Two maintenance hangars formerly operated by Monarch Aircraft Engineering (MAEL) are expected to go up for sale in the next few weeks, according to the defunct MRO’s administrator KPMG.
David Pike, partner and joint administrator at the financial services company, confirmed that it has appointed British real estate specialist Avison Young to act as selling agents of the leaseholds for its Luton and Birmingham facilities.
The two sites were where MAEL’s UK base maintenance operations were conducted, with Luton serving as its headquarters for more than 50 years. KPMG says MAEL’s base maintenance services were loss making and nearly all activity had ceased at both hangars at the time of its collapse.
All surplus plant and machinery equipment at both facilities will be sold by Hilco Global through several auctions, some of which have now completed and some of which are ongoing. KPMG says a review is being conducted into whether tooling equipment at the two sites should be included as part of any sale of the hangars or sold separately.
MAEL’s CAMO business will continue to operate after most of it was sold to digital records specialist Trustflight on Feb. 11 for £750,000 ($988,000) with 19 employees transferred as part of the transaction. A buyer for Monarch’s training academy is still being sought, but KPMG said all 53 apprentices have since been offered alternative placements.
MAEL’s line maintenance business was sold off in multiple transactions in December 2018, saving 182 jobs. According to KMPG, line maintenance operations at Gatwick, Birmingham, East Midlands, Newcastle and Glasgow Airports were largely transferred to engineering recruitment company Morson Group. Certain parts of the Gatwick operation were sold to Boeing while UK MRO Storm Aviation took on the line services at Luton Airport.
The company’s spare parts inventory is estimated to be worth more than £12 million and the administrator says a strategy is being developed to maximize recoveries from the inventory with an immediate bulk sale of all parts to a longer-term trading period one possible option.
Pike added that many of the company’s rotable assets are now listed for sale on ILS, the Boeing-owned component reseller website. “We are also inviting offers for various other stock packages, the first of which include raw materials, chemicals, batteries and composites, with a deadline for offers on these packages of Mar. 15,” he said.
Monarch Aircraft Engineering went into administration in early January after the company ran into financial difficulties and was unable to find a buyer. The administration resulted in the immediate loss of 416 jobs, 250 of which were based at the Luton and Birmingham locations.
The MRO had struggled under the weight of lost revenues from its airline affiliate, which was part of 10 companies under the Monarch Group which went into administration in October 2017. The Monarch Airlines fleet, which totalled 35 aircraft at the time of its demise, accounted for around 50% of all MAEL’s MRO work.