Formed at La Paz in 1983 to offer scheduled passenger flights in central and southern Bolivia. Employing a pair of Swearingen Metro IIs, General Manager Luis Jamio Alvarez oversees the inauguration of service to Cochabamba, Potoai, Santa Cruz, Sucre, and Tarija. The main lines, served by daily or near-daily flights, link the capitol to Sucre and Tarija.
The carrier maintains the same routes, frequencies, and aircraft until the end of the decade.
LAKE CENTRAL AIRLINES: United States (1950-1968). This postwar local service company is originally organized as Roscoe Turner Aeronautical Corporation, named in honor of its owner, the famous aviation pioneer, and is certified on September 3, 1947. The CAB grants the company local service authorization from a base at Indianapolis early in 1948. Later, Turner, agreeing to remain president and work on public relations, sells out majority control to his two partners, Paul and John Weesner.
On May 31, 1949, the firm’s name is changed to Turner Airlines and reflecting its new purpose, it begins scheduled Douglas DC-3 service from Indianapolis on November 12.
A year later, on November 12, 1950, the airline is renamed again, this time becoming Lake Central Airlines. Employing 3 DC-3s and 3 V-tailed Beech BE-35 Bonanzas, the company operates a pair of twice-daily roundtrip routes: one from Indianapolis to Grand Rapids, Michigan, via Kokomo, South Bend, and Kalamazoo; and the other from Chicago (MDW) to Cincinnati via Indianapolis and Connersville. During the fall, Bloomington and Richmond, Indiana, join the route network.
Enplanements for the year, as both Turner and Lake Central, total 12,757.
Operations are refined during 1951 as a fourth DC-3 enters service. Also, a Curtiss C-46 Commando is leased from the USAF and operates all-cargo charters on behalf of the U. S. military.
Enplanements exceed 24,000.
Turner sells his remaining 25% interest to the Weesners in 1952 and retires to the lecture circuit. The company, encountering financial difficulties, does not expand; indeed, Connersville service is ended.
While on final approach to Indianapolis in August, a BE-35 is caught in the wake turbulence caused by a Trans World Airlines (TWA) Constellation; pilot Jerry Haas is just barely able to keep the Bonanza from crashing. About the same time, a DC-3 survives a midair collision with an unidentified small aircraft over Richmond. No injuries are reported in either incident.
Cash-starved LCA is approached by Dr. Robert B. Stewart and Grove Webster of the Purdue University Aeronautical Foundation in early fall. The Foundation, which has recently gained significant holding in North Central Airlines, would be willing to purchase LCA from the Weesners. A contract to this end is signed between the parties in October. With the approval of the former owners and the board of North Central, Stewart and Webster record the arrangement on a merger application, which is dispatched to the CAB. The government agency does not immediately approve the marriage, preferring to order the Weesner’s LCA stock held in trust while it studies the situation.
Enplanements for the year remain at the 24,000 level.
Dr. Stewart becomes chairman/president in January 1953. He immediately changes the livery on the DC-3s, which are now marketed as “Centraliners,” upgrades station facilities, and institutes a large employee training program at Purdue University. Also during the first quarter, the company receives CAB route authority for a large number of Ohio cities, service to which had been ended by Trans World Airlines (TWA).
With three more DC-3s acquired from Braniff International Airways between April 30 and May 20 are employed to initiate services to Gary in Indiana and Cleveland, Columbus, Dover, Dayton, Youngstown, Mansfield, Zanesville, and Pittsburgh. During the year, Holiday magazine presents a lifetime safety award to Capt. James Elrod.
Customer bookings ascend to 58,200.
The year 1954 is one of consolidation. The CAB has yet to make a decision on the LCA/NC merger application. In January 1955, the company is sold by the Weesners to a group of 162 company employees, led by Vice President Lloyd Hartman. Because of merger proceedings, the stock of the nation’s first employee-owned airline is initially held in trust.
At this point, Dr. Stewart returns to Purdue and West Coast Airlines executive Gwin Hicks is recruited to succeed him. An eighth DC-3 is purchased in June.
