British Caledonian
British Caledonian (BCal) was a private independent airline in the
A series of major financial setbacks during the mid-1980s combined with the airline's inability to grow sufficiently to reach a viable size put it at serious risk of collapse. British Caledonian began looking for a merger partner to improve its competitive position. In December 1987, British Airways (BA) bought the airline. The Caledonian name was used to rebrand BA's Gatwick-based subsidiary British Airtours as Caledonian Airways.
History
Inception
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On
Caledonian's acquisition of BUA from B&C did not include the assets of British United Island Airways (BUIA), BUA's regional affiliate.[4][5]
BCal was a wholly owned subsidiary of Caledonian Airways Ltd.
The airline's formation followed publication of the Edwards report entitled British Air Transport in the Seventies in 1969.
BCal was a full member of the
BCal inherited from its predecessors 31 jet aircraft: 11 long-haul aircraft (seven ex-Caledonian
This made BCal the UK's foremost independent airline of the time. Although Dan-Air and Britannia Airways exceeded BCal's total annual passenger numbers from 1975, BCal maintained its position as Britain's leading independent international scheduled airline, in terms of both the number of scheduled passengers carried each year and the total yearly scheduled capacity measured in passenger kilometres,[nb 7] throughout its 17-year existence.) The newly created company's output measured in available capacity tonne kilometres[nb 8] was greater than that of some of the smaller, contemporary European flag carriers, such as Aer Lingus, Air India,[20] Sabena, or Swissair. By that measure, BCal was about the same size as Australia's flag carrier Qantas.[17][2][19]
The
Before adopting the British Caledonian name, the new airline legally constituted two separate entities — Caledonian Airways (Prestwick) Ltd and British United Airways Ltd. These traded together under the interim name Caledonian//BUA until September 1971.[1][7][27][28] The combined airline carried a total of 2.6 million passengers during its first year of operation.[4][16]
For accounting purposes, BCal's aircraft were respectively allocated to a "BUA Division" and "Caledonian Division" during the interim period. The former was responsible for all IATA activities. This encompassed all scheduled services. The latter was responsible for all non-IATA work. This included all non-scheduled operations.
During that period, former BUA air hostesses still wearing that airline's blue uniforms were working alongside their tartan-clad, former Caledonian counterparts in the cabins of all passenger flights. Eventually, the Caledonian tartan uniforms became BCal's standard for female staff.[citation needed]
Following the interim period, Caledonian Airways (Prestwick) Ltd and British United Airways Ltd were merged into British Caledonian Airways Ltd (BCal).)
The "Second Force" inherited BUA's extensive network of scheduled routes serving the British Isles, Continental Europe, Africa and South America.
The Government also agreed to let it serve
Another important concession by the Government designed to improve the competitiveness of the "Second Force" was to permit it to provide a
In addition, BCal became the Government's "chosen instrument of the private sector".[47] This meant that the Government agreed to accord preferential status to BCal's worldwide scheduled ambitions, especially in the award of additional licences to operate scheduled services on major domestic and international trunk routes.[47][48][49] The Government hoped that putting BCal's requirements ahead of other UK-based independent airlines' rival scheduled ambitions would help the new "Second Force" develop into a fully fledged, major international scheduled airline, thereby enabling it to achieve the critical mass to challenge the corporations' near-monopoly among UK-based scheduled airlines.[48][49]
The Central London air terminal at Victoria Station in London's West End, which the "Second Force" inherited from BUA as well, allowed passengers to complete all check-in formalities, including dropping off their hold luggage, before boarding their train to the airport.[50][51][52]
BCal also had a Gatwick airside lounge for its premium passengers, which it named Clansmen Lounge.
Formative years
BCal commenced scheduled operations from Gatwick to Nigeria (
BCal ended its 1970/71
In 1972, BCal extended its East African network to the
1972 was also the year BCal introduced the UK's first-ever "no frills" type service on the two main domestic trunk routes linking London and Scotland.[64] The airline introduced simultaneous night-time departures from Gatwick, Glasgow and Edinburgh, resulting in an overall frequency increase to six daily round-trips on each route. The company charged a very low £5 one-way fare on these night-time services, which were marketed under the Moonjet trademark.[2][65][60][66] This move, which was modelled on the high-frequency-low-fares operation run by Pacific Southwest Airlines (PSA), the original "no frills" airline, along the busy San Diego—Los Angeles—San Francisco air corridor in California, boosted passenger numbers and profitability on both routes.[2][67]
During that year, larger capacity, longer
As a result of the then prevailing, ruinous rates in the
To support its ambitious expansion plans,
BCal inaugurated its two transatlantic flagship services from London Gatwick to
In 1973, BCal also inaugurated its fourth scheduled domestic trunk route between London Gatwick and Manchester. The new service was contracted to British Island Airways (BIA), BUIA's successor, which operated two daily return trips using its Handley Page Dart Herald turboprops.[85][86]
On 20 March 1974, BCal switched its Gatwick—Paris services to the then brand-new
To further extend the network's reach and improve its connectivity, BCal agreed to host Dan-Air's new, twice daily Gatwick—Newcastle flights, which began on 20 April 1974, in its computer reservation system (CRS) as part of a combined marketing effort.[89][90]
June 1974 saw the launch of BCal's non-stop Gatwick—Brussels scheduled route, the third European trunk route[nb 11] on which the airline operated scheduled services in competition with the incumbent flag carriers' established services from Heathrow.[91]
1974 crisis year
The creation of British Airways (BA) as a result of the 1974 BEA-BOAC merger came against the background of the first global oil crisis in the wake of the 1973 Arab-Israeli War, which led to the quadrupling of the price of a barrel of oil as a consequence of the decision by the Organization of Petroleum Exporting Countries (OPEC) to boycott the West in retaliation for its support of Israel during that war. This meant that the newly merged corporation's original revenue and profit projections were far too optimistic. During that time, BA began exerting pressure on the Government, at the time its sole owner as well as the regulator for all UK airlines, to curtail the activities of its independent competitors generally and of the "Second Force" in particular.[92][failed verification]
The difficult operating environment at the time did not affect BA alone. In fact, the major scheduled airlines were all losing enormous amounts of money at the time. The sudden spike in the oil price caused a major recession during the second half of 1974 as well as the first half of 1975, with much reduced demand for air travel. This in turn led to the collapse of a number of prominent travel companies and their associated airlines — most notably the
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These circumstances forced BCal to put in place a major programme of retrenchment, known internally as Plan "S" (from "survival")[96][97] Plan "S" began to be implemented from 1 November 1974. It resulted in route cut-backs — including the suspension of the transatlantic "flagship" services, of which Flight International said the fuel crisis was a "heaven-sent excuse" to back out of a failure.[92][94][95] the immediate withdrawal and subsequent disposal of the remaining VC10 long-haul aircraft,[33] the grounding of a number of short-haul aircraft as well 827 redundancies out of the company's 5,673 staff.[8][98][99][100] It also resulted in organisational changes that saw Adam Thomson become the airline's chief executive in addition to continuing in his role as chairman of a reconstituted board,[4] and the transfer of all aircraft leasing, purchase and sale activities to a new subsidiary. British Caledonian Aircraft Trading was the name of the company that succeeded Caledonian Airways Equipment Holdings, Caledonian Airways (Leasing) and other related interests.[8] It became one of the most profitable parts of the business.
In addition to withdrawing from the prestigious long-haul routes to New York and Los Angeles after only 18 months,
Even during this period of severe retrenchment, BCal continued launching scheduled services to new destinations. Dakar joined the airline's network on 1 November 1974,[99] followed by Kinshasa on 1 April 1975.[105]
As a result of the "success" of Plan "S", BCal's fortunes quickly recovered. The airline operation itself made a small profit of £250,000 during the financial year ended 30 September 1975[nb 13] after having lost £4.3 million the year before.[106][107]
Spheres of influence
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The then
The Government's new "spheres of influence" aviation policy confined BCal's long-haul scheduled operations to two continents — Africa and South America.[21][115] The loss of BCal's East African routes enabled the airline to replace the one-stop scheduled service via Nairobi to Lusaka with non-stop flights.
During 1976, BCal's recovery continued, leading to the introduction of a new scheduled route to Algiers and the reinstatement of scheduled services to Tunis. It also led to BCal's decision to replace the two daily Gatwick—Manchester round-trips BIA had operated with turboprops with a BCal One-Eleven service from the start of the 1976–77 winter timetable period. This equipment change was accompanied by the addition of a third daily frequency.[nb 14][104]
BCal ended its 1975/76 financial year with a healthy profit of £5.6 million.[100]
Bermuda II treaty
In July 1976,
Under the new agreement, BCal had its licences to commence scheduled services from its Gatwick base to both
During the Bermuda II negotiations, the UK side succeeded in having inserted into the new air services agreement a clause stating that Gatwick — rather than Heathrow — was to be nominated as the designated US flag carrier's London gateway airport whenever BCal was going to be the sole designated UK flag carrier on the same route. This clause was meant to support the growth of BCal's scheduled operation at Gatwick as well as to redress the competitive imbalance between it and its much bigger, more powerful rivals.[119][121]
The UK side furthermore succeeded in negotiating a three-year exclusivity period for the incumbent operator on any new route with their US counterparts.[118][119][121][125]
For Gatwick-based BCal this meant that it did not have to face any competitor that was using Heathrow, a more accessible airport with a bigger catchment area and a far greater number of passengers connecting between flights, on any of the new routes it was planning to launch to the US. It also meant that it had any new route to the US completely to itself for the first three years of operation, which most airline industry analysts reckon is sufficiently long for a brand-new scheduled air service to become profitable.[119][121][125]
At British insistence, Bermuda II furthermore contained clauses that made it illegal for any airline operating scheduled flights between the UK and the US to resort to predatory pricing or capacity dumping. Air fares were only approved if they reflected the actual cost of providing these services. Similarly, capacity increases were sanctioned on a reciprocal basis only. The reason for insisting on the inclusion of these provisions in the Bermuda II agreement was to prevent the much bigger, better financed and commercially far more aggressive US carriers from undercutting BCal with loss-leading fares cross-subsidised with profits those carriers' vast domestic networks generated, as well as to stop them from marginalising the UK carrier by adding capacity far in excess of what the market could sustain.
Both sides also agreed to continue dual designation[nb 15] on the London—New York and London—Los Angeles routes. The principle of dual designation was to be extended to another two high-volume routes.[117][119][121]
BCal resumed scheduled transatlantic services on 24 October 1977.
Beginning of the widebody era
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Following an exhaustive, three-week evaluation of the Boeing 747, the
On 13 March 1977, the first of the two DC-10s ordered arrived at the airline's Gatwick base from Prestwick at the end of a delivery flight from the manufacturer's plant in Long Beach, California.[114][135]
The aircraft, which was configured in a 265-seat, two-class layout, entered commercial service on BCal's busy West African trunk routes to Nigeria and Ghana later the same month, replacing the airline's Boeing 707s on six of the seven weekly services on these routes.[100][114]
The second aircraft, which arrived at Gatwick in early May of that year,
The DC-10's superior operating economics[
Although the introduction of the DC-10 resulted in a huge increase in BCal's long-haul passenger and cargo capacity, the actual loads exceeded the airline's forecasts and helped it grow its traffic volumes on its scheduled services to West Africa and South America.[137]
BCal was so pleased with the DC-10's performance that it decided to convert both of the options it had taken when placing the original order for two aircraft during 1976 into firm orders for delivery in autumn 1978 and spring 1979 respectively. However, a subsequent strike at the manufacturer's plant meant that
Attaining success
By 1978, BCal had fully recovered from the 1974 crisis year, which had threatened its very existence at that time. After the severe contraction forced upon it by the early 1970s' oil crisis, the company's core scheduled operation was growing again with new widebodied aircraft and routes being added and schedules being expanded. Business was booming with planes being fuller than at any time in the firm's history. The airline recorded a pre-tax profit of £12.2 million during its 1977/78 financial year to 31 October 1978.[143][144] This translated into a £10 million retained profit. It was the company's best financial result since its formation back in November 1970. BCal's senior management decided to allocate £644,000 of the retained profit to a new profit-share scheme[143][145] to reward its staff for their hard work, and as an incentive for the future.[146] BCal's profit-share scheme, which began the following year, was one of the first of its kind in the UK airline industry.
