Davies and Newman

Davies and Newman was a British shipping company established in 1922 by Captain William Davies and Frank Newman. Its original business combined shipbroking, oilbroking and tanker management, building on the earlier interests of Lane and MacAndrew, a London concern associated with Newman. The company became a member of the Baltic Exchange and developed long-standing relationships with oil companies, shipowners and maritime businesses in Britain and overseas. The company’s shipping operations covered tanker chartering, dry-cargo and bulk-carrier chartering, ship sale and purchase, shipbuilding-contract agency and ships-agency work. Tanker chartering was its principal shipping activity, ranging from single-voyage arrangements to long-term and consecutive-voyage charters. Its ships-agency department handled vessels calling at ports and terminals on the River Thames, including Thameshaven and Canvey Island, on behalf of major oil companies and shipowners. Davies and Newman also became the parent platform for a substantial aviation business. In the early 1950s, the group created an air-broking operation, and in May 1953 Frederick Newman founded Dan-Air as a wholly owned subsidiary. Dan-Air grew from a charter and package-holiday carrier into a diversified British airline operating charter, scheduled and transatlantic services. By the early 1970s, the airline operated from Gatwick, Luton and Manchester and maintained regional facilities at airports including Newcastle, Teesside, Liverpool, Bristol and Cardiff. Its fleet included Comet aircraft, BAC One-Elevens and Boeing 707s. The group’s aviation interests extended beyond the airline itself. Dan-Air Engineering maintained aircraft at Lasham Airfield in Hampshire and undertook external maintenance work. Dan-Air Flying Services and Dan-Air Intercontinental supported the wider aviation structure, while Davies and Newman Travel sold inclusive-tour holidays. The group also developed or acquired airport-support activities, including Gatwick Handling, a bonded-store operation and flight-kitchen interests. Gatwick Handling was subsequently jointly owned with Laker Airways. In 1971, the business was reorganized for a public-market listing. Davies and Newman Holdings Limited was created as the new public holding company, and Hambros Bank arranged its initial public offering on the London Stock Exchange. The flotation was intended to improve the group’s access to capital, increase public accountability and support expansion across shipping and aviation. At that point, the group employed approximately 80 people in shipping and about 1,200 in aviation, although these figures describe the period rather than the company’s entire history. The group’s fortunes later became closely tied to Dan-Air. During the late 1980s and early 1990s, the airline suffered substantial losses amid difficult trading conditions. After unsuccessful discussions with Virgin Atlantic, Davies and Newman sold Dan-Air to British Airways in October 1992 for a nominal consideration, with British Airways assuming the airline’s debts and other liabilities. The airline’s corporate name was subsequently changed to British Airways (European Operations at Gatwick) Ltd. Davies and Newman Holdings Limited was dissolved in 1996. The Davies and Newman name therefore survives primarily as a historical reference to a shipping and aviation group rather than as an active consumer brand.

Davies and Newman originated in London’s maritime-services sector. Captain William Davies, who had gone to sea as a boy and later obtained master mariner qualifications, and Frank Newman, an experienced tanker broker associated with Lane and MacAndrew, incorporated Davies and Newman in 1922. The new company took over relevant interests from Lane and MacAndrew after that earlier concern was wound up. Its activities centered on shipbroking, oilbroking and tanker management, with membership of the Baltic Exchange providing an institutional base for chartering and related transactions. The company’s early identity was strongly connected with the oil and tanker trades. Davies had managed tankers for the Admiralty during the First World War and later participated in the Tanker Pool. Newman was regarded as an early specialist in tanker broking. After Davies’s death in 1936 and Newman’s death in 1953, the company continued under a new generation of leadership, including Frederick Newman, Frank Newman’s son, and John Wingett Davies, the son of the other founder. Frederick Newman joined the business after education at The Leys School and wartime service in Burma with the Honourable Artillery Company. He founded Dan-Air in May 1953, turning the company’s developing air-broking work into a dedicated aviation subsidiary. Dan-Air initially served charter and travel markets, but over time added scheduled routes, international operations and specialist aviation activities. Its package-holiday business became particularly important, with services to destinations in Spain, Italy, Greece, Yugoslavia, Germany and Switzerland. The airline also operated domestic and regional scheduled routes and later obtained authority to operate charter flights to the United States. By 1961, Davies and Newman was broadening its maritime portfolio through a dry-cargo chartering department. In the early 1970s its shipping divisions included tanker chartering, general chartering, ship sale and purchase, shipbuilding-contract agency and ships agency. The company worked with major oil companies and shipowners in Britain, Scandinavia, North America, continental Europe and Asia. Ships-agency operations handled tankers calling at River Thames facilities, while the sale-and-purchase department dealt with vessels ranging from trawlers to ocean liners. The aviation group also became more complex. Dan-Air operated from Gatwick, with additional bases and facilities at airports across Britain. Dan-Air Engineering maintained aircraft at Lasham Airfield in Hampshire and performed work for outside customers. Other group companies included Dan-Air Flying Services, Dan-Air Intercontinental and Davies and Newman Travel. Airport-support investments included Gatwick Handling, a bonded-store operation and flight kitchens. This combination made Davies and Newman more than a conventional shipbroker: it was a transport group spanning maritime commerce, passenger aviation, engineering, travel distribution and airport services. In 1971, the group reorganized its ownership and sought a public quotation. Davies and Newman Holdings Limited was formed as the new holding company, with Hambros Bank arranging its flotation on the London Stock Exchange. Management presented the listing as a means of increasing financial transparency, strengthening the company’s standing and raising capital for service expansion. At the time, aviation accounted for most of the group’s employment and commercial profile, while shipping remained the original operating foundation. The group’s later history was dominated by Dan-Air’s deterioration in the late 1980s and early 1990s. David James became chairman in 1989 as the airline faced worsening financial conditions. Dan-Air recorded heavy losses in the early 1990s, and negotiations with Virgin Atlantic did not produce a rescue transaction. In October 1992, Davies and Newman sold Dan-Air to British Airways for a nominal amount, with British Airways taking on the airline’s debts and other liabilities. The airline’s legal identity was then changed to British Airways (European Operations at Gatwick) Ltd. With Dan-Air no longer part of the group, Davies and Newman Holdings lost its principal aviation business and was dissolved in 1996. The company is therefore a defunct British corporate brand whose historical importance lies in the way a specialist tanker-broking firm developed a major airline, an aircraft-maintenance business and a network of associated transport services.

