Laker in serious trouble

Press, 6 February 1982, Page 9

Laker in serious trouble

NZPA London An announcement on the future of the cut-price Laker Airways, bedevilled since last northern autumn with serious financial problems, is expected today. It came after reports that a multi-million pound rescue deal for the airline has fallen through. According to the London “Daily Mail” the airline’s chairman, Sir Freddie Laker, is desperately trying to save his troubled airline after international banks and aircraft manufacturers pulled out of a $NZ73.6 million rescue deal two days after he flew to New York to sign agreements. ' Sir Freddie flew back to London yesterday to begin a frantic attempt to raise sufficient funds in Britain to keep his planes flying. But bankers were describing the airline as being in “a hell of a mess” and with a “bleak future,” the paper said. On Christmas Eve, Sir Freddie, through his merchant bank advisers, Samuel Montagu, reported that initial agreement had been reached on a plan which would get the airline out of difficulties.

j When Sir Freddie said at Heathrow Airport last Mon- ; day that “my financial problems are over" ej’ebrows ( were raised in London financial circles and in the United : States. Sir Freddie’s troubles have ’ arisen because the recession has cut the number of passengers flying the North Atlantic. The present British rail strikes have not helped either. They have encouraged people to fly by airlines ‘ operating from Heathrow, less dependent on rail links : than Gatwick, the only airI port Laker can fly from.