Costs of £8.2 million have been incurred by the administrator of Monarch Airlines almost three years after the company collapsed.

The figure represents 17,697 hours at an average rate of £552 per hour since the failure in October 2017.

However, KPMG agreed a cap of 80% of its time costs with the senior secured creditor, which means the remuneration will not be more than 80% of the fees incurred.

The figures cover the period until April this year.

The Monarch collapse triggered the largest UK peacetime repatriation before the failure of Thomas Cook a year ago.

The government has said the taxpayer has an exposure of about £40 million for the cost of returning 110,000 stranded Monarch customers.

The latest progress report from KPMG show that there are insufficient funds from the administration to pay a dividend to unsecured creditors.

A spokesperson for the joint administrators said“The administrator fees reflect the complexity of dealing with the administration of what at the time was the largest airline insolvency ever seen in the UK.

“This includes achieving a substantial realisation for the group’s airport take-off and landing slots, which itself included setting legal precedent in the Court of Appeal, assisting the CAA in the substantial repatriation programme of approximately 110,000 overseas passengers, and the complexity of dealing with the wind-down of an airline with its 2,100 employees.”

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