Lloyd International Airways
Encyclopedia
Lloyd International Airways Ltd was a private, British
independentindependent from government-owned corporation
s airline
formed in 1961 to operate worldwide charter flights. It commenced operations with a single Douglas DC-4
piston airliner from Cambridge Marshall Airport
. Lloyd International concentrated on passenger and cargo charters with four-engined, long-range
aircraft. It also had links in Hong Kong
since its inception and flew to the Far East
regularly. During the mid-1960s, the airline began re-equipping its fleet with Bristol Britannia
and Canadair CL-44
turboprops, all of which featured large cargo doors and pallet
ised freight systems. Long-range Boeing 707
jet
s joined the Lloyd International fleet during the early 1970s for use on affinity group passenger and freight charters to North America
and the Far East. Lloyd International ceased operations in June 1972.
partners, began formulating plans to take over an existing airline as part of a diversification
strategy
into the airline business. After months of unsuccessfully trying to raise capital for their planned acquisition, financial backing was finally obtained the following year from Bolivia
n tin magnate J. Ortiz-Patiño and Greek
shipping magnate Nicholas Mavroleon to set up a new airline from scratch. This airline was to specialise in Far East "tramping", concentrating on ships' crews and freight. The founders chose the name Lloyd for their new venture. J. Ortiz-Patiño and Nicholas Mavroleon became the respective chairmen of the airline and of Hong Kong
-incorporate
d Far East Aviation Company Ltd, a group holding company
.
Lloyd International Airways commenced operations in 1961 with a Douglas DC-4 acquired from Iceland
ic airline Loftleiðir
. Its first engagement was a series of charter flights carrying ship crews between the United Kingdom
and several destinations in the Far East. It soon found other charter work for the aircraft, which led to the acquisition of two more DC-4s in 1962.
Lloyd International's first two years of operations were unprofitable, mainly as a result of uneconomic charter rates caused by excess capacity. Other contributing factors included an expensive emergency lease of a replacement aircraft for a DC-4
destroyed in a refuelling fire and high overheads due to a top-heavy administrative structure.
Budget
ing and cost control
, introduced in 1963, ensured that charterers were only quoted profitable rates. This resulted in a partial withdrawal from the cut-throat British inclusive tour (IT) market and the opening of an office in Hong Kong to capture a greater share of lucrative Far East cargo traffic.
To ensure every single operation showed a clear profit on a full costing
basis, ie inclusive of all overhead costs, the company required each operation to be budgeted in detail before deciding whether to accept it. The managing director's authorisation was required to dispense with this rule in exceptional cases where the risk of accepting a contract that was only marginally profitable, ie excluding overheads, was outweighed by the risk of having an aircraft sit idly on the ground. An immediate financial analysis that compared actual cost
s and revenues with their budgets followed the completion of each flight, thereby instantly gauging that flight's profitability and validating the effectiveness of the firm's pricing policy. A policy of requiring aircraft commander
s to pay for all operating expense
s other than fuel in cash proved to be an effective method to exercise instant cost control over fees and charges incurred for products and services supplied by third parties, such as ground handling
fees, technical support services and catering supplies.
In addition, the principle of strict cost control was also applied to aircraft maintenance
and flight operations. This entailed outsourcing
all engineering work as the fleet was too small to warrant Lloyd International setting up its own maintenance department. It furthermore involved "buying" flying hours at a fixed rate. Moreover, through Wheelock Marden
, Lloyd International was indirectly associated with the Hong Kong Aircraft Engineering Company
. This enabled it to draw on that company's extensive spares pool in Hong Kong. (Other than Hong Kong, Lloyd International pursued a policy of not stationing any spares along regular routes flown by its aircraft. Instead each aircraft carried its own spares kit — usually consisting of a spare wheel and brake — and a ground engineer.)
In the context of Lloyd International's management's firm belief in exercising tight control over ist costs regarding all aspects of the airline's operations, it is of interest to note that flightdeck crews were instructed to operate their aircraft in high-speed cruise mode despite the resulting higher operating cost
s due to increased fuel consumption. In an era of low jet fuel prices, this was the most economical option when taking into account the then statutory limit for aircrew
to fly up to 115 hours in 28 days, the fact that engineering costs were charged on a flat hourly basis and that there were generally few opportunities to take advantage of differentials in fuel prices at different stations served by the airline.
In 1964, Brian Lloyd, one of the airline's founders, sold out while well-established Far East trading company Wheelock Marden bought into the company by acquiring a 33% stake in the business. The latter transaction put Wheelock Marden's sales offices in Bangkok
, Kuala Lumpur
, Singapore
and Tokyo
at the airline's disposal. The same year, Lloyd International acquired its first Douglas DC-6
(an A/B series model), the airline's first pressurise
d aircraft. This was also the year the airline's operating base moved from Cambridge
to Gatwick
.
