Report from Britain confirmed that Monarch Airlines had collapsed on Monday. For starters, this is a low-cost carrier from the United Kingdom. The airline collapsed together with its tour operator. The main reason for the collapse was bankruptcy. The collapse meant that the airline cancelled all scheduled flights and this forced the British government to step in and bring the passengers that were stranded abroad. It’s estimated that close to 100, 000 passengers were airlifted to the United Kingdom from various destinations. According to the aviation regulators in the United Kingdom, this is the biggest airline failure in the history of the nation. However, this should not come as a surprise as a number of airlines have collapsed in the competitive European market. For instance, the Italian airline known as Alitalia was forced to administration following the same problems experienced by Monarch airlines. For starters, administration is a term used in the United Kingdom to refer to bankruptcy protection in America. The airline is looking for a buyer at the moment. This is the same fate that befell Air Berlin. This is also a low-cost carrier from Germany that has put its assets for sale having filed for insolvency.
An Irish career known as Ryanair has expressed its interest in buying the assets of Alitalia. However, this has suffered a setback from public backlash. This came after the company decided to cancel over 1,000 flights this month and next month. This came after the company failed to handle the vacation time with its pilots. As a result, flights covering 34 routes were affected, and this spans to flights from November to March next year. Monarch suffered the same fate except that it touched on the increasingly market conditions and excessive cost pressures. This meant that the company experienced an extended period of continued losses. This information was released by an accounting firm known as Blair Nimmo, which is also a subsidiary of KPMG. According to the same firm, these are problems that have been going on for some time. The unrest in Turkey together with terrorist attacks in Tunisia and Egypt has left the company without the tourist destinations that it relied on customers. This forced the company to operate in a market that is dominated by other airlines. The company has been around since 1968 and had 40 destinations under its control. The company spokesman apologized on behalf of the company for those that were affected.