Sir Freddie Laker, whose cut-rate transatlantic flights back in the 1970s laid the foundation for today's discount airlines, has died. He was 83.

Laker launched his New York to London "Skytrain" in September 1977 at a time when the established airlines had a lock on transatlantic routes and they priced their tickets accordingly.

But on Laker Airways, the travelling public could fly across the Atlantic for as little as 118 pounds – food and drinks extra, of course. That was about two-thirds less than the competition.

Sir Freddie Laker (CP photo)

The service became enormously popular and Freddy Laker was knighted in 1978 on the recommendation of former British prime minister Margaret Thatcher, who heralded his entrepreneurship as exactly what British industry needed.

For a while, everything was flying high for Laker Airways. But then the big airlines began drastically slashing their economy fares. Laker's pockets couldn't withstand the fare war and a brutal recession didn't help. His airline collapsed in 1982, despite an extraordinary outpouring from people who donated more than $2 million to a "Save Laker" fund.

He always said the established airlines conspired to bring down his airline. "Sue the bastards!" was one of his more famous expressions.

He tried to resurrect his airline several more times and for a time offered flights from Toronto to Florida, but his later ventures never enjoyed the same kind of success.

However, Laker's legacy endures. Sir Richard Branson, founder of Virgin Atlantic, credited Laker with pioneering today's discount airline industry.

"Virgin Atlantic named one of our planes Spirit of Sir Freddie in recognition of our respect for him," Branson said. "He was a larger-than-life figure, with a wicked sense of humour and a great friend."

Laker died Thursday in a hospital in Hollywood, Florida. The cause of death was not disclosed but he was known to have heart problems.