Dogfight over the Atlantic

Six airlines are chasing Laker to London

Freddie Laker is no Rickenbacker, Lindbergh, Mitchell, Doolittle or Armstrong. But the feisty Englishman has made aviation history in his own way, by forcing transatlantic fares lower than major airlines had said they could ever go. In June, Laker won approval from the Carter Administration to offer round-trip flights between New York City and London on his 13-jet Laker Airways for $236--almost $100 less than the cheapest non-charter fare--starting Sept. 26. Last week six major airlines countered with a cut-rate transatlantic fare of their own, tossing in some of the amenities that Laker's no-frills "Skytrain" omits.

For $256 the six lines (TWA, Pan American, British Airways, Air-India, Iran Air and El Al) will offer free meals on flights; Laker would charge passengers $3 for a steak dinner. In addition, travelers may reserve seats on any of the six carriers by paying for their tickets three weeks in advance of departure; thereafter they would be accepted on a stand-by basis only. Laker's plan allows no reservations. It runs on a first-come, first-served basis, with ticket counters opening six hours before flight time.

Not to be outdone, Laker struck back later in the week by proposing to the British government some revisions in his own plan (Washington's approval is not required). He requested that his baggage weight limit be lifted from 33 to 44 Ibs., equal to what the larger carriers will offer. To offset the bigger lines' advantage of landing at convenient Heathrow Airport, Laker wants to touch down at Gatwick, which is served by rail (though it is still about 40 minutes from London) and more accessible than the far-off Stansted field, where he first proposed to land. He also wants to sell tickets through travel agents instead of only at airports, and, most important, to operate more than the one flight a day that he is now authorized to run.

The six major carriers came up with their new fare in Geneva after a three-day meeting of the International Air Transport Association, the industry group that sets fares charged by most scheduled overseas carriers. IATA'S officials were pleased that the organization had moved swiftly enough to avoid a messy price war among members--and wage it instead with Laker.

The worry now, at least from the standpoint of the U.S. carriers, is that the lower fares will slice into the lines' profits at the very time when they need money to replace aging air fleets. But Laker's heart does not bleed for the big boys. Through their governments, they have thrown one obstacle after another in his way. Says Laker: "The big carriers are now united in their determination to put us out of business. They have slashed their own fares, changed their own rules and granted themselves all the advantages denied to us under the terms of our license."

Laker's Skytrain terms are likely to be greeted favorably on the U.S. side of the Atlantic. New CAB Chairman Alfred Kahn, reflecting a refreshing willingness of the board to be less restrictive, says such special kinds of service are a "good thing" and foresees further rule relaxing to permit more efficient use of aircraft. This could result in cheaper rates between many destinations. At $236, Laker's fare already is the lowest transatlantic price in years. It is barely a fourth of the $830 minimum on the Queen Elizabeth 2. Indeed, it is $14 less than the $250 fare to fly between New York City and Denver.

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