In January 1965, Lloyd International decided to acquire two Bristol Britannia 312s turboprops from British Overseas Airways Corporation
(BOAC) and to have them fitted with special doors and stronger floors to allow the carriage of large-size palletised freight consignments. The first aircraft joined the fleet in April of that year. Aviation Traders
won the contract to convert the Britannias into freighters. This involved fitting the aircraft with large forward cargo doors and strengthening the cabin floors. Conversion began during the 1965/6 winter season. This enabled the company to concentrate on long-haul charters, especially between Europe
and the Far East. While these aircraft were primarily intended for freight operations, they were also used to transport passengers.
In 1966, the Hong Kong Air Transport Licensing Authority (ATLA) awarded Lloyd International Airways (Hong Kong) Freighters, an associate company of Lloyd International, a licence to operate twice-weekly all-cargo services between Hong Kong and London
. The licence was valid from 1 April 1966, for five years. The same month, the airline sold the DC-6
A/B that had been acquired 18 months earlier. Nineteen sixty-six was also the year Neckermann und Reisen, the tour operator
of West German
mail-order concern Neckermann
, contracted Lloyd International to launch a series of weekday IT flights from Tegel Airport in what used to be West Berlin's French sector
in the days prior to Germany's reunification
. These flights were operated with Britannias. They served principal Europe
an holiday resorts in the Mediterranean and the Canary Islands
. The combination of these flights with a similar series of weekend IT flights from Scotland
on behalf of a British tour operator fully utilised one Britannia for that summer season.
In 1967, Lloyd International shifted its main operating base from Gatwick to Stansted
. The latter also became the location of the airline's headquarters, which had been located in Central London
since its inception.
In 1968, Lloyd International and its associated companies underwent a reorganisation. This resulted in the creation of Lloyd International Airways (Holding) as the group's holding company
with J. Ortiz-Patiño as chairman. Lloyd International Airways (Holding) acquired the entire share capital of Lloyd International Airways, Lloyd Aircraft Services, Brokaloyd and other associated companies. Effectively, this constituted a transfer of shares from Aviation Management, a company based in Hong Kong, to the new British holding company.
In 1969, Lloyd International purchased two former British United Airways
(BUA) Britannia 307s. This doubled the size of the airline's Britannia fleet to four aircraft. These aircraft were fully convertible, with large freight doors. They could either be operated as pure freighters, in a mixed passenger/cargo configuration or as all-passenger aircraft seating up to 132 passengers. The addition of these aircraft gave the airline greater flexibility in its core long-distance charter operation, which mainly consisted of ad hoc passenger/seamen and cargo flights between Europe and the Far East, primarily to and from Hong Kong. Lloyd International also developed additional sales and promotional facilities on the Europe — Hong Kong route in association with the Ben Line, a well-known Far East
ern shipping line
, to increase air cargo volumes.
Lloyd International's first jet aircraft
, an ex-Pan Am
Boeing 707
-321, entered service in 1970. Lloyd's new long-haul jet operated affinity group flights across the North Atlantic
to the United States
and Canada
as well as passenger and freight charters to the Far East.
In January 1971, Lloyd International entered into an agreement with East African Airways
Corporation (EAAC) to operate scheduled all-cargo services on the latter's behalf between London, Dar-es-Salaam
, Nairobi
, Entebbe
and Lusaka
. This was also the year the airline acquired two more 707
s, another -321 and a -324C. The latter was a convertible aircraft that could either be operated in an all-passenger, all-cargo or mixed passenger/cargo configuration. It was also the company's first turbofan
-powered jet.
In early-1972 Lloyd International increased its Far East Britannia freight services from six to eight a month, resulting in a twice-weekly operation to Singapore and Hong Kong. The increase in flight frequencies would have boosted annual available cargo capacity to 3.25m
kg
. This compared with an actual freight volume of 1.5m kg the previous year, representing an average load factor of 79% eastbound and 71% westbound. There was also a plan to operate all Far East freight services with an all-jet fleet entirely composed of convertible, turbofan-powered 707-320Cs by 1975.
Lloyd International's rapidly deteriorating financial performance as a result of cancellations and overcapacity in the low-yield
transatlantic
affinity group market, as well as the Government's refusal to direct the British Airports Authority (BAA) to reduce airport user charges at Stansted and its preferential treatment of British Caledonian by making it the private sector's "chosen instrument" as part of the official "Second Force" policy, compelled it to cease all operations on 16 June 1972 and to go into liquidation
.
