GB Airways

GB Airways began in 1931 as Gibraltar Airways and later became a British Airways franchise flying holiday and Mediterranean routes from Gatwick, Heathrow and Manchester. Squeezed by low-cost competition and a restrictive franchise, it was sold to easyJet for £103.5 million and its flights under the GB name ended in late March 2008.

How it started

GB Airways traces its roots to 1931, when the Gibraltar shipping firm MH Bland formed Gibraltar Airways, according to Wikipedia. The venture was a response to the Great Depression, as the parent company looked for new lines of business. It began with a single Saunders-Roe A21 Windhover flying boat, seating up to six passengers, on a route from Gibraltar to Tangier in Morocco.

During the Second World War the company acted for Imperial Airways and BOAC. In 1947 it began a relationship with the newly formed British European Airways (BEA), which started flying London to Gibraltar and later took a 49% stake. The airline traded as GibAir and flew Douglas DC-3s on services to Morocco, with some charters to Portugal and France.

The heyday

In 1989 the company moved its operational base from Gibraltar to Gatwick and became GB Airways Ltd on 3 January that year. In 1995 it became a full British Airways franchise, and BA gave up its shareholding. Under the franchise, due to run to 2010, aircraft wore BA livery, staff wore BA uniform, flights carried BA codes and could be booked through BA, and the airline was an affiliate member of Oneworld.

Before that, GB Airways had also operated flights for the young easyJet, which did not hold its own air operator's certificate until October 1997 (Simple Flying).

By 2001 it served 21 destinations in the western Mediterranean and North Africa from Gatwick and Heathrow, with a two-class service. Managing director John Patterson said the airline would keep its service level and focus on routes of three to four hours rather than cut quality. It was replacing seven Boeing 737-300/400s with Airbus A321s. By 2008 it was described as a niche carrier with 44 routes, and it also had a small base at Manchester, where flights ran as BA Connect services with buy-on-board catering.

What went wrong

Citing Flight International, Wikipedia says the airline had historically been very profitable but struggled in the 2000s. The reasons were overcapacity, tougher low-cost competition and a franchise agreement that limited its commercial freedom. It made a loss in 2006, and Kevin Hatton, a former BA executive, was recruited to review the options. These were renegotiating with BA, a new business model or partnership, or a sale.

Talks with BA throughout 2007 achieved nothing, because BA rejected the proposed new model. BA also chose not to use its option to buy the airline. Simple Flying reports that this left the Bland Group to deal with easyJet.

The last flight

easyJet announced the purchase on 25 October 2007. According to easyJet's investor presentation, it bought 100% of the shares from the Bland Group for £103.5 million in cash. The UK Office of Fair Trading cleared the deal on 18 January 2008. The airline carried on flying its BA franchise services until 29 March 2008, after which its aircraft passed to easyJet. Wikipedia gives 30 March 2008 as the date operations ceased. No specific final flight or route is documented in the sources consulted.

What happened next

• Routes and fleet: easyJet's presentation said GB routes would operate under the easyJet brand from summer 2008. It described a young fleet of 15 Airbus A320-family aircraft and said the deal brought 19 new destinations. Simple Flying says easyJet inherited nine A320s, so the fleet figures differ between sources. Two aircraft, G-TTOB and G-TTOE, went to British Airways, and some were returned to lessors.
• Gatwick and Manchester: the deal gave easyJet a larger Gatwick presence and a way into Manchester.
• Heathrow slots: these were not part of the sale. They were reportedly sold to other airlines for about £100 million.
• Staff: easyJet's presentation counted 674 crew and 284 people in support functions. The Beehive head office at Gatwick was not included in the sale, and its closure cost 284 jobs. Many other staff and aircraft were redeployed to easyJet.
• Brand: the GB Airways name was retired, along with the BA-franchise livery.

Sources: Wikipedia: GB Airways, easyJet: Acquisition of GB Airways (investor presentation, 25 October 2007), Simple Flying: What happened to GB Airways, Simple Flying: Which airlines has easyJet acquired