A message on the company’s website now informs customers that any scheduled flight booking made after October 28 will be through First Aviation Ltd, a subsidiary of UK parent company Monarch Holdings Ltd. Bookings made prior to that date are through Monarch Airlines Limited.
According to the CAA’s own website, First Aviation Ltd has jumped to become the third largest single licence holder (behind Tui UK Ltd and Thomas Cook Tour Operations Ltd), with the ability to make just under 1.5 million public sales for the period up until the end of September 2015.
“The change we have made to our booking terms and conditions brings an added benefit for Monarch customers as it extends the coverage of our Air Travel Organisers’ Licensing - the protection given to consumers when booking through a bonded tour operator,” the company said in a statement.
“Monarch’s flight-only customers will now receive the benefit of this protection when they book online or through our call centre.”
The move follows a number of significant changes at the airline, including the decision to ditch charter operations as part of a plan to become a scheduled European low-cost carrier.
Marketing challenge
Alan Bowen, legal adviser to the Association of Atol Companies, said the move was “very unusual” because many airlines had moved away from offering financial protection under the Atol scheme.
“Most people are trying to avoid providing financial protection for what are effectively scheduled flights on the basis that they don’t need to, because it obviously adds £2.50 to the cost, and on the routes that they’re flying the only criteria people use is cost,” said Bowen.
Bowen said on the face of it, the move was a positive one because it offered increased protection to customers but added that the company needed to communicate the change with potential passengers.
“They’ve got to start marketing and the point would be: ‘book with us and your money is safe,’” he said.
The CAA said it did not comment on individual Atol licenses but added that it was not unusual for flight-only business to be included on an Atol.
Greybull Capital’s acquisition of the Monarch Group was completed on October 24, marking the exit of the Mantegazza family from the business. In a post-acquisition interview with TTG, chief executive Andrew Swaffield said the deal left the company “financially stronger”.
Greybull has taken a 90% stake in the company with the rest being held by the Pension Protection Fund.
