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{{About|the founder of the airline [[Laker Airways]]|Laker's son and a founder of Chameleon Collective|Freddie A. Laker}}
{{Short description|English airline entrepreneur (1922–2006)}}
{{Use British English|date=July 2015}}
{{Use dmy dates|date=July 2015}}
{{Infobox person
| name = Sir Freddie Laker
| image = Freddie_Laker.jpg
| caption =
| birth_name = Frederick Alfred Laker
| birth_date = {{birth date|df=yes|1922|08|6}}
| birth_place = [[Canterbury]], Kent, England
| death_date = {{death date and age|df=yes|2006|02|9|1922|08|6}}
| death_place = [[Hollywood, Florida]], U.S.
| occupation = Founder and chairman of [[Laker Airways]], adviser of Virgin Atlantic
| spouse = {{plainlist|
* {{marriage|Joan Laker|1942|1968}}
* {{marriage|Rose Marie Black|1968|1975}}
* {{marriage|Patricia Gates|1975|1982}}
* {{marriage|Jacqueline Harvey|1985|2006}}
}}
| children = 4
}}
'''Sir Frederick Alfred Laker''' (6 August 1922 – 9 February 2006) was an English airline entrepreneur, best known for founding [[Laker Airways]] in 1966, which went bankrupt in 1982. Known as Freddie Laker, he was one of the first airline owners to adopt the "[[Low-cost carrier|low cost / no-frills]]" airline [[business model]] that has since proven to be successful worldwide when employed by companies such as [[Ryanair]], [[Southwest Airlines]], [[easyJet]], [[Norwegian Air Shuttle|Norwegian Air]], and [[AirAsia]].
==Biography==
Laker came from [[Canterbury]] in [[Kent]], and attended the [[Simon Langton Grammar School for Boys]], before starting work in aviation with [[Short Brothers]] in [[Rochester, Kent|Rochester]]. He was a member of the [[Air Transport Auxiliary]] during and immediately after the [[Second World War]] (1941–46).<ref name="Guardian obituary">{{cite web | last=Barker | first=Dennis | title=Sir Freddie Laker obituary | website=The Guardian | date=2006-02-10 | url=http://www.theguardian.com/news/2006/feb/10/guardianobituaries | access-date=2019-09-02}}</ref>
He then worked briefly for [[British European Airways]] (BEA) and London Aero Motor Services (LAMS).<ref name="self-made">''Fly me, I'm Freddie!'', Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, p. 12</ref> Having borrowed [[pound sterling|£]]38,000 from a wealthy friend to top up his own savings of £4,500, he subsequently went into business as a [[war-surplus]] aircraft dealer. The [[Berlin Blockade|Soviet blockade of West Berlin]] in 1948–49, during which all available aircraft were needed to fly essential supplies into [[West Berlin]], allowed his business to flourish, as this provided more than a year's work for his planes and employees almost immediately. During this period Laker often flew the aircraft himself.<ref name="Cosmopolitan">''Cosmopolitan ("I'm Freddie, Fly me!")'', Hearst Magazines UK, London, August 1978, pp. 94 ...</ref>
By 1954, [[Channel Air Bridge]], his second airline venture, was flying cars and their owners in [[Bristol Freighter]]s from [[London Southend Airport|Southend Airport (Rochford)]] to [[Calais]].
In 1958, he sold [[Air Charter Limited|Air Charter]], [[Aviation Traders]] and Channel Air Bridge to [[Airwork Services#Air transport|Airwork]]. All three companies joined the Airwork group in 1959. Following the Airwork–[[Hunting-Clan Air Transport|Hunting-Clan]] merger in 1960, he became managing director of [[British United Airways#Antecedents and inception|British United Airways]].<ref name="sell_out">''Fly me, I'm Freddie!'', Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, p. 54</ref><ref name="airliner_carferry34"/>
He left [[British United Airways#Reorganisation|British United]] in 1965 and formed his own [[Laker Airways]], in 1966, initially operating [[charter flights]] with a pair of [[turboprop]] planes acquired second-hand from [[British Overseas Airways Corporation]] (BOAC). The livery was a mixture of black and red with a bold ''LAKER'' logo on the tailplane. He offered a new, revolutionary concept of inexpensive air travel, requiring passengers to purchase their tickets on the day of travel, and to buy any food they wanted on the flight. These flights were operated by Laker Airways and marketed under the ''Skytrain'' trademark.
He was [[Knighthood|knighted]] in 1977, the year after the successful launch of ''Skytrain'', in recognition of his services to the airline industry.<ref>[http://www.flightglobal.com/pdfarchive/view/1978/1978%20-%200918.html ''Now it's Sir Freddie''], ''Flight International'', 10 June 1978, p. 1740</ref><ref name="knighthood">[https://web.archive.org/web/20101107011229/http://www.independent.co.uk/news/obituaries/sir-freddie-laker-466243.html ''Sir Freddie Laker'']. B. Ritchie, ''The Independent'', print edition, 11 February 2006</ref>
He received an honorary degree from the [[University of Strathclyde]] in 1981.