BCal also became a "scheduled service only" airline during 1978,[147] implementing a decision taken the year before when the share of passengers travelling on charter flights had declined to just 15% of all passengers carried. There were two reasons for BCal's withdrawal from the charter market:
- A 25% contraction of the transatlantic ABC flights market as a result of the initial success of the daily Laker Airways Skytrain low-fares, "no frills" scheduled operation between London Gatwick and New York JFK, which had begun in the previous year's autumn season.[148]
- A steady decline in charter rates in the European package tour holiday market where BCal used to supply whole-plane charter seats to its Blue Sky Holidays tour operator affiliate as well as third party tour companies.
1978 was also the first year BCal operated the majority of its scheduled services plying the prime long-haul routes to West Africa and South America with widebody equipment.
At the start of that year's summer timetable period, flight frequencies on BCal's Gatwick—Glasgow and Gatwick—Amsterdam routes increased to five round-trips per day on week days. During that period, the airline also resumed its Edinburgh—Newcastle—Copenhagen service, which it had abandoned in 1974.
During 1978,
In early 1978, BCal introduced an updated livery.[30][125]
1978 was furthermore the year Adam Thomson held the chairmanship of the Association of European Airlines (AEA).[nb 16]
In addition, the
The year before, the Government had announced its intention to take pro-active steps to help ensure Gatwick's development as a genuine alternative to Heathrow. It was hoped that this in turn would assist BCal's development as a serious alternative to BA and the other major, established scheduled airlines.[144] These steps included inviting BCal and Britain's other independent airlines to apply to the CAA for route licences to operate scheduled services to destinations in the British Isles and in Continental Europe that were not already served from Gatwick, thereby increasing the reach of the airport's scheduled route network as well as providing more connecting traffic for BCal.[144]
BCal was keen to expand its limited short-haul European network beyond the existing four routes linking London Gatwick with Paris Charles de Gaulle,
Government initiatives in support of Gatwick's development also included new policies to transfer all scheduled services between London and Canada as well as London and the
Another pro-active measure the Government took to aid BCal's and Gatwick's development at the time was to grant permission for
This service was operating 10 times a day in each direction
The service gave BCal's passengers easier access to flight connections at Heathrow, especially to destinations not served by scheduled flights from Gatwick at the time.
It was used by 60,000 passengers during the first year of its operation.[164]
1978 was also the year BCal set up a task force headed by Gordon Davidson, BA's former Concorde director, to investigate the possibility of operating the Concorde supersonic airliner viably on the airline's long-haul route network as there were still two unsold, "white tail" examples available at that time.[144][166][167][168][169][170]
Another important reason for BCal's decision to set up a Concorde task force was that the 1976 aviation policy review had exempted Concorde from the "spheres of influence" policy[110] and therefore it was possible for BA to operate supersonic services to prime business and leisure destinations within BCal's sphere of influence, such as Lagos or Rio de Janeiro for example. To ward off this potential threat, BCal's senior management decided to develop its own Concorde plans, either independently or in partnership with BA.[108]
The most obvious choice for a supersonic service was Gatwick—Lagos, the backbone and main money spinner of BCal's scheduled operation.
BCal put in a bid to acquire one of the remaining two "white tail" aircraft.[144][166][169] The bid was not successful.
However, BCal eventually arranged for two aircraft to be leased from BA and
Both supersonic services were to be launched at the start of the 1980 summer timetable period.
In 1979, the airline took delivery of its delayed third and fourth McDonnell Douglas DC-10-30 widebodied aircraft during the first and third quarter. This permitted the aircraft's introduction on its daily Gatwick—Houston schedule as well as the replacement of the remaining 707-operated services on its mid- and South Atlantic routes.[138] The narrow-bodied capacity released was used to add frequencies on existing routes as well as to launch services to new medium- and long-haul destinations. As a result, BCal launched a fourth weekly service to Brazil.[175] It also launched a new route to Oran[176] and added Quito[177] and Guayaquil[177] to the mid-Atlantic schedule.[178] The company furthermore increased frequencies on its short-haul routes. A fourth daily round-trip was added to both Gatwick—Manchester and Gatwick—Brussels. A third daily frequency operating on week days was added to the Newcastle—Amsterdam sector of BCal's Glasgow—Newcastle—Amsterdam regional route.
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During that year, BCal also established a wholly owned helicopter subsidiary[179] and it placed the UK launch order for a brand-new widebodied aircraft, the Airbus A310.[180]
This was also the time BCal came up with a proposal to create a new network of European low-fare services. These were to be marketed under the trademark Miniprix and were meant to counter
BCal was evaluating both the McDonnell Douglas MD-80 narrowbody as well as the Airbus A310 and Boeing 767 widebodies as suitable long-term replacements for its existing narrow-bodied aircraft on these routes.[174][181][183][184]
BCal's setbacks during 1979 included continuing frustration of the airline's desire to launch scheduled services to Scandinavia despite the conclusion of a new
With their DC-10s grounded, BCal took a short-term lease of a 747 to provide adequate capacity on its
Network expansion
![British Caledonian DC-10-30 G-BHDJ](http://upload.wikimedia.org/wikipedia/commons/thumb/9/9d/British_Caledonian_DC-10-30_G-BHDJ.jpg/220px-British_Caledonian_DC-10-30_G-BHDJ.jpg)
BCal took delivery of three more
These planes enabled the launch of new routes – to
This accelerated pace of growth made BCal the fastest growing member airline of the Association of European Airlines (AEA) in both 1980 and 1981.[198]
BCal received a boost during 1980, when the Civil Aviation Authority (CAA) approved carriers (BCal, Cathay Pacific and Laker – subject to ratification) on the London – Hong Kong route to be able to pick up and put down passengers at intermediate stops in the Gulf states as the Hong Kong route was not otherwise expected to generate enough revenue for four carriers. For BCal this meant using their Dubai refuelling stop to carry passengers, cargo and mail between London and Dubai and Dubai and Hong Kong, despite objections from British Airways (BA) which already had such rights for Dubai and Bahrain.[199][200]
BCal's 10th anniversary on 30 November 1980 coincided with the completion of its new corporate headquarters — aptly named Caledonian House — in Crawley's Lowfield Heath area close to the airline's Gatwick base. It was the first purpose-built headquarters in the company's history, which was designed to accommodate all 1,100 office-based staff at the airline's Gatwick base under one roof.[201][202]
The high oil price during that period was a mixed blessing for BCal. It helped the airline fill its premium cabins on its oil-related business routes to Nigeria, Libya and Texas. On the other hand, the escalation of the jet fuel price and the fact that the high price of oil had considerably worsened the severe recession in Britain at that time significantly increased the company's operating costs, while at the same time reducing overall demand for its flights. BCal therefore decided to reduce off-peak frequencies on most of its short-haul routes from the start of the 1980/81 winter timetable period. This also included combining week-end, off-peak flights from Gatwick to Glasgow, Edinburgh and Manchester by converting non-stop flights into one-stop operations.
Among the set-backs BCal suffered at that time were the CAA's rejection of its application to serve
BCal ended the 1979/80 financial year with a healthy profit of £9.7 million.[204]
BCal received another new DC-10-30 widebody in 1981.[193][194][197] The delivery of this aircraft enabled the airline to increase frequencies on the prime long-haul routes to West Africa from seven to 10 weekly round-trips.[205][failed verification] It also permitted a frequency increase on the Gatwick—Dubai—Hong Kong route from four to five weekly round-trips.
At the start of the 1981/82 winter timetable period, BCal added Douala (Cameroon) to its network.[206]
Also in 1981, BCal opened a new engine overhaul plant at
BCal's search for a more fuel-efficient replacement for its ageing
In 1981, BCal applied to the UK and Australian authorities for permission to launch a fully fledged, three-class scheduled service
BCal ended its 1980/81 financial year with a £6.2 million loss as a result of high fuel prices, a major recession on both sides of the Atlantic and heavy route development costs.[204]
Expanding eastwards
As a result of the network structure BCal had inherited from British United Airways (BUA), an exclusive north–south airline, it became a predominantly north–south orientated carrier as well. The predominant north–south route structure had been further reinforced by the 1976 "spheres of influence" policy, which had locked the airline's long-haul operation into two continents — Africa and South America.[215][216]
BCal's senior management realised that it needed to develop the traffic flows across its network in an east–west direction to increase the network's reach and to enable its passengers to make omnidirectional flight connections. This was also essential to enable the airline to increase its economies of scale and to reach the minimum size envisaged in the Edwards report.[217][218]
BCal's new Gatwick—Dubai—Hong Kong route was intended to be just the first step in this expansion to the East.
BCal had proposed running a conventional scheduled service from Gatwick to Hong Kong via Dubai utilising its rapidly growing fleet of McDonnell Douglas DC-10-30 widebodies in a three-class configuration featuring a first and an executive class in addition to an economy cabin. BCal had also agreed to offer a limited number of low fares that would match the lowest fares Laker had proposed. The CAA decided to license BCal to operate unlimited scheduled services between London and Hong Kong.,[195][225] rejecting both Cathay Pacific's and Laker's applications, clearing the way for BCal to become the second British scheduled carrier on that route.[195][225]
However, Hong Kong's Air Transport Licensing Authority (ATLA) unexpectedly refused to endorse BCal because many influential people in the Crown Colony felt very upset that Cathay Pacific was going to be excluded from one of the world's most lucrative air routes. This caused a minor diplomatic row between the UK government and the colonial administration in Hong Kong. Cathay Pacific immediately began a back-door lobbying campaign in the Crown Colony as well as in London, stressing that it had invested millions of
With the competition from Cathay Pacific, BCal decided to operate only four weekly round-trips instead of a daily service they had originally planned.[195][196] Cathay Pacific commenced a thrice-weekly service between Hong Kong and Gatwick via Bahrain on 17 July 1980 ahead of BCal, which began its four-times-a-week Gatwick—Hong Kong service via Dubai on 1 August 1980.[195][196]
Routes to Europe
Following BA's decision to abandon the short-haul routes it had been operating from London Gatwick at low frequencies since 1978 and to surrender a number of unused licences to the CAA, BCal, Laker Airways and Dan-Air requested the CAA to transfer these licences to themselves.
BCal applied to take over BA's London Gatwick—Frankfurt route and its dormant Gatwick—Geneva[226] licence. BCal was awarded licences for both routes.[227][228][229]
The fairly liberal
The launch of the two new routes coincided with the introduction of a dedicated business class cabin on all of BCal's short-haul flights to Europe, the first time the airline had offered two classes on its short-haul routes since its inception, with the exception of a brief period in the early 1970s during which it had offered a first class on the Gatwick—Paris route. BCal used the Executive Class brand for both its new European and its longer established long-haul business class.
Falklands War and re-entry into the charter market
![British Caledonian Charter DC-10-10](http://upload.wikimedia.org/wikipedia/commons/thumb/c/c3/British_Caledonian_Charter_DC-10-10.jpg/220px-British_Caledonian_Charter_DC-10-10.jpg)
The 1982
Laker Airways's collapse at the beginning of February of that year provided BCal with additional work to utilise its spare aircraft capacity.
Laker Airways's demise also enabled BCal to relaunch a daily service between Gatwick and
Despite being a difficult year for BCal, it managed to stay in the black during that period. The airline made a pre-tax profit of £1.1 million, which translated into a £300,000 retained profit, in the financial year to 31 October 1982.[234]
Launching a new narrow-bodied aircraft
In 1983, BCal became the first non-French airline to order the Airbus A320. BCal placed a firm order for seven A320s and took an option on another three, with deliveries of the aircraft on firm order due to commence during the spring of 1988. The options were subsequently converted into firm orders as well.[235][236][237][238]
Although the A320 was bigger than BCal's actual requirement, it was the technologically most advanced contender with 27% lower seat-mile costs than the BAC One-Eleven.[239] Airbus Industrie had also offered the airline a generous discount to sign up as a launch customer. Having BCal [co-]launch a brand-new narrow-bodied aircraft, gave the manufacturer added credibility in its global sales campaigns. This was of particular importance in the all-important US market, which Airbus needed to penetrate with its new aircraft if it wanted to break the stranglehold Boeing had enjoyed in this market segment with the 737 for over 15 years. Airbus knew that the major US carriers would be suspicious of the new aircraft's commercial credentials if only state-owned (and at the time subsidised) airlines (Air France and Lufthansa) of countries, whose aerospace industries benefitted from orders, as launch customers. Therefore, having a successful wholly independent airline with a major, worldwide scheduled presence like BCal order a brand-new, technologically advanced aircraft came in handy.
