Monarch airline may be close to collapse

Ministers are braced for the possibility of a British airline collapsing over the coming days, The Times has learnt.

Cross departmental meetings have been held in Whitehall to draw up contingency plans in case Monarch Airlines is grounded immediately. One source said that talks had been held in Cobra, the emergency government briefing room.

Monarch, the fifth biggest British-based carrier, has refused to comment on speculation that it may fold. The airline, which expects to carry a total of about six million passengers this year from Manchester, Leeds, Birmingham, Gatwick and Luton, has admitted that it is undertaking a “comprehensive review” of its operations. This is believed to involve talks with airlines such as Easyjet and Wizzair to take over its short-haul business.