• 1996

  Holding company dissolved

  [1]Davies and Newmanen.wikipedia.org

  Davies and Newman Holdings Limited was dissolved.

• 1992

  Dan-Air sold to British Airways

  [1]Davies and Newmanen.wikipedia.org

  The group sold Dan-Air after severe financial difficulties and unsuccessful rescue discussions.

• 1971

  Holding company floated

  [1]Davies and Newmanen.wikipedia.org

  Davies and Newman Holdings Limited was created and floated on the London Stock Exchange.

• 1961

  Dry-cargo chartering department announced

  [1]Davies and Newmanen.wikipedia.org

  The company expanded beyond tanker chartering by creating a department for dry cargo and bulk-carrier business.

• 1953

  Dan-Air founded

  [1]Davies and Newmanen.wikipedia.org

  Frederick Newman established Dan-Air as a wholly owned aviation subsidiary.

• 1922

  Davies and Newman incorporated

  [1]Davies and Newmanen.wikipedia.org

  Captain William Davies and Frank Newman formed the company to conduct shipbroking, oilbroking and tanker-management activities.

A British maritime-services group that expanded from tanker broking and ship management into charter aviation, airline engineering, travel and airport-support services.

• Maritime services · 1922

  Tanker chartering

  The company’s principal shipping activity involved arranging tanker charters for oil companies and shipowners. Transactions ranged from single-voyage commissions to long-term and consecutive-voyage contracts. Davies and Newman maintained connections across Britain, Scandinavia, North America, continental Europe and Asia, and its tanker work formed the commercial foundation of the group.

• Maritime services · 1961

  General chartering

  The general chartering department handled dry-cargo vessels and bulk carriers. It represented an expansion from the company’s historic tanker specialization and operated through the company’s Baltic Exchange relationships.

• Maritime services

  Ships agency

  Davies and Newman acted for shipowners and oil companies whose tankers called at River Thames locations, including Thameshaven and Canvey Island. The department coordinated port and vessel-related services for a substantial volume of visiting ships.

• Commercial aviation · 1953

  Dan-Air

  Dan-Air was the group’s airline subsidiary, founded in 1953. It became a significant British charter and package-holiday carrier, while also operating domestic, European and later United States charter services. Its fleet included Comets, BAC One-Elevens and Boeing 707s, and its main operational base was Gatwick Airport.

• Aircraft maintenance · 1955

  Dan-Air Engineering

  Based at Lasham Airfield in Hampshire, Dan-Air Engineering maintained the group’s aircraft and accepted external maintenance contracts. It held approvals for work on piston-engine aircraft and selected jet types.

• Travel services

  Davies and Newman Travel

  Davies and Newman Travel operated a City of London travel shop selling inclusive-tour holidays, complementing Dan-Air’s package-holiday flying business.

• Airport services · 1972

  Gatwick Handling

  Gatwick Handling formed part of the group’s airport-support portfolio. Davies and Newman acquired the business and subsequently held it jointly with Laker Airways.

• 1992

  Sell Dan-Air to British AirwaysM&A

  Background

  Dan-Air’s financial position had deteriorated during the late 1980s and early 1990s. Losses continued and proposed discussions with Virgin Atlantic did not result in a transaction.

  Action taken

  Davies and Newman sold Dan-Air to British Airways for a nominal consideration, with the purchaser assuming the airline’s debts and other liabilities.

  Aftermath

  Dan-Air ceased to operate as an independent group airline and was renamed British Airways (European Operations at Gatwick) Ltd. The transaction effectively removed the group’s principal aviation asset.

  Transaction consideration and liabilities assumed. Dan-Air sold for a nominal £1; British Airways assumed reported debts of £37 million and other liabilities (October 1992)

  • Virgin Atlantic — Virgin Atlantic held discussions concerning Dan-Air but did not complete a rescue or acquisition transaction.

  Source

• 1971

  Create a public holding company and pursue a stock-market flotationStrategy

  Background

  Davies and Newman had developed from a private shipping concern into a group with substantial aviation operations and several subsidiaries. Management sought greater access to capital, public-company status and additional resources for expansion.

  Action taken

  Ownership of the operating company was transferred to Davies and Newman Holdings Limited, which was floated on the London Stock Exchange through an offering arranged by Hambros Bank.

  Aftermath

  The flotation created a publicly traded holding structure and supported the group’s wider transport activities, although the later financial problems of Dan-Air undermined the group’s position.

  Initial public offering. 1,133,000 ordinary shares of 25 pence each offered at 130 pence per share (October 1971)

  Source

1. 1Davies and Newmanen.wikipedia.org