North of the Border
25th Mar 2001, 13:08
From the Sunday Times
Branson group set to run air traffic control
Jonathon Carr-Brown
THE government is expected to hand over Britain's air traffic control service to a consortium of airlines led by Sir Richard Branson's Virgin Atlantic in an attempt to dampen controversy over the sell-off.
The decision, expected within a fortnight, will be touted by Labour as a windfall for taxpayers worth between £500m and £1 billion. Ministers are likely to announce that the money will be available for public transport schemes.
Privatisation is strongly op-posed by Labour MPs, unions and professional bodies, but the blow will be softened if the "strategic partnership" contract is given to a consortium whose members, the airlines, have a vested interest in air safety.
The other bidder in what has been a closely fought race is Serco, a diverse private concern involved in government contracts, rail maintenance and air traