But ordinary creditors may have to wait two years for a payout, which is likely to total just pounds 3m – less than 5p in the pound.. Sir Freddie Laker has challenged Prime Minister John Major to refer the proposed alliance between British Airways and American Airlines to the Monopolies and Mergers Commission. Sir Freddie’s intervention marks the start of a potentially damaging high-profile campaign against the Government, which could ultimately be joined by Richard Branson and his Virgin Atlantic.
Both Sir Freddie and Mr Branson have written to Mr Major arguing for the BA deal to be referred to the MMC. However, Sir Freddie has also chosen to take his campaign to the wider public by placing advertisements in national newspapers.In his letter, Sir Freddie reminds the Prime Minister that his low-cost Skytrain was forced out of business in 1982 as a result of what he believes were aggressive and unfair tactics by other airlines.”In 1982 the British and American flying public lost out,” he says.

“Transatlantic fares rose because BA and other members of the transatlantic cartel had little or no competition. The public had no choice but to pay the increased fares.”Sir Freddie argues that the draft undertakings to be given by BA and American in lieu of a reference to the MMC are mild and ineffective and will still result in the two carriers having a monopoly on transatlantic routes.”With such an overwhelming monopoly the public and certainly other airlines will lose out again,” Sir Freddie writes. “I believe both politicians and the public are being duped into believing this monopoly will be less powerful than it actually will be.”This cosy cartel is an affront to fair play and equality.”In conclusion, Sir Freddie says: “Please, Prime Minister, remember the past. Make sure this merger is referred to the Monopolies and Mergers Commission. Because, should it be allowed to go ahead, the British flying public will have to live with its dire consequences for years to come.”Sir Freddie’s letter comes as the Office of Fair Trading reviews comments submitted on the draft undertakings, which will impose restrictions on the BA/American alliance. Rival carriers from both sides of the Atlantic have condemned the undertakings as being too weak, demanded that the two airlines release more take-off and landing slots at Heathrow airport, and urged that the alliance be referred to the MMC.BA insists that a referral will not be imposed and argues that the undertakings are already tough enough. It continues to believe that the regulatory issues in the UK can be resolved in weeks rather than months..

Two of the top corporate spin doctors of the 1980s are to rejoin forces next week in a bid to recreate their heady success when multi-billion takeovers were 10 a penny. Brian Basham, fresh from his victory in the British Airways/Virgin “dirty tricks” libel case last month, is teaming up again with PR consultant John Coyle to launch the new Basham & Coyle Partnership Plc tomorrow.
Mr Basham, dubbed “The Streetfighter” from his days advising the likes of Lord Hanson and BA’s Lord King, says the new venture has already gained a warm response from City merchant banks.”We’re going back into the mainstream – new issues and bids and deals. One head of corporate finance has already said he’ll use us on his next takeover.”The two built up Broad Street Associates from 1980 into a 1,000-strong firm floated on the stock market in 1988.It advised Guinness on its bid for Bells whisky, and Argyle’s Sir James Gulliver against Ernest Saunders’ bid for Distillers, and defended Dunlop and Pilkington from BTR.Mr Coyle, a former journalist, left shortly after the flotation, however, in a falling-out over strategy. He built up two new outfits, Square Mile and Barbican Communications.Mr Basham also cashed in his chips after selling out to the French advertising agency BDDP in 1991. His Warwick Corporate now brings on board clients such as Manpower and auctioneer Christies, adding to Mr Coyle’s list of growing smaller firms.Another venture, Equity Developments, will offer research to the market on smaller companiesMr Basham has also acted for the Meat and Livestock Commission over the BSE scare and conceived the Remembrance Day “two minutes silence” for the Royal British Legion.The venture starts with more than pounds 1m of fee income already and is being backed by investor Tony Caplin, who will take responsibility for finance..