Airco - Sale To BSA and Liquidation

Sale To BSA and Liquidation

Following the cessation of hostilities, the large number of war-surplus machines, sharp fluctuations in business confidence, and the government's failure, unlike those of USA and France, to provide any form of support, Airco became unprofitable. Thomas endeavoured to sell Airco to a car manufacturer. Airco and BSA, parent company of Daimler, announced on 1 March 1920 that Airco had amalgamated with Birmingham Small Arms Company.

Within days BSA discovered Airco was in a far more serious financial state than Thomas had revealed. Thomas was immediately removed from his new seat on the BSA board and all BSA's new acquisitions were placed in liquidation. BSA failed to pay a dividend for the following four years.

With help from Thomas, de Havilland bought the group's assets he needed to form the de Havilland Aircraft Company in 1920.

Aircraft Transport and Travel had been allowed to continue to operate until December 1920. BSA then bought Aircraft Transport and Travel's aircraft from the liquidator and, in early 1921, established Daimler Airway and Daimler Air Hire under Daimler Hire Limited's Frank Searle.