Laker ‘plans to go up-market’

Press, 9 March 1982, Page 8

Laker ‘plans to go up-market’

NZPA London Sir Freddie Laker, pioneer of cheap transatlantic air travel whose Laker'Airways went broke last month, is circulating plans for a new Laker airline — smaller, leaner and definitely not cutprice, the “Sunday Times” has reported. The newspaper said it had obtained a copy of a prospectus prepared by Sir Freddie and his backers that “is now doing the rounds of city (financial) institutions in search of financial backing to the tune' of £lO5 million (?NZ227.8 million).” .• The paper said Mr Laker appeared to be contemplating a “shoestring operation" that would show a “startling change of emphasis from the old Laker Airways days." It said he w’ould fly with only five aircraft and- 770 employees, compared with 13 aircraft and 2795 staff before, and would concentrate on services from Gatwick Airport, south of London, to Los Angeles, Miami, and New York.

“But most significant of all is the total rejection of the old buccaneering days of price-cutting,” the “Sunday Times” said. “Fares in future will be pitched at the same level as other airlines. It is even suggested that the new airline might actually join 1.A.T.A./ (the International Air Transport Association), the airlines’ fare-fixing cartel against which Mr Laker has campaigned for many years.” ■

The document was prepared with the help of Roland “Tiny” Rowland, head of the Lonrho congolomerate and a possible partner in 1 Laker 11, and the London accounting firm of Peat Marwick, the paper said. The proposal envisaged Sir Freddie as managing director, with financial control in the hands of a separate finance director and Mr Rowland as chairman of the board. None of the principals named by the newspaper was available for comment yesterday. Last week Sir Freddie’s entitlement to free air travel was stopped. Since the collapse of his empire he had flown with British Airways and Pan American. He had a free SNZ2S4O Concorde ticket on one occasion. He had been given the "free tickets” on the basis of his being the head of an airline.