View Full Version : NATS not allowed to raise charges (merged thread)
egffztzx
21st May 2002, 08:11
The CAA will not allow NATS to raise it's charges to the airlines.
BBC News (http://news.bbc.co.uk/hi/english/business/newsid_1999000/1999665.stm)
So where to we go now?
Steep Approach
21st May 2002, 10:11
God Knows! With 'Pants on Fire' Byers in charge anything could happen.
We can be pretty sure though that things could get much worse before they get better.
WHY DONT PEOPLE LISTEN??? :mad: :mad: :mad:
160to4DME
21st May 2002, 12:26
Well, well, well.
Just watched BBC News at 1300.
Figures supplied by NATS themselves to the BBC revealed that despite this minor setback, management had succeeded in reducing costs to such an extent that we will have a surplus this year of 54 MILLION GBP :eek:
No doubt some of this will go towards rewarding the staff this year instead of funding management bonuses and refunds to the airlines....... :rolleyes: :D :confused: :rolleyes:
Minesapint
21st May 2002, 12:41
I think NATS management has said that the end result will be a £230m defecit by the end of next year. You would need to ask a bean counter how that one works.;)
BEXIL160
21st May 2002, 13:46
You can juggle the figures how you like.
The settlement for the PFI contract fiasco with EDS was "significantly less than the £42.7m sought". Presumably financial provision was made to cover whatever the High Court action decided and NATS must now be sitting on a tidy surplus having settled out of court....... one that COULD fund the pay claim.
Don't forget also that NATS is already benefiting from its staff in the form of a PENSIONS HOLIDAY .
Something else that was alluded to on BBC News24 is the repayment of certain loans by 2005/6. Don't have the full details I'm afraid, but it seems the terms of these "loans" don't look very good after that date.
Rgds BEX
'Teletext' news item reads:
"The part-privatised firm which runs air traffic control services has reacted with shock to a regulator's refusal to allow it to raise charges to airlines.
National Air Traffic Services wanted to raise fees in the wake of a downturn due to the events of September the 11
The Civil Aviation Authority ruled the current regime is right and presented figures showing Nats is not so hard up".
Sorry for those who selected the link I posted earlier - the story subsequently changed to a POA meeting heckling a Govt. minister - popular pass-time if ever there was!
rgds
T3
egffztzx
21st May 2002, 15:45
Well said Bexiil160!
I reckon any "surplus" (if it exists) should go in to the pension scheme to make up the employers shortfall.
fish food
21st May 2002, 15:50
Tug 3: Excellent link!
Unlikely I know, but any CAA peeps out there with a clue as to what figures were used to blow a serious hole in the "no money" argument?
Not those from the "2.2+3.7=6" school of maths I trust! (I always thought that sum would equal 5.9! Silly me...)
PS Bex: Cheers for yours :D
BEXIL160
21st May 2002, 16:16
Its CAA ERG that don't think the picture is as bad as NATS is painting...
If you want to wade through the whole report it's here:
http://www.caa.co.uk/erg/ergdocs/natspricespreliminary.pdf
It does indeed say that things ain't so bad.
Whoever wrote it also has a sense of humour.In one paragraph it even suggests that TAG member airlines PAY THE EXTRA CHARGES while keeping the prices to everybody else to the agreed price cap. Don't suppose that's gone down to well :D :D :D
rgds BEX
Euroc5175
21st May 2002, 17:27
The CAA have today stated that they will be recommending that the revised ATC charges put forward by NATS be rejected.
NATS had been asking for the current 2003 formula of RPI-4% to be changed to RPI+4%. This 8% increase has been rejected by the CAA who do not appear to believe that the lack of revenue at present justifies changing the charging formula.
NATS appear to have been taken somewhat by surprise by this recommendation from the CAA. Not sure where NATS will now be getting their cash flow from in order to meet the objectives of the already revised Business Plan?? :confused:
It would appear that NATS will have to seek investment from elsewhere......time for extending the loans from HMG and the banks perhaps? By what collateral can NATS offer?
Never mind future expansion and new technology, NATS will be struggling to sustain the existing infrastructure. :(