated and they have a right to do so. I accept that Monarch do not hold a valid operating licence but assume the right to this has passed to KPMG as receivers.
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I suspect that the case will focus on the meaning of the word 'valid'. The Operating Licence cannot be used legally whilst it is in suspension and therefore most people would say that it isn't valid. You have to hold off-peak slots in order to make the trade. Airport Coordination Ltd. cannot issue those off-peak slots if you aren't an airline with a valid Operating Licence.
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https://www.caa.co.uk/Commercial-ind...nd-revocation/
Suspension will be considered by the CAA only when there is a realistic prospect of the operator rectifying an issue within a reasonable time span. The operator must demonstrate that they have in place a plan for recommencing operation and the CAA should be regularly informed of their progress.