Flights continue apace in 1956-1957. The CAB, in July of the latter year, denies the North Central application; however, that airline appeals the decision to the U. S. Supreme Court. Service is maintained in 1958. In these three years, the CAB increases the number of authorizations, allowing LCA to operate to Detroit (YIP), Buffalo, Erie, and New York (LGA) over routes suspended by Capital Air Lines.
By 1959, the company’s 10-station route network has grown to 33 destinations and the fleet contains 10 Douglas DC-3s, including 1 each turned over in February and March by Braniff International Airways.
During the spring, the CAB allows LCA to float a $300,000 unsecured bond underwritten by a Chicago-based firm. In the fourth quarter, the Supreme Court rules that the North Central merger is not in the public interest and joins the CAB in its denial. Lake Central’s employees now own the airline, free and clear of any North Central concern. Profit for the year reaches $129,000.
The carrier’s stock is released from trust in 1960. A $3-million loan is achieved from Indiana banks and an initial public offering is made, netting $5 million on $20 shares. No longer an employee-owned concern, but a public enterprise, the company enters the marketplace seeking Convair 340s. The first, from United Airlines, is purchased on October 27.
In addition to the new aircraft, new uniforms and a new livery are introduced, the latter featuring the company’s new logo, a stylized airplane fitted between two ellipses. Two DC-3s are leased from the USN at $2,000 per month each.
In December, the CAB authorizes service to 17 additional markets, including all of the former Capital Air Lines destinations in West Virginia. The grant in the Mountaineer State is opposed by Allegheny Airlines (1), but to no avail. Plans are made to fly south from Pittsburgh to Wheeling and Morgantown, from where an extension is authorized to Washington, D. C. (DCA) and Baltimore. Continuing south from Morgantown, the company picks up Clarksburg, Elkins, Charleston, Parkersburg, and Portsmouth, the latter in Ohio.
To handle the new additions, two more ex-United Airlines CV-340s are brought in, one each on December 28 and December 30; three DC-3s are acquired from Northeast Airlines on the latter date.
Fleet growth continues in 1961. Three more Braniff International Airways DC-3s arrive between January 19-30. A former Northeast Airlines DC-3 follows on February 3, followed a United Airlines CV-340 on February 27.
Another ex-Northeast DC-3 is delivered on March 10, while a CV-340, also from United, is brought in on March 27. Two more ex-Braniff DC-3s are delivered on April 17 and 20, respectively.
The Convairs begin twice-daily multistop roundtrips from Indianapolis to both Buffalo and Grand Rapids as well as from Detroit to Cincinnati. The DC-3s fly to the remaining Ohio, Indiana, and West Virginia destinations and points east.
During the year, the company transfers its Chicago operation from Midway Airport (MDW) to O’Hare International Airport (ORD), while low ridership causes the carrier to halt service to the Ohio communities of Dover and Marion.
A DC-3, landing on a wet runway at Morgantown, West Virginia, on November 23, skids into a crash; none of the 14 aboard is hurt. By year’s end, airline employment reaches 800.
Former Vice President Hartman becomes president in 1962, while his predecessor, Gwin Hicks, remains a member of the board of directors. New routes and services opened in 1961 are consolidated and improved upon.
A DC-3 is destroyed in a hangar fire at Indianapolis on November 1, 1963; the hangar is saved.
Enplanements for the year reach 476,651 and net earnings total $113,303.
After extensive research, LCA elects not to undertake a DC-3 modification program on its own, but to replace the aging Douglas transports in its fleet through the purchase of eight Nord Aviation (now Aerospatiale) Nord 262s, at $585,000 per copy, in March 1964. These are the first new aircraft requested by the airline. A USN DC-3 is returned in June.
A fleet-financing program of $10.6 million is completed: $7 million in loans and $3.6 million in convertible debentures. The company also continues to receive approximately $3 million each year in federal subsidy for maintenance of service to small communities. The money is needed when one considers that passenger boardings at small towns like Richmond, Indiana, Findlay, Ohio, and Jackson, Michigan, average just one person.