BCal intended to use its A320s to replace the ageing One-Elevens on its short-haul European and medium-haul North African routes.[238]
1983 turned out to be another tough year for BCal. Continuing restrictions on the airline's South American services and other schedule cutbacks in response to the early 80s recession reduced aircraft utilisation. This led to a decision to fill spare long-haul aircraft capacity with third-party work. BCal's third-party business included a twice weekly Gatwick—Luxembourg—Barbados service on behalf of Caribbean Airways,[240] weekly Gatwick—Frankfurt—Mahé services under contract to Air Seychelles and a wet lease agreement with Surinam Airways to operate a weekly Paramaribo—Gatwick—Amsterdam service. The Caribbean Airways and Air Seychelles contracts used spare capacity on BCal's DC-10-30s, while the Surinam Airways wet lease utilised the ex-Laker DC-10-10s operated by British Caledonian Charter.[241][242] Although BCal's airline operation incurred a loss of £655,000 in the financial year to 31 October 1983, the airline managed to make an overall pre-tax profit of £2.6 million. This translated into a £300,000 retained profit at group level.[234][243]
Reorganisation and improved industrial relations
During the early 1980s, BCal and its affiliated companies adopted a new organisational structure to reflect the growth in the group's business and the diversification into new activities. Caledonian Aviation Group (renamed British Caledonian Group in 1986) became the new
In addition, this was the time BCal, which had always prided itself on its industrial relations record, claiming it never lost a full day's operation as a result of industrial action[234][244] began implementing a new co-operative, industrial relations strategy. The airline termed its new industrial relations strategy "The Way Ahead".[245][246][247] This strategy was designed to make the airline the most productive among its peers in Europe by redefining established working practices. Its aim was to achieve a significant reduction in labour costs through increased productivity, thereby putting the firm ahead of its rivals. It was hoped that this would ultimately translate into higher profits as well.[247]
The strategy sought to gain acceptance (among eligible BCal employees) by offering them a higher basic rate of pay and a greater personal involvement in the management's decision-making process in return for forgoing overtime pay and agreeing to new, more efficient working practices that resulted in increased
The successful implementation of the new industrial relations strategy in 1983 made BCal employees the highest paid airline staff in the UK at the time.[citation needed]
A major shakeup
In 1984, the UK Government began to prepare then wholly state-owned BA for privatisation in earnest by appointing a new
To redress this competitive imbalance, BCal proposed to the Government the transfer of several of BA's most lucrative long-haul routes to itself
BCal's senior management told the Government that the only alternatives to this proposal were shifting its existing scheduled operation from Gatwick to Heathrow's then new Terminal 4,
In June 1984, BCal's original proposal to share out BA's routes ahead of the latter's privatisation was followed up by a plan BCal had jointly formulated with eight other UK independent airlines. This plan sought to give the independents a greater share of the UK's air transport market by reducing BA's share. Measured in terms of capacity tonne kilometres (CTKs), it would have increased the independents' share from 17% to 40% while reducing BA's share from 83% to 60%. For BCal alone this would have doubled its share from 15% to 30%. In their submission the independents claimed that privatising BA in its existing shape would allow it to dominate and destroy its competition. They also regarded BA's continuing dominance as incompatible with the CAA's goal of a less-regulated air transport market. BA countered the independents' contentions by maintaining that rather than benefiting consumers through increased competition, the independents' intent generally, and BCal's in particular, would merely result in substituting its own services with those of other carriers.[263]
The opposing views of Britain's leading independent airlines on one hand and BA on the other regarding the future shape of the British air transport industry led to a review of the Government's airline competition policy by the CAA. The result was CAP 500, a Government-commissioned
The CAA broadly endorsed BCal's proposals by recommending the transfer of BA's routes to Saudi Arabia and Harare as well as its Caribbean and Iberian peninsula routes to BCal. The CAA also recommended removing all capacity restrictions on BCal's existing short-haul European routes. It furthermore advocated increasing the opportunities for designating BCal as the second UK flag carrier on additional long-haul routes where BA was the only UK scheduled airline. This was to be achieved through appropriate amendments to the relevant bilateral agreements.[257][265]
Full implementation of CAP 500 would have resulted in strengthening BCal's position at Gatwick by making it the sole UK scheduled airline on all trunk routes from that airport while maintaining BA's status as the dominant UK scheduled carrier at Heathrow.[257][265]
In the event, under pressure from BA's board and to ensure BA's successful flotation, the Government decided not to accept the CAA's recommendations in full.[266] Instead, it settled on a limited route transfer from BA to BCal.[267] This entailed transferring BA's profitable Saudi Arabian routes to Dhahran and Jeddah to BCal to add to its new route to the Saudi capital Riyadh.[257][267] The Government thought that this would strengthen BCal by making it the sole UK flag carrier to all of Saudi Arabia and that it would tie in well with BCal's "linking the oil capitals of the world" corporate strategy, which it had successfully pursued since the late 1970s. To be seen as even-handed by both parties and to counter BA's accusations of displaying favouritism towards BCal, the Government required BCal to hand over to BA its loss-making South American routes as well as its unused licences to serve a number of additional destinations in the US and Morocco.[257][267][268]
The limited route transfer on which the Government had decided was far less ambitious than either BCal's own proposals or the CAA's recommendations and would still leave it far smaller than BA and the giant US carriers. Although this was less than it had bargained for, BCal's senior management decided to accept the Government's decision because they estimated the two Saudi Arabian routes BA was going to transfer to be worth £18 million in additional annual profits.
The route transfer was to take place at the start of the 1985 summer timetable period.
Reaching new heights
1984 was a record year for BCal. It ended the financial year to 31 October 1984 with a pre-tax profit of £17.1 million, which surpassed the record financial performance of 1978. This translated into a £10.9 million retained profit at group level.[234] These profits were the result of improvements in the British economy, which had recovered from the severe recession of the early 1980s, and BCal beginning to reap the benefits of the new industrial relations strategy it had begun implementing the year before.
Also in 1984, BCal received two brand-new A310-200 widebodies at its Gatwick base.[270][271]
In 1984, the CAA awarded BCal a licence to commence scheduled services from Gatwick to
Libreville was added to the network during 1984. At the start of the summer timetable period, frequencies to Frankfurt and Geneva increased to three daily round-trips. Connectair[274] and RFG[274] joined the British Caledonian Commuter scheme adding new, regional feeder routes from Gatwick to Antwerp and Paderborn. Connectair also assumed the operation of BCal's Gatwick—Brussels route. BCal furthermore decided to withdraw its Glasgow—Newcastle—Amsterdam regional service to focus its operations on providing worldwide scheduled services from London only.
BCal decided to retire the four ex-Laker
1984 also marked the end of the long-haul, narrow-bodied era for BCal when the last Boeing 707 left its fleet.[276]
1985 was the year that broke all previous financial records at BCal. The pre-tax profit in the financial year to 31 October 1985 reached an all-time high of £21.4 million. The retained group profit for that period was £11.3 million.[234] The profit attributable to BCal's airline operation represented an improvement of almost £12 million compared with the previous year's results.[276] During that year, BCal carried 8% more passengers and 20% more cargo compared with the year before.[276]
The limited route transfer on which BCal had agreed with BA and the Government took effect at the start of the 1985 summer timetable period, when BCal commenced scheduled operations from Gatwick to Dhahran and Jeddah, replacing the BA service from Heathrow.[277][278] At the same time, BCal relinquished its traffic rights to Recife, Salvador, Rio, São Paulo, San Juan, Caracas and Bogotá. BA acquired these traffic rights and began serving most of these destinations from Heathrow.[278]
A second
The temporary lease of a Viscount sporting the full BCal livery[281] for the duration of the 1985 summer timetable period enabled the airline to increase capacity on the Gatwick—Brussels route by replacing smaller aircraft Connectair had used to operate that service under the British Caledonian Commuter scheme and to add more capacity on week-ends on the busy Gatwick—Jersey route.[282][283]
Two more, second-hand DC-10-30s were acquired to replace BCal's A310s, which left the fleet when the additional DC-10s arrived.[279][284]
1985 also saw the establishment of British Caledonian Flight Training, a new flight crew training facility.[285]
As Gatwick became busier, BCal's senior management called on the Government to ban all
The Government decided to meet BCal's request for a ban on all charter flights from Gatwick half-way by agreeing to give preference to scheduled services in all future slot allocations at the airport.
A new airline for Europe
The collapse of the oil price during the mid-1980s had serious repercussions for BCal's revenue and profit projections as this impacted the oil-related business routes on which the airline had depended for most of its profits since the late 1970s. All of these routes carried fewer premium business travellers than anticipated. This in turn led to a sharp decline of those routes' profitability and, hence, their contribution to the airline's overall profitability. In the case of the newly acquired Saudi Arabian routes this meant that they delivered less than half the projected profits.[220][236][286][287][288]
The limited route transfer had allowed BCal to grow its scheduled capacity to about 18% of all UK scheduled airline capacity, while BA only suffered an insignificant reduction in its share of total scheduled capacity.
BCal's 18% share was still far less than the minimum size BCal needed to acquire the economies of scale to compete with BA and the giant US carriers on a level playing field.[216] This was also less than what had been envisaged in the Edwards report prior to BCal's formation.[nb 24][289][290]
This situation was unsatisfactory for the airline and unrewarding for its shareholders.
Therefore, under pressure from its controlling shareholder 3i, the search for a new, long-term strategy began.[286][291]
As a consequence of its main shareholder's dissatisfaction, the British Caledonian Group's board of directors established contact with ILG's board in November 1985.
The study also made profit projections for each stage of the envisaged joint venture's development.
These were:
- £3.7 million for 1987/88.
- £5.5 million for 1988/89.
- £25.2 million for 1989/90.
The latter represented a return on total equity employed plus previously retained earnings of 18.2%. This was substantially better than BCal's short-haul operation could have hoped to achieve on its own.[294]
Despite several rounds of talks being held that lasted well into the first half of 1986, both sides eventually decided not to proceed further with their joint venture study and to go their separate ways.[292]
Unexpected reversal of fortunes
BCal had high hopes for 1986. It expected to make record profits representing a substantial improvement on the previous year's pre-tax profits of £21.4 million.[295] The British Caledonian Group expected its turnover to exceed half-a-billion pounds while BCal expected to carry just under two-and-a-half million passengers. The year's crowning glory was to be the flotation of the British Caledonian Group on the London Stock Exchange.[291][296][297]
Instead, 1986 turned out to be BCal's "annus horribilis" during which it faced its most acute crisis as a result of events beyond its control. The airline was never going to recover from this crisis, which ultimately sealed the company's fate.
