Warwick Hunt
10th Oct 2001, 00:51
Electronic Data Systems (EDS) and the National Air Traffic Services (NATS) have come face to face in court in a multimillion-pound dispute over a cancelled air traffic control system.
In 1997 NATS commissioned EDS to design, construct and install the Oceanic air traffic control centre in Prestwick to cover north Atlantic flights. NATS cancelled the project in July 2000, claiming that EDS missed an important deadline.
EDS is counterclaiming for losses of £40m+, which the company claims covers what it would have earned had it been allowed to complete the deal, less the costs saved as a result of early termination and the discount for early payment.
If the EDS counterclaim is successful the damages could be higher, as the company expected to gain extra income from providing additional services to NATS and the income derived form the sale of its 'knowledge'.
In 1997 NATS commissioned EDS to design, construct and install the Oceanic air traffic control centre in Prestwick to cover north Atlantic flights. NATS cancelled the project in July 2000, claiming that EDS missed an important deadline.
EDS is counterclaiming for losses of £40m+, which the company claims covers what it would have earned had it been allowed to complete the deal, less the costs saved as a result of early termination and the discount for early payment.
If the EDS counterclaim is successful the damages could be higher, as the company expected to gain extra income from providing additional services to NATS and the income derived form the sale of its 'knowledge'.