The weak pound, increasing fuel prices and terror fears are all said to have contributed to the fall of the UK’s fifth largest airline, Monarch. With the value of the pound falling 12% against the euro since the EU referendum, Monarch saw a £50million increase in the cost of its fuel.
Major terrorist incidents in holiday resorts including Sharm el Sheikh and Sousse have made holidaymakers much more careful with their choice of destination. With Monarch’s major routes including Egypt and Tunisia, this change in mind-set affected the airline greatly, playing a large part in its demise.
While the CAA work on organising return flights for 110,000 Monarch passengers stranded overseas, 750,000 people with future Monarch bookings are left unsure of where they stand. If you have been affected, your situation will depend on how you booked and your method of payment.
I’ve booked a flight with Monarch, will I get a refund?
If you booked your flight before or on 14th December 2016, your flight is covered by the government’s ATOL scheme. You should be able to claim a full refund through the CAA, who will be sending customers claims forms by Wednesday 11th October. Unfortunately bookings made after this date are not covered, but you still may be able to claim your money back.
If you have paid, or part paid for your flight with a credit card and the total cost is over £100, your credit card company is equally liable under Section 75 of the Credit Consumer Act 1974. This means that you can contact your credit card company and ask to make a Section 75 claim.
If you used you debit card to book your flight, you can try a chargeback. This is when you ask your bank to ask Monarch to return your money, as you did not receive the service you paid for. You must submit your claim within 120 days of becoming aware that you will no longer be able to fly and within 540 days of purchasing your flight.
I’ve booked a package holiday with Monarch - will I get my money back?
If you have booked a Monarch package holidays you will almost certainly have ATOL protection, so should receive a full refund or a replacement holiday, but how you should go about claiming this depends on how you booked.
If you booked your holiday through Monarch directly, your claim will depend on how you paid for their holiday. In the case that that you paid by credit card, you should be able to claim a refund from your credit card company. If you paid by any other method, you should claim your refund under the ATOL protection scheme.
If you purchased your holiday from a UK travel agent like Thomas Cook or Thompson, you will most likely have ATOL protection. You should contact your travel agent, as they may be able to offer you an alternative package holiday or provide you with a refund. Alternatively you can claim through the CAA yourself or through your travel agent.