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Written question asked by Lord Myners (Crossbench) on Wednesday, 24 April 2019, in the House of Lords. It was due for an answer on Thursday, 9 May 2019. It was answered by Baroness Vere of Norbiton (Conservative) on Thursday, 9 May 2019 on behalf of the Department for Transport.

Monarch Airlines: Insolvency

Question

To ask Her Majesty's Government, further to the Written Answer by Baroness Sugg on 12 March (HL14267), whether the contribution promised by Greybull to meet part of the cost incurred by taxpayers in repatriating customers of Monarch Airlines is dependent on the completion of the administration of the Monarch group of companies; and when ministers last met Greybull in connection with Greybull's contribution to costs.

Answer

Greybull Capital is not itself a shareholder in Monarch Airlines but it does perform an advisory and management role for the principal shareholder, Petrol Jersey Limited. There is no formal legal mechanism we can use to oblige Greybull to contribute towards the cost of repatriating passengers.

However Marc Meyohas, partner at Greybull, wrote to the Transport Select Committee acknowledging a moral obligation (if they make a profit) to contribute and help to defray the costs incurred by the Government in repatriating Monarch customers.

Discussions with Greybull in relation to recovering the costs of the repatriation operation have been in writing. Ministers last wrote to Greybull on this matter on 5 December 2018.

The extent of any profit or loss from Greybull Capital and Petrol Jersey Limited’s investment in Monarch Airlines will depend on the outcome of the administration process, which is not due to conclude until October 2020.

I refer to the Written Ministerial Statement made by the Secretary of State on 9 May 2019, which reported that the final cost to the taxpayer from the Monarch repatriation have been assessed to be £40.5m. This does not include any contribution from Greybull Capital or the principal shareholder, Petrol Jersey Limited. We do not expect any material change to the final cost to the taxpayer.

Secondary information

Type
Written question
Reference
HL15293
Session
2017-19
Related items
Monarch Airlines: Insolvency
Tuesday, 12 March 2019
Written questions
House of Lords
Grouped for answer
Yes
Subjects
Costs Insolvency Passengers Repatriation Greybull Capital Monarch Airlines
Link
View this Written question on www.parliament.uk