UK’s Monarch Airlines goes bankrupt, thousands lose jobs; here is all you need to know

British short-haul carrier Monarch Airlines declared bankruptcy after failing to secure fresh capital or sell the business, leaving British authorities racing to rescue tens of thousands of customers stranded abroad, while Monarch staff were made redundant. Monarch Airlines CEO Andrew Swaffield said airline faced an annual loss in excess of £100 million ($133 million, 113 million euros) when it went bust.

In operation since 1968, the airline was owned by investment group Greybull Capital which had kept it going with a 165 million pound ($219 million) injection last October.

The Civil Aviation Authority regulator launched an emergency repatriation scheme on Monday to fly back 110,000 Monarch customers to Britain at an estimated cost to taxpayers of £60 million.

Monarch has been badly hit by a legacy of weak demand in previously key markets Turkey, Tunisia and Egypt that have each suffered terrorist attacks in recent years.

In turn, the events have sparked fierce competition and oversupply for popular destinations Portugal and Spain.

Consequently, the airline suffered a 25-percent reduction in ticket prices which created a "massive economic challenge" for the group, Swaffield said.

Therefore, Monarch faced the daunting prospect of a huge loss for the next financial year.

Monarch Airlines CEO Andrew Swaffield said it was heart-breaking as 2,000 people lost their jobs and we are all absolutely devastated for the customers and for all of us.

Asia's second-biggest aircraft lessor, BOC Aviation Ltd , said it was working to find new homes for 13 Boeing Co 737 MAX 8 aircraft it had planned to lease to the collapsed British carrier.

Around 90 per cent of the staff from Monarch Airlines and Monarch Travel Group were made redundant.