February 1982 - Collapse of Laker Airways
On February 5th, 1982, the BBC reported on the collapse of Laker Airways-Skytrain, the first budget airline to fly internationally, including London to New York.
“…Pioneering budget airliner Laker Airways has collapsed owing 270 million pounds to banks and other creditors. After a four-hour board meeting at London’s Gatwick Airport, company chairman Sir Freddie Laker asked Clydesdale Bank to appoint a receiver. All 17 Laker aircraft have been ordered to return to the UK by tonight and the British Airports Authority has impounded a DC10 at Gatwick to cover the company’s landing and parking costs…”
Other airlines, including British Airways and Pan Am, undertook to honour return tickets for around 6 000 stranded passengers. Just days earlier Sir Freddie had expressed confidence that a 60-million-pound rescue he had orchestrated would save the airline, but declining revenues spooked both creditors and the Bank of England. Despite Laker’s friendship with Prime Minister Margaret Thatcher, a government bailout was ruled out by the Department of Trade. Laker Airways at the time of its collapse employed 2500 people.
Such was Sir Freddie Laker’s popularity, a Save Laker fund was established and raised over one million pounds in public subscriptions. Subsequent attempts to transfer licenses to a new entity and start up again were blocked by the Civil Aviation Authority.
Freddie Laker relocated to the Bahamas, where he established a local airline.
A court later adjudicated that major airlines had used illegal cartel behaviour to squeeze Laker Airways-Skytrain out of business.
Sir Freddie Laker later told the BBC;
“…I had 29 airlines ganged up against me…You can say what you like about Margaret Thatcher, but I was her icon when she was talking about competition. ‘Look at Laker Airways, competition pays,’ she would say. But of course, as soon as the heat was put on, she got me kicked out…"
Sir Freddie Laker died in Miami in 2006, aged 83.
“…Pioneering budget airliner Laker Airways has collapsed owing 270 million pounds to banks and other creditors. After a four-hour board meeting at London’s Gatwick Airport, company chairman Sir Freddie Laker asked Clydesdale Bank to appoint a receiver. All 17 Laker aircraft have been ordered to return to the UK by tonight and the British Airports Authority has impounded a DC10 at Gatwick to cover the company’s landing and parking costs…”
Other airlines, including British Airways and Pan Am, undertook to honour return tickets for around 6 000 stranded passengers. Just days earlier Sir Freddie had expressed confidence that a 60-million-pound rescue he had orchestrated would save the airline, but declining revenues spooked both creditors and the Bank of England. Despite Laker’s friendship with Prime Minister Margaret Thatcher, a government bailout was ruled out by the Department of Trade. Laker Airways at the time of its collapse employed 2500 people.
Such was Sir Freddie Laker’s popularity, a Save Laker fund was established and raised over one million pounds in public subscriptions. Subsequent attempts to transfer licenses to a new entity and start up again were blocked by the Civil Aviation Authority.
Freddie Laker relocated to the Bahamas, where he established a local airline.
A court later adjudicated that major airlines had used illegal cartel behaviour to squeeze Laker Airways-Skytrain out of business.
Sir Freddie Laker later told the BBC;
“…I had 29 airlines ganged up against me…You can say what you like about Margaret Thatcher, but I was her icon when she was talking about competition. ‘Look at Laker Airways, competition pays,’ she would say. But of course, as soon as the heat was put on, she got me kicked out…"
Sir Freddie Laker died in Miami in 2006, aged 83.
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