Originally Posted by
Del Prado
can someone please clarify the concept of "pass through"?
Is it the costs of CAAPS being passed on to the airlines now or is it only that the airlines are liable to fund any shortfalls in CAAPS if NATS went bust?
When the regulator looks at the costs (wages, infrastructure, investment etc) of NATS operation they use that as a basis for what they think NATS should be charging and set the levels accordingly. Prior to 1 Jan 2006 NATS were also allowed to 'add on' the costs of its contributions for all staff to the airlines. Thats whats meant by a pass through of pension costs. The airlines would not meet any costs if NATS went bust, the only people impacted would be those who currently benefit or expect to benefit from CAAPS (ie NATS staff).
BD