==Business ventures==
Throughout his working life Laker was involved in a number of aviation-related business ventures. Even when he was working for others, his decisions had far-reaching [[strategic management|strategic]] consequences for the business that employed him.{{citation needed|date=August 2015}}
===Early business ventures===
Laker's early post-war business ventures (prior to 1960) included:
====Aviation Traders====
[[Image:carvair.arp.750pix.jpg|thumb|right|250px|[[Aer Lingus]] [[Aviation Traders Carvair|Carvair]] loading a car at [[Bristol Airport]], Bristol, England, in 1965]]
Freddie Laker founded Aviation Traders in October 1947.<ref name="self-made"/> It was based at [[London Southend Airport|Southend Airport]], Essex, England and specialised in converting numerous war-surplus bombers and transporters into freighters. This included the conversion of [[Handley Page Halifax]] bombers into freighters, six of which were sold to Bond Air Services, an early post-war British independent<ref group=nb>independent from [[government-owned corporation]]s</ref> airline. Bond Air Services based these planes at [[Wunstorf]] aerodrome in [[West Germany]] to carry essential supplies into [[West Berlin]] during the [[Berlin Blockade]] of 1948–49. Bond Air Services furthermore contracted Aviation Traders to service these planes. In return, Aviation Traders got half of Bond Air Services' freight charges.<ref>'', I'm Freddie!'', Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, p. 16</ref>
Following the end of the [[Berlin Blockade|Berlin Airlift]] in 1949, Laker had most of the Halifaxes he had supplied to various independent airlines during the Airlift scrapped at its [[London Southend Airport|Southend]] facilities. He also made use of these facilities for the subsequent conversion of several [[DC-4]]/[[C-54]] Skymaster [[airframe]]s into [[Aviation Traders Carvair|Carvair]]s for various operators around the world.<ref name="End_of_Airlift"/>
In addition, Aviation Traders re-engined ''Argonauts'', BOAC's Canadian-built [[Canadair North Star]]s, with unused [[Rolls-Royce Merlin]] [[piston]] engines, which it sourced from the 88 spare Merlins Freddie Laker had acquired earlier along with BOAC's entire fleet of [[Handley Page Halifax#H.P.70 Halton|Halton]]s – former [[Royal Air Force]] Halifax bombers that had been converted to carry passengers and cargo – and several [[Avro Tudor]]s purchased from the [[Her Majesty's Government|Government]].<ref name="Cosmopolitan"/><ref>''Fly me, I'm Freddie!'', Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, pp. 38, 49</ref> It also produced an all-new aircraft design, the [[Aviation Traders Accountant|ATL-90 Accountant]].<ref name="Accountant">[https://lra.le.ac.uk/bitstream/2381/3650/1/Flight%20%20Accountant%202005.pdf Armstrong, P. (2005). ''The Flight of the Accountant: a Romance of Air and Credit'', ''Flight to insolvency'']</ref>
In 1951, Aviation Traders (Engineering), a sister company of Aviation Traders, won a contract from [[Bristol Aeroplane Company|Bristol Aircraft]] to manufacture wing centre sections for Bristol Freighters. Between the beginning of 1952 and the end of 1955, Aviation Traders (Engineering) built 50 wing sections for Bristol Aircraft.<ref>''Fly me, I'm Freddie!'', Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, p. 29</ref>
In 1958, Laker announced his decision to sell both Aviation Traders and Air Charter to Airwork for £600,000 cash plus a further £200,000, subject to the valuation of stock.<ref name="sell_out"/> The deal became effective in January 1959, when Aviation Traders and Air Charter joined the Airwork group.<ref name="airliner_carferry34"/>
====Air Charter====
This was his first airline venture, which he took over in 1951.<ref name="airliner_skytrain72">''Airliner World – The Laker Airways Skytrain'', Key Publishing, Avenel, NJ, USA, July 2005, p. 72</ref><ref>''Fly me, I'm Freddie!'', Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, p. 27</ref> Since its inception in 1947, Air Charter had been based at London's old [[Croydon Airport]].<ref name="airliner_carferry34">''Airliner World – Britain's Carferry Airlines'', Key Publishing, Avenel, NJ, USA, July 2005, p. 34</ref> The airline participated in the 1948–49 Berlin Airlift. (Following the end of the Airlift in 1949, Laker sold the Air Charter Yorks that were still airworthy to other independent airlines, two of which were acquired by [[Dan-Air]] in 1956).<ref name="End_of_Airlift">''Aviation News – UK and Irish airlines since 1945 (Part 34 [Dan-Air Services]'', Vol. 64, No. 12, p.954, HPC Publishing, St. Leonards on Sea, December 2002</ref>)
On 14 April 1955, Air Charter inaugurated its first vehicle ferry service between Southend and [[Calais]] using a [[Bristol 170]] Mark 32 Super Freighter.<ref name="airliner_carferry34"/>
In 1958, Laker announced his decision to sell both Air Charter and Aviation Traders to Airwork for £600,000 cash plus a further £200,000, subject to the valuation of stock.<ref name="sell_out"/>
In January 1959, Air Charter became a subsidiary of the Airwork group.<ref name="airliner_carferry34"/>
Following a rationalisation of Air Charter's flight crew and ground staff in February 1959, Laker decided to transfer all vehicle ferry services along with the Bristol 170 fleet to the newly formed Channel Air Bridge.<ref name="airliner_carferry34"/>
Air Charter was absorbed into [[British United Airways]] in June 1960, as a result of Airwork's merger with [[Hunting-Clan Air Transport|Hunting-Clan]] and several other contemporary, British independent operators.<ref name="airliner_skytrain72"/>
====Channel Air Bridge====
His second airline venture began flying cars and their owners across the [[English Channel]] in 1954, initially using a fleet of Bristol Freighter twin-engined, piston-powered planes. These were later supplemented and eventually superseded by the larger-capacity, four-engined Carvairs. The Carvair design was based on the [[Douglas DC-4]] piston-engined airliner. It involved raising the aircraft's cockpit "above" the fuselage in a [[Boeing 747|747]]-style bulge so as to create more space for vehicles and/or passengers on the main deck. It also involved replacing the DC-4's original tail fin with a newly designed, larger [[DC-7]]-style fin as well as equipping the aircraft with a Bristol Freighter-type nose-loading cargo door, more powerful brakes and a stronger undercarriage.
