BA parent IAG to acquire Monarch's Gatwick slots

[andypspotter]

IAG is to buy the London Gatwick slots formerly held by Monarch Airlines from the collapsed UK carrier's administrators.

KPMG, joint administrator of Monarch since its collapse at the start of October, says it is "in the process of completing an exchange" of winter and Gatwick slots with the British Airways parent.

"As well as representing an excellent recovery for creditors from one of Monarch Airlines' significant assets, the clarity that this sale will bring is very positive for other stakeholders such as Gatwick airport and its customers," states KPMG partner and joint administrator Blair Nimmo.

BA is the second-biggest carrier at Gatwick airport and has expanded its operation from the south London serving airport, including new long-haul destinations. These include flights to Oakland and Fort Lauderdale, both of which put it in competition with Norwegian. Next summer BA will add Gatwick flights to Las Vegas and Toronto.

KPMG secured the right to sell Monarch's airport slots following a UK court ruling earlier this month, after an initial judgement had blocked it from the right to sell the slots.

The Gatwick slots are likely to be the most lucrative of the carrier's former slot allocation, which also cover positions at Birmingham, Leeds Bradford, London Luton and Manchester.

"Our continuing focus is now on Monarch Airlines' Luton slots, as well as exploring potential rescue opportunities for Monarch Airlines and its residual assets, including its brand and associated licences," states Nimmo.

[andypspotter]

London Gatwick airport slots purchased by IAG from the administrators of Monarch Airlines will not be used for Level flights and will instead be used to expand British Airways operations at the gateway, group chief executive Willie Walsh has disclosed.

"I have been quite open that at this point Level is not going to operate out of the UK," Walsh told FlightGlobal at the Aviation Carbon conference in London today. "It may at some stage in the future, but we are not looking at Gatwick for Level at this point."

IAG launched operations with its new long-haul, low-cost brand Level from Barcelona in the summer and has just unveiled plans for it to launch services out of Paris Orly in 2018.

Walsh says IAG's move for the Gatwick slots was part of a broader interest at the airport. "It is a good airport for us, it works well, and we have been looking to increase our presence there," he says.

He adds that BA will be adding new international routes from Gatwick as a result of the purchase.

BA is the second-biggest carrier at Gatwick and recent expansion has included new long-haul destinations such as Oakland and Fort Lauderdale, both of which put it in competition with Norwegian. Next summer, BA will add Gatwick flights to Las Vegas and Toronto.

IAG agreed to buy Monarch's slots late last month for an undisclosed sum following a UK High Court ruling that administrators KPMG could sell them.

Monarch grounded flights in October.