Two Canadair CL-44J (400)
were on order.
Lloyd International Airways employed 100 people at this time.
Lloyd International Airways employed 260 people at this time.
On 8 October 1961 a Lloyd International Airways Douglas C-54A-1-DC (registration: G-ARLF) burnt out at Málaga Airport
following the explosion of a petrol tanker during refuelling. The aircraft had arrived at Málaga
from Tanger and was due to depart to Manchester
. Although it was destroyed as a result of the explosion, none of the 34 passengers who had arrived on board the ill-fated aircraft and the other 32 who were due to join the flight were injured because they were waiting inside the airport building at the time of the accident. However, those who had started their journey in Tanger lost all their luggage.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
independentindependent from government-owned corporation
Government-owned corporation
A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...
s airline
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
formed in 1961 to operate worldwide charter flights. It commenced operations with a single Douglas DC-4
Douglas DC-4
The Douglas DC-4 is a four-engined propeller-driven airliner developed by the Douglas Aircraft Company. It served during World War II, in the Berlin Airlift and into the 1960s in a military role...
piston airliner from Cambridge Marshall Airport
Cambridge Airport
Cambridge Airport is a small regional airport in South Cambridgeshire, England. It is located on the eastern outskirts of Cambridge, south of Newmarket Road and west of the village of Teversham, from the centre of Cambridge and approximately from London.Opened in 1938, when it replaced the old...
. Lloyd International concentrated on passenger and cargo charters with four-engined, long-range
Range (aircraft)
The maximal total range is the distance an aircraft can fly between takeoff and landing, as limited by fuel capacity in powered aircraft, or cross-country speed and environmental conditions in unpowered aircraft....
aircraft. It also had links in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
since its inception and flew to the Far East
Far East
The Far East is an English term mostly describing East Asia and Southeast Asia, with South Asia sometimes also included for economic and cultural reasons.The term came into use in European geopolitical discourse in the 19th century,...
regularly. During the mid-1960s, the airline began re-equipping its fleet with Bristol Britannia
Bristol Britannia
The Bristol Type 175 Britannia was a British medium-to-long-range airliner built by the Bristol Aeroplane Company in 1952 to fly across the British Empire...
and Canadair CL-44
Canadair CL-44
The Canadair CL-44 was a Canadian turboprop airliner and cargo aircraft based on the Bristol Britannia that was developed and produced by Canadair in the late 1950s and early 1960s...
turboprops, all of which featured large cargo doors and pallet
Pallet
A pallet , sometimes called a skid, is a flat transport structure that supports goods in a stable fashion while being lifted by a forklift, pallet jack, front loader or other jacking device. A pallet is the structural foundation of a unit load which allows handling and storage efficiencies...
ised freight systems. Long-range Boeing 707
Boeing 707
The Boeing 707 is a four-engine narrow-body commercial passenger jet airliner developed by Boeing in the early 1950s. Its name is most commonly pronounced as "Seven Oh Seven". The first airline to operate the 707 was Pan American World Airways, inaugurating the type's first commercial flight on...
jet
Jet aircraft
A jet aircraft is an aircraft propelled by jet engines. Jet aircraft generally fly much faster than propeller-powered aircraft and at higher altitudes – as high as . At these altitudes, jet engines achieve maximum efficiency over long distances. The engines in propeller-powered aircraft...
s joined the Lloyd International fleet during the early 1970s for use on affinity group passenger and freight charters to North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
and the Far East. Lloyd International ceased operations in June 1972.
History
In 1960, Brian Lloyd and Alastair Macleod, two experienced shipping managers and shipbrokingShipbroking
Shipbroking is a financial service, which forms part of the global shipping industry. Shipbrokers are specialist intermediaries/negotiators between shipowners and charterers who use ships to transport cargo, or between buyers and sellers of ships.Some brokerage firms have developed into large...
partners, began formulating plans to take over an existing airline as part of a diversification
Diversification
Diversification may refer to:* Diversification involves spreading investments* Diversification is a corporate strategy to increase market penetration...
strategy
Strategic management
Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments...
into the airline business. After months of unsuccessfully trying to raise capital for their planned acquisition, financial backing was finally obtained the following year from Bolivia
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
n tin magnate J. Ortiz-Patiño and Greek
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
shipping magnate Nicholas Mavroleon to set up a new airline from scratch. This airline was to specialise in Far East "tramping", concentrating on ships' crews and freight. The founders chose the name Lloyd for their new venture. J. Ortiz-Patiño and Nicholas Mavroleon became the respective chairmen of the airline and of Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
-incorporate
Incorporation (business)
Incorporation is the forming of a new corporation . The corporation may be a business, a non-profit organisation, sports club, or a government of a new city or town...
d Far East Aviation Company Ltd, a group holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
.
