Clarksons Travel Group
Encyclopedia
Clarksons Travel Group was a package tour operator in the UK during the 1960s and early 1970s. The company ran into financial difficulties and was taken over by its major supplier of air travel, Court Line
. However, after two years, on 15 August 1974, the company collapsed with at least £7m owing to 100,000 holidaymakers and possibly at least twice as much.
. It specialised in cheap package holiday
s which included accommodation, full or half-board and air transport from the UK to the holiday destination.
Destinations were usually Spain
, Portugal
, Italy
, Cyprus
and Greece
. A typical example was £50 with full-board in Palma, Majorca for 14 nights.
Lane. This was used for transport to Luton Airport, the main airport served by Court which was Clarkson's main air transport supplier.
Court eventually had to step in and bail out the company when it went into financial difficulies as it was their largest customer. The collapse was referred to recently as the most spectacular failure in package holiday history, not even surpassed by the subsequent failures of Laker Airways
in 1982 and Intasun in 1991. Flight International
magazine estimated that in the five years before the collapse, eight million holidays had averaged £1 below cost.
Flight International stated that the marketing of airline seats with Mediterranean hotels had given millions of ordinary people holidays once available only to the privileged and that the collapse was: the inevitable consequence of continuing to see £25 flights for £20 and less. This was compounded by high inflation
, a sinking pound
, doubled fuel prices and coups in Portugal, Cyprus and Greece. On top of this was the three-day week
in the key booking period. A takeover of their competitor Horizon Holidays
failed to protect bookings.
Flight International added that the UK's Civil Aviation Authority (CAA), headed at the time by Lord Boyd-Carpenter
must bear some responsibility for the Court's and Clarksons' collapse and asked questions such as how interlocking companies were related. It also stated that the information should be public, as in the USA. It also criticised Peter Shore
, the Secretary of State for Trade at the time, for continuing the government policy of secrecy, financial unprofessionalism and hiding behind the Civil Aviation Act of 1971.
assured customers that none would lose money as a result of the collapse, perhaps mindful that a second General Election
in 1974 was likely, as indeed it turned out. All eventually had their money returned.
Clarksons held an Air Travel Organisers' Licensing (ATOL)
licence and were therefore theoretically covered by their insurance bond. Unfortunately, although the 35,000 passengers stranded abroad were repatriated, there was insufficient funds for the 100,000 whose holidays had been paid in advance.
, registration G-APDN, en-route from Manchester
to Barcelona
deviated from the intended course and crashed into high ground at Sierra Del Montseny, Gerona in northern Spain. The aircraft was destroyed by impact and subsequent ground fire. There were 3 flight crew, 4 cabin crew and 105 passengers aboard. All occupants suffered fatal injuries. It was the Dan Air's first fatal accident killing fare-paying passengers. The Dan Air G-APDN Air Crash Memorial is in Padiham, Lancashire
.
Court Line
Court Line was a prominent British holiday charter airline during the early 1970s based at Luton Airport in Bedfordshire. It also provided bus services in Luton and surrounding areas....
. However, after two years, on 15 August 1974, the company collapsed with at least £7m owing to 100,000 holidaymakers and possibly at least twice as much.
Ethos
The company was based appropriately in Sun Street in the City of LondonCity of London
The City of London is a small area within Greater London, England. It is the historic core of London around which the modern conurbation grew and has held city status since time immemorial. The City’s boundaries have remained almost unchanged since the Middle Ages, and it is now only a tiny part of...
. It specialised in cheap package holiday
Package holiday
A package holiday or package tour consists of transport and accommodation advertised and sold together by a vendor known as a tour operator. Other services may be provided like a rental car, activities or outings during the holiday. Transport can be via charter airline to a foreign country...
s which included accommodation, full or half-board and air transport from the UK to the holiday destination.
Destinations were usually Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
, Portugal
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, Cyprus
Cyprus
Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...
and Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
. A typical example was £50 with full-board in Palma, Majorca for 14 nights.
Air travel
Clarksons had an air terminal on the north side of Finchley Road, London, NW3, close to the junction with FrognalFrognal
Frognal is an affluent area in North West London in the London Borough of Camden between Hampstead and West Hampstead. Frognal is also the name of the major road in the area.-History:...
Lane. This was used for transport to Luton Airport, the main airport served by Court which was Clarkson's main air transport supplier.
