On 21 December 1988, the Pan Am Flight 103 was flying its transatlantic route from New York to London, when it was destroyed by a bomb. All passengers and crew on board were killed, as were eleven people in the town of Lockerbie, where large sections of the plane plummeted. Thus, the air disaster is referred to as the Lockerbie bombing, which claimed the lives of 270 people. Initially, a bomb attack had been ruled out and the aircraft was thought to have malfunctioned, leading to the mid-air explosion. However, an intensive three-year investigation, involving detailed technical examinations and approximately fifteen thousand witness statements revealed that a bombing had caused the destruction of the aircraft. Indictments for murder were issued against a Libyan intelligence officer Abdelbaset al-Megrahi and stations manager, Al-Amin Khalifah Fhimah, who were considered to have been responsible for the bombing. In 1991, both men were charged with murder in Scotland and the United States. The Libyan government, however, refused to allow the suspects to be tried in either of these two countries. On 21 January 1992, the United Nations ordered the Libyan government to hand over the suspects. Upon its refusal, Libya was faced with a UN air travel and arms ban. With sanctions intensifying, the Libyan government finally agreed to allow the suspects to be tried in neutral territory though still under Scottish law. By April 1999, the suspects were taken into Dutch custody and the trial began in Camp Zeit in The Netherlands. In 2001, Abdelbaset al-Megrahi was the only suspect found guilty of murder and was given a 20-year prison sentence. In 2009, he was released due to poor health. This sparked outrage amongst families of the victims.
References

About.com, This week in African history: 15-21 January., from About.com African History, [online], Available at africanhistory.about.com [Accessed: 12 January 2012]|NEWS 24, $504m for Lockerbie families, from News24, [online], Available at news24.com [Accessed: 12 January]