Grounded: One Airline Inquiry

President Reagan has halted a federal grand jury investigation into alleged antitrust violations involving air travel between the U.S. and Britain. In a terse statement last week, the Justice Department said that the decision was based on "foreign policy reasons." Said Department Spokesman Mark Sheehan: "You can't expect the President to explain foreign policy decisions. It is enough for him to consider the factors and decide."

In fact, the inquiry had struck a discordant note in Anglo-American relations. The criminal investigation, begun in 1983, was supposedly looking into the possibility that British Airways and other North Atlantic carriers had conspired to cut prices to drive Britain's Laker Airways out of business. Before his airline went bankrupt in 1982, Freddie Laker had offered round-trip fares between London and New York for as little as $236.

Britain, which permits its airlines to confer on prices, contended that the matter was beyond the reach of American law. Since August, the British have refused to approve proposed lower transatlantic winter fares, claiming the move could invite further U.S. antitrust actions.