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Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
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Mon, Feb 13, 2006

Gone West: Freddie Laker, Low-Cost Pioneer

"He Was A Larger Than Life Figure," Branson Recalls, "And A Great Friend."

A whole generation of airline passengers may never have heard of Freddie Laker, whose Laker Airways operated from 1966 to 1982 and brought him to the highs of fame, fortune, and a knighthood -- and to the lows of bankruptcy and a British Civil Aviation Authority ban which forced him into Bahamian exile (there are, to be sure, worse places to be exiled). But whether you've heard of him or not, when you fly today, for better or for worse, you fly in the low-cost environment that Sir Freddie pioneered. He passed away Thursday in Hollywood, Florida, at the age of 83.

Laker's aging body may have failed him, but his sense of humor never let him down. "A joker to the end, his body will be cremated with his mobile phone in case you weren't able to get in a last call," his family said in a statement Saturday.

The Verizon customer you have reached is not within the service area.

Laker was a World War II veteran of the RAF's Air Transport Auxiliary. Before the war he worked for Short Brothers; afterwards he ran a cargo line that supported the Berlin Airlift, and then worked for British United Airlines before starting his own air charter firm in 1966. But it was the launch of Laker Skytrain in 1977 that put him on the map. After a period in which crossing the Atlantic meant flying for the rich, and a cramped cabin on a steamer for the poor, Skytrain's $100 fare was shockingly low, a fraction of the competition's (to put things in perspective, that's the equivalent of about $325 in today's dollars).

Riding high in 1978, was an inescapable figure on television news and in business magazines. Knighted for his services to industry, a "Sir" was added to the first name that every Briton from Queen to kindergarten knew. Nobody knew who Sir Frederick Alfred Laker was... he was Sir Freddie, formally informal, and not quite taking himself seriously.

Laker Airways in general, and Skytrain in particular, had to be taken seriously. It grew explosively from the Skytrain introduction, going from 29th in number of transatlantic passengers to fifth. The airline had twenty aircraft, but it was threatening the mighty -- British Airways, the stodgy nationalized enterprize created by the BOAC/BEA merger, and such American giants as TWA and Pan Am.

The giants, especially British Airways, had tried to strangle Laker Airlines in its crib -- Laker originally proposed Skytrain in 1972, and it took him five years of court wrangling to get the line moving. Laker was always at the cutting edge of large, economical equipment, rapidly replacing 707s with DC-10s, and ordering Airbuses. A period publicity photo (top) shows Laker with Chief Pilot Alan Hellary in front of one of the new DC-10s; Laker's hair is blowing in the wind and he's grinning madly; next to him the pilot looks decorous to the point of solemnity.

One of the most remarkable things about Sir Freddie is that he answered his fan mail. He made a point of responding to young people who asked him for advice about careers in aviation; he may not have understood the consequences of what he was doing but a large number of those people followed him into the industry. It says much that when he was riding high, he found time to extend a hand down and help others up.

Those were great days, but the seeds of Laker's downfall were contained within.

The DC-10s came to Laker in the middle of mass-media hysteria about DC-10 safety.

The giants and Laker engaged in a bitter price war, and given the relative depth of the various pockets, it was one that Laker couldn't win. In February, 1982 Laker Airways sank into receivership, overcome by the burden of 270 million pounds' debt. (The last flight was February 6). But the giants had learned something from the price war: the demand for travel at a lower price was so overwhelming that it made its own business case.

Sir Freddie may have seen his company brought low, but he lived to see his concept made universal. And, unlike Pan Am, which was corporately distant from its charismatic founder, and British Airways, which was always run by vaguely 1984-ish bureaucrats from the bowels of some ministry, Laker Airways was the creation of a single man, and a man that Britain loved. The public started a "Save Laker" fund where people contributed to try to buy Sir Freddie out of his predicament -- a million pounds were donated within days. Of course, it was a drop in the bucket.

A suit alleging that twelve airlines conspired to destroy Laker stumbled its way through the courts -- British Airways settled with Sir Freddie for eight million pounds, and at one time the airlines were going to offer fifty million. (Guilty conscience, perhaps). But the plaintiffs were not able to reach agreement.

A second iteration, Laker Airlines, operated from the Bahamas until last year, and Sir Freddie remained all his life eager to make a go of an outlaw airline.

Laker was honored in Britain by those that came after him -- and by some that worked for him. (Imagine how today's pilots and flight attendants will greet the passing of Don Carty or Leo Mullin, and check out how the Laker alumni are reacting at the FMI link).

"I think we all have a lot to thank him for," Sir Richard Branson told the British press. "If it hadn't been for Sir Freddie you wouldn't most likely have had Virgin Atlantic." Branson had gotten to know Laker, who counseled him not to get overrun by British Airways: "Sue the bastards!" was Laker's advice to the new breed of entrepreneur that followed in his wake. Branson named one of Virgin's 747s "The Spirit of Sir Freddie," and he did it while Laker was still alive to enjoy it.

The founder of EasyJet, Stelios Haji-Ioannou, called Sir Freddie "a true pioneer.... ahead of his time."

"[T]he big airlines succeeded in putting him out of business... it was a landmark case in unfair competition and he sort of inspired all of us to carry on and survive," Haji-Ioannou told the BBC.

Sir Richard Branson went beyond the business impact of Laker to offer his personal recollection of the man: "He was a larger-than-life figure, with a wicked sense of humour and a great friend." Men have had worse epitaphs.

Sir Freddie Laker (and his cell phone) are gone, but one artifact of the original Laker Airways lives on in a way that certainly would bring forth the Laker grin. The Orbis flying eye hospital, that has used its wings to bring sight to thousands, is built into a radically modified DC-10, that flew for Laker as G-BELO. We photographed this wondrous machine (below) at Oshkosh in 2003.

You know, "London Gatwick," Laker Airways' homebase, back in the day, is a very uninspired name for an airport....

FMI: http://www.lakerairways.co.uk/  (a loving tribute to the man and the airline by former Laker crew).
****
Family Statement

PRESS RELEASE: Sir Freddie Laker (B. August 6, 1922 D. Feb 9, 2006)

Sir Freddie passed at 4.45 AM on Thursday morning in Hollywood, Florida.

He'll be remembered long into the future for his contributions to aviation and his affect on the low cost carrier world as we know it, but he'll be remembered ever so much more fondly by those who knew him personally.

Sir Freddie, even in his eighties, commanded the room from the moment he entered into with an effortless charm, a quick and clever wit, and a childlike grin and laugh that made you smile before a joke was even told. He was surrounded by love and well wishes up to the moment of his passing.

The family would like to thank the global outpouring of support, appreciation, and respect that has been paid to Sir Freddie. He was always most proud of the affect he had on the lives of so many people.

Sir Freddie is survived by his wife Jacqueline, his daughter Elaine, and his son Freddie.

Memorial services will be held in South Florida, Grand Bahamas Island, and England. For information on attending memorial services please visit here.


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