Monarch Airlines has written to Olympic Holidays demanding it removes all references to summer flights with the carrier from its website after talks over a new deal collapsed.
A deadline earlier this week to remove them passed but the website still contained references to Monarch summer flights on Wednesday.
A spokeswoman for the airline said it will also write to trade partners to make it clear Olympic would not be operating any flights with Monarch this summer.
In a statement, the airline said: “Monarch has taken a business decision…and has concluded it is very unlikely to reach an agreement for capacity on terms and within pre-notified timescales that meet Monarch’s business requirements.”
Despite losing a significant proportion of its flying, Olympic vowed to run its full programme for summer 2011 and it was in talks with other carriers.
Photis Lambrianides, commercial director at the eastern Mediterranean specialist, said it was talking to Thomson Airways, Thomas Cook Airlines, Jet2.com and Pegasus, which flies some of its Turkey programme.
It was also talking to Viking Airlines AB, the Sweden-based charter carrier that entered bankruptcy protection last month, but which hopes to revive its summer 2011 programme from the UK.
Speaking before this week’s deadline, Lambrianides said: “We will be flying our full programme to Greece for 2011. Our plans are there – they have not altered in any way and we are starting very aggressive campaigns with the trade.”
Lambrianides did not return Travel Weekly’s calls this week.
The Monarch Group is understood to have been contracting hotel rooms in Greece after bringing seats previously chartered by Olympic in house – estimated by industry sources to be about 250,000.
However, sources said most of that capacity is likely to be sold via Monarch’s seat-only business Avro through online agencies that need seats following the demise of rivals Goldtrail Holidays and Kiss Flights.