The events that brought about a dramatic turn-around in BCal's fortunes plunging it into a £19.3 million pre-tax loss (translated into a £14.4 million retained group loss).[298][299][300] included
- the
- the world's worst nuclear accident in Chernobyl in the then Ukrainian Soviet Socialist Republic on 26 April 1986[301][302][303]
- the adverse impact of the devaluation of the
The first two events almost emptied the cabins of BCal's widebodied planes plying the
The third had a serious impact on BCal's finances at a time of crisis as it denied the airline speedy access to a substantial amount of money derived from passenger and cargo sales in its most important and most profitable overseas market. This resulted in a significant revenue loss.[284][303][304][305]
What was already a bad situation for the airline was made worse by the continuing decline of the oil price, which had started the year before. The rapid fall in the oil price reduced the oil industry's spending power, thereby significantly reducing the number of oil-related business passengers planning to fly with BCal in future.[284] As these passengers used to account for a major share of the airline's high-yield premium bookings, future revenue and profit projections needed to be revised as well to take account of much reduced demand for the company's most expensive tickets.[284][297]
In addition, the Government announced the withdrawal of BCal's licence to operate the high-frequency
As a result of the problems it was facing during that time, BCal announced 1,000 job losses out of a total worldwide workforce of 7,700[216][234][306] which given there was no overall reduction in services Flight International described as suggesting "that the slim down was overdue"[308] It also needed to make adjustments to its schedule to take account of the expected changes in traffic patterns. This led to an immediate reduction in the number of weekly frequencies on BCal's underperforming Saudi Arabian routes. The aircraft capacity released was redeployed on BCal's well-performing route to Dubai and Hong Kong.[nb 25][308]
Altogether BCal suffered a total revenue loss of £80 million[nb 26] while the airline itself lost two-and-a-half million pounds every month at that time.[234][304]
The airline embarked upon a major asset disposal programme to compensate for this significant revenue loss and to have sufficient funds to keep the business running.[299][300] These asset disposals included the profitable sale of two, relatively young McDonnell Douglas DC-10-30 widebodied aircraft to Continental Airlines, the sale and lease-back of the entire 13-strong, short-haul BAC One-Eleven fleet, the sale of six of Caledonian Hotel Holdings' hotels,[nb 27] the sale of Caledonian Airmotive to US-based Ryder Systems, the sale of Caledonian Leisure Holdings and the disposal of British Caledonian Helicopters the following year.[236][298][304][309]
Despite facing a major crisis, BCal continued adding new aircraft, routes and flight frequencies in an effort to maintain a competitive operation.
Two more 747s joined the fleet during 1986.[284][308] This permitted a major capacity increase on the popular Gatwick—Dubai—Hong Kong route.[220][308]
During that year, Muscat,[220][308] Gaborone[298] and Aberdeen[310] joined the network.
BCal's acquisition of a fifth 747 the following year permitted the launch of a new route from Gatwick to Tokyo on 31 May 1987, at a frequency of three return flights per week.[216][284][311] In addition, for the first time in five years, two new European routes were launched from Gatwick. These served Milan Linate[216][284][312][313] and Nice[216] at a frequency of 13 and three return flights per week, respectively.
Merger discussions
By July 1987, BCal had already exhausted most of the proceeds from the asset disposal programme.
The proceeds from the sale of two DC-10s to Continental Airlines was all that was left to keep the airline in business. Senior management realised that the company was unlikely to survive on its own and that it needed to act fast if it wanted to avoid BCal's collapse.[314]
Therefore, the search for a financially strong partner acquired a renewed sense of urgency.
Several rounds of talks that were aimed at achieving a full-scale merger ensued with various airlines in the UK, the US, Canada and Europe.
BCal's future prospects as a stand-alone, medium-sized airline operating a variety of short-, medium- and long-haul scheduled services were rapidly diminishing against a background of looming consolidation in the airline industry. This was driven by the giant US carriers that had begun channeling their traffic flows into powerful hub-and-spoke operations, rather than feeding these into the networks of BCal and other international partner airlines, in the wake of US deregulation. In addition, BA's impending privatisation and the Government's refusal to fully implement the recommendations contained in the CAA's airline competition White Paper meant that BCal was unable to acquire the economies of scale it needed to compete with these airlines on a level playing field. This prevented BCal from achieving higher volumes over which to spread its fixed costs.[260] It also deprived the airline of the capacity to generate the funds to continue investing in fleet renewal, further network expansion and new information technology systems.[260]
BCal's basic dilemma at the time can be summed up as follows:
It had become a mid-sized airline that was too big to be a specialist, niche operator. Yet it was too small to effectively compete with BA and the US giants in terms of economies of scale and scope. At the same time, it was unable to match the significantly lower costs of emerging, aggressively expanding Far East competitors, such as Cathay Pacific.[315]
BCal's precarious financial position made it obvious for most of its rivals and seasoned industry observers that the ailing airline lacked the financial strength to survive on its own for much longer.
BCal had valuable traffic rights to operate scheduled services on a number of lucrative, long-haul routes to parts of the world that were not served by any other British airline at that time. It therefore became a desirable takeover target and a bidding war ensued between several potential suitors.
The chief protagonists in this takeover battle were BCal's archrival BA as well as ILG/Air Europe and SAS.
Proposed BA-BCal merger
On 16 July 1987, Sir Adam Thomson and Lord King of Wartnaby, chairmen of British Caledonian Group and British Airways respectively, surprisingly announced at a press conference the intention of the latter to acquire the former in an agreed £237 million bid.[234][288][299][316] They had agreed on this deal only the day before. Officially this was presented as a "merger between equals" but within the industry it was widely acknowledged as a mutually agreed rescue deal to avoid the collapse of BCal.[288][317] In addition, BA, which had been privatised only in February of that year, was keen to get hold of its main home-grown competitor's most valuable assets. These included BCal's lucrative traffic rights to those parts of the world BA could not serve itself as a result of the now defunct "Second Force" policy. This itself had resulted in a "spheres of influence" policy for BA and BCal that had prevented both airlines from competing with each other on a number of important long-haul routes. BA also saw this as a necessary move to fill the gaps in its global route map to acquire the economies of scale that would permit it to compete against the giant US carriers on a level-playing field. BCal's financial difficulties furthermore presented an opportunity for BA to forestall any competitive threat a revitalised BCal could pose to it in future, either on its own or in alliance with another airline. It therefore wanted to get hold of these assets before any competitor could lay its hands on them. Moreover, BA wanted to prevent BCal's assets from passing into the hands of any [partially] foreign-owned or controlled competitors. It felt that under such a scenario the long-term competitiveness of the entire UK air transport industry was threatened.[288][299][318]
ILG/Air Europe's unsolicited counter bid
Following Sir Adam's outright rejection of ILG chairman Harry Goodman's offer to purchase BCal's short-haul operation,
Air Europe was concerned that a new entity combining BA and BCal had the power to destroy the UK's remaining independent airlines, especially with regard to their ability to compete with such a behemoth.
To enhance its credibility as a serious contender, Air Europe's bid contained a detailed proposal to return BCal to profitability by way of a reorganisation. This proposal had been prepared by a retired BA head of route planning whom ILG had specifically hired for this purpose. BCal would be split into four discrete businesses, each of which with its own management accountable for the performance of that unit. The businesses would be a long-haul operation under the BCal brand, a short-haul operation merged with Air Europe's existing short-haul operation using the BCal brand on business routes and the Air Europe brand in leisure markets, and an engineering and a ground handling unit.[304]
The long-haul operation was to be re-equipped with a brand-new fleet comprising six Boeing 747-400s and 10 Boeing 767-300ERs to achieve a substantial reduction in operating costs and to permit an increase in frequencies. There were to be fewer services to Africa — where the new management wanted to keep only the really profitable routes to Nigeria and Ghana — while a second daily service to New York JFK was to be launched, Dubai was to be de-linked from the Hong Kong service and Hong Kong was to be served non-stop with the new 747-400s. In addition, there were to be more flights to the Middle East making use of unused licences to serve additional destinations in the region, which BCal had obtained during the early 1980s.[199] There was also a plan to apply for traffic rights to serve other destinations in the Far East non-stop from Gatwick in competition with BA's existing services from Heathrow. This combination of more non-stop flights and higher frequencies to prime long-haul destinations would have resulted in a more attractive product for high-yield business travellers, thereby enabling the revamped BCal to become profitable again within a short period of time.[304]
The short-haul operation was to have brand-new aircraft as well, which would have resulted in replacing BCal's ageing BAC One-Eleven 500s with the new Boeing 737-300s Air Europe had on order. It would also have resulted in adopting the Air Europe short-haul inflight product.[304]
BCal's senior management rejected ILG's bid.
Other contenders
The October 1987 stock market crash and ILG's successful referral of the original BA-BCal merger proposal to the MMC resulted in BA tabling a revised bid to take over BCal. The fall in BA's stock value left BA's original offer worth £156.7 million and a condition of MMC approval was that BCal had to give up some routes reducing its value to BA.[324][325] BA's materially inferior offer to buy out the shareholders of the British Caledonian Group led to BCal's senior management turn against BA and to recommend to their shareholders not to accept the revised bid.[326][327] Instead, with the backing of BCal's controlling shareholder 3i, a desperate search for a "white knight", who was prepared to pay the same amount of money BA had offered to pay in its original bid, began.[328]
Talks with
Had parallel talks to merge with UTA, at the time the largest wholly private airline in France and the closest French equivalent to a "Second Force", succeeded, this would have resulted in a near perfect fit of both airlines' long-haul networks as these were largely complementary.
Parallel talks with British Midland, which wanted to transfer all of BCal's scheduled services from Gatwick to Heathrow, ended without result at an early stage because BCal's senior management felt that this was not feasible given the tight slot situation at London's premier airport.[260]
BCal maintained that it had held several rounds of exploratory talks concerning the airline's potential takeover with a number of US carriers that were willing to pay a substantial premium over BA's original bid to acquire BCal.[331] These talks had come to nothing because the US carriers feared that there were insurmountable regulatory obstacles to such a cross-border acquisition in the highly regulated airline industry.[260]
SAS's emergence as a potential "white knight"
SAS was prepared to offer £110 million for 26% of the British Caledonian Group's
SAS faced a barrage of hostile propaganda and delaying tactics from BA that were designed to stall any third party's competing bid to acquire BCal for as long as possible and got a mixed response to its planned counter bid for BCal from various departments of the UK Government.[335][clarification needed]
To counter these negative sentiments, SAS's proposals also included a plan to offer Dan-Air to participate in its merger with BCal by merging its scheduled services division with the new airline combine's scheduled operation, thereby strengthening its position at Gatwick and the airport as a hub.[336]
SAS's rationale for launching a counter bid for BCal was the airline's desire not to be left behind in the then widely expected scramble for consolidation in the airline industry by becoming part of one of the four or five global airline groupings that were predicted to dominate the entire industry.[337]
SAS thought that BCal's Gatwick base would give it access to a centrally located hub in the world's biggest international air travel market, thereby helping it to overcome its geographic isolation on the margins of Northern Europe.[337] It also thought that BCal's lucrative long-haul routes from Gatwick to Africa and the Middle East would give it access to markets it could not profitably serve itself from relatively sparsely populated Scandinavia, and that this would make a good fit with its short-haul European routes — especially its comprehensive schedule to the UK from Scandinavia.[337] SAS furthermore thought that by agreeing to transfer these services from Heathrow to Gatwick, it could also help solve BCal's long-standing problem of not operating enough short-haul flights to improve its long-haul loads from Gatwick.[337]
Takeover by British Airways
On 11 December, the CAA told SAS that it needed a British investor to match the SAS bid or the CAA would recommend to the Department of Trade and Industry that BCal no longer qualified as a British airline and the trade secretary indicated to the House of Commons that in that case he would be likely to revoke BCal's licences.[326]
To counter SAS proposals, BA made an alternative cash offer of £200 million for all of BCal's stock (equivalent to 972 pence per share) while also leaving the alternative of 80 million BA shares still open.[326]
Faced with the prospect of its takeover target being snatched away from under its nose by SAS, British Airways initially began resorting to bullying tactics. In this it had the implicit backing of
BA was using a mix of rational and emotive arguments to convince both the regulators and the shareholders of the British Caledonian Group that its revised offer was in their best, long-term interest.[citation needed]
At the time, SAS used to pursue a high-fares-high-yield strategy in its Danish, Norwegian and Swedish home markets. BA argued that the SAS bid for BCal would lead to higher fares and thus would not benefit British consumers. In addition, BA also argued that BCal's takeover by SAS, in which the governments of Denmark, Norway and Sweden jointly held a 50% stake[nb 28] at that time, effectively represented a back-door nationalisation of a significant part of Britain's privatised air transport industry and contrasted this with its own, recent privatisation.[339] In this context, BA highlighted that two of these governments represented countries — Norway and Sweden — that were not even members of the European Economic Community (EEC) at that time and therefore were not bound by moves to liberalise its member states' air transport markets. BA furthermore argued that this would call into question BCal's international traffic rights as most bilateral air services agreements contained a clause demanding airlines to be substantially owned and controlled by interests based in the countries they represented, and went on to argue that this could force the British Government to make concessions to its overseas counterparts that were not in the interest of the British air transport industry to preserve BCal's UK flag carrier status.[339] BA moreover backed up its arguments with the threat that it would immediately apply to the CAA to have all of BCal's licences to operate scheduled air services revoked. BA based these threats on a clause in the 1982 Civil Aviation Act, which states that any airline claiming UK flag carrier status must be substantially owned and controlled by individuals who are UK nationals or entities whose headquarters are located in the UK.
