IAG secures Monarch’s Gatwick slots after successful administrator appeal

With KPMG winning a High Court appeal last week as administrators for Monarch, the failed airline has been able to dispose of its most valuable asset, its Gatwick airport take-off and landing slots, to IAG.
IAG includes British Airways, which will “primarily” use these slots, though they are also seen to be a boost for its newly launched budget long-haul airline, Level. When the Group initially looked to acquire the slots, it was with the intention of adding further flights and routes from Gatwick. According to an IAG spokesperson, “”These slots will be used by the group’s airlines, primarily British Airways, enabling them to grow their presence at the airport and launch new destinations and add extra frequencies,” he added.” IAG also owns Vueling, Iberia and Aer Lingus.
There was stiff competition for the slots, with other interested airlines believed to include EasyJet, Wizz and Norwegian. Monarch’s less valuable slots at London Luton airport are due to be auctioned off in the near future. Combined with Gatwick, all Monarch’s slots are estimated to have a value of £60 million (US$80 million), though IAG have not confirmed what they paid for the Gatwick slots.
KPMG partner and joint administrator Blair Nimmo confirmed that the sale of the slots “represented an excellent recovery for creditors,” adding that: “Our continuing focus is now on MAL’s [Monarch] Luton slots, as well as exploring potential rescue opportunities for MAL and its residual assets including its brand and associated licenses.”