Lloyd International Airways commenced operations in 1961 with a Douglas DC-4 acquired from Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
ic airline Loftleiðir
Loftleiðir
Loftleiðir HF, internationally known as Icelandic Airlines or Loftleiðir Icelandic, was a private Icelandic airline headquartered on the grounds of Reykjavík Airport in Reykjavík, which operated mostly trans-atlantic flights linking Europe and America, pioneering the low-cost flight business...
. Its first engagement was a series of charter flights carrying ship crews between the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and several destinations in the Far East. It soon found other charter work for the aircraft, which led to the acquisition of two more DC-4s in 1962.
Lloyd International's first two years of operations were unprofitable, mainly as a result of uneconomic charter rates caused by excess capacity. Other contributing factors included an expensive emergency lease of a replacement aircraft for a DC-4
Douglas DC-4
The Douglas DC-4 is a four-engined propeller-driven airliner developed by the Douglas Aircraft Company. It served during World War II, in the Berlin Airlift and into the 1960s in a military role...
destroyed in a refuelling fire and high overheads due to a top-heavy administrative structure.
Budget
Budget
A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...
ing and cost control
Management accounting
Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control...
, introduced in 1963, ensured that charterers were only quoted profitable rates. This resulted in a partial withdrawal from the cut-throat British inclusive tour (IT) market and the opening of an office in Hong Kong to capture a greater share of lucrative Far East cargo traffic.
To ensure every single operation showed a clear profit on a full costing
Full cost accounting
Full cost accounting generally refers to the process of collecting and presenting information - about environmental, social, and economic costs and benefits/advantages - for each proposed alternative when a decision is necessary. It is a conventional method of cost accounting that traces direct...
basis, ie inclusive of all overhead costs, the company required each operation to be budgeted in detail before deciding whether to accept it. The managing director's authorisation was required to dispense with this rule in exceptional cases where the risk of accepting a contract that was only marginally profitable, ie excluding overheads, was outweighed by the risk of having an aircraft sit idly on the ground. An immediate financial analysis that compared actual cost
Cost accounting
Cost accounting information is designed for managers. Since managers are taking decisions only for their own organization, there is no need for the information to be comparable to similar information from other organizations...
s and revenues with their budgets followed the completion of each flight, thereby instantly gauging that flight's profitability and validating the effectiveness of the firm's pricing policy. A policy of requiring aircraft commander
Pilot in command
The pilot in command of an aircraft is the person aboard the aircraft who is ultimately responsible for its operation and safety during flight. This would be the "captain" in a typical two- or three-pilot flight crew, or "pilot" if there is only one certified and qualified pilot at the controls of...
s to pay for all operating expense
Operating expense
An operating expense, operating expenditure, operational expense, operational expenditure or OPEX is an ongoing cost for running a product, business, or system . Its counterpart, a capital expenditure , is the cost of developing or providing non-consumable parts for the product or system...
s other than fuel in cash proved to be an effective method to exercise instant cost control over fees and charges incurred for products and services supplied by third parties, such as ground handling
Aircraft ground handling
In aviation, aircraft ground handling defines the servicing of an aircraft while it is on the ground and parked at a terminal gate of an airport.-Overview:...
fees, technical support services and catering supplies.
In addition, the principle of strict cost control was also applied to aircraft maintenance
Aircraft maintenance
Aircraft maintenance is the overhaul, repair, inspection or modification of an aircraft or aircraft component.Maintenance includes the installation or removal of a component from an aircraft or aircraft subassembly, but does not include:...
and flight operations. This entailed outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
all engineering work as the fleet was too small to warrant Lloyd International setting up its own maintenance department. It furthermore involved "buying" flying hours at a fixed rate. Moreover, through Wheelock Marden
Wheelock
-Places:*River Wheelock in Cheshire in England.*Wheelock, Cheshire, a long village south of Sandbach in Cheshire in England.*Wheelock, Vermont*Wheelock, North Dakota, a ghost town in the United States*Wheelock, Texas, a small town near College Station, Texas...
, Lloyd International was indirectly associated with the Hong Kong Aircraft Engineering Company
HAECO
The Hong Kong Aircraft Engineering Company Limited , better known as HAECO , is a major provider of aircraft maintenance, repair and overhaul services in Asia-Pacific. It has provided comprehensive aeronautical engineering services to airlines and operators since 1950...