At the end of 1958, he sold Channel Air Bridge together with his other two companies – Air Charter and Aviation Traders – to Airwork. All three officially became part of the Airwork group in January 1959. In June 1960 Airwork and Hunting-Clan merged to form British United Airways. Channel Air Bridge continued operating under its own identity for more than two years.<ref name="sell_out"/><ref name="airliner_carferry34"/>
On 1 January 1963, Channel Air Bridge merged with [[Silver City Airways]], which had pioneered commercial cross-Channel vehicle ferry flights in 1948.<ref name="airliner_carferry33_4">''Airliner World – Britain's Carferry Airlines'', Key Publishing, Avenel, NJ, USA, July 2005, pp. 33/4</ref> The merged entity traded as [[British United Air Ferries]].<ref name="airliner_carferry33_4"/>
In the meantime, Laker had been appointed [[British United Airways#Antecedents and inception|British United]]'s managing director.
During his tenure (1960–65), British United became Britain's biggest wholly [[private sector|privately owned]], independent airline. It also became the UK's first independent airline to re-equip its entire fleet with new [[jet aircraft]].
In 1961, [[British United Airways#Expansion and fleet rationalisation|British United]] became the launch customer for the [[BAC One-Eleven]] short haul [[jet airliner|jetliner]] when it placed an order for ten series 200 aircraft. Laker had personally negotiated this deal with the manufacturer. This was the first time that an independent airline had placed an order for brand-new [[jet aircraft|jet]]s. The first of the new [[BAC One-Eleven|One-Eleven]]s entered service on 9 April 1965, on the airline's scheduled [[London Gatwick Airport|London Gatwick]]—[[Genoa]] route.<ref>[http://www.flightglobal.com/pdfarchive/view/1965/1965%20-%201007.html ''C of A for BAC One-Eleven''], ''Flight International'', 15 April 1965, p. 553</ref> Laker also placed an order for [[Vickers VC10]] series 1103 long-haul jets on behalf of British United. The first two aircraft were delivered towards the end of 1964. (These aircraft differed from other operators' VC10s by having a large cargo door on the left-hand side of the forward fuselage where the aircraft's [[First class (aviation)|first class]]<ref>[http://www.flightglobal.com/pdfarchive/view/1971/1971%20-%200990.html ''Caledonian/BUA''], ''Flight International'', 17 June 1971, p. 883</ref> section was located. They also had extended wingtips that were slightly bent downwards to reduce the aircraft's cruise drag as well as to help it overcome the instability encountered when entering a [[stall (flight)|stall]].<ref>[http://www.vc10.net/History/Individual/GASIX.html A little '''VC10'''derness — Individual Histories: G-ASIX / A4O-AB]</ref>)
By the end of that decade, British United had an all-jet fleet, which gave it a competitive edge over its contemporary independent rivals.
Laker was furthermore instrumental in securing the transfer of the traffic rights for BOAC's loss-making South American routes to [[Argentina]], [[Brazil]], [[Chile]] and [[Uruguay]] to British United. The airline commenced service on these routes in November 1964 using its brand-new VC10s and managed to make them profitable within five years.
In 1965, Laker decided to leave British United to set up his own airline following an alleged disagreement with British United's chairman Myles Wyatt.<ref name="Accountant"/><ref>''Aeroplane – British United's expanding universe'', Vol. 116, No. 2965, p. 5, Temple Press, London, 14 August 1968</ref><ref>''Fly me, I'm Freddie!'', Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, p. 58</ref>
===Subsequent business ventures===
Laker was involved in the following business ventures during the later postwar years of the 20th century (post-1960):
====Laker Airways====
[[Laker Airways]] was formed in 1966. This was Laker's third and most prominent airline venture. Laker Airways commenced commercial airline operations that July with a fleet of two ex-BOAC [[Bristol Britannia]]s. These were subsequently supplemented and eventually replaced with a brand-new fleet of BAC One-Eleven jetliners as well as a pair of second-hand [[Boeing 707]] jets.
Initially, Laker Airways was a [[charter airline]] and wholesale tour operator. British (as well as other European) airline regulations at the time required that charter-based low-price air travel be sold to the public only as a component of an air-hotel package. Other big British charter airlines were also owned by tour operators, mainly selling low-priced packages to Mediterranean beach destinations. For many years Laker had been the most profitable as well as the best-run charter airline in Britain.
[[Laker Airways#Cost saving|Laker Airways]] pioneered many new, cost-saving as well as profit-enhancing, commercial concepts and operational techniques.
In 1969, Laker Airways announced its intention to buy the proposed [[BAC Two-Eleven and Three-Eleven#BAC Three-Eleven|BAC Three-Eleven]], an all-British [[wide-body aircraft|widebodied]] jet powered by two rear-mounted [[Rolls-Royce RB211]] engines. The airline's [[letter of intent]] was for four aircraft to be delivered in 1974. It was anticipated that these 250-seaters would replace the entire [[narrow-body aircraft|narrow-bodied]] fleet, which was envisaged to comprise two 158-seat Boeing 707s and four 84-seat BAC One-Elevens by that time. Following the project's cancellation in 1971 due to a lack of Government funding, Laker remarked that this would force him to spend the £3 billion he had planned to invest by 1986 in a fleet of British-built widebodied airliners (including options) on competing foreign models.<ref name="Cosmopolitan"/><ref>[http://www.flightglobal.com/pdfarchive/view/1969/1969%20-%201437.html ''Improving Three-Eleven prospects''], ''Flight International'', 13 February 1969, p. 236</ref><ref>[http://www.flightglobal.com/pdfarchive/view/1969/1969%20-%203244.html ''BAC Three-Eleven''], ''Flight International'', 20 November 1969, p. 790</ref>
[[Laker Airways#Widebody era|Laker Airways]] eventually became the first independent British airline to actually operate widebodied equipment when it introduced its first two [[McDonnell Douglas DC-10]]-10 series aircraft into commercial airline service in November 1972, the first European operator to do so.<ref>[http://www.flightglobal.com/pdfarchive/view/1972/1972%20-%203174.html?search=Laker%20Airways%20%20%20Berlin ''Europe's first wide-body trijet service''], Flight International, 30 November 1972, p. 773</ref> These aircraft were the first [[United Kingdom aircraft registration|UK-registered]] [[McDonnell Douglas DC-10|DC-10]]s.