Three more Convairs, all from United Airlines, are delivered, one each on July 31, November 2, and December 14. Meanwhile, a new single-day company service record is achieved on October 16—2,315 passengers. An owned DC-3 is sold to a dealer in September, followed by a second in December.
Passenger bookings jump 10.8% to 534,361 and cargo increases by 18.1%. Revenues increase to $7.21 million and a net profit of $186,319 is banked.
Airline employment in 1965 stands at 904. On March 17, orders are placed for eight Convair 580 turboprops, which will be rebuilt from company units. Six of the Nords are received from France between August 17 and November 20, including two each delivered on the first and last named dates.
Five of the new aircraft are placed into service to 32 cities beginning on October 31. In the jubilation, orders are placed for four more, which will also have interiors designed by Dave Ellies Industrial Design, of Columbus, Ohio. Sold earlier, two DC-3s are turned over to dealers in December; the last chartered USN unit is returned.
Bookings for the country’s smallest local service carrier, which also has the shortest average route stage at 80.2 miles, grow by 14.8% to 613,686. These make the shortest average passenger trips among all local service customers—159 miles. Net earnings skyrocket 85% to $344,424.
The high-wing French-made transport is not a Lake Central success. Between February 1966 and August 12, four in-flight turbine failures are recorded, with some engines flying apart; four passengers are injured, one seriously. On the latter date, Nord officials arrive in the U. S. from France to examine the Bastan power plants; the carrier’s entire 262 fleet is grounded for 5 months. Even so, six more aircraft are delivered, the last on July 15.
To help compensate for this equipment disaster, Lake Central initiates operations with the first of eight August-delivered turboprop Convair CV-580s on September 6.
Passenger boardings are 699,000 and a total of 870,000 freight ton-miles are flown. The year is a disaster, financially.
The employee population in 1967 is 1,363 and the fleet includes 23 aircraft: 12 Nord 262s and 11 CV-580s. The Nords, now labeled Nord Ils, return to service on February 24, although with FAA restrictions applied.
Five DC-3s will be sold during the year. Despite mounting debt, President Hartman opens negotiations with Boeing for three B-737-200s, hoping for delivery in 1968.
While en route from Columbus to Toledo and Detroit on March 5, Flight 527, a CV-580 with 3 crew and 37 passengers suffers the separation of all 4 propeller blades from the No. 4 engine. One of the propeller blades pierces the fuselage causing it to fail; there are no survivors from the subsequent crash near Kenton, Ohio.
Within weeks of the disaster, the board of directors has sacked President Hartman, replacing him in June with Allegheny Airlines (1) executive Thomas Ferguson.
In mid-August, the NTSB issues a finding that the disaster is due to manufacturing defects in a propeller and on October 18, Allison pays an $8,000 fine for manufacturing faulty propellers and failing to issue proper warnings of defects. The $8,000 does not begin to cover revenues lost to the bad publicity surrounding the accident.
Still, President Ferguson and his staff must try and a new “Airline with a Heart” marketing campaign is introduced. To emphasize the slogan, the tails of the Nords and Convairs are painted red with a white heart in their center. The “Love at First Flight” campaign begins soon thereafter, as does service to St. Louis and Louisville.
Discussions begin with officials of Allegheny Airlines (1) in October. The last DC-3 service is operated on October 28 from Washington, D. C. to Pittsburgh via Clarksburg and Morgantown. At the end of the year, a joint application for a merger is filed with the CAB.
Customer bookings climb 3% to 718,000, but freight traffic is down by 7.36%. Further losses are taken on the revenue side: $4.5 million.
On March 14, 1968, the CAB and the stockholders of both airlines approve the merger of Lake Central into Allegheny Airlines (1), effective
July 1. The Pittsburgh-based carrier assumes all of LCA’s debts and liabilities, property and assets while holders of LCA common shares receive 0.44 of an Allegheny share for each of their own.
LAKE CENTRAL AVIATION: United States (1976-1977). LCA is established at Traverse City, Michigan, during the summer of 1976 to provide regional scheduled passenger and cargo services. Employing Cessna 402s, LCA inaugurates daily roundtrips on August 31 to Hancock and Marquette as well as to Lansing and down to Columbus in Ohio.
