BA owner IAG 'secures Monarch's Gatwick slots'

Lloyd Doyle
November 28, 2017

British Airways owner IAG is buying the prized take-off and landing slots at Gatwick Airport put up for sale by the administrator of collapsed airline Monarch.

According to the Press Association news agency, the deal saw the British Airways (BA, London Heathrow) parent acquire the "majority" of the defunct carrier's slots at London's second busiest airfield.

KPMG's lawyers said at the time that the slots were its "most valuable asset".

The sale, by Monarch administrator KPMG, follows last week's Court of Appeal ruling that overturned an earlier High Court decision blocking the Big Four accountancy firm from realising value from the slots.

IAG chief executive Willie Walsh said last month that he was interested in the Gatwick slots as a way to boost its fledgling long-haul budget airline Level, which launched in June.

A string of airlines had been linked with the runway slots since Monarch's collapse in September, with easyJet, Norwegian, Wizz Air and Jet2 all understood to have made enquiries.

The administrators said they were in the process of completing an exchange of Monarch's slots for others now held by IAG but did not disclose how much IAG was paying under the swap arrangement to get the more valuable slot times.

Monarch's take-off and landing slots at Luton airport are also being auctioned off.

"As the secured creditors will likely suffer a shortfall, there is no real prospect of a return to unsecured creditors in any of the administration companies", the KPMG report said.

Other reports by Iphone Fresh

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