Olympic Holidays and Monarch Airlines have come to an undisclosed settlement and agreed to work together again following a court battle over contract changes.
Olympic Holidays began legal action against Monarch Airlines last October, claiming it had been overcharged for taxes, insurance and passenger fees over a period of six years from 2004.
But today Olympic Holidays and Monarch Airlines confirmed that they had settled their differences on confidential terms and have agreed to resume the commercial relationship that they previously had for some 13 years and which ‘both recognise was mutually positive and beneficial’.
A spokesman said: "Since confidential terms have been agreed, there will not be any additional detail from either company, but I am sure you can see that the tone of the statement is very positive."
The operator had accused Monarch of making money out of a change in its contract for seats by introducing a fixed fee for a number of charges separate to the agreed price per seat.
During the court case Mr Browne-Wilkinson, representing Olympic’s parent company Travelworld, said the claim had four parts, one of which related to public liability insurance and amounted to £4.5 million plus interest.
He suggested Monarch would claim that Olympic’s case was ‘materially misleading’ as the company must have known about the change to the terms of the contract.
