Monarch Aircraft Engineering Limited (MAEL), based at London Luton Airport, is in administration after its administrators, KPMG, said the company is “unsustainable in its present form”. Approximately 450 jobs have been lost.
MAEL was the engineering division of Monarch Airlines which went out of business in 2017 with the loss of some 1,800 jobs.
KPMG confirmed that attempts to restructure MAEL – acquired by Greybull Capital in October 2018 – had failed. David Pike, restructuring partner at KPMG, said: “Following the administration of other Monarch entities in 2017, MAEL sought to build its customer base to replace the loss of business from the former airline.
“Through the insolvency of the airline however, the company inherited significant debts and claims. Every effort has been made to turn around the business, including launching a CVA which sought to resolve these legacy debts.
“Unfortunately, following the CVA, a number of customers reduced or sought to terminate their relationship with MAEL, further adversely impacting the business.”
Before the administration announcement MAEL had said line maintenance operations at Birmingham, East Midlands, Gatwick, Glasgow and Newcastle airports were largely being transferred to the Morson Group, while those at Luton were switching to Storm Aviation and some Gatwick-based employees have transferred to work for Boeing. Further work at Manchester and Birmingham Airports, including the related employees, have been transferred to Flybe.
KPMG said a buyer is being sought for the company’s Continuing Airworthiness Management Organisation (CAMO) division – which provides airworthiness records, scheduled maintenance requirements and its training academy.