Interesting article about this terrorist plot turned up at the Wayne Madsen Report.
This story certainly seems to explain a lot of what might be going on behind the scenes.

Aug. 11, 2006 -- According to knowledgeable sources in the UK and other
countries, the Tony Blair government, under siege by a Labor Party
revolt, cleverly cooked up a new "terror" scare to avert the public's
eyes away from Blair's increasing political woes. British law
enforcement; neo-con and intelligence operatives in the United States,
Israel, and Britain; and Rupert Murdoch's global media empire cooked up
the terrorist plot, liberally borrowing from the failed 1995 "Oplan
Bojinka" plot by Pakistan- and Philippines-based terrorist Ramzi Ahmad
Yousef to crash 11 trans-Pacific airliners bound from Asia to the United
States. In the latest plot, it is reported that liquid bombs were to be
detonated on 10 trans-Atlantic planes outbound from Britain to the
United States.
British and American authorities permitted a man with a liquid bomb to
board a U.S.-bound flight in Heathrow on Aug. 6 -- the pilot foiled
secret UK-US attempt to hype an incident en route to or at Boston Logan.
The London terror plan was "known" last Sunday by British and American
authorities, according to the Indian press. American Airlines flight 109
from London Heathrow to Boston boarded a family of five, however, after
the plane left Heathrow authorities determined that the father appeared
on a British suspect list drawn up after the 7/7 London transit attacks.
At first, the pilot was instructed to fly all the way to Boston where
U.S. authorities could claim credit for apprehending the suspect.
However, the pilot, fearing for the safety of his passengers and crew,
refused and quickly returned to Heathrow without informing the
passengers. Once on the ground, it was discovered that the male had in
his carry-on baggage the type of combination liquid explosive and
electronic device now being hyped by the British and American media.
British sources report that the reason for the delay in informing the
airlines and traveling public about the liquid bomb on the American
flight was to maximize the beneficial political impact for Blair and
George W. Bush, both plummeting in the polls from the situations in Iraq
and Lebanon.
Earlier this week, two employees of Murdoch's London tabloid, News of
the World, were charged with hacking into the voice and text cell phone
messages of three members of the staff of Clarence House, the residence
of Princes Charles, William, and Harry. One of those charged with the
wiretapping was Clive Goodman, the Royals editor of the News of the
World. The same paper earlier tried to politically damage two anti-Iraq
war British politicians -- Scottish Socialist Tommy Sheridan and Respect
Party MP George Galloway. The paper charges that Sheridan was unfaithful
to his wife by going to swinger's clubs. He won a quarter million dollar
lawsuit against the paper. Galloway was confronted by Mazher Mahmood, an
individual who uses the moniker "Fake Sheik," who tried unsuccessfully
to get Galloway to accept cash and make anti-Semitic remarks. In fact,
Mahmood was and continues to be a reporter for News of the World, his
continued employment approved by Murdoch. Goodman has merely been
suspended by Murdoch but he has not been fired.
Murdoch uncovered Prince Charles-Gordon Brown plot to oust Blair. Phony
terror plan cooked up to derail political coup plans.
However, what prompted Murdoch and Blair to hype a new global "terror"
threat was what Murdoch learned from eavesdropping on the phone calls of
Prince Charles' staff at the future king's office, home, and limousine.
The eavesdropping revealed that Charles was working with Chancellor of
the Exchequer Gordon Brown, who is to the left of Blair, to conduct the
same type of political maneuver that John Major used to oust Margaret
Thatcher from office. London's left-wing Mayor, Ken Livingston, was also
in on the Charles-Brown plan and it was expected that in return for his
support, Livingston would get a senior position in a Brown cabinet -- a
development that sent shock waves through the neo-con circles in London,
Washington, and Jerusalem, including British Home Secretary John Reid
and Homeland Security Secretary Michael Chertoff. The Charles-Brown plan
was briefed by Blair to Bush during the former's recent visit to
Washington.
Airline terror plot cooked up by Blair, Bush, and Murdoch to save Tony's
political ass.
Blair told Bush that a Brown government would move to withdraw British
troops from Iraq, break the "special relationship" with the Bush White
House, and move closer to the European Union and the United Nations.
The Israeli attack on Lebanon created a rift within Blair's Cabinet with
some former Blair loyalists signaling their support for the political
coup against Blair. As a result, a suspect passenger was permitted to
board an American aircraft at Heathrow with a liquid bomb to lay the
groundwork for the media and travel hysteria five days later.
The wiretapping of Charles' messages also indicated that he has weighed
in with various European royal families to discourage them from inviting
Bush on state visits to their nations. This, reportedly upset the Bush
and Blair regimes, who were working together to improve Bush's image in
Europe. The White House's displeasure with the monarchies in Spain,
Belgium, Sweden, Luxembourg, and Norway are a direct result of the
Murdoch eavesdropping on Charles' staff.
Murdoch-Bush-Blair perception management hoax: Be afraid, be very afraid.
Not surprisingly, after Galloway tore into a Sky News reporter on a
recent televised interview, The Sun, a Murdoch paper, is now reporting
that one of the 24 British aircraft liquid bomber suspects now under
arrest, Waheed Zaman, met with Galloway "many times." The paper quotes
the sister of the suspect. A Galloway spokesman denies that Galloway
knows the suspect. What is suspect is the Murdoch media empire that
makes up news and commits illegal acts to provide cover for the false
flag operations being conducted by Britain, the U.S., and Israel.
Pakistan's Inter Service Intelligence (ISI) agency has helped provide
the cover story for the alleged liquid bombers. Working with British and
U.S. intelligence, the ISI says it broke up the plot after arresting
terrorist suspects in Lahore and Karachi. However, the ISI claims that
the men were affiliated with the Kashmiri terrorist group
Lashkar-e-Toiba, a group that is run and funded by the ISI itself.