Operations are maintained until the fall of 1977.
LAKE GENEVA AIRWAYS: United States (1970-1973). LGAis set up at Lake Geneva, Wisconsin, in 1970 to provide scheduled roundtrip Beech 18 passenger flights for those wishing to visit the local Playboy Club from Chicago (ORD). Operations continue until 1973.
LAKE HAVASU AIR SERVICE: United States (1974-1978). LHAS is founded in the summer of 1974 to offer passenger and cargo charter flights between Lake Havasu City, Arizona, and Las Vegas. Piper PA-31-310 Navajo flights continue until the spring of 1978 when the operation is purchased by Nicholson Air Service (owners of Cumberland Airlines) and reconfigured as that company’s Havasu Airlines division.
LAKE STATE AIRWAYS: United States (1973-1981). Founded by Roger Karuse in 1973 as a division of his New Ulm Flight Service, this third-level operation is originally known as Air New Ulm. Scheduled passenger commuter operations are flown by the owner in his single aircraft, a Piper PA-31-310 Navajo, linking his base with the Minnesota communities of Marshall and Minneapolis (MSP) and the Iowa cities of Spencer and Des Moines.
In January 1976, the company is merged with Marshall-based Midwest Aviation, with flights continuing under the LSA name until October 9, 1981. Midwest will be able to disentangle itself from LSA and continue flying.
LAKE UNION AIR SERVICE: United States (1946-1992). Founded by Hank Riverman as an FBO at Seattle’s Lake Union in 1946, this company sets up a charter floatplane division and inaugurates seasonal (summer) passenger flights to various destinations in Puget Sound, to Lopez Island, and to Friday Harbor and Roche Harbor on San Juan Island. Charter flights are offered throughout Washington State and into British Columbia.
Operations continue in this vein for the next 35 years, even after the company is purchased by Clyde Carlson on May 12, 1961.
In the spring of 1981, the decision is taken to offer scheduled services. Employing float-equipped Cessna 206s and de Havilland Canada DHC-2 Beavers, Carlson’s firm inaugurates regular revenue flights on July 3, linking its base with Roche Harbor, the San Juan islands, and to several destinations in British Columbia.
Operations continue apace for the remainder of the decade; Bruce Leven purchases Lake Union on October 9, 1987.
In 1991-1992, President Leven’s company operates 1 float-equipped de Havilland Canada DHC-6-300 Twin Otter and 6 DHC-2 floatplane Beavers. Unable to maintain economic viability in a tough recession, the pioneer folds during the latter year. In January 1993, its assets are acquired by Kenmore Air Harbor.
LAKELAND COMMUTER AIRLINES: United States (19801984). Organized by Steven C. Van Beck at Rice Lake, Wisconsin, in the late spring of 1980, Lakeland initiates scheduled third - level passenger and cargo services on June 2, linking its base with Minneapolis (MSP). The initial workforce totals 10 and the fleet is made up of Cessna 207s. Start-up costs for President Van Beck’s carrier result in a loss of $33,114.
Two Cessna 402s are purchased in 1981 and the route network is significantly increased; new destinations added include Duluth, Rhinelander, and Wisconsin Rapids.
A total of 12,480 passengers are carried and profits of $85,443 are reported.
Early in 1982, the number of destinations added is upped again; now flights are also made to Eau Claire, Hayward, and Ashland.
In 1983, Van Beck initiates frequencies to Madison and Chicago. Recession and financial difficulties caused by overly rapid expansion force the carrier to suspend scheduled passenger and cargo flights on January 21, 1984, and metamorphose into a cargo air taxi that will subsequently fail.
LAKER AIRWAYS: United States (1995-1999). Sir Freddie Laker and Texas investor Oscar Wyatt, CEO of LaSara Grain Corporation, establish LAI at Fort Lauderdale in late 1995 to offer scheduled international passenger services. James Kenney is appointed president, a workforce of 50 is recruited, and two Douglas DC-10-30s are leased.
Revenue services are launched by the Endeavour on March 26, 1996, linking the company’s base with London (LGW). Laker becomes the only carrier to offer nonstop scheduled London service to Fort Lauderdale.
