Laker line bankrupt

Press, 6 February 1982, Page 1

Laker line bankrupt

NZPA-Reuter London Sir Freddie Laker, the Briton who pioneered cheap air travel across the Atlantic, announced last evening that his cut-price airline had gone bankrupt. A statement from Laker Airways said Sir Freddie had asked his bankers to appoint a receiver and manager for the airline, which had been losing money heavily in the last year in a “fares war” on the Atlantic run. The shock announcement came, only four days after Sir Freddie had announced a SI3BM bail-out package which he said would save his airline, although his bankers and creditors dismissed his optimism as premature.

Announcing what he termed “the demise” of his airline, Sir Freddie said he hoped the benefits he had

gained for the ordinary traveller would not be lost.

The airline flew . cheap transatlantic services to New York, Florida, and the West Coast of the United States, carrying 835,000 passengers last year on its Skytrain services. It was only on Monday that Sir Freddie, who brought cheap air travel to millions, announced jubilantly: “My financial troubles are over.” His announcement caused raised eyebrows in financial circles in London and America. McDonnell Douglas indicated that this was premature and was reported to be upset by Sir Freddie’s comments.

Laker Airways, formed by Sir Freddie with £38,000 he borrowed from a man in a pub, has been bedevilled with

major financial problems since the northern autumn. The troubles started through the recession which has cut the number of passengers flying the North Atlantic. Continuous rail strikes in Britain have not helped either. They have encouraged people to fly by airlines using Heathrow — less dependent on rail links that the ’Laker take-off point, Gatwick. Sir Freddie has been seeking the rescheduling of payments on loans of £2OO million ($460 million) for his' fleet of DCIO airliners because the fall in the value of the pound against the dollar was . adding substantially to the amounts due.

On Christmas Eve, Sir Freddie reported that initial agreement had been reached on a plan which would get the airline out of difficulties.