In the event, the British Caledonian Group's controlling shareholder 3i decided to accept BA's final £250 million offer which it presented on 21 December 1987 with the proviso that it needed to be accepted or rejected that day.[340] As the uncertainty surrounding BCal's future led to a further, significant deterioration of its financial position[nb 29] and BA's final bid trumped SAS, the fiduciary responsibilities of the British Caledonian Group's board towards their shareholders meant that the only option left was to recommend the acceptance of the BA bid. 3i and the other shareholders decided to sell their stakes in British Caledonian Group plc to British Airways relinquishing control of BCal.[234][340]
Following BA's successful takeover of BCal, SAS had a giant hoarding erected at the entrance to Heathrow's central area featuring an advertisement that ended with BCal's famous 1980s marketing slogan we never forget you have a choice.[288][341]
The referral of BA's original bid to take over the entire British Caledonian Group to the MMC had resulted in the imposition of several conditions before the proposed deal was allowed to go ahead. These included BA releasing a minimum of 5,000 annual slots BCal had held at Gatwick[nb 30] to competitors and requiring it to surrender to the CAA several of BCal's licences to operate scheduled services from Gatwick on a number of important, short-haul feeder routes.[260][324][342] Although BA had been permitted to re-apply for these licences, the CAA decided to re-allocate all of them to rival airlines.[343]
BA also needed to withdraw the objections to Air Europe's application to the CAA for licences to launch new scheduled services on several short-haul routes BCal already used to serve from Gatwick.[nb 31][303][324][344]
Furthermore, both companies' combined turnover exceeded the minimum threshold that automatically triggers the referral of a proposed merger between two or more companies that conduct a significant part or all of their business in EU member states to the European competition authorities in Brussels. Therefore, the Competition Directorate of the European Commission (EC) needed to clear BA's takeover of BCal as well.
In addition to the conditions imposed by the MMC, BA agreed further concessions with the EC's Competition Directorate to prevent BA from abusing its dominant position at both of London's main airports. These included limiting BA's presence at Gatwick to a maximum of 25% of all available slots, relinquishing BCal's unused route licences and to not oppose Air Europe's designation as an additional UK flag carrier on Gatwick—Rome. BA also had to give a legally binding undertaking that it would not seek to increase its share of Gatwick slots above 25% through any additional acquisitions of other airlines and/or their slots until 1992.[345] These measures were primarily intended as safeguards for other airlines that required access to a sufficient number of attractive slots at Gatwick to launch viable scheduled services in competition with BA. Otherwise, BA's dominant position at both of London's main airports would have made it virtually impossible for the much smaller independents to replace and enhance capacity lost as a result of BCal's takeover, especially on routes where BCal had competed with BA and which accounted for more than half of its net revenue earned from scheduled services.[343][346]
Air UK was awarded the licences for BCal's former London—Scotland trunk routes from Gatwick to Glasgow and Edinburgh. Dan-Air obtained the licences for the old BCal routes from Gatwick to Manchester and Aberdeen[nb 32] as well as from Gatwick to Paris Charles de Gaulle and Nice. The licence for BCal's Gatwick—Brussels route was transferred to Air Europe. The CAA also granted Air Europe permission to increase the frequency on its existing route between Gatwick and Paris Charles de Gaulle,[347] where it had already competed with BCal, so that it could match Dan-Air's frequency. Both Air Europe and Connectair were successful in their applications for BCal's unused European route licences.[348]
BA continued serving the routes until the new licence holders were ready to assume operations at the start of the 1988/89 winter timetable period.
BCal ceased to exist as a legal entity at 00.01 hrs. on 14 April 1988.
Cal Air International,[nb 33] the former British Caledonian Charter operation,[216][349] and British Caledonian Flight Training were not included in BA's acquisition of the British Caledonian Group.[349]
BA replaced the former BCal short-haul fleet of 13 BAC One-Eleven 500s with 14 Boeing 737-200 Advanced.[nb 34][351][failed verification]
The One-Elevens were transferred to BA's regional bases in Birmingham and Manchester.
The five second-hand 747s BA had inherited from BCal were replaced with its own 747-100/200s.[nb 35]
In addition, BA stationed three
The only former BCal aircraft BA kept for its Gatwick operation were eight McDonnell Douglas DC-10-30s that had formed BA's erstwhile competitor's core long-haul fleet.
BA transferred the former BCal routes to Tokyo and Saudi Arabia to Heathrow. To compensate for this loss and to utilise its full slot allocation at Gatwick, BA moved its routes to Amman, Bermuda, Cairo, Khartoum, Larnaca, Luxor and Nassau to Gatwick, and routed a new Manchester—London—Islamabad service via Gatwick instead of Heathrow.[nb 36][352][353]
BA transferred all of its international operations from Gatwick — including those it had inherited from BCal — to the then brand-new North Terminal,[nb 37] which opened in March 1988.
The A320s BCal had ordered in 1983 began arriving at BA's new Gatwick base during the spring of 1988. These aircraft had been painted in BA's contemporary Landor Associates designed livery. BA operated its first commercial A320 service between London Gatwick and Geneva before transferring the entire A320 fleet to its main base at Heathrow later that year.
Reasons for the failure of British Caledonian
British Caledonian Commuter Services
To further improve its network connectivity and to transform Gatwick into a US style
The first airline to join the British Caledonian Commuter scheme in 1982 was Humberside Airport-based Genair.[355][356][357]
Genair, which had been formed as a Manchester-based executive charter airline in November 1980, commenced operations with a single
Other airlines that joined the British Caledonian Commuter scheme at its inception included
Fleet
Fleet details
BCal and its subsidiaries operated the following
- Airbus A310-200
- BAC One-Eleven 200/300/400/500 series
- Boeing 707-120B/320B/320C
- Boeing 747-100/200B/200B "Combi"
- McDonnell Douglas DC-10-10/30
- Piper PA-23 Aztec
- Piper PA-31 Navajo Chieftain
- Vickers VC10 1103/1109 series
- Vickers Viscount 800 series
- Lockheed L-1011 TriStar 100 series
![](http://upload.wikimedia.org/wikipedia/commons/thumb/a/af/British_Caledonian_B707_G-A.jpg/220px-British_Caledonian_B707_G-A.jpg)
![](http://upload.wikimedia.org/wikipedia/commons/thumb/b/b2/British_Caledonian_Boeing_747-200_Rees.jpg/220px-British_Caledonian_Boeing_747-200_Rees.jpg)
![](http://upload.wikimedia.org/wikipedia/commons/thumb/7/7c/British_Caledonian_DC-10_Manchester.jpg/220px-British_Caledonian_DC-10_Manchester.jpg)
![](http://upload.wikimedia.org/wikipedia/commons/thumb/7/71/BCal_Boeing_747-200_Maiwald-1.jpg/220px-BCal_Boeing_747-200_Maiwald-1.jpg)
![](http://upload.wikimedia.org/wikipedia/commons/thumb/e/ef/British_Caledonian_BAC_111-509EW.jpg/220px-British_Caledonian_BAC_111-509EW.jpg)
Aircraft | Number |
---|---|
Boeing 707-320C
|
8 |
Vickers VC10 | 4 |
BAC One-Eleven 500
|
13 |
BAC One-Eleven 200
|
7 |
Total | 32 |
- Fleet in 1972
In May 1972 BCal's fleet comprised 32 jet aircraft.[362]
Aircraft | Number |
---|---|
Boeing 707-320C
|
8 |
Vickers VC10 | 4 |
BAC One-Eleven 500
|
13 |
BAC One-Eleven 200
|
7 |
Total | 32 |
5,300 people were employed.[362]
- Fleet in 1975
In March 1975 BCal's fleet comprised 24 jet aircraft.[363]
Aircraft | Number |
---|---|
Boeing 707-320C
|
11 |
BAC One-Eleven 500
|
6 |
BAC One-Eleven 200
|
7 |
Total | 24 |
4,846 people were employed.[363]
- Fleet in 1978
In April 1978 BCal's fleet comprised 29 aircraft with two DC-10-30 on order.[364]
Aircraft | Number |
---|---|
McDonnell Douglas DC-10-30
|
2 |
Boeing 707-320C
|
9 |
BAC One-Eleven 500
|
9 |
BAC One-Eleven 200
|
7 |
Piper PA-31 Navajo Chieftain
|
2 |
Total | 29 |
5,500 people were employed.[364]
- Fleet in 1981
In May 1981 BCal's fleet comprised 29 jet aircraft.[365]
Aircraft | Number |
---|---|
McDonnell Douglas DC-10-30
|
8 |
Boeing 707-320C
|
5 |
BAC One-Eleven 500
|
9 |
BAC One-Eleven 200
|
7 |
Total | 29 |
6,600 people were employed.[365]
- Fleet in 1984
In March 1984 BCal's mainline fleet comprised 25 jet aircraft.[366]
Aircraft | Number |
---|---|
Boeing 747-200B[367]
|
1 |
McDonnell Douglas DC-10-30
|
8 |
Airbus A310-200
|
2 |
Boeing 707-320C
|
2 |
BAC One-Eleven 500
|
12 |
Total | 25 |
6,300 people were employed.[366]
- Fleet in 1986
In March 1986 BCal's mainline fleet comprised 27 jet aircraft with seven
Aircraft | Number |
---|---|
Boeing 747-200B
|
1 |
Boeing 747-200M
|
1 |
McDonnell Douglas DC-10-30
|
10 |
Airbus A310-200
|
3 |
BAC One-Eleven 500
|
13 |
Total | 28 |
Incidents and accidents
BCal had an enviable safety record during its 17-year existence. Its aircraft were never involved in fatal accidents. There were a few noteworthy non-fatal incidents involving the airline's aircraft.
- On 24 September 1971, a
- On 28 January 1972, a Vickers VC10-1109 (registration: G-ARTA) sustained severe structural damage to the fuselage as a result of an exceptionally hard landing at Gatwick at the end of a short ferry flight from Heathrow. The airline decided that repairs were not cost-effective and the aircraft was written off and scrapped at Gatwick in 1975.[2][371]).[2][372][373][374]
- On 19 July 1972, a decision speed during the takeoff run. This caused a temporary reduction of engine thrust which the flight's commander interpreted as engine failure requiring an immediate rejection of takeoff. The flight deck crew's decision to abandon their takeoff was delayed and as a result, the aircraft did not stop on the runway but, after crossing some rough ground, finally came to rest in a 1 m (3.3 ft)-deep lagoon. None of the six crew members and 79 passengers was seriously injured in the crash, but an elderly female passenger collapsed after being helped from the aircraft and subsequently died of cardiac arrest on her way to hospital.[375]
See also
Notes and citations
- Notes
- charter airline
- ^ then the largest British independent airline and the UK's leading independent scheduled carrier
- ^ the new name of Airways Interests (Thomson)
- ^ Blue Sky Holidays and Golden Lion Tours
- ^ It operated two weekly all-cargo flights from there until the early 1980s.