Two days later, Laker inaugurates frequencies from Orlando to Manchester and Prestwick.
Traffic figures are reported through September and reveal enplane-ments of 57,000. Revenues during the second half total $24.86 million, but expenses are $28.66 million. There is an operating loss of $3.1 million and a net loss of $2.77 million.
Miami joins the route network in early 1997. In March, a new Regency Premier business-class product is introduced on daily flights between Florida and the U. K.
On July 1, LAI files suit against British Airways, Ltd. (2) in U. S. District Court for the Southern District of Florida. LAI charges that the U. K. major is barring Laker from obtaining commercially viable landing and takeoff slots and refusing to enter into the same standard interline ticketing and baggage agreements that it has with 150 other competitors.
Claiming that BA is violating U. S. and Florida antitrust laws, Laker seeks treble damages, a preliminary injunction, and a permanent injunction against BA, as well as better takeoff and landing slots, and standard interline ticketing and baggage agreements. Florida Attorney General Robert Butterworth meets with both sides in his office on July 9 to resolve their difficulties.
En route from Orlando to Prestwick on July 25, a DC-10-30 with 10 crew and 310 passengers, encounters turbulence over the Atlantic Ocean near Jacksonville. Four cabin attendants are injured, one seriously, and are taken to the hospital after the aircraft lands at Bangor, Maine. One attendant is quickly released and able to continue the flight to Scotland.
At the end of the year, the computer company that operates LAI’s Florida-based reservations system declares bankruptcy, although it is able to handle Christmas and New Year’s holiday traffic.
Customer bookings accelerate 12.9% to 175,000, while 8.3 million freight FTKs are also operated. Operating revenues skyrocket 106% to $16.04 million, but expenses rise 159.5% to $27.96 million. The operating loss worsens to $11.91 million, while the net loss reaches $11.95 million.
Scheduled flights from Fort Lauderdale and Miami to London (LGW) are suspended on January 16, 1998. Well in advance, booked customers are provided refunds or switched to other scheduled airlines.
On July 26, Laker is purchased by Breakthrough Aviation, an affiliate of Star Group; the new owners are known for specializing in top-end VIP, White House press, and rock group charters.
For the year as a whole, only 20,000 passengers are flown, many from the categories noted above.
Airline employment stands at 60 at the beginning of 1999. The company does not survive the year.
On July 15, 2000, one of the DC-10-30s, which had been returned to GECAS, is sold to Gemini Air Cargo.
LAKER AIRWAYS, LTD.: United Kingdom (1966-1982). With ?211,500 of his own money and ?4 million borrowed from the Scottish Clydesdale Bank, Freddie Laker, the former British United Airways, Ltd. managing director, establishes a holding company (Laker Airways [Leasing], Ltd.) on February 8, 1966 for a new package tour charter carrier bearing his name.
Three BAC 1-11-320AZs are ordered and two Bristol Britannia 312s are purchased in March from British Overseas Airways Corporation (BOAC) . Under contract to Air France, Britannia charters to southern Europe commence on July 29.
The first of the BAC 1-11-320AZs is delivered on February 27, 1967; the other two are acquired on April 8 and May 13 and, for a year each, are leased to Air Congo and Middle East Airlines, S. A.L. (2). Arrow-smith Holidays, a Liverpool travel agency, is now purchased and Laker introduces the principle of the “time charter,” under which tour - and resort-operators virtually wet-lease aircraft for a year, thereby allowing lower inclusive rates for customers.
For the remainder of this year and in 1968, inclusive-tours are flown for the new tour subsidiary, as well as such other well-known travel firms as Lord Brothers and Wings. Capacity is augmented on April 11 when another BAC 1-11-320AZ is delivered.
An Indonesian carrier purchases the two Britannia 102s in January 1969. At this point, Laker is Britain’s first all-jet air carrier. Following the February purchase of two Boeing 707-138Bs from bankrupt British Eagle Airways, Ltd., the company flies Eastern Hemisphere inclusive tours while applying to the U. S. CAB for permission to mount tours into America. Charter rights are granted on August 5. North Atlantic charters, primarily to the U. S., are now organized for all manner of special groups.