. This enabled it to draw on that company's extensive spares pool in Hong Kong. (Other than Hong Kong, Lloyd International pursued a policy of not stationing any spares along regular routes flown by its aircraft. Instead each aircraft carried its own spares kit — usually consisting of a spare wheel and brake — and a ground engineer.)
In the context of Lloyd International's management's firm belief in exercising tight control over ist costs regarding all aspects of the airline's operations, it is of interest to note that flightdeck crews were instructed to operate their aircraft in high-speed cruise mode despite the resulting higher operating cost
Operating cost
Operating costs can be described as the expenses which are related to the operation of a business, or to the operation of a device, component, piece of equipment or facility.-Business operating costs:...
s due to increased fuel consumption. In an era of low jet fuel prices, this was the most economical option when taking into account the then statutory limit for aircrew
Aircrew
Aircrew are the personnel who operate an aircraft while in flight. The composition of the crew depends on the type of aircraft as well as the purpose of the flight.-Civilian:*Aviator** Pilot-in-command** First officer** Second officer** Third officer...
to fly up to 115 hours in 28 days, the fact that engineering costs were charged on a flat hourly basis and that there were generally few opportunities to take advantage of differentials in fuel prices at different stations served by the airline.
In 1964, Brian Lloyd, one of the airline's founders, sold out while well-established Far East trading company Wheelock Marden bought into the company by acquiring a 33% stake in the business. The latter transaction put Wheelock Marden's sales offices in Bangkok
Bangkok
Bangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom...
, Kuala Lumpur
Kuala Lumpur
Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
and Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
at the airline's disposal. The same year, Lloyd International acquired its first Douglas DC-6
Douglas DC-6
The Douglas DC-6 is a piston-powered airliner and transport aircraft built by the Douglas Aircraft Company from 1946 to 1958. Originally intended as a military transport near the end of World War II, it was reworked after the war to compete with the Lockheed Constellation in the long-range...
(an A/B series model), the airline's first pressurise
Cabin pressurization
Cabin pressurization is the pumping of compressed air into an aircraft cabin to maintain a safe and comfortable environment for crew and passengers when flying at altitude.-Need for cabin pressurization:...
d aircraft. This was also the year the airline's operating base moved from Cambridge
Cambridge Airport
Cambridge Airport is a small regional airport in South Cambridgeshire, England. It is located on the eastern outskirts of Cambridge, south of Newmarket Road and west of the village of Teversham, from the centre of Cambridge and approximately from London.Opened in 1938, when it replaced the old...
to Gatwick
London Gatwick Airport
Gatwick Airport is located 3.1 miles north of the centre of Crawley, West Sussex, and south of Central London. Previously known as London Gatwick,In 2010, the name changed from London Gatwick Airport to Gatwick Airport...
.
In January 1965, Lloyd International decided to acquire two Bristol Britannia 312s turboprops from British Overseas Airways Corporation
British Overseas Airways Corporation
The British Overseas Airways Corporation was the British state airline from 1939 until 1946 and the long-haul British state airline from 1946 to 1974. The company started life with a merger between Imperial Airways Ltd. and British Airways Ltd...
(BOAC) and to have them fitted with special doors and stronger floors to allow the carriage of large-size palletised freight consignments. The first aircraft joined the fleet in April of that year. Aviation Traders
Aviation Traders
was a war-surplus aircraft and spares trader formed in 1947. In 1949, it began maintaining aircraft used by some of Britain's contemporary independent airlines on the Berlin Airlift. In the early 1950s, it branched out into aircraft conversions and manufacturing. During that period it also became a...
won the contract to convert the Britannias into freighters. This involved fitting the aircraft with large forward cargo doors and strengthening the cabin floors. Conversion began during the 1965/6 winter season. This enabled the company to concentrate on long-haul charters, especially between Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
and the Far East. While these aircraft were primarily intended for freight operations, they were also used to transport passengers.
In 1966, the Hong Kong Air Transport Licensing Authority (ATLA) awarded Lloyd International Airways (Hong Kong) Freighters, an associate company of Lloyd International, a licence to operate twice-weekly all-cargo services between Hong Kong and London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
. The licence was valid from 1 April 1966, for five years. The same month, the airline sold the DC-6
Douglas DC-6
The Douglas DC-6 is a piston-powered airliner and transport aircraft built by the Douglas Aircraft Company from 1946 to 1958. Originally intended as a military transport near the end of World War II, it was reworked after the war to compete with the Lockheed Constellation in the long-range...
