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Thatcher 'had role in Laker collapse'

Michael Harrison Industrial Editor
Friday 11 March 1994 19:02 EST
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BARONESS THATCHER played a key role in persuading the American authorities not to prosecute British Airways over the collapse of Sir Freddie Laker's cut-price transatlantic airline in the early 1980s, according to a television programme to be broadcast next week.

The programme, in the BBC 2 series 40 Minutes, also claims that the then Prime Minister had a major part in events leading up to the demise of Laker Airways.

Sir Freddie's Skytrain service collapsed in February 1982 leaving thousands of passengers stranded, after BA and a cartel of American and European airlines had decided to slash their core transatlantic fares the previous autumn.

According to 'A Case of Corporate Murder', to be screened on Tuesday, the United States Justice Department launched an inquiry into the affair and by autumn 1984 had decided to prosecute senior BA executives over their involvement.

But, the programme says, 'Mrs Thatcher's government bombarded the Reagan administration with requests that the investigation should be cancelled' because a successful prosecution would have proved disastrous to the privatisation of BA.

Mrs Thatcher threatened to withdraw her support for President Reagan in the SALT talks in early 1985 at which he introduced his Star Wars initiative.

The programme also details a private meeting in the House of Commons on the eve of Laker Airways' collapse at which Mrs Thatcher decided against intervening to help Sir Freddie. Ian Sproat, who as transport minister had authorised BA's fare cuts three months earlier, was also present.

Although torn between concern for 'my poor passengers' and 'my poor taxpayers', she decided that to have helped Sir Freddie would have 'sullied the symbol of free enterprise'.

A spokeswoman for the BBC said Lady Thatcher had been approached twice but declined to take part in the programme.

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