NATS denies financial crisis reports
National Air Traffic Services (NATS) has denied that the four banks which helped fund its part-privatisation are now threatening to pull the plug on its funding.
A monthly meeting between NATS and the banks is due to take place today – with reports suggesting that the Abbey National, Barclays Capital, Halifax and Bank of America will threaten to put the UK air traffic control company into administration.
The part-privatisation of NATS was controversial and opponents, including the Civil Aviation Authority, warned the government that the company could find itself in difficulties if there was a downturn in air travel.
But this is the situation that has emerged following the September 11 terrorist attacks and earlier this month NATS applied to the CAA for permission to increase its charges to help compensate for the downturn in air traffic. NATS wants the go-ahead for an average increase in the fees it charges of 5% per annum for three years, starting next January.
Commenting on the planned increase, NATS chairman Chris Gibson-Smith said: “No-one foresaw the events of September 11 and thus the decline in air traffic was not planned for and has proved unprecedented. It is against this new dimension that we seek permission for a modest real increase in charges from January 2003.”
Seven airlines – including BA and Virgin Atlantic – took a 46% stake in the company last July. The government holds 49% and employees own the remaining 5%.
See:
28-Jan-2002 Swanwick air control centre opens for business
27-Jul-2001 Airlines take over running of air traffic control
06-Jul-2001 Nats sale nears completion
03-Apr-2001 UK NATS decision to benefit travelling public
28-Mar-2001 Airline Group wins UK air traffic control stake
27-Mar-2001 GB£1bn investment at heart of Airline Group strategy for NATS
26-Feb-2001 Airlines force EADS to quit air traffic control bid
18-Jan-2001 IATA backs Airline Group in its bid to partner with NATS
14-Dec-2000 IATA gives approval to NATS partial privatisation
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