- ^ including 450 flightdeck and 800 cabin crew, 1,000 maintenance personnel and 700 ramp workers
- ^ the distance covered by its scheduled operation multiplied by the number of scheduled passengers carried within a 12-month period
- ^ a figure arrived at by multiplying the number of [metric] tonnes available for the carriage of revenue load (passengers, cargo and mail) on each flight sector by the sector's distance in kilometres
- ^ 3i's former name
- ^ accounting for 60% of revenues
- ^ in addition to Gatwick—Amsterdam (inherited from BUA) and Gatwick—Paris
- ^ a similar arrangement was introduced between Gatwick and Rotterdam during the 1976–77 winter timetable period
- ^ BCal's operating profit for the 1974/75 financial reporting period translated into an overall loss of £366,000, after taking into account the heavy costs relating to the early disposal of the remaining VC10s and the grounding of several other aircraft as well as the voluntary redundancy programme to achieve the required reduction in headcount
- ^ the new mid-day service was initially operated by BIA Heralds under contract to BCal; BCal took over the operation of this service on 1 January 1977, giving a three-times-daily One-Eleven schedule
- ^ designating two UK flag carriers as well as two US flag carriers
- ^ 1977 to 1978
- ^ in addition to the incumbent flag carriers' services
- ^ from 07.10 hrs to 20.10 hrs
- ^ subsequent re-configuration reduced seating to 24 to increase space for interline passengers' transfer baggage
- ^ a single crew member used to look after the passengers on the 25-minute flight, which subsequently halved to 12 minutes as a result of reducing the separation with other air traffic along the route taken by the helicopter
- ^ Stretched Upper Deck
- ^ 83% vs. 11% of all scheduled UK airline passengers
- ^ including unused licences
- ^ that report had considered 4 billion long-haul scheduled service seat miles (6.4 billion seat kilometres) per year by 1975 the minimum size for the "Second Force" to become economically viable
- ^ increasing the number of weekly round-trips from seven to nine
- ^ £35 million for losses related to the US military action in Libya and the Ukrainian nuclear catastrophe, another £35 million related to the devaluation of the Nigerian currency and £10 million for the voluntary severance programme to achieve a reduction in the head count
- ^ including the sale of both Copthorne hotels to Aer Lingus
- ^ through each government's 50% ownership of its respective national carrier, each of which held the actual traffic rights that formed the legal basis of SAS's domestic, regional and international operations
- ^ resulting in a £32 million loss prior to being taken over by BA
- ^ at the time, BCal held just under one-fifth of all Gatwick slots
- ^ BCal had lodged these with the CAA at the time Air Europe had submitted its application
- ^ via Manchester
- lion rampant with a shooting starlogo on the aircraft's tails
- ^ some of these aircraft had originally been operated by British Airtours in a high-density, single-class configuration and had subsequently been re-fitted with a two-class, scheduled interior
- ^ at the time, BA already had two 747s stationed at Gatwick to operate its Caribbean schedules from there
- ^ as originally planned prior to BA's takeover of BCal
- ^ the domestic services BA had inherited from BCal at Gatwick continued using the South Terminal as the North Terminal lacked the facilities to handle domestic flights in those days
- Citations
- ^ a b c d e f g h i j k "BCAL Atlantic growth", Flight International, 20 September 1973, p. 466
- ^ a b c d e f g "Airline Profile: Number Forty-Two in the Series — British Caledonian", Flight International, 3 August 1972, p. 159
- ^ a b Thomson (1990), p. 256-7
- ^ a b c d e f g h "Second Force at last", Flight International, 29 October 1970, p. 659
- ^ "Independence for BUIA", Flight International, 30 July 1970, p. 151
- ^ Thomson (1990), p. 93
- ^ a b "Staff signed up", Flight International, 1 April 1971, p. 444
- ^ a b c d e f "BCAL changes course", Flight International, 31 October 1974, p. 588
- ^ "World Airline Survey", Flight International, 11 April 1968, p. 517
- ^ Thomson (1990), p. 174-5, 195, 200–204
- ^ a b "The Edwards Report — Principal recommendations", Flight International, 8 May 1969, p. 745
- ^ a b "Government sets the course", Flight International, 20 November 1969, p. 760
- ^ Thomson (1990), p. 199
- ^ "Government sets the course", Flight International, 20 November 1969, p. 759
- ^ Thomson (1990), p. 195-198
- ^ a b c d e "British Airways Plc and British Caledonian Group plc; A report on the proposed merger" Archived 9 July 2011 at the Wayback Machine, Chapter 4, Competition Commission website
- ^ a b Caledonian/BUA, Editorial, Flight International, 29 October 1970, p. 655
- ^ a b Thomson (1990), p. 258
- ^ a b Fly me, I'm Freddie!, Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, p. 130
- ^ Gatwick Airport: The first 50 years, Woodley, C., The History Press, Stroud, 2014, p. 103
- ^ a b c The Caledonian punchbag, Flight International, 21 March 1987, p. 33
- ^ a b "£30m value put on Caledonian". Flight International, 26 May 1979, p. 1714
- ^ Thomson (1990), p. 159, 241
- ^ a b "Second Force at last, Flight International, 29 October 1970, p. 660
- ^ Thomson, A. (1990), pp. 94, 258
- ^ "GUS Share in Caledonian" Flight International, 9 November 1967, p. 749
- ^ "It's British Caledonian" Flight International, 9 September 1971, p. 395
- ^ "World Airlines", Flight International, 18 May 1972, Supplement 17
- ^ Piper PA-31-350 Navajo Chieftain G-CLAN (photo)
- ^ a b c "B.CAL opens feeder link", Flight International, 21 January 1978, p. 165
- ^ "BCal Saudi routes approved", Flight International, 9 March 1985, p. 7
- ^ Thomson (1990), p. 512
- ^ a b c d "BCAL Atlantic growth" Flight International, 20 September 1973, p. 467
- ^ Thomson (1990), p. 262-3
- ^ a b "Rest of the Package" Flight International, 1 April 1971, p. 440
- ^ "Green light for second force" Flight International 6 August 1970, p. 186
- ^ "Second force under way — The second-force statement" Flight International, 13 August 1970, p. 228
- ^ Second force under way, Flight International, 13 August 1970, p. 227
- ^ a b c d e f g h Airline Profile: Number Forty-Two in the Series — British Caledonian, Flight International, 3 August 1972, p. 160
- ^ "Caledonian/BUA" Flight International, 12 August 1971, p. 245
- ^ "British Airways loses Casablanca ..." Flight International, 28 February 1974, p. 257
- ^ Thomson (1990), p. 273
- ^ a b Caledonian/BUA, Flight International, 17 June 1971, p. 883
- ^ Britain Goes It Alone, Flight International, 15 April 1960, p. 543
- ^ The New Pattern Takes Shape, Flight International, 27 May 1960, p. 741
- ^ Fly me, I'm Freddie!, Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, pp. 88/9
- ^ a b Thomson (1990), p. 275
- ^ a b CAA's guidance given, Flight International, 9 March 1972, p. 346
- ^ a b Undue preference or national benefit?, Flight International, 27 April 1972, p. 579
- ^ Air Terminal for Victoria, Flight International, 29 June 1961, p. 907
- ^ Air Commerce ..., Flight International, 3 May 1962, p. 705
- ^ Aviation News — UK and Irish airlines since 1945 (Update 5 British United Airways)
- ^ Thomson, A., 1990, p. 271
- ^ "West Africa changeover" Flight International, 22 April 1971, p. 542
- ^ a b Thomson (1990), p. 272
- ^ a b "Caledonian/BUA" Flight International, 17 June 1971, p. 886
- ^ "Preparing for Paris", Flight International, 29 July 1971, p. 154
- ^ a b "Three to Paris", 'Flight International, 11 November 1971, p. 753
- ^ a b c Airline Profile: Number Forty-Two in the Series — British Caledonian, Flight International, 3 August 1972, p. 157
- ^ a b Thomson (1990), p. 508
- ^ a b "Airline Profile: Number Forty-Two in the Series — British Caledonian", Flight International, 3 August 1972, p. 156
- ^ Thomson (1990), p. 276
- ^ a b More money for BCAL, World News, Flight International, 29 November 1973, p. 886
- ^ BCAL applies for walk-on fares, Flight International, 25 November 1971, pp. 848/9
- ^ Thomson (1990), p. 273-4
- ^ a b Aircraft "Gone but not forgotten ... BRITISH CALEDONIAN)", Vol 42, No 12, p. 42, Ian Allan Publishing, Hersham, December 2009
- ^ No Frills — The Truth behind the Low-cost Revolution in the Skies, pp. 26–7
- ^ Thomson (1990), p. 277
- ^ "New world routes for BCAL" Flight International, 23 August 1973, p. 330- 331
- ^ a b c d PIA to lease to BCAL?, Flight International, 24 February 1972, p. 284
- ^ The war is over but the battle is beginning, Flight International, 25 May 1972, p. 756
- ^ a b c Airlines updated — British Caledonian, Flight International, 19 July 1973, p. 85
- ^ Wide look for BCAL, Flight International, 11 May 1972, p. 662
- ^ Airline Profile: Number Forty-Two in the Series — British Caledonian, Flight International, 3 August 1972, p. 158
- ^ BCAL chooses entertainment, Flight International, 24 August 1972, p. 267
- ^ Britannia: no more long-haul, Flight International, 1 February 1973, p. 146
- ^ BCAL: second force on Atlantic, Flight International, 5 April 1973, pp. 536–7 (1)
- ^ BCAL: second force on Atlantic, Flight International, 5 April 1973, pp. 536–7 (2)
- ^ a b British Caledonian Airways, Ltd. (BR)
- ^ a b Caledonian Western, Flight International, 12 April 1973, p. 568
- ^ "BCAL starts Atlantic schedules" Flight International, 5 April 1973, p. 530
- ^ a b World News, Flight International, 5 April 1973, p. 530
- ^ Thomson (1990), p. 280-283
- ^ Gatwick Airport: The first 50 years, Woodley, C., The History Press, Stroud, 2014, p. 106
- ^ "On November 1 British Caledonian...", Flight International, 15 November 1973, p. 811
- ^ a b The airborne sector, Flight International, 21 November 1974, p. 708
- ^ BCAL gets Paris de Gaulle rights, Flight International, 27 December 1973, p. 1051
- ^ "BCAL in Paris", Flight International, 14 March 1974, p. 320
- ^ The Spirit of Dan-Air, Simons, G.M., GMS Enterprises, Peterborough, 1993, p. 88
- ^ Dan-Air and BCAL joint timetable, Flight International, 9 May 1974, p. 588
- ^ BCAL to Brussels ..., Flight International, 18 April 1974, p. 474
- ^ a b Second-force second-thoughts, Flight International, 19 June 1975, p. 961
- ^ Court Line bids for Horizon, World News, Flight International, 7 February 1974, p. 158
- ^ a b c BCAL and the North Atlantic, Flight International, 24 July 1975, p. 109
- ^ a b c BCAL and the North Atlantic, Flight International, 24 July 1975, p. 110
- ^ Thomson (1990), p. 297-302, 304–307
- ^ Fly me, I'm Freddie!, Eglin, R. and Ritchie, B., Weidenfeld and Nicolson, London, 1980, p. 201
- ^ Thomson (1990), p. 304-307
- ^ a b British Caledonian cuts back, Flight International, 24 October 1974, p. 527
- ^ a b c d e f g h "Scottish DC-10s and B.CAL’s wide-body plans", Flight International, 26 February 1977, p. 471
- ^ CAA dilemma on UK trunk fares, Flight International, 20 March 1975, p. 439
- ^ Air shuttles, Flight International 17 July 1975, p. 97
- ^ Piper PA-23-250 Aztec D G-BBNN (photo)
- ^ a b British Caledonian Airways ..., Airliner market, Flight International, 18 September 1976, p. 901
- ^ British Caledonian Airways, Flight International, 30 January 1975, p. 129
- ^ Thomson (1990), p. 303
- ^ Thomson (1990), p. 340-1
- ^ a b c Thomson (1990), p. 316-7
- ^ UK abandons long-haul competition", Flight International, 7 August 1975, p. 173
- ^ a b c UK aviation policy review: first in a long series, Flight International, 21 February 1976, p. 397
- ^ a b c "UK aviation policy review: first in a long series", Flight International, 21 February 1976, p. 398
- ^ B.CAL expands in South America, Flight International, 24 July 1976, p. 212
- ^ B.CAL on the mid-Atlantic, Flight International, 30 October 1976, p. 1301
- ^ a b c d e Scottish DC-10s and B.CAL’s wide-body plans, Flight International, 26 February 1977, p. 472
- ^ Thomson (1990), p. 375
- ^ "Britain to end Bermuda Agreement", Flight International, 3 July 1976, p. 4
- ^ a b "Bermuda 2 initialed" Flight International, 2 July 1977, p. 5
- ^ a b c d "Bermuda 2 initialed", Flight International, 2 July 1977, p. 6
- ^ a b c d e f g "Bermuda 2: signed and sealed ...", Flight International, 23 July 1977, p. 254
- ^ "Bermuda 2 capacity mechanism" Flight International, 13 August 1977, p. 465
- ^ a b c d e "Bermuda 2 revisions create 12 new US gateways and agreement on Gatwick". Flight International, 15 March 1980, p. 825.
