PPRuNe Forums - View Single Post - NATS Pensions (Split from Pay 2009 thread)
Old 4th November 2008 | 07:59
  #968 (permalink)  
Del Prado
20 Anniversary
 
Joined: Jan 2004
Posts: 762
Likes: 198
From: London
By ploughing the profit back into the company the share price increases to the benefit of our major shareholders. I assume they can count their NATS investment on their balance sheet?
For example, paying off loans early not only reduces debt but also raises the company's credit rating making borrowing cheaper and increasing future profits.

So the airline group's shares are worth more and the government will raise more money at the next stage of privatisation.

BTW has anyone checked my sums? Is the initial Airline Group investment of £7 million each now worth £22 million?
Del Prado is offline  
Reply