Monarch pilots have raised concerns that Chancellor Philip Hammond’s review of travel company insolvency arrangements don’t appear to include their staff.
The British Airline Pilots’ Association (BALPA) said that staff of collapsed airlines should also be considered in review, which the Chancellor confirmed would be led by an independent chair.
The review will also extend to other travel companies. The Treasury said it would draw on lessons from the collapse of Monarch and will consider both repatriation and refund protection.
One option being considered is allowing insolvent airlines to wind down in an ‘orderly fashion’ so they are able to repatriate passengers, instead of leaving them stranged overseas.
"The recent example with Monarch showed there are definitely some flaws in the way we carry out insolvency arrangements when it comes to the collapse of an airline, particularly regarding staff," said BALPA general secretary, Brian Strutton.
"I have written to the Chancellor to ask him to ensure that this aspect is part of the review’s terms of reference.
"Monarch pilots lost their jobs and livelihoods, and with them, a significant amount of money in wages following the collapse."
The government spent an estimated £60 million repatriating 110,000 customers following Monarch’s collapse, using aircraft wet-leased from other airlines including Qatar.
"We are also concerned about the decision to wet-lease aircraft from airline carriers, including non-EU carriers, to repatriate customers, while Monarch pilots and aircraft remained grounded," added Strutton.
"The reasons for this were bureaucratic, and the rules could certainly be changed to at least give pilots a few more days’ employment."