- ^ Thomson (1990), p. 343-350
- ^ "B.CAL to serve Dallas/Fort Worth" Flight International, 19 August 1978, p. 515
- ^ "B.CAL wins Dallas appeal" Flight International, 27 January 1979, p. 238
- ^ a b c d e f g "Hustlin' to Houston" Flight International, 12 November 1977, p. 1409
- ^ a b Thomson (1990), p. 333
- ^ a b Thomson (1990), p. 350
- ^ Stormy Atlantic summer forecast, Flight International, 1 April 1978, p. 904
- ^ "Low fares: the dam bursts — The North Atlantic" Flight International, 27 January 1979, p. 264, 268–9
- ^ Thomson (1990), p. 321
- ^ a b "B.CAL chooses DC-10s", Flight International, 12 June 1976, p. 1548
- ^ The Spirit of Dan-Air, Simons, G.M., GMS Enterprises, Peterborough, 1993, pp. 88, 101
- ^ Thomson (1990), p. 319
- ^ Gatwick Airport: The first 50 years, Woodley, C., The History Press, Stroud, 2014, p. 111
- ^ Picture caption Flight International, 19 March 1977, p. 686
- ^ Picture caption Flight International, 7 May 1977, p. 1236
- ^ Thomson (1990), p. 341
- ^ a b "B.CAL appeals on LA Skytrain", Flight International, 27 May 1978, p. 1590
- ^ "747/DC-10 battle intensifies", Flight International, 26 August 1978, p. 603
- ^ Thomson (1990), p. 359/60
- ^ Picture caption, Flight International 11 November 1978, p. 1721
- ^ Boeing 747-148 G-BDPZ (photo)
- ^ a b Thomson (1990), p. 365
- ^ a b c d e Caledonian reports best results, Flight International, 12 May 1979, p. 1547
- ^ De La Haye, John "The immaculate prospectus" Flight International, 24 November 1979, p. 1747
- ^ "Profit shares for B.CAL workers" Flight International, 12 August 1978, p. 456
- ^ Thomson (1990), p. 340
- ^ British Airports Authority Annual Report and Accounts 1978/9, British Airports Authority, London, 1979, p. 20
- ^ a b c British Airports Authority Annual Report and Accounts 1978/9, British Airports Authority, London, 1979, p. 21
- ^ British Airports Authority Annual Report and Accounts 1977/8, British Airports Authority, London, 1978, p. 19
- ^ a b Thomson (1990), p. 354
- ^ "Scottish DC-10s and B.CAL’s wide-body plans" Flight International, 26 February 1977, p. 475
- ^ a b Thomson (1990), p. 360
- ^ "CAA gives routes decisions", Flight International, 5 November 1977, p. 1342
- ^ "Gatwick moves: Air Canada reluctant, reprieve for Iberia" Flight International, 20 January 1979, p. 169
- ^ "BA moves Spanish services to Gatwick" Flight International, 11 October 1980, p. 1410
- ^ The Gatwick Express, p. 50
- ^ "Please come to Gatwick, Britain tells carriers", Flight International, 16 April 1977, p. 1028
- ^ British Airports Authority Annual Report and Accounts 1978/9, British Airports Authority, London, 1979, pp. 21, 76
- ^ a b World News, Flight International, 17 June 1978, p. 1832
- ^ a b "Summer launch for London airports helicopter link" Flight International, 18 February 1978, p. 416
- ^ Thomson (1990), p. 355
- ^ a b Thomson (1990), p. 356
- ^ Aircraft (British Caledonian — The Airlink Service), Vol 42, No 12, p. 41, Ian Allan Publishing, Hersham, December 2009
- ^ a b "B.CAL to lease unsold Concorde?", Flight International, 24 February 1979, p. 517
- ^ B.CAL appoints Concorde consultant, Flight International, 24 March 1979, p. 881
- ^ a b c Tories support B.CAL's Concorde plan, Flight International, 14 April 1979, p. 1132
- ^ a b World News, Flight International, 28 April 1979, p. 1286
- ^ New job for B.CAL Concorde man, Flight International, 21 July 1979, p. 158
- ^ BCAL's African Profit ..., World News, Flight International, 23 December 1971, p. 994
- ^ "B.CAL drops Concorde plans but asks for Hong Kong licence", Flight International, 30 June 1979, p. 2331
- ^ Cheaper fares on Swedish routes?, Flight International, 31 March 1979, p. 965
- ^ a b c Two Concordes, A310s and 20 new routes in B.CAL package, Flight International, 19 May 1979, p. 1637
- ^ Short hauls ..., Flight International, 9 June 1979, p. 1978
- ^ Short hauls ..., Flight International, 20 October 1979, p. 1264
- ^ a b New "managerial thrust" for B.CAL, Flight International, 1 September 1979, p. 637
- ^ Thomson (1990), p. 389
- ^ Small World ... British Caledonian Helicopters, World News, Flight International, 28 April 1979, p. 1287
- ^ B.CAL signs for A310s as Airbus clarifies new types, World News, Flight International, 3 November 1979, p. 1464
- ^ a b c Thomson, A. (1990), pp. 367–369
- ^ "Trade Secretary rejects UK—European low-fare routes appeal ...", Flight International, 1 November 1980, p. 1673
- ^ ...B.CAL still deliberating, Flight International, 13 October 1979, p. 1175
- ^ Airliner market, Flight International, 19 April 1980, p. 1176
- ^ UK and Scandinavia reach air agreement, Flight International, 6 January 1979, p. 4
- ^ B.CAL Swedish route rejected, Flight International, 5 May 1979, p. 1447
- ^ Thomson (1990), p. 372
- ^ "DC-10 loses certificate of airworthiness..." Flight International, 16 June 1979, p. 2114
- ^ "B.CAL clears £5 million profit and seeks One-Eleven replacement", Flight International, 2 February 1980, p. 295
- ^ Boeing 707-139(B) G-TJAA (photo)
- ^ The Spirit of Dan-Air, Simons, G.M., GMS Enterprises, Peterborough, 1993, pp. 59–60
- ^ 747/DC-10 battle intensifies, Flight International, 26 August 1978, p. 603
- ^ a b Airliner market, Flight International, 22 March 1980, p. 889
- ^ a b c d B.CAL capacity will double by 1984, Flight International, 19 April 1980, p. 1176
- ^ a b c d e f g h i j High Risk: The Politics of the Air, Thomson, A., 1990, p. 378
- ^ a b c d "Nott overturns CAA ruling and sanctions Hong Kong free-for-all", Flight International, 28 June 1980, p. 1441]
- ^ a b B.CAL drops bid for Gatwick—Miami, Flight International, 29 March 1980, p. 972
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 392
- ^ a b "Gulf rights for Hong Kong", Flight International, 25 October 1980, p. 1551
- ^ "Short hauls ...", Flight International, 31 January 1981, p. 274
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 360/1
- ^ Gatwick Airport: The first 50 years, Woodley, C., The History Press, Stroud, 2014, p. 125
- ^ a b BA to start Manila service, World News, Flight International, 29 March 1980, p. 966
- ^ a b High Risk: The Politics of the Air, Thomson, A., 1990, p. 390
- ^ a b c d Airbus A320 impresses BCal, Flight International, 26 December 1981, p. 1882
- ^ Short hauls ..., Flight International, 3 October 1981, p. 984
- ^ a b High Risk: The Politics of the Air, Thomson, A., 1990, p. 353
- ^ Caledonian engine facility on time, Flight International, 17 March 1979, p. 816
- ^ B.CAL forms engine-overhaul subsidiary, Flight International, 28 October 1978, p. 1546
- ^ Caledonian Airmotive starts work, Flight International, 5 July 1980, p. 7
- ^ British Caledonian seeks Australian rights, World News, Flight International, 18 October 1980, p. 1490
- ^ Laker and BCal bid for kangaroo route, Flight International, 7 February 1981, p. 330
- ^ BCal kangaroo bid hits snag, Flight International, 4 April 1981, p. 955
- ^ CAA refuses to license new UK—Australia operators, Flight International, 16 May 1981, p. 1366
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 375
- ^ a b c d e f g h i j k The Caledonian punchbag, Flight International, 21 March 1987, p. 33
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 340
- ^ a b The immaculate prospectus, Flight International, 24 November 1979, p. 1746
- ^ B.CAL challenges BA for Far-East routes, Flight International, 5 January 1980, p. 7
- ^ a b c d Soviet airspace warms up, Flight International, 5 April 1986, p. 8
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 377
- ^ B.CAL drops Concorde plans but asks for Hong Kong licence, Flight International, 30 June 1979, p. 2331
- ^ Three carriers seek licences for Hong Kong route, Flight International, 4 August 1979, p. 311
- ^ Short hauls ..., Flight International, 8 December 1979, p. 1895
- ^ a b B.CAL receives London—Hong Kong licence, World News, Flight International, 22 March 1980, p. 886
- ^ CAA applies brake to UK airlines' European low-fare plans, Flight International, 22 March 1980, p. 888
- ^ BA loses Gatwick—Zurich to Laker, Flight International, 21 March 1981, p. 796
- ^ BCal takes another step towards lower fares, Flight International, 8 May 1982, p. 1135
- ^ BA cuts, BCal adds, World News, Flight International, 9 October 1982, p. 1022
- ^ Laker’s routes are frozen, Flight International, 13 March 1982, p. 596
- ^ Sir Freddie Laker — The Man Who Gave Us Skytrain, Airliner Classics, November 2009, p. 85
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 398
- ^ Airliner World (Mediterranean Package Tours — Cal Air/Novair International Airways), Key Publishing, Stamford, UK, October 2010, p. 70
- ^ a b c d e f g h i j k l "Chapter 4, British Caledonian Group pic" British Airways Plc and British Caledonian Group plc; A report on the proposed merger, Competition Commission website archive link
- ^ "BCal buys A320", Flight International, 15 October 1983, p. 978
- ^ a b c "The Caledonian punchbag", Flight International, 21 March 1987, pp. 33/4
- ^ "BCal and the A320", Flight International, 21 March 1987, p. 35
- ^ a b Thomson (1990) pp. 451–2
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 452
- ^ Caribbean links with BCal, Flight International, 26 February 1983, p. 508
- ^ Flight International, 28 May 1983, p. 1440
- ^ BCal helps Surinam, World News, 22 October 1983, p. 1075
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 471
- ^ B.CAL clears £5 million profit and seeks One-Eleven replacement, Flight International, 2 February 1980, p. 295
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 513
- ^ a b BCal wins labour deal, Flight International, 17 August 1985, p. 4
- ^ a b c The Caledonian punchbag, Flight International, 21 March 1987, p. 34
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 464, 491
- ^ It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, p. 82
- ^ The immaculate prospectus, Flight International, 24 November 1979, p. 1747
- ^ a b c d e f g "Share out BA or we abandon Gatwick, warns BCal", Flight International, 12 November 1983, p.1268
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 363, 444
- ^ a b c d High Risk: The Politics of the Air, Thomson, A., 1990, pp. 482, 499
- ^ a b c III. 1984: Opposition to route transfer — (2) Controversy over route transfer, Privatisation of British Airways: Its Management and Politics 1982–1987 (Kyohei Shibata, EUI Working Paper EPU No.93/9, European University Institute, Florence, Italy, 1994), Footnote 17 Archived 18 September 2008 at the Wayback Machine
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 445
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 483
- ^ a b c d e III. 1984: Opposition to route transfer, Privatisation of British Airways: Its Management and Politics 1982–1987 (Kyohei Shibata, EUI Working Paper EPU No.93/9, European University Institute, Florence, Italy, 1994) Archived 18 September 2008 at the Wayback Machine
- ^ a b c d High Risk: The Politics of the Air, Thomson, A., 1990, p. 496
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 448, 455/6
- ^ a b c d e f g "British Airways Plc and British Caledonian Group plc; A report on the proposed merger" Archived 9 January 2007 at the Wayback Machine, Chapter 5, Competition Commission website
- ^ UK air transport review: everybody wants Heathrow, Flight International, 25 February 1984, p. 496
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 466/7
