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Written question asked by Lord Myners (Crossbench) on Tuesday, 3 September 2019, in the House of Lords. It was due for an answer on Tuesday, 17 September 2019. It was answered by Baroness Vere of Norbiton (Conservative) on Monday, 9 September 2019 on behalf of the Department for Transport.

Monarch Airlines: Insolvency

Question

To ask Her Majesty's Government what progress they have made in obtaining a financial contribution from Greybull Capital towards the cost of the return to the UK of passengers on Monarch Airlines consequent on the withdrawal of financial support by Greybull Capital; what is their assessment of whether Greybull Capital and associates are likely to make a profit on their investment in Greybull Capital; whether any such profit will be assessable to UK tax; and when Ministers last had contact with Greybull Capital.

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.

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.

Profits made by corporations are subject to the tax laws relevant to their jurisdiction. Petrol Jersey Limited is a company which is incorporated in Jersey. It would be for HM Revenue and Customs to confirm whether any such profit would be assessable to tax in the UK.

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.

Secondary information

Type
Written question
Reference
HL17676
Session
2017-19
Subjects
Costs Insolvency Passengers Profits Taxation Repatriation Greybull Capital Monarch Airlines
Link
View this Written question on www.parliament.uk