In 1973, [[Laker Airways#Simplified charter rules across the Atlantic|Laker Airways]] operated the world's first [[Advance Booking Charter]] (ABC) flight. By the mid-1970s it had become the undisputed, global ABC flight market leader.
[[Laker Airways#Skytrain takes to the air|Laker Airways]] scored another industry first when it introduced its first daily ''Skytrain'' low-fare scheduled service between London Gatwick and [[John F. Kennedy Airport|New York John F. Kennedy Airport]] on 26 September 1977.<ref name="Inaugural_Skytrain">[http://www.flightglobal.com/pdfarchive/view/1977/1977%20-%202839.html ''First Skytrain leaves on Monday''], ''Flight International'', 24 September 1977, p. 875</ref>
====''Skytrain''====
On 15 June 1971, [[Laker Airways#Beginning of the battle for Skytrain|Laker Airways]] submitted an application to the UK's Air Transport Licensing Board (ATLB),<ref>[http://www.flightglobal.com/pdfarchive/view/1961/1961%20-%200463.html ''Britain's New Board — Plain Man's Guide to the Air Transport Licensing Board''], Flight International, 13 April 1961, p. 471</ref><ref>[http://www.flightglobal.com/pdfarchive/view/1961/1961%20-%200464.html ''Britain's New Board ...''], World Airlines Survey ..., ''Flight International'', 13 April 1961, p. 472</ref><ref>[http://www.flightglobal.com/pdfarchive/view/1961/1961%20-%200465.html ''Britain's New Board ...''], World Airlines Survey ..., ''Flight International'', 13 April 1961, p. 473</ref> one of the forerunners of today's [[Civil Aviation Authority of the United Kingdom|Civil Aviation Authority]] (CAA), to launch the world's first daily transatlantic, low-fare scheduled service between London and New York City, charging an incredibly low one-way fare of £32.50 in winter and £37.50 in summer.<ref name="establishment_challenger">[http://www.flightglobal.com/pdfarchive/view/1971/1971%20-%201156.html ''Laker's low-fare challenge''], Air Transport ..., ''Flight International'', 8 July 1971, p. 42</ref><ref name="Bargain_Basement">[http://www.flightglobal.com/pdfarchive/view/1971/1971%20-%202246.html ''Mr Laker's Bargain Basement''], Air Transport ..., ''Flight International'', 28 October 1971, p. 674</ref><ref name="Skytrain_Approval">[http://www.flightglobal.com/pdfarchive/view/1972/1972%20-%202642.html ''Laker's Skytrain approved by Britain''], ''Flight International'', 5 October 1972, p. 447</ref><ref name="Skytrain_Briefing">[http://www.flightglobal.com/pdfarchive/view/1973/1973%20-%201016.html ''Skytrain briefing''], ''Flight International'', 19 April 1973, p. 608</ref> This was one third of what the major, established "[[flag carrier]]s" were charging at the time. The proposed service was to be marketed using the ''Skytrain'' trademark and was to be initially operated with 158-seat, single-class Boeing 707-138Bs that were acquired second-hand.<ref name="establishment_challenger"/><ref name="Bargain_Basement"/><ref name="Skytrain_Briefing"/> ''Skytrain'' was to be a "walk-on", "walk-off" operation that did not require any advance reservations. Instead, seats were to be sold to the travelling public at each end of the route on a "first come, first served" basis only.<ref name="establishment_challenger"/><ref name="Bargain_Basement"/>
The ATLB rejected Laker's application before the year was out, and Laker appealed against the ruling. The appeal was successful, and the ATLB eventually granted Laker the requested licence in February 1972.<ref name="Skytrain_Briefing"/>
However, on 30 March 1972, the UK government revoked Laker's licence and instructed him to reapply to the CAA, which came into being on 1 April 1972.<ref name="Skytrain_Briefing"/>
Laker duly reapplied to the CAA for permission to operate eleven weekly ''Skytrain'' services each way between London Gatwick and New York's [[John F. Kennedy Airport]] (JFK) during the summer and seven weekly round-trips during the winter.<ref name="Skytrain_Briefing"/><ref name="airliner_skytrain73">''Airliner World – The Laker Airways Skytrain'', Key Publishing, Avenel, NJ, USA, July 2005, p. 73</ref> The summer schedule was to be operated with Laker's brand-new DC-10 widebodied jet aircraft to take advantage of increased demand he anticipated for his new low-fare service during the peak months from June to September as well as of the DC-10's low [[break-even]] [[passenger load factor|load factor]] of only 52%.<ref name="airliner_skytrain73"/> The winter schedule was to be operated with [[Boeing 707|707]] [[narrow-body aircraft|narrowbodies]] as specified in Laker's original application to the ATLB.<ref name="Skytrain_Briefing"/><ref name="airliner_skytrain73"/>
The newly formed CAA approved Laker's application on 5 October 1972, granting a ten-year licence. However, it specified [[London Stansted Airport|Stansted]] rather than [[London Gatwick Airport|Gatwick]] as the service's UK departure/arrival point and limited the number of seats that could be sold in winter to 189 per trip, the maximum number of passengers a Boeing 707 could accommodate in a high-density, all-[[economy class|economy]] configuration.<ref name="Skytrain_Approval"/><ref name="Skytrain_Briefing"/><ref>''Fly me, I'm Freddie!'', Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, p. 171</ref> The unexpected change of the UK departure/arrival point for Laker's ''Skytrain'' service as well as its capacity limit during the lean winter season were intended not to undermine the planned launch of a daily [[British Caledonian]] (BCal) Gatwick—JFK full-service scheduled operation, for which the ATLB had already granted that airline a 15-year licence, along with another 15-year licence for a daily Gatwick—[[Los Angeles International Airport]] full-service scheduled operation, during the so-called "cannon ball" hearings earlier the same year.<ref name="Skytrain_Approval"/><ref name="Skytrain_Briefing"/><ref name="airliner_skytrain73"/><ref>[http://www.flightglobal.com/pdfarchive/view/1972/1972%20-%200477.html ''British Caledonian granted Atlantic scheduled licence''], ''Flight International'', 2 March 1972, p. 311</ref><ref>''Fly me, I'm Freddie!'', Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, pp. 164, 169/70</ref>
The UK government designated Laker Airways as a scheduled transatlantic UK "flag" carrier on 11 January 1973.<ref name="Skytrain_Briefing"/><ref name="airliner_skytrain73"/>
However, under intense pressure from the established airlines, including Laker's archrival and next-door Gatwick neighbour BCal, against a backdrop of huge losses and overcapacity on the [[Atlantic Ocean|North Atlantic]] in the aftermath of the [[1973 oil crisis|global energy crisis]] caused by the [[Organization of Petroleum Exporting Countries]]' oil embargo, the UK's [[Labour Party (UK)|Labour]] government of that era decided to revoke Laker's licence on 29 July 1975.