A/B that had been acquired 18 months earlier. Nineteen sixty-six was also the year Neckermann und Reisen, the tour operator
Tour operator
A tour operator typically combines tour and travel components to create a holiday. The most common example of a tour operator's product would be a flight on a charter airline plus a transfer from the airport to a hotel and the services of a local representative, all for one price. Niche tour...
of West German
West Germany
West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....
mail-order concern Neckermann
Arcandor
Arcandor AG is a holding company located in Essen, Germany that oversees companies operating in the businesses of mail order and internet shopping, department stores and tourism services. It was created in 1999 through the merger of Karstadt Warenhaus AG, which was founded in 1920, and Quelle...
, contracted Lloyd International to launch a series of weekday IT flights from Tegel Airport in what used to be West Berlin's French sector
West Berlin
West Berlin was a political exclave that existed between 1949 and 1990. It comprised the western regions of Berlin, which were bordered by East Berlin and parts of East Germany. West Berlin consisted of the American, British, and French occupation sectors, which had been established in 1945...
in the days prior to Germany's reunification
German reunification
German reunification was the process in 1990 in which the German Democratic Republic joined the Federal Republic of Germany , and when Berlin reunited into a single city, as provided by its then Grundgesetz constitution Article 23. The start of this process is commonly referred by Germans as die...
. These flights were operated with Britannias. They served principal Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an holiday resorts in the Mediterranean and the Canary Islands
Canary Islands
The Canary Islands , also known as the Canaries , is a Spanish archipelago located just off the northwest coast of mainland Africa, 100 km west of the border between Morocco and the Western Sahara. The Canaries are a Spanish autonomous community and an outermost region of the European Union...
. The combination of these flights with a similar series of weekend IT flights from Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
on behalf of a British tour operator fully utilised one Britannia for that summer season.
In 1967, Lloyd International shifted its main operating base from Gatwick to Stansted
London Stansted Airport
-Cargo:-Statistics:-Infrastructure:-Terminal and satellite buildings:Stansted is the newest passenger airport of all the main London airports. The terminal is an oblong glass building, and is separated in to three areas: Check-in concourse, arrivals and departures...
. The latter also became the location of the airline's headquarters, which had been located in Central London
Central London
Central London is the innermost part of London, England. There is no official or commonly accepted definition of its area, but its characteristics are understood to include a high density built environment, high land values, an elevated daytime population and a concentration of regionally,...
since its inception.
In 1968, Lloyd International and its associated companies underwent a reorganisation. This resulted in the creation of Lloyd International Airways (Holding) as the group's holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
with J. Ortiz-Patiño as chairman. Lloyd International Airways (Holding) acquired the entire share capital of Lloyd International Airways, Lloyd Aircraft Services, Brokaloyd and other associated companies. Effectively, this constituted a transfer of shares from Aviation Management, a company based in Hong Kong, to the new British holding company.
In 1969, Lloyd International purchased two former British United Airways
British United Airways
British United Airways was a private, independentindependent from government-owned corporations British airline formed as a result of the merger of Airwork Services and Hunting-Clan Air Transport in July 1960, making it the largest wholly private airline based in the United Kingdom at the time...
(BUA) Britannia 307s. This doubled the size of the airline's Britannia fleet to four aircraft. These aircraft were fully convertible, with large freight doors. They could either be operated as pure freighters, in a mixed passenger/cargo configuration or as all-passenger aircraft seating up to 132 passengers. The addition of these aircraft gave the airline greater flexibility in its core long-distance charter operation, which mainly consisted of ad hoc passenger/seamen and cargo flights between Europe and the Far East, primarily to and from Hong Kong. Lloyd International also developed additional sales and promotional facilities on the Europe — Hong Kong route in association with the Ben Line, a well-known Far East
Far East
The Far East is an English term mostly describing East Asia and Southeast Asia, with South Asia sometimes also included for economic and cultural reasons.The term came into use in European geopolitical discourse in the 19th century,...
ern shipping line
Shipping line
-History of shipping lines:Large-scale shipping lines became widespread in the nineteenth century, after the development of the steamship in 1783. At first, Great Britain was the centr of development; in 1819, the first steamship crossing of the Atlantic Ocean took place and by 1833, shipping lines...
, to increase air cargo volumes.
Lloyd International's first jet aircraft
Jet aircraft
A jet aircraft is an aircraft propelled by jet engines. Jet aircraft generally fly much faster than propeller-powered aircraft and at higher altitudes – as high as . At these altitudes, jet engines achieve maximum efficiency over long distances. The engines in propeller-powered aircraft...
, an ex-Pan Am
Pan American World Airways
Pan American World Airways, commonly known as Pan Am, was the principal and largest international air carrier in the United States from 1927 until its collapse on December 4, 1991...
Boeing 707
Boeing 707
The Boeing 707 is a four-engine narrow-body commercial passenger jet airliner developed by Boeing in the early 1950s. Its name is most commonly pronounced as "Seven Oh Seven". The first airline to operate the 707 was Pan American World Airways, inaugurating the type's first commercial flight on...