- ^ a b c British airlines ask for reshape, Flight International, 23 June 1984, p. 1597
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 488–490
- ^ a b High Risk: The Politics of the Air, Thomson, A., 1990, pp. 488–490, 499
- ^ UK rejects US-style deregulation, Flight International, 20 July 1985, p. 5
- ^ a b c High Risk: The Politics of the Air, Thomson, A., 1990, pp. 503–506
- ^ a b The Caledonian punchbag, Flight International, 21 March 1987, pp. 32/3
- ^ Arabian flights disappoint BCal, Flight International, 8 March 1986, p. 7
- ^ High Riwsk: The Politics of the Air, Thomson, A., 1990, pp. 471, 508
- ^ photo caption, Flight International, 31 March 1984, p. 794
- ^ "Riyadh decision angers BA", Flight International, 25 February 1984, p. 497
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 476
- ^ a b BCal strengthens Gatwick feed, Flight International, 25 May 1985, p. 5
- ^ "BCal updates One-Eleven"[, Flight International, 5 January 1985, p. 47
- ^ a b c High Risk: The Politics of the Air, Thomson, A., 1990, p. 508
- ^ a b BCal Saudi routes approved, Flight International, 9 March 1985, p. 7
- ^ a b BA squares up for sale, Flight International, 8 June 1985, p. 21
- ^ a b Route changes force BCal A310 sale, Flight International, 22 June 1985, p. 7
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 511
- ^ Vickers Viscount 806 G-AOYR (photo)
- ^ Business booms at British Air Ferries, Flight International, 2 March 1985, p. 7
- ^ BCal flies Viscount 800, Flight International, 4 May 1985, p. 7
- ^ a b c d e f g h High Risk: The Politics of the Air, Thomson, A., 1990, p. 568
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 514
- ^ a b High Risk: The Politics of the Air, Thomson, A., 1990, pp. 519, 568
- ^ Airlines axe Middle East flights, Flight International, 5 April 1986, p. 7
- ^ a b c d e A question of choice, Editorial, Flight International, 25 July 1987, p. 1
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 201
- ^ BCAL Atlantic growth, Flight International, 20 September 1973, p. 466
- ^ a b It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, p. 83
- ^ a b High Risk: The Politics of the Air, Thomson, A., 1990, p. 525
- ^ It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, pp. 86–89
- ^ It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, p. 87
- ^ It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, p. 90
- ^ BCal reshuffles, World News, Flight International, 4 May 1985, p. 3
- ^ a b "The Caledonian punchbag", Flight International, 21 March 1987, pp. 32, 34
- ^ a b c "BCal loses £14.4m", Flight International, 11 April 1987, p. 8
- ^ a b c d e British Airways bids for dominance, Flight International, 25 July 1987, p. 4
- ^ a b High Risk: The Politics of the Air, Thomson, A., 1990, p. 530
- ^ a b c d High Risk: The Politics of the Air, Thomson, A., 1990, p. 523
- ^ a b c It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, pp. 89/90
- ^ a b c d The Caledonian punchbag, Flight International, 21 March 1987, p. 32
- ^ a b c d e f g It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, p. 103
- ^ a b Nigeria paints over problems, Flight International, 22 November 1986, p. 10
- ^ a b High Risk: The Politics of the Air, Thomson, A., 1990, p. 524
- ^ Aircraft (BRITISH CALEDONIAN — THE AIRLINK SERVICE), Vol 42, No 12, p. 41, Ian Allan Publishing, Hersham, December 2009
- ^ a b c d e BCal: the good news, Flight International, 24 May 1986, p. 4
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 530, 545, 568
- ^ News Scan — British Caledonian, Flight International, 13 December 1986, p. 7
- ^ BCal starts non-stop Tokyo service, World News, Flight International, 13 June 1987, p. 37
- ^ News Scan — Italy ... British Caledonian, World News, Flight International, 5 April 1986, p. 7
- ^ BCal wins struggle for Milan, World News, Flight International, 7 March 1987, p. 3
- ^ It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, pp. 100, 103
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 512
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 528/9, 537/8
- ^ It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, p. 100
- ^ Sir Adam Thomson, News, Obituaries, The Guardian, 1 June 2000
- ^ Vultures hover over BCal, Flight International, 1 Augustl 1987, p. 4
- ^ a b Government stalls BA/BCal merger, Flight International, 15 August 1987, p. 4
- ^ It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, pp. 102/3
- ^ a b High Risk: The Politics of the Air, Thomson, A., 1990, p. 544
- ^ Air Europe bids to compete in Europe, Flight International, 29 November 1986, p. 6
- ^ a b c BA cleared to make new bid for BCal, Flight International, 21 November 1987, p. 4
- ^ "1987: Great British airline ready for take off", On This Day, 16 July 1987, BBC News
- ^ a b c d e "BCal bidders raise the stakes", Flight International, 19 December 1987, p. 4
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 542/3, 554
- ^ a b It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, p. 104
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 532, 539, 541/2, 545–555
- ^ BCAL gets Paris de Gaulle rights, World News, Flight International, 27 December 1973, p. 1051
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 531/2
- ^ a b c High Risk: The Politics of the Air, Thomson, A., 1990, pp. 559–561
- ^ Aircraft (Gone but not forgotten ... BRITISH CALEDONIAN), Vol 42, No 12, p. 44, Ian Allan Publishing, Hersham, December 2009
- ^ BCal choice rests with 3i, World News, Flight International, 19 December 1987, p. 2
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 555–559
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 546
- ^ a b c d High Risk: The Politics of the Air, Thomson, A., A., Sidgwick and Jackson, London, 1990, pp. 539, 541/2, 545–555
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, p. 558
- ^ a b High Risk: The Politics of the Air, Thomson, A., 1990, p. 555
- ^ a b High Risk: The Politics of the Air, Thomson, A., 1990, pp. 570/1
- ^ SAS — moments of truth, Flight International, 9 April 1988, p. 23
- ^ High Risk: The Politics of the Air, Thomson, A., 1990, pp. 541, 544
- ^ a b It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, pp. 111/2
- ^ It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, p. 113
- ^ "EC approves BCal takeover", Flight International, 19 March 1988, p. 6
- ^ Global Airlines: Mergers and Alliances, Hanlon, P., Routledge (Taylor & Francis Group), London and New York, 2007 (3rd ed.), pp. 294, 296
- ^ Air Europe throws down the gauntlet, Flight International, 3 December 1988, p. 20
- ^ It was nice to fly with friends! The story of Air Europe., Simons, G.A., GMS Enterprises, Peterborough, 1999, pp. 128
- ^ a b Airliner World (Mediterranean Package Tours — Cal Air/Novair International Airways), Key Publishing, Stamford, UK, October 2010, pp. 70/1
- ^ "The lion stays", Flight International, 12 March 1988, p. 5
- ^ a b "BA pulls out of Gatwick South", Flight International, 16 July 1988, p. 12
- ^ "Chapter 3 British Airways Plc", British Airways Plc and British Caledonian Group plc; A report on the proposed merger, Competition Commission website archived link
- ^ British Airways boosts Gatwick routes, Flight International, 10 December 1988, p. 15
- ^ a b c d e BCal launches commuter service, Flight International, 13 November 1982, p. 1424
- ^ a b c d e High Risk: The Politics of the Air, Thomson, A., 1990, pp. 431/2
- ^ Three UK commuters merge, Flight International, 2 October 1982, p. 968
- ^ a b c Financing a high-risk venture — Genair collapse, Flight International, 15 June 1985, p. 40
- ^ Concorde: Supersonic Speedbird — the full story (Chapter 7: And a magnificent lady too ... Concorde pilot Barbara Harmer), Mortons Media Group, Horncastle, 2013, p. 41
- ^ Brymon for Birmingham, Flight International, 4 August 1979, p. 309
- ^ Brymon expands through the slump, Flight International, 13 March 1982, p. 611
- ^ British commuters grow — British Air Ferries/Guernsey Airlines, Flight International, 20 August 1983, p. 498
- ^ a b c "World Airlines", Flight International, 18 May 1972, Supplement 18
- ^ a b c "World Airline Directory", Flight International, 20 March 1975, p. 478
- ^ a b c "World Airline Directory", Flight International, 22 April 1978, p. 1147
- ^ a b "World Airline Directory", Flight International, 16 May 1981, p. 1417
- ^ a b "World Airline Directory", Flight International, 31 March 1984, p. 826]
- ^ Boeing 747-230B G-BJXN Mungo Park — The Scottish Explorer (photo)
- ^ a b "World Airline Directory", Flight International, 29 March 1986, p. 60
- ^ Incidents and Accidents > G-ASIX The Andes incident www.vc10.net
- ^ Classic Airliner (VC10 – The story of a classic jet airliner: Disposal of British Caledonian VC10s), p. 59, Key Publishing, Stamford, 2015
- ^ Individual Histories: G-ARTA A little VC10derness vc10.net
- ^ Classic Airliner (VC10 – The story of a classic jet airliner: Disposal of British Caledonian VC10s), p. 60, Key Publishing, Stamford, 2015
- ^ ASN Aircraft incident description Vickers VC-10-1109 G-ARTA — London Gatwick Airport (LGW)
- ^ "BUA/Laker Tie-up", Flight International, 21 November 1968, p. 813
- ^ ASN Aircraft incident description BAC One-Eleven 501EX G-AWYS — Corfu Airport (CFU)
References
- Thomson, Sir Adam (1990). High Risk: The Politics of the Air. London, UK: Sidgwick and Jackson. ISBN 0-283-99599-8.
- Eglin, Roger; Ritchie, Berry (1980). Fly me, I'm Freddie. London, UK: Weidenfeld and Nicolson. ISBN 0-297-77746-7.
- Simons, Graham M. (1999). It was nice to fly with friends! The story of Air Europe. Peterborough, UK: GMS Enterprises. ISBN 1-870384-69-5.
- Simons, Graham M. (1993). The Spirit of Dan-Air. Peterborough, UK: GMS Enterprises. ISBN 1-870384-20-2.
- Calder, Simon (2002). No Frills – The Truth behind the Low-cost Revolution in the Skies. London, UK: Virgin Books. ISBN 1-85227-932-X.
- "Update 5 British United Airways)". Aviation News. 66 (3). St. Leonards on Sea, UK: HPC Publishing. March 2004.
- British Airports Authority Annual Report and Accounts 1977/8. London, UK: British Airports Authority.
- British Airports Authority Annual Report and Accounts 1978/9. London, UK: British Airports Authority.
Further reading
- Thaxter, D.J (2009). The History of British Caledonian Airways 1928–1988. Unknown Publisher. ISBN 978-0-95640-432-9.
- Bristow, A. & Malone, P. (2009). Alan Bristow Helicopter Pioneer: The Autobiography (Chapter 17 – Airline Ego Trip, pp. 253/4). Barnsley, UK: Pen & Sword Books. ISBN 978-1-84884-208-3.
- "Airline History – The BCal STORY: "I wish they all could be Caledonian Girls!"". Jets Monthly. Cudham, UK: Kelsey Publishing Group: 40–45. November 2011. (Kelsey Publishing Group online)
External links
![](http://upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/30px-Commons-logo.svg.png)
- British Caledonian — A Tribute.
- Monopolies and Mergers Commission report on proposed British Airways takeover of British Caledonian
- BA-BCal merger as reported on BBC News, 16 July 1987
- contemporary timetable images
- Daily Telegraph obituary of Sir Peter Masefield, BCal's former deputy chairman from 1978–1987
- History of British Caledonian's VC-10s
- [ Privatisation of British Airways: Its Management and Politics 1982–1987 (Kyohei Shibata, EUI Working Paper EPU No.93/9, European University Institute, Florence, Italy, 1994)]