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Old 29th Jul 2004, 05:16
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SM4 Pirate
 
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I think you will find the corporate overheads are, as Bino's states, are significant.
Bevan whilst trying to pick an argument with me, stop agreeing with me....

My point is that the corporate 'on costs' are not reduced by having "Disk Cmith ATC Co." run Bankstown, the 'on costs' did not magically dissapear, the NAVAID, Frequency costs are still there, no admin staff in Canberra were reduced, in fact we probably just employed some to negotiaite with "Disk Cmith ATC Co." and enforce compliance with our operating certificate.

To be really clear, reducing the ATCs from the Airservices umbrella does nothing to the "on costs", which will still be borne by the aviation industry. This is why it won't happen there will be no, repeat no overall savings in transofrming a current business into a private operation.

Different animal if you were for example proposing that "Disk Cmith ATC Co." was going to establish a new business at say Broome for example. You could do so as a new business, reduced ATC pay and conditions, because it is new (no transmission of business) and no need to apportion existing costs (ie overheads) to the new entity; because the costs would remain where they are.
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