-321, entered service in 1970. Lloyd's new long-haul jet operated affinity group flights across the North Atlantic
Atlantic Ocean
The Atlantic Ocean is the second-largest of the world's oceanic divisions. With a total area of about , it covers approximately 20% of the Earth's surface and about 26% of its water surface area...
to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
as well as passenger and freight charters to the Far East.
In January 1971, Lloyd International entered into an agreement with East African Airways
East African Airways
East African Airways Corp. was an airline jointly run by three countries in East Africa: Kenya, Tanzania; and Uganda, which were then part of an East African Community. The airline was headquartered in the Sadler House in Nairobi, Kenya...
Corporation (EAAC) to operate scheduled all-cargo services on the latter's behalf between London, Dar-es-Salaam
Dar es Salaam
Dar es Salaam , formerly Mzizima, is the largest city in Tanzania. It is also the country's richest city and a regionally important economic centre. Dar es Salaam is actually an administrative province within Tanzania, and consists of three local government areas or administrative districts: ...
, Nairobi
Nairobi
Nairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...
, Entebbe
Entebbe
Entebbe is a major town in Central Uganda. Located on a Lake Victoria peninsula, the town was at one time, the seat of government for the Protectorate of Uganda, prior to Independence in 1962...
and Lusaka
Lusaka
Lusaka is the capital and largest city of Zambia. It is located in the southern part of the central plateau, at an elevation of about 1,300 metres . It has a population of about 1.7 million . It is a commercial centre as well as the centre of government, and the four main highways of Zambia head...
. This was also the year the airline acquired two more 707
Boeing 707
The Boeing 707 is a four-engine narrow-body commercial passenger jet airliner developed by Boeing in the early 1950s. Its name is most commonly pronounced as "Seven Oh Seven". The first airline to operate the 707 was Pan American World Airways, inaugurating the type's first commercial flight on...
s, another -321 and a -324C. The latter was a convertible aircraft that could either be operated in an all-passenger, all-cargo or mixed passenger/cargo configuration. It was also the company's first turbofan
Turbofan
The turbofan is a type of airbreathing jet engine that is widely used for aircraft propulsion. A turbofan combines two types of engines, the turbo portion which is a conventional gas turbine engine, and the fan, a propeller-like ducted fan...
-powered jet.
In early-1972 Lloyd International increased its Far East Britannia freight services from six to eight a month, resulting in a twice-weekly operation to Singapore and Hong Kong. The increase in flight frequencies would have boosted annual available cargo capacity to 3.25m
Million
One million or one thousand thousand, is the natural number following 999,999 and preceding 1,000,001. The word is derived from the early Italian millione , from mille, "thousand", plus the augmentative suffix -one.In scientific notation, it is written as or just 106...
kg
Kilogram
The kilogram or kilogramme , also known as the kilo, is the base unit of mass in the International System of Units and is defined as being equal to the mass of the International Prototype Kilogram , which is almost exactly equal to the mass of one liter of water...
. This compared with an actual freight volume of 1.5m kg the previous year, representing an average load factor of 79% eastbound and 71% westbound. There was also a plan to operate all Far East freight services with an all-jet fleet entirely composed of convertible, turbofan-powered 707-320Cs by 1975.
Lloyd International's rapidly deteriorating financial performance as a result of cancellations and overcapacity in the low-yield
Yield (finance)
In finance, the term yield describes the amount in cash that returns to the owners of a security. Normally it does not include the price variations, at the difference of the total return...
transatlantic
Transatlantic flight
Transatlantic flight is the flight of an aircraft across the Atlantic Ocean. A transatlantic flight may proceed east-to-west, originating in Europe or Africa and terminating in North America or South America, or it may go in the reverse direction, west-to-east...
affinity group market, as well as the Government's refusal to direct the British Airports Authority (BAA) to reduce airport user charges at Stansted and its preferential treatment of British Caledonian by making it the private sector's "chosen instrument" as part of the official "Second Force" policy, compelled it to cease all operations on 16 June 1972 and to go into liquidation
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
.
Fleet details
- Boeing 707Boeing 707The Boeing 707 is a four-engine narrow-body commercial passenger jet airliner developed by Boeing in the early 1950s. Its name is most commonly pronounced as "Seven Oh Seven". The first airline to operate the 707 was Pan American World Airways, inaugurating the type's first commercial flight on...
- Bristol BritanniaBristol BritanniaThe Bristol Type 175 Britannia was a British medium-to-long-range airliner built by the Bristol Aeroplane Company in 1952 to fly across the British Empire...