Court eventually had to step in and bail out the company when it went into financial difficulies as it was their largest customer. The collapse was referred to recently as the most spectacular failure in package holiday history, not even surpassed by the subsequent failures of Laker Airways
Laker Airways
Laker Airways was a wholly private, British independentindependent from government-owned corporations airline founded by Sir Freddie Laker in 1966. It originally was a charter airline flying passengers and cargo worldwide...
in 1982 and Intasun in 1991. Flight International
Flight International
Flight International is a global aerospace weekly publication produced in the UK. Founded in 1909, it is the world's oldest continuously published aviation news magazine...
magazine estimated that in the five years before the collapse, eight million holidays had averaged £1 below cost.
Flight International stated that the marketing of airline seats with Mediterranean hotels had given millions of ordinary people holidays once available only to the privileged and that the collapse was: the inevitable consequence of continuing to see £25 flights for £20 and less. This was compounded by high inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
, a sinking pound
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
, doubled fuel prices and coups in Portugal, Cyprus and Greece. On top of this was the three-day week
Three-Day Week
The Three-Day Week was one of several measures introduced in the United Kingdom by the Conservative Government 1970–1974 to conserve electricity, the production of which was severely limited due to industrial action by coal miners...
in the key booking period. A takeover of their competitor Horizon Holidays
Horizon Travel
Horizon Travel or the Horizon Holiday Group was a British package holiday company no longer in existence, but was one of the first ventures into the package holiday market.-Foundation:The company was co-founded by Vladimir Raitz on 12 October 1949...
failed to protect bookings.
Flight International added that the UK's Civil Aviation Authority (CAA), headed at the time by Lord Boyd-Carpenter
John Boyd-Carpenter, Baron Boyd-Carpenter
John Archibald Boyd-Carpenter, Baron Boyd-Carpenter PC was a British Conservative politician.-Early life:...
must bear some responsibility for the Court's and Clarksons' collapse and asked questions such as how interlocking companies were related. It also stated that the information should be public, as in the USA. It also criticised Peter Shore
Peter Shore
Peter David Shore, Baron Shore of Stepney PC was a British Labour politician and former Cabinet Minister, noted in part for his opposition to the United Kingdom's entry into the European Economic Community. His idiosyncratic left-wing nationalism led to comparison with the French politician...
, the Secretary of State for Trade at the time, for continuing the government policy of secrecy, financial unprofessionalism and hiding behind the Civil Aviation Act of 1971.
Political repercussions
The Trade Minister, at the time, Tony BennTony Benn
Anthony Neil Wedgwood "Tony" Benn, PC is a British Labour Party politician and a former MP and Cabinet Minister.His successful campaign to renounce his hereditary peerage was instrumental in the creation of the Peerage Act 1963...
assured customers that none would lose money as a result of the collapse, perhaps mindful that a second General Election
United Kingdom general election, October 1974
The United Kingdom general election of October 1974 took place on 10 October 1974 to elect 635 members to the British House of Commons. It was the second general election of that year and resulted in the Labour Party led by Harold Wilson, winning by a tiny majority of 3 seats.The election of...
in 1974 was likely, as indeed it turned out. All eventually had their money returned.
Clarksons held an Air Travel Organisers' Licensing (ATOL)
Air Travel Organisers' Licensing
Air Travel Organisers' Licensing is a United Kingdom Civil Aviation Authority scheme to protect people who have purchased package holidays and flights from a member tour operator....
licence and were therefore theoretically covered by their insurance bond. Unfortunately, although the 35,000 passengers stranded abroad were repatriated, there was insufficient funds for the 100,000 whose holidays had been paid in advance.
Accidents
On Friday evening, 3 July 1970, a Clarksons chartered Dan Air de Havilland CometDe Havilland Comet
The de Havilland DH 106 Comet was the world's first commercial jet airliner to reach production. Developed and manufactured by de Havilland at the Hatfield, Hertfordshire, United Kingdom headquarters, it first flew in 1949 and was a landmark in aeronautical design...
, registration G-APDN, en-route from Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
to Barcelona
Barcelona
Barcelona is the second largest city in Spain after Madrid, and the capital of Catalonia, with a population of 1,621,537 within its administrative limits on a land area of...
deviated from the intended course and crashed into high ground at Sierra Del Montseny, Gerona in northern Spain. The aircraft was destroyed by impact and subsequent ground fire. There were 3 flight crew, 4 cabin crew and 105 passengers aboard. All occupants suffered fatal injuries. It was the Dan Air's first fatal accident killing fare-paying passengers. The Dan Air G-APDN Air Crash Memorial is in Padiham, Lancashire
Lancashire
Lancashire is a non-metropolitan county of historic origin in the North West of England. It takes its name from the city of Lancaster, and is sometimes known as the County of Lancaster. Although Lancaster is still considered to be the county town, Lancashire County Council is based in Preston...
.