Court Line’s failure 50 years ago changed travel’s trajectory for ever – this month, Dave Richardson explores the lessons the industry and the trade learnt.
Fifty years ago this month, the trade was hit by what was then the biggest financial collapse in its history when Court Line – including its tour operating brands Clarksons and Horizon – went bust.
The shockwaves reached the heart of government and led to more robust consumer protection being put in place for when other big collapses happened, the benefits of which are still being felt by holidaymakers today.
Clarksons pioneered cheap package holidays in the 1960s, whereas Horizon – often considered to be the first package holiday operator in 1950 – took a more quality approach.
By the early 1970s, Clarksons had carried one million passengers and become the top operator, an accolade coveted by the recently formed Thomson Holidays (now Tui UK).
But its margins were very thin and in April 1973, after racking up huge losses, it was acquired by Court Line – an international conglomerate that operated a charter airline, a Caribbean airline and hotels in Saint Lucia and Antigua, and had other interests including shipbuilding.
Economic conditions were very tough going into 1974, with oil prices rocketing after the Yom Kippur Arab-Israel war of October 1973. Inflation was rampant and waves of strikes paralysed the economy, leading to power outages and a three-day working week.
In a then unprecedented move, Court Line introduced two 400-seat TriStars joining 11 much smaller BAC 1-11s, flying them to the Caribbean and Europe. Horizon was acquired by Court Line in January 1974.
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