Enplanements for the year advance 44% to 335,272.
On February 1, 1970, the parent company name is changed to Laker Airways (International), Ltd.; in addition to LAL and Arrowsmith Holidays, other travel agency subsidiaries include Lord Brothers, Middleton Travel Agency, and, in Spain, Viajas Trans Espana and Trans Espana.
In September, the subsidiary International Caribbean Airways, Ltd. is formed with the government of Barbados taking a 51% shareholding and Laker a 49% share. A Laker B-707-138B begins a low-cost Luxembourg-Barbados weekly frequency.
Previously owned by British Eagle International Airways, Ltd., the BAC 1-11-301AG Superb is acquired on February 18, 1971; the fleet is enhanced by its delivery in March. It is now that Laker conceives the idea of low-fare, no-frills Skytrain service to America and on June 15, applies to the British Air Transport Licensing Board (ATLB) for authority. The idea meets resistance from the major scheduled carriers and IATA.
While the Skytrain idea undergoes litigation and an appeal is made in April 1972 for permission from the new Civil Aviation Authority, Laker purchases two Douglas DC-10-10s from the Japanese Mitsui Bank, christening them Eastern Belle and Western Belle. The transatlantic services are approved by the government on October 5. The two widebodied jetliners are introduced to Europe during November demonstration flights around the U. K. and on November 21 in a southern European charter flight from London (LGW)-Majorca.
At the close of the year, the Laker fleet includes 9 jetliners and passenger bookings average 250,000 per year.
On January 11, 1973, the Civil Aeronautics Authority (CAA) designates LAL as a British flag carrier and grants it a license to operate Sky-train service from London (STN); however, the U. S. CAB refuses to grant a permit, recommending study and approval the following year.
In May 1974, another DC-10-10 is purchased and named Canterbury Belle. President Richard M. Nixon, meanwhile, delays the Laker permit in June and the British operator is forced to file an antitrust suit. The new Labour government’s secretary for trade, Peter Shore, reacting to union opposition to Laker’s independent enterprise, revokes the Skytrain license. Following the collapse of Courtline, Ltd. in August, Laker’s DC-10-10s return many of the stranded tourists.
As Skytrain litigation proceeds apace, passenger boardings continue to increase; traffic figures for 1975 top 952,000, making LAL the second largest charter operator on the North Atlantic after Pan American World Airways (1).
Airline employment increases by 3% in 1976 to 865 and the fleet at the beginning of the year includes 3 DC-10-10s, 2 B-707-138Bs, and 5 BAC 1-11-301AG/320AZs. A fourth DC-10-10 arrives. Unreasonable CAA guidelines imposed under British Airways, Ltd. (2) pressure the previous year are withdrawn as the result of court action and public opinion.
Charter enplanements for the year drop to 933,661, a 2.8% dip.
Afourth DC-10-10 is added early in 1977 as the Labour government’s next trade secretary, Edmund Dell, reacting to a court decision by Lord Denning, reverses his predecessor and allows Laker a license. In America, under pressure from Laker attorney Bob Beckman and the new CAB chairman, liberalization proponent Alfred Kahn, President Carter, on June 15, grants Laker his U. S. permit. To allow his competitors some relief from the new low fares, the CAA allows other international airlines to institute cheap “stand-by” fares as well.
As part of an inaugural festival, DC-10-30 Skytrain London (LGW)-New York JFK service, ?59 one-way fare, is launched on September 26. Skytrain goes on to carry over 50,000 passengers before year’s end with each flight over 80% full. Just over one million passengers are carried systemwide on the year and net profit reaches $1.5 million.
In January 1978, the company receives the 1977 “Market Development Award” from Air Transport World magazine. Now a hero in many quarters, Laker is knighted by Queen Elizabeth II in the spring and his face appears on the cover of Time magazine. From this point on, he is referred to as “Sir Freddie.”