Freddie Laker took the government to the UK [[High Court of Justice|High Court]], which overturned the latter's decision to revoke the airline's licence for a ''Skytrain'' service between London and New York.<ref>[http://www.flightglobal.com/pdfarchive/view/1976/1976%20-%203045.html ''Government loses on Skytrain''], ''Flight International'', 25 December 1976, p. 1822</ref>
It took another two years until Laker gained final approval, including a reciprocal permit from the relevant US authorities, which was granted for a one-year experimental period on 13 June 1977 by US President [[Jimmy Carter]]<ref name="Cosmopolitan"/><ref name="airliner_skytrain73"/> – to commence ''Skytrain''.
In the meantime, [[Peter Shore]], the then [[President of the Board of Trade|Secretary of State for Trade]], had conducted a review of the government's aviation policy and in 1976 announced a new "spheres of influence" policy that ended dual designation for British airlines on all long-haul routes. As a result of this new aviation policy, BA and BCal were no longer permitted to run competing scheduled services on the same long-haul routes and the latter was forced to withdraw from the London—New York and London—Los Angeles routes, resulting in the suspension of BCal's Gatwick—JFK and Gatwick—Los Angeles licences.<ref>[http://www.flightglobal.com/pdfarchive/view/1975/1975%20-%201427.html ''UK abandons long-haul competition''], ''Flight International'', 7 August 1975, p. 173</ref><ref>[http://www.flightglobal.com/pdfarchive/view/1976/1976%20-%200281.html ''UK aviation policy review: first in a long series''], ''Flight International'', 21 February 1976, p. 397</ref><ref>[http://www.flightglobal.com/pdfarchive/view/1976/1976%20-%200282.html ''UK aviation policy review: first in a long series''], ''Flight International'', 21 February 1976, p. 398</ref> The same year, [[Edmund Dell]], Peter Shore's successor, renounced the original [[Bermuda Agreement|Bermuda]] air services agreement of 1946 and initiated [[wikt:bilateral|bilateral]] negotiations with his US counterparts on a new [[Bilateral Air Transport Agreement|air services agreement]], which resulted in the [[Bermuda II]] treaty of 1977.<ref>[http://www.flightglobal.com/pdfarchive/view/1976/1976%20-%201128.html ''Britain to end Bermuda Agreement''], ''Flight International'', 3 July 1976, p. 4</ref><ref name="eleventh_hour">[http://www.flightglobal.com/pdfarchive/view/1977/1977%20-%201999.html ''Bermuda 2 initialled''], ''Flight International'', 2 July 1977, p. 5</ref><ref>[http://www.flightglobal.com/pdfarchive/view/1977/1977%20-%202000.html ''Bermuda 2 initialled''], ''Flight International'', 2 July 1977, p. 6</ref><ref name="Bermuda2">[http://www.flightglobal.com/pdfarchive/view/1977/1977%20-%202260.html ''Bermuda 2: signed and sealed ...''], ''Flight International'', 23 July 1977, p. 254</ref><ref>[http://www.flightglobal.com/pdfarchive/view/1977/1977%20-%202404.html ''North Atlantic fares in turmoil''], ''Flight International'', 13 August 1977, p. 465</ref>
[[File:Douglas DC-10-10 G-GFAL Laker MAN 06.79 edited-2.jpg|thumb|right|Skytrain titles on a Laker Airways [[Douglas DC-10]] at [[Manchester Airport]] in 1979]]
Laker's long-running ''Skytrain'' application was finally granted in 1977 upon designating the airline as the second UK flag carrier between London and New York under the then just-concluded Bermuda II UK-US air agreement.<ref name="eleventh_hour"/><ref name="Bermuda2"/> At the last minute prior to the inaugural ''Skytrain'' flight from London to New York, Laker also received government permission to use its Gatwick base as the service's UK departure and arrival point, rather than Stansted as originally specified in its licence. The restriction limiting it to 189 seats per aircraft in winter was lifted as well and the baggage allowance was brought into line with [[International Air Transport Association]] (IATA) rules.<ref name="Inaugural_Skytrain"/><ref name="Skytrain_Inaugural">''Fly me, I'm Freddie!'', Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, p. 225</ref>
''Skytrain'' took to the air for the first time on 26 September 1977 when the inaugural flight departed London Gatwick for New York JFK. This flight carried 272 passengers on one of the airline's 345-seat McDonnell Douglas DC-10 widebodied aircraft. The fares charged at the time were £59 ({{Inflation|UK|59|1977|fmt=eq|cursign=£}}) one-way from London and $135 ({{Inflation|UK|135|1977|fmt=eq|cursign=£}}) one-way from New York.<ref name="Inaugural_Skytrain"/><ref name="Skytrain_Inaugural"/>
''Skytrain'' was originally envisaged to achieve a 50% load factor in winter. By summer 1978, the actual load factor was 80%.<ref name="Cosmopolitan"/>
After unsuccessfully trying to block Laker through government regulation, the incumbent giant lines, British Airways, [[Pan American World Airways|Pan Am]] and [[Trans World Airlines|TWA]], immediately matched Laker's standby fares and rules for at least a portion of their economy-class seats. Pan Am also introduced a new low-fare alternative, "budget," where a traveller could confirm a seat at the time of purchase, but only for travel within a three-day travel "window," with a specific flight and date confirmed by the airline a week before departure.
