Monarch Airlines’ engineering arm, Monarch Aircraft Engineering (MAEL) has gone into administration today with the loss of 450 jobs. KPMG has been appointed following financial difficulties at the firm. MAEL is owned by Greybull Capital that took it over after the collapse of the Airline last year.
KPMG said the firm was "unsustainable in its present form" following a CVA in October that led customers to seek alternative suppliers.
After the collapse of Monach, MAEL inherited substantial debt and was probably tainted by the administration of the main airline which no doubt caused customers and suppliers to be extra cautious.
MAEL’s Managing Director told staff in a message sent at 5am on Friday: "It's with a very heavy heart that I am writing my final business update to you all to tell you I have this morning had no choice but to appoint KPMG as administrators and have put MAEL into administration."
Earlier this week, Monarch announced 182 jobs had been saved after its line maintenance operations at Gatwick, Birmingham, East Midlands, Newcastle and Glasgow Airports were transferred to Morson Group.
Category: What is administration