A low-fare Skytrain route is extended to Los Angeles on September 26 as the entrepreneur talks of Globetrain flights. Ticket prices from London to Los Angeles are $162 during the off-season and $165 during the summer months. The first year of no-frills, low-priced flights are celebrated on September 27 when the company welcomes its 250,000th passenger. At this point, airline employment totals 1,071 and the fleet comprises 4 DC-10-10s, 2 Boeing 707-320Bs, 2 B-707-138Bs, and 5 BAC 1-11-301AG/320AZs.
Passenger boardings rise 52% to 1,520,000 in 1978 and profits jump to $3 million.
On April 10, 1979, Sir Freddie orders 5 more DC-10-30s and 10 Airbus Industrie A300B4s to complement the current fleet of 6 DC-10-30s, 2 B-707-138Bs, and 5 BAC 1-11-301AG/320AZs.
Enplanements pass 1.8 million as the 5 additional Douglas wide-bodies are placed in service.
The grounding of all DC-10s for six weeks as the result of the Chicago American Airlines crash costs the carrier some $13 million in lost revenue. The resistance of Hong Kong, Australia and New Zealand combined with the rise in fuel costs triggered by the second oil crisis of the decade causes the concept of Globetrain to be placed on hold. Indeed, even the new Los Angeles service loses $2 million its first full year.
The workforce in 1980 stands at 3,000. An effort to extend the Sky-train concept to the Continent runs into national protectionism and is scrapped. Plans to offer Skytrain flights to and from Hong Kong fail again. On February 8, the CAA approves requests from Cathay Pacific Airways (Pty.), Ltd. and British Caledonian Airways, Ltd. (BCAL) to service the Far Eastern crown colony, but specifically denies Laker. After direct appeal to Prime Minister Thatcher, the U. K. Secretary of State on June 17 directs that permits be issued to all three airlines, without restrictions. Unhappily, executives of the company in Hong Kong alienate members of the Hong Kong ATLB, which, on October 18, rejects application for landing rights.
Charter and Skytrain passenger traffic increases to 1,983,000 passengers carried; freight traffic is also up to 31.12 million FTKs. The independent airline is now the sixth largest overall operation on the North
Atlantic; nine different U. K.-U. S. frequencies are offered and one in seven of every transatlantic air passenger flies aboard a Laker DC-1030.
The worsening world economic condition, overextension, increased expenses, monetary devaluation, and the reactions of competitors cause severe financial difficulties for Laker in the spring of 1981. In May, Laker realizes he cannot pay his loans and warns his main lenders; they grant him no leniency. In September, the airline chief meets with his bankers in London and seeks postponement of repayments for a year.
McDonnell Douglas financial analysts project that, given concessions, Laker might earn a profit within two years; as a result, Midland Bank corporate finance officer Dennis Kitching is able to offer a rescue plan through the restructuring of LAL’s loans. On October 16, Pan American World Airways (1), Trans World Airlines (TWA), and British Airways, Ltd. (2), themselves all in some financial difficulty, win British government approval to lower their own fares. Along with other carriers, they take on Laker in a price war, seen by many as a predatory move designed to kill off Skytrain. The move takes effect immediately; during the first two weeks of November alone, Laker’s transatlantic traffic falls to 59% of projection. First-class, high-fare Regency Service is introduced in an effort to regain some lost bookings and capital.
On the year, passenger boardings fall 3% to 1,941,000, but cargo skyrockets 118% to 74.06 million FTKs. A week before Christmas, the bank’s rescue plan is announced.
In January 1982, under the leadership of Sir Adam Thomson of British Caledonian Airways, Ltd. (BCAL), Laker’s competitors unveil a new tactic: pressure upon the aircraft engine division of General Electric and McDonnell Douglas, which are allowing the conversion of debts into preferred Laker shares. Thomson’s threat not to purchase further equipment from them is followed by similar messages from Sabena Belgian World Airlines, S. A. Chairman Carlos Van Rafelghem, UTA French Airlines, S. A. Chairman Rene Lapautre, SAS (Scandinavian Airlines System) official Bo Stahle, Swissair, A. G. Chairman Armin Baltensweiler, Deutsche Lufthansa, A. G. leader Dr. Abraham Kraemer, and KLM (Royal Dutch Airlines, N. V.) Chairman Sergio Orlandini, among others.
