Tens of thousands of Balearic-bound Britons are paying the price of the collapse of Monarch Airlines early on Monday morning. Airline industry sources in Palma have confirmed that the airline has cancelled 400 Balearic flights between now and the 15 October deadline to repatriate clients currently on holiday overseas.
An estimated 40,000 Britons, who had booked to fly out to the Balearics between now and then, have lost their flights and holidays if they had booked a package holiday with the travel firm.
The sudden collapse of Monarch has left Balearic hoteliers out of pocket to the tune of around ten million euros - a loss of between one and two per cent depending on the establishment and a lack of occupancy at the very end of what was another profitable season. Over the winter season, the absence of Monarch flights will leave a gap in the market for people wishing to fly from the Balearics to the UK, in particular Britons wishing to fly between the UK and Minorca.
Yesterday, the Majorca-based former chairman of the Monarch Group, Hugh Morgan, who left the company nearly four years ago, told the Bulletin that Monday was an extremely "sad" day.
"It’s ironic that an Irishman appears to be getting away with chopping, changing and cancelling flights while Monarch is made to pay the price. I guess with Ryanair having a war chest of around 1.7 billion euros, it can ride it out. But Monarch, which has been providing an excellent, professional and trustworthy service for 55 years, with its fleet of 30 aircraft has paid the price.
"It’s been an extremely tough trading year. Strong competition from easyJet, which also had problems a few years back, the power of Ryanair, uncertainty over Brexit, the drop in the value of the pound against the euro and Jet2 making an extremely aggressive and successful move into the south of the UK, something had to give and unfortunately it has been Monarch."
Looking at the market as a whole, he praised the Balearic minister for tourism, Biel Barceló, for speaking out in the Bulletin on Sunday and defending the relationship between the islands and the UK. "But I’m worried about hotel rates for next year. If wages are going up by 17%, hotel prices up by around 15%, Brexit and the weak pound, the Balearics better be careful what they wish for."
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Before people get too excited about Ryanair and Jet 2 taking Monarch pilots, well both these airlines use Boeing aircraft, and Monarch used Airbus. Unless these pilots already have a Boeing type rating, they will need to be retrained to fly Boeing 737's, So it is not as easy as just jumping from one airline to another. easyJet and Virgin both use Airbus aircraft, and with easyJet getting A321 aircraft from next year, a lot of Monarch pilots will be already used to flying the A321 aircraft already.
Anymore bad news for the small businesses in the resorts ?
Increased prices and taxes on top of this years rises will not encourage visitors to return to this wonderful island.
Seems like an opportune moment forJet2 to hoover up Monarch slots/planes/pilots and cabin crew and offer a full all year round scheduled service from UK. Direct flights from Scotland would be most welcome. If the Balearic govt is really trying to attract winter visitors, perhaps they should offer some financial incentives to get things moving. Over to you Biel!
Big trouble ahead with the withdrawal of many holiday rentals the knock on effect is yet to be seen, it will create unemployment a huge drop in revenue to the Island and a glut of bank reposesions adding to the still slow property sales markets just look in many estate agents windows many have reduced prices marked on the bleached sales particulars, also the recent wage rise award is over a period of time not all next year.
Ryanair may get some ex monarch pilots to sort there mess out.
Well this is good news for those on the Island who are against Tourism eh? I bet they are jumping with joy. A loss of 10 million Euros in trade, surely some businesses will be struggling to survive the future, Hotels will be increasing prices for next year to cover their losses, many workers now facing a period of no work, this is what those demonstrators want! Me? I truly feel for all those involved, the Monarch staff throughout the former company, all the Holiday makers missing out and lastly those working in the industry that will be affected. This is a reason I always book a package holiday, to me the risk is not worth the savings.