orlandothebeagle
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UK airline Monarch has vigorously denied that it is in financial difficulty after a bookmaker slashed the odds that it will become the next victim of the turmoil in the airline sector.
Luton-based Monarch insisted today that it is trading well and that it holds "substantial assets in its balance sheet".
Its assurance came after Paddy Power said it had received more than 100 bets in the last week that Monarch will suffer the same fate as FlyGlobespan, which collapsed two weeks ago. The bookmaker has now made Monarch the favourite in its "Next Airline to go bust?" market, cutting its odds from 50-1 to 4-1.
Monarch, though, insists that there is no reason for passengers to worry.
"Monarch is one of the UK's leading low cost airlines and is the airline of choice for independent tour operators in the UK. It has recently launched a series of new routes to Turkey for summer 2010 and has invested close to $1bn in a fleet of six Boeing 787 Dreamliners. It will be the second UK airline to take delivery of these aircraft," Monarch said in a statement.
"Monarch is currently 2% ahead on scheduled load factors for December 2009 compared to the same month last year, with forward bookings into 2010 ahead of forecasts," it added.
In early September 2008, Paddy Power stopped taking bets on XL Leisure after receiving over 200 bets in 24 hours that it would be the next airline to fail. XL collapsed days later, leading Paddy Power to pay out £15,000 to punters.
The betting firm said today it faces a payout of £7,000 if Monarch does collapse.
"Punters seemed to have latched on to Monarch in a pattern which echoes betting patterns in the immediate runup to the demise on XL Airways in September last year," a Paddy Power spokesman said.
"We'll be monitoring the situation very closely over the new year."
A year ago, the Advertising Standards Authority banned Paddy Power from running an advertisement promoting this market. The watchdog said the advert "unfairly discredited" airlines whose odds suggested they were at risk of entering administration.
Monarch is the UK's largest independent charter airline, and also operates scheduled flights from London Luton, London Gatwick, Manchester and Birmingham airports. It has been operating since 1968, and carries more than 6 million passengers a year on its 32 aircraft.
The Monarch website is offering extra discounts to anyone booking online before the end of 2009.
A Civil Aviation Authority spokesman confirmed that Monarch currently holds all the licences required to operate as an airline and a tour operator. This means it has satisfied certain financial and safety requirements.
Earlier this month Iata, the industry's trade body, warned that it expects airlines to lose a total of $5.6bn (£3.5bn) in 2010, up from an earlier estimate of $3.8bn.
Luton-based Monarch insisted today that it is trading well and that it holds "substantial assets in its balance sheet".
Its assurance came after Paddy Power said it had received more than 100 bets in the last week that Monarch will suffer the same fate as FlyGlobespan, which collapsed two weeks ago. The bookmaker has now made Monarch the favourite in its "Next Airline to go bust?" market, cutting its odds from 50-1 to 4-1.
Monarch, though, insists that there is no reason for passengers to worry.
"Monarch is one of the UK's leading low cost airlines and is the airline of choice for independent tour operators in the UK. It has recently launched a series of new routes to Turkey for summer 2010 and has invested close to $1bn in a fleet of six Boeing 787 Dreamliners. It will be the second UK airline to take delivery of these aircraft," Monarch said in a statement.
"Monarch is currently 2% ahead on scheduled load factors for December 2009 compared to the same month last year, with forward bookings into 2010 ahead of forecasts," it added.
In early September 2008, Paddy Power stopped taking bets on XL Leisure after receiving over 200 bets in 24 hours that it would be the next airline to fail. XL collapsed days later, leading Paddy Power to pay out £15,000 to punters.
The betting firm said today it faces a payout of £7,000 if Monarch does collapse.
"Punters seemed to have latched on to Monarch in a pattern which echoes betting patterns in the immediate runup to the demise on XL Airways in September last year," a Paddy Power spokesman said.
"We'll be monitoring the situation very closely over the new year."
A year ago, the Advertising Standards Authority banned Paddy Power from running an advertisement promoting this market. The watchdog said the advert "unfairly discredited" airlines whose odds suggested they were at risk of entering administration.
Monarch is the UK's largest independent charter airline, and also operates scheduled flights from London Luton, London Gatwick, Manchester and Birmingham airports. It has been operating since 1968, and carries more than 6 million passengers a year on its 32 aircraft.
The Monarch website is offering extra discounts to anyone booking online before the end of 2009.
A Civil Aviation Authority spokesman confirmed that Monarch currently holds all the licences required to operate as an airline and a tour operator. This means it has satisfied certain financial and safety requirements.
Earlier this month Iata, the industry's trade body, warned that it expects airlines to lose a total of $5.6bn (£3.5bn) in 2010, up from an earlier estimate of $3.8bn.