Unable to arrange a last-minute financial bailout at the height of the world economic recession and $270 million in debt, LAL collapses on February 5; all scheduled and tour operations cease immediately. In November, the airline’s liquidator, Christopher Morris of Touche, Ross & Company, files an $350-million antitrust action against McDonnell Douglas, General Electric, Midland Bank, British Caledonian Airways, Ltd. (BCAL), Sabena Belgian World Airlines, S. A., UTA French Airlines, S. A., KLM (Royal Dutch Airlines, N. V.), Deutsche Lufthansa, A. G., Swissair, A. G., SAS (Scandinavian Airlines System), British Airways, Ltd. (2), Pan American World Airways (1), and Trans World Airlines (TWA). An out-of-court settlement is reached on June 12, 1985, as Morris recovers $48 million. Eventually, claims of $300 million are settled.
LAKER AIRWAYS (BAHAMAS), LTD.: 1170 Lee Wagner Blvd., No. 200, Fort Lauderdale, Florida 33315, United States; Phone (305) 359-7708; Fax (305) 359-7698; Code 7Z; Year Founded 1985. Following the 1982 demise of his Laker Airways, Ltd., Sir Freddie Laker becomes a consultant to Bahamas-based Princess Hotels Interna-tional/Princess Casino. Two years later, in 1984, he forms Princess Vacations International at Miami. For the next eight years, he will contract with foreign carriers, including Carnival Air Lines, to fly tourists to the Bahamas Princess Resort and Casino at Freeport.
Meanwhile, LABL is incorporated in September 1985, but remains dormant. A total of eight million tourists are transported through late 1991.
Carnival Air Lines now increases its charter rates, triggering a decision by Laker to take over the Miami-Bahamas flights with his reactivated company. He will work closely with two other men with whom he now divides shareholding: Texas investor Oscar Wyatt, CEO of LaSara Grain Corporation (33%) and Grand Bahamas Port Authority owner Sir Jack Hayward (33%).
Laker acquires three Boeing 727-281s and on May 18, 1992 assumes the $16-million contract from Princess Casinos to bring it customers from the U. S. cities of Birmingham, Chicago, Cincinnati, Cleveland, Fort Lauderdale, Hartford, Jacksonville, Memphis, Nashville, Orlando, Tampa, and West Palm Beach. On December 15, all routes become fully scheduled; the same day, service is started to Miami.
Operations continue apace in 1993-1994. In December of the former year, the three non-Advanced trijets are replaced with two B-727-2J7As. Additional destinations added include Greenville/Spartanburg, Raleigh/Durham, and Richmond. Plans are made to inaugurate transatlantic DC-10-30 service and enplanements total 250,000 per year.
Late in 1995, Sir Freddie and Mr. Wyatt establish Laker Airways at another Fort Lauderdale location to undertake the transatlantic flights that duly begin on March 26, 1996. Meanwhile, through those years and during the remainder of the decade, the original concern’s two trimotors continue to fly vacationers to Orlando, Miami, Fort Lauderdale, and West Palm Beach from Baltimore, Birmingham, Chicago, Cincinnati, Cleveland, Greensville/Spartanburg, Hartford, Memphis, Raleigh/ Durham, Richmond and Manchester, New Hampshire.
Enplanements reach 142, 324 in 1998, but slide 19.6% to 119,000 in 1999. At the end of the year, the company is renamed LB, Ltd.
LAKESIDE AVIATION, LTD.: United Kingdom (1991-1994). Organized at Aberdeen Airport in 1991, this new Scottish regional, an associate of Lakeside Helicopters, Ltd., provides scheduled domestic commuter services as well as charter and contract service flights on behalf of the North Sea oil industry. Chairman Christopher Thomas and Managing Director John Begg initiate operations with a pair of Cessna 404 Titans.
Two British Aerospace BAe Jetstream 31s are acquired by lease in 1992, with a third chartered Jetstream 31 arriving in 1993. Flights cease in 1994.
World History