Laker claimed that ''Skytrain'' helped to grow passenger numbers for all airlines in the London—New York market, citing statistics comparing passenger numbers for the July—September peak season in 1977 with those of the corresponding period in 1976 as evidence. These had shown that in the days before ''Skytrain'', total traffic between London and New York for the aforesaid period in 1977 was down 2% on the same period in 1976. He contrasted these figures with those comparing the October—December 1977 off-peak period with the corresponding 1976 off-peak period. The latter set of figures had shown a 30% increase, boosted by "Skytrain", which launched on 26 September 1977.
A closer analysis comparing the figures for October 1977 with those of the same month in 1976 had shown an increase of 31.8% (37,902 passengers) for all airlines. A further breakdown of these figures had shown that Laker's "Skytrain" accounted for 15% (17,501 passengers) of the overall increase while competing services of rival airlines accounted for the remaining 16.8% (20,401 passengers). The latter included IATA members British Airways, Pan Am, and TWA, which had initially opposed "Skytrain" but subsequently matched its low fares.<ref group=nb>in addition to BCal</ref> (Statistics for November and December 1977, as well as for January—June 1978, had also shown that the overall monthly growth in the London—New York market was maintained at that level for the remainder of this period while ''Skytrain'' managed to grow its share of the overall monthly increase to 50% and keep up this performance until the end of the period.)<ref name="Cosmopolitan"/>
''Skytrain'' became a financial success in its first year of operation,<ref>[http://www.flightglobal.com/pdfarchive/view/1978/1978%20-%200315.html ''Skytrain profit to top £1 million?''], ''Flight International'', 4 March 1978, p. 553</ref> leading to further expansion over the coming years, in terms of new routes as well as additional frequencies.
As a result of his clever publicity stunts to market the then brand-new London—New York ''Skytrain'' service, Freddie Laker himself became popular with the public ("the forgotten man's hero"<ref>''Fly me, I'm Freddie!'', Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, pp. 161–171</ref>) and was regarded as one of [[Margaret Thatcher]]'s "golden boys" of industry (along with [[Sir Clive Sinclair]] and Sir [[Alan Sugar]]). The future [[Conservative Party (UK)|Conservative]] [[Prime Minister of the United Kingdom|Prime Minister]] was a self-confessed "Freddie Laker fan".
However, it was [[James Callaghan]]'s "pro-[[trade union|union]]" Labour Government that awarded Laker his [[knighthood]] for services to the airline industry in 1978, rather than Margaret Thatcher's subsequent "pro-business" Conservative administration (although the latter had recommended him for his service to private enterprise in her capacity as the then [[Leader of the Opposition (United Kingdom)|leader of the opposition]]<ref name="comeback">[http://www.flightglobal.com/pdfarchive/view/1985/1985%20-%200006.html ''Sir Freddie plans a comeback''], ''Flight International'', 5 January 1985, p. 4</ref>).<ref name="knighthood"/>
As ''Skytrain'' expanded to other British and U.S. gateways, the airline placed orders for additional McDonnell Douglas DC-10 widebodies, including the company's first order for five longer-range series-30 aircraft required for its Los Angeles flights. These were delivered from December 1979 onwards to support its growing number of destinations and frequencies.
The airline also became one of the early buyers of the first [[Airbus]] airliner, the [[Airbus A300|A300]], ordering ten of these widebodies in 1979 and had plans to deploy the aircraft on a new network of intra-European ''Skytrain'' routes.
''Skytrain'' came to an end the day the airline went into receivership at the behest of the [[Midland Bank]] on 5 February 1982.
====Collapse and the end of ''Skytrain''====
In 1982, the company went [[insolvency|bankrupt]], owing over £250 million (equivalent to £{{Inflation|UK|250|1982|r=-2|fmt=c}} million in {{Inflation-year|UK}}). The airline made its last flight on 5 February 1982, the day it went into receivership.
There were numerous reasons for what was termed the biggest corporate failure in Britain at the time:
* Laker Airways had expanded too quickly in the late 1970s and early 1980s when it took delivery of a large fleet of brand-new DC-10 and A300 widebodies, which had been bought with US funds borrowed at too high a rate of interest. Subsequent devaluations of sterling meant increased costs in servicing the debt.
* The company was undercapitalised and did not enjoy the financial backup of any significant assets, which seriously undermined its ability to withstand a concerted and prolonged campaign to put it out of business at the depth of the 1981–82 recession at the hands of its financially stronger competitors.
* Laker Airways incurred a revenue loss estimated at £13 [[million]] when the worldwide DC-10 fleet was grounded as a result of having its [[certificate of airworthiness]] temporarily withdrawn in the aftermath of the [[American Airlines]] DC-10 [[American Airlines Flight 191|crash]] at [[Chicago O'Hare]] in May 1979.<ref>[http://www.flightglobal.com/pdfarchive/view/1979/1979%20-%203888.html ''Laker claims £13m for DC-10 grounding''], ''[[Flight International]]'', 27 October 1979, p. 1338</ref>
* Some passengers may also have perceived the DC-10 as unsafe as a result of a string of fatal accidents involving the aircraft within a short timespan during the late 1970s (including the aforementioned 1979 American Airlines crash at Chicago O'Hare, and the previous 1974 crash of a Turkish Airlines DC10 at [[Beauvais]], near Paris).
* The implications of the strategic decision to build its business on discount travellers only.
