Eagle Folds Its Wings

In Britain, the name of Harold Bamberg has always figured on any list of up-by-the-bootstraps businessmen. He quit school at 17, joined the wartime R.A.F. and rose to the position of sergeantpilot. Later he acquired two old Halifax bombers, won some contracts to haul freight during the Berlin blockade, and went on to build an airline. Bamberg became a sterling millionaire. He played polo with Prince Philip at Windsor Great Park, traveled between country manor and luxury London flat in a chauffeured Rolls fitted with telephone, dictating machine and the license plate "H.B. 100." When asked how he had done so well, Bamberg's jaunty reply was: "There's no substitute for getting into business and learning the hard way." Last week, Bamberg, 45, was again learning the hard way. Bankruptcy had grounded Bamberg's British Eagle International Airlines Ltd. The government's Air Transport Licensing Board was busily apportioning Eagle's routes, and a creditor-chosen liquidator was seeking buyers for the airline's 17 outdated Britannias and Viscounts, which along with eight leased jets constituted the airline's fleet. Debts outweigh assets by some $10 million, and some creditors may have to settle for five shillings to the pound. To his workers lining up for their final pay, Bamberg said sadly: "Let us hope that this is not goodbye."

Barring a miracle, it was. Eagle faced insurmountable troubles, some of which also worry Britain's 30-odd other independent airlines. The biggest problem is that they all compete directly with government-owned and government-favored British European Airways and British Overseas Airways Corp. While those two lines were awarded the profitable high-density routes, Eagle got hand-me-downs; it was authorized to fly to such secondary tourist centers as Rimini and Gerona. The government really plucked Eagle's feathers when it decided to ferry troops overseas aboard R.A.F. VC-10s instead of Eagle planes. Finally, when BOAC complained that Eagle was trying to turn a low-rate, special-tour authorization to the Caribbean into a regular run, the licensing board revoked Eagle's authorization to fly there. It thereby wiped away $5,000,000 in annual revenues for the airline. Hambros Bank Ltd., the prestigious London banking house, started to arrange a refinancing, but backed out after the government decision in the Caribbean case.

With no more aid forthcoming, Eagle folded. And in British aviation circles, its crash raised an obvious question: With costs climbing and the government still favoring itself, how many more independents will fail? An answer was not long in coming. Last week smaller Transglobe Airways Ltd. (seven planes) announced that it was closing out its transatlantic charter business and also going into bankruptcy.

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