Published on : Wednesday, November 29, 2017
The deal is expected to be an excellent recovery for the creditors.
KPMG earlier this month won a High Court legal battle to be able to sell off assets earlier this month and was now in the process of completing and exchange with IAG for Monarch’s summer and winter slots.
Monarch ceased trading on October 2 and had a customer base of 110,000 customers . Monarch’s slot at Gatwick and Luton are due to be auctioned off and considered to be the most valuable assets worth £60 million.
IAG will be using the Gatwick slots for British Airways flights, IAG already owns Vueling, Aer Lingus and Iberia and faced competition with easyJet, Wizz Air and Norwegian.
Blair Nimmo the KPMG partner and joint administrator said that the sale of Monarch’s Gatwick slot will show an excellent recovery for creditors.
The key focus now is on the MAL’s Luton slots and exploring the potential rescue opportunities for Monarch Airlines Ltd’s Luton slots along with the exploration of the potential rescue opportunities and its residual assets including its brand and associated licenses.
IAG said that it was in the process of completing the acquisition of Monarch’s slot portfolio. It will help the group’s airline and enable them to expand their presence at the airport and launch new destination.