* The conspiracy of large airlines throughout Europe and North America, which were aggressively price-matching Laker Airways even at the expense of massive losses. This charge, which was brought to court as the largest aviation antitrust case in history, was later settled out of court.<ref name="comeback"/> Sir Freddie sued IATA member airlines [[British Airways]], [[British Caledonian]], [[Pan Am]], [[Trans World Airlines|TWA]], [[Lufthansa]], [[Air France]], [[Swissair]], [[KLM]], [[Scandinavian Airlines|SAS]], [[Sabena]], [[Alitalia]] and [[Union de Transports Aériens|UTA]] for conspiracy to put his airline out of business by [[predatory pricing]]. They settled out of court for [[United States dollar|US$]]50 million, with British Airways later agreeing to contribute a further $35 million. British Airways also reached a separate out-of-court agreement with Sir Freddie personally for £8 million.
* Aggressive, non-profitable price dropping in Australia by [[Qantas]], which later went on to enjoy a monopoly and pushed east/west airline prices through the roof.{{citation needed|date=May 2016}}
* Fallout from the company's demise descended into litigation, which delayed the privatisation of British Airways.<ref>[http://www.flightglobal.com/pdfarchive/view/1985/1985%20-%201865.html ''BA squares up for sale''], ''Flight International'', 8 June 1985, p. 21</ref>
===Laker Airways Mark II===
Laker was undaunted and almost immediately attempted to relaunch the airline with assistance from one of Britain's titans of industry, [[Tiny Rowland]], the Managing Director of [[Lonrho]], plc – one of the nation's largest conglomerates – and on the back of a strong public following (a relief fund gathered over £1 million, including a benefit concert in San Francisco by the music band [[The Police]], who had used the airline to tour America in their formative years).
However despite Rowland’s offer of funding being described as “adequate” by Laker, the attempt was unsuccessful due to their failure to secure the necessary licensing.
Laker, by now living in the [[Bahamas]], got off the ground again in the early 1990s, moving his refounded business's base to [[Freeport, Bahamas|Freeport]].<ref name="Mark2">[http://www.flightglobal.com/pdfarchive/view/1992/1992%20-%200908.html ''Laker resurfaces with new Bahamas airline''], ''Flight International'', 8–14 April 1992, p. 8</ref> [[Laker Airways (Bahamas)|Laker Airways]]<ref name="Mark2"/> flew from there until it shut down in 2005. It was Laker's final airline venture.
==Legacy==
Laker was the 2002 recipient of the [[Tony Jannus Award]] for his distinguished contributions to commercial air transportation. He is remembered for his famous advice to fellow airline entrepreneurs [[Richard Branson]], of [[Virgin Atlantic]], and [[Stelios Haji-Ioannou]], of [[easyJet]], to "sue the bastards", a reference to the bullying tactics of [[British Airways]] in trying to force upstarts out of business.
Virgin Atlantic had earlier named one of its [[Boeing 747]]s ''The Spirit of Sir Freddie''. In addition, [[Malaysia]]'s low-cost, long-haul carrier [[AirAsia X]] named its first [[Airbus A330]] ''Semangat Sir Freddie'' in homage to the pioneer of "[[Low-cost carrier|no-frills]]" air travel. The third plane to be named in spirit after Freddie Laker happens to be a [[Boeing 737 MAX]] that belongs to [[Norwegian Air Shuttle]], delivered in May 2017.
His name has also recently been applied to a Norwegian Air Sweden Boeing 787-9 Dreamliner, with the registration SE-RXZ.
He was also the subject of a musical, ''Laker!'', as performed at [[Not in Front of the Audience]] in 1982, and written by [[Mel Smith]] and [[Peter Brewis]] in reaction to Laker Airways' bankruptcy.
In the 1984 comedy film ''[[Top Secret!]]'', Laker was referenced in a climactic moment when the heroine Hillary realizes that her former lover Nigel is a traitor. Nigel gloats that in becoming a villain that he was exposed to great thinkers, "Like [[Karl Marx]], [[Lenin]], [[L. Ron Hubbard]], Freddie Laker!"
In 1988, ''[[InsideFlyer]]'' magazine’s editor and publisher [[Randy Petersen]] created the Freddie Awards to honour Freddie Laker's accomplishments in marketing travel. The awards recognize excellence in frequent traveller awards programs.<ref>{{cite web |url=http://freddieawards.com/history/ |title=Freddie Awards - History |date=3 January 2014 |access-date=2018-06-07}}</ref><ref name="de Boer 2017 p. 4">{{cite book | last=de Boer | first=E.R. | title=Strategy in Airline Loyalty: Frequent Flyer Programs | publisher=Springer International Publishing | year=2017 | isbn=978-3-319-62600-0 | url=https://books.google.com/books?id=SjE5DwAAQBAJ&pg=PA4 | access-date=June 3, 2018 | page=4}}</ref> The Freddie Awards were touted as the frequent traveller's answer to the Oscar, Emmy and Grammy Awards by Petersen.<ref name="Biswas 2014 p. 257">{{cite book | last=Biswas | first=S. | title=RELATIONSHIP MARKETING: Concepts, Theories and Cases | publisher=PHI Learning | year=2014 | isbn=978-81-203-4875-2 | url=https://books.google.com/books?id=rqZ2BAAAQBAJ&pg=PA257 | access-date=June 3, 2018 | page=257}}</ref> The individual categories for the Freddie Awards are Best Award, Best Bonus, Best Affinity Credit Card, Best Newsletter/Member Communications, Best Web Site, Best Customer Service, Best Award Redemption, Best Elite Level and Program of the Year.<ref name="Biswas 2014 p. 257"/>
