Monarch money ‘should go to staff before taxpayer’

The pilots’ union BALPA has said any profit made from the sale of Monarch’s assets should go to pay former employees first.

The union spoke out after Monarch investor Greybull Capital admitted it had a ‘moral obligation’ to repay some of the repatriation costs after the airline went bust.

The company said it agreed with Transport Secretary Chris Grayling that any profits left from the sale of assets of the UK’s fifth biggest airline will be put towards the £60 million spent bringing passengers home.

Greybull issued a statement on Sunday saying: "We concur wholeheartedly with the secretary of state’s recent statement that any stakeholder who finds themselves in-pocket at the end of the administration process would be under a moral obligation to contribute to other stakeholders.

"This would include helping to defray the costs incurred by the Department for Transport in repatriating Monarch customers."

Greybull has first call on any cash realised from asset sales, however, there is uncertaintly as to whether the assets include landing slots.

Administrators KPMG is seeking clarification in court.

If there is a profit, BALPA says the money should go to its pilots and the other employees that made up Monarch’s 2,000-strong workforce who have lost their jobs.

BALPA General Secretary, Brian Strutton, said: "Loyal Monarch staff woke up on 2nd October to find that overnight their company had been placed into receivership and they were redundant.

"They have since learnt that thousands of pounds backpay owed to them won’t be paid until other debts have been met, if at all.

"So, before Greybull hands over anything to the Government they should first do the right thing by their ex-employees who they left high and dry. I’m sure the Government would agree."

He has written to Greybull to say: "On reading that you believe you have a "moral obligation" to pay something back to the taxpayer may I put it to you that you have an even greater responsibility to the employees that your actions have left jobless and suffering huge financial loss of backpay and other monies owed, let alone the loss of their entire livelihood."

Strutton has also written to Chris Grayling to ask why, rather than entering administration at 4am on October 2, with instant dismissal for employees, the airline did not ‘use its remaining cash to wind down in an orderly fashion with Monarch flights brining passengers home’.

"This would have enabled the Monarch staff to end their employment with dignity," he said.

Greybull said it was ‘sorry and saddened’ about the demise of Monarch.