- Canadair CL-44Canadair CL-44The Canadair CL-44 was a Canadian turboprop airliner and cargo aircraft based on the Bristol Britannia that was developed and produced by Canadair in the late 1950s and early 1960s...
- Douglas DC-4Douglas DC-4The Douglas DC-4 is a four-engined propeller-driven airliner developed by the Douglas Aircraft Company. It served during World War II, in the Berlin Airlift and into the 1960s in a military role...
- Douglas DC-6Douglas DC-6The Douglas DC-6 is a piston-powered airliner and transport aircraft built by the Douglas Aircraft Company from 1946 to 1958. Originally intended as a military transport near the end of World War II, it was reworked after the war to compete with the Lockheed Constellation in the long-range...
Fleet in 1966
In April 1966 the Lloyd International Airways fleet comprised 5 aircraft.| Aircraft | Number |
|---|---|
| Bristol Britannia 312F Bristol Britannia The Bristol Type 175 Britannia was a British medium-to-long-range airliner built by the Bristol Aeroplane Company in 1952 to fly across the British Empire... |
2 |
| Douglas DC-6AB Douglas DC-6 The Douglas DC-6 is a piston-powered airliner and transport aircraft built by the Douglas Aircraft Company from 1946 to 1958. Originally intended as a military transport near the end of World War II, it was reworked after the war to compete with the Lockheed Constellation in the long-range... |
1 |
| Douglas DC-4 Douglas DC-4 The Douglas DC-4 is a four-engined propeller-driven airliner developed by the Douglas Aircraft Company. It served during World War II, in the Berlin Airlift and into the 1960s in a military role... |
2 |
| Total | 5 |
Two Canadair CL-44J (400)
Canadair CL-44
The Canadair CL-44 was a Canadian turboprop airliner and cargo aircraft based on the Bristol Britannia that was developed and produced by Canadair in the late 1950s and early 1960s...
were on order.
Lloyd International Airways employed 100 people at this time.
Fleet in 1972
In May 1972 the Lloyd International Airways fleet comprised 7 aircraft.| Aircraft | Number |
|---|---|
| Boeing 707-324C Boeing 707 The Boeing 707 is a four-engine narrow-body commercial passenger jet airliner developed by Boeing in the early 1950s. Its name is most commonly pronounced as "Seven Oh Seven". The first airline to operate the 707 was Pan American World Airways, inaugurating the type's first commercial flight on... |
1 |
| Boeing 707-321 Boeing 707 The Boeing 707 is a four-engine narrow-body commercial passenger jet airliner developed by Boeing in the early 1950s. Its name is most commonly pronounced as "Seven Oh Seven". The first airline to operate the 707 was Pan American World Airways, inaugurating the type's first commercial flight on... |
2 |
| Bristol Britannia 307/312F Bristol Britannia The Bristol Type 175 Britannia was a British medium-to-long-range airliner built by the Bristol Aeroplane Company in 1952 to fly across the British Empire... |
4 |
| Total | 7 |
Lloyd International Airways employed 260 people at this time.
Accidents and incidents
There is one recorded non-fatal accident involving Lloyd International Airways.On 8 October 1961 a Lloyd International Airways Douglas C-54A-1-DC (registration: G-ARLF) burnt out at Málaga Airport
Málaga Airport
Málaga Airport , also known as Malaga Costa Del Sol Airport and Pablo Ruiz Picasso Airport, is the fourth busiest airport in Spain after Madrid-Barajas, Barcelona and Palma de Mallorca. It is an important airport for Spanish tourism as it is the main international airport serving the Costa Del Sol....
following the explosion of a petrol tanker during refuelling. The aircraft had arrived at Málaga
Málaga
Málaga is a city and a municipality in the Autonomous Community of Andalusia, Spain. With a population of 568,507 in 2010, it is the second most populous city of Andalusia and the sixth largest in Spain. This is the southernmost large city in Europe...
from Tanger and was due to depart to Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
. Although it was destroyed as a result of the explosion, none of the 34 passengers who had arrived on board the ill-fated aircraft and the other 32 who were due to join the flight were injured because they were waiting inside the airport building at the time of the accident. However, those who had started their journey in Tanger lost all their luggage.
External links
- Aviation Safety Network database – Lloyd International Airways accidents/incidents
- Lloyd International Airways Bristol 175 Britannia 312F G-AOVS on the ramp at London Gatwick on 25 September 1966.
- Lloyd International Airways Bristol 175 Britannia 317 G-APNA on the ramp at Liverpool Speke on 9 November 1968. Donaldson titles are displayed by the aircraft's rear door.