When the new passenger terminal at [[London Southend Airport]] was opened in 2012, the upstairs bar was named Laker's Bar, and featured a montage of Laker and his airline across the walls. In 2015, the bar was moved into the departure lounge and renamed Laker's Bar & Restaurant, and displays images of Laker and his company like its predecessor.<ref>{{cite web |url=http://www.southendairport.com/eat-shop/lakers-bar/ |title=London Southend Airport - Lakers Bar |access-date=2015-06-14 |url-status=dead |archive-url=https://web.archive.org/web/20150505035105/http://www.southendairport.com/eat-shop/lakers-bar/ |archive-date=5 May 2015 |df=dmy-all }}</ref>
In June 2017, [[Norwegian Air International]] placed Laker's image on the tail of their first [[Boeing 737 MAX|737-8 MAX]] (EI-FYA). Laker is one of the company's five "British tail fin heroes", joining Queen frontman [[Freddie Mercury]], children's author [[Roald Dahl]], pioneering pilot [[Amy Johnson]] and England's World Cup winning captain [[Bobby Moore]].<ref>{{cite web|last1=Caswell|first1=Mark|title=Freddie Mercury unveiled as Norwegian's latest tail fin hero|url=https://www.businesstraveller.com/business-travel/2017/07/03/freddie-mercury-unveiled-norwegians-latest-tail-fin-hero/t|website=Business Traveller.com|access-date=19 August 2017}}</ref><ref>{{cite web|last1=Munro|first1=Scott|title=Freddie Mercury's image to appear on Norwegian aircraft|url=http://teamrock.com/news/2017-06-30/freddie-mercurys-image-to-appear-on-norwegian-aircraft|website=Teamrock.com|date=30 June 2017 |publisher=Future Publishing Limited|access-date=19 August 2017}}</ref>
==Notes and citations==
;Notes
{{Reflist|group=nb}}
;Citations
{{Reflist|2}}
==References==
* {{cite book|author1=Eglin, Roger |author2=Ritchie, Berry | title=Fly me, I'm Freddie | publisher=Weidenfeld and Nicolson | place=London, UK | year=1980 | isbn=0-297-77746-7}}
* {{cite book| author=Dean, W.P. | title=The ATL-98 Carvair: A Comprehensive History of the Aircraft and All 21 Airframes (1: Corporate History – Freddie Laker Era — [Aviation Traders, Air Charter, BUA], pp. 15–17) | publisher=McFarland & Co. | place=Jefferson, N.C., USA | year=2008| isbn=978-0-7864-3670-5}}
* {{cite journal| title=Airliner Classics (Sir Freddie Laker – The Man Who Gave Us Skytrain, pp. 76–85)|date=November 2009 | publisher=Key Publishing | place=Stamford, Lincs, UK}}
* {{cite book| title=Airliner World – Britain's Carferry Airlines, January 2004 | publisher=Key Publishing | place=Avenel, NJ, USA}} (''Airliner World'' online)
* {{cite book| title=Airliner World – The Laker Airways Skytrain, July 2005 | publisher=Key Publishing | place=Avenel, NJ, USA}} (''Airliner World'' online)
* {{cite book| title=Aviation News – UK and Irish airlines since 1945 (Part 34 [Dan-Air Services], Vol. 64, No. 12, December 2002 | publisher=HPC Publishing | place=St. Leonards on Sea, UK}} (''Aviation News'' online)
==External links==
* [https://web.archive.org/web/20051231104428/http://today.reuters.co.uk/news/newsArticle.aspx?type=topNews Reuters] News announcing his death
*[http://news.bbc.co.uk/1/hi/uk/4699582.stm Obituary] from [[BBC News]]
*[http://www.miami.com/mld/miamiherald/13844009.htm Obituary]{{dead link|date=November 2017 |bot=InternetArchiveBot |fix-attempted=yes }} from ''[[Miami Herald]]''
*[https://web.archive.org/web/20060222045157/http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2006/02/11/db1101.xml&sSheet=/portal/2006/02/11/ixportal.html Obituary] from ''[[The Daily Telegraph]]''
*[https://web.archive.org/web/20101107011229/http://www.independent.co.uk/news/obituaries/sir-freddie-laker-466243.html Obituary] from ''[[The Independent]]''
*[https://web.archive.org/web/20070217034634/http://travel.independent.co.uk/news_and_advice/article346082.ece Final Interview]
*[https://lra.le.ac.uk/bitstream/2381/3650/1/Flight%20%20Accountant%202005.pdf Armstrong, P. (2005). ''The Flight of the Accountant: a Romance of Air and Credit'', ''Flight to insolvency'']
*[https://web.archive.org/web/20090326045935/http://www.ukaccs.info/stansted/early.htm#Freddie Stansted Airport Consultative Committee, ''Stansted — The Early Years (1942–1966)'', ''Sir Freddie Laker Arrives'']
*[http://www.flightglobal.com/pdfarchive/view/1972/1972%20-%201899.html ''Skytrain: new Laker bid''], ''Flight International'', 27 July 1972, p. 116
*[http://www.flightglobal.com/pdfarchive/view/1972/1972%20-%201900.html ''Skytrain ...''], ''Flight International'', 27 July 1972, p. 117
*[https://sirfreddielaker.com/sir-freddie-laker/ Photo Gallery from SirFreddielaker.com]
==Further reading==
* {{cite book|author1=Bristow, A. |author2=Malone, P. | title=Alan Bristow Helicopter Pioneer: The Autobiography (Chapter 17 — Airline Ego Trip, pp. 233–237, 254–257) | publisher=Pen & Sword Books | place=Barnsley, UK | year=2009 | isbn=978-1-84884-208-3}}
{{Authority control}}
[[Category:1922 births]]
[[Category:2006 deaths]]
[[Category:People from Canterbury]]
[[Category:Businesspeople awarded knighthoods]]
[[Category:Knights Bachelor]]
[[Category:People educated at Simon Langton Grammar School for Boys]]
[[Category:Air Transport Auxiliary pilots]]
[[Category:British airline chief executives]]
[[Category:20th-century English businesspeople]]
[[Category:British expatriates in the Bahamas]]
[[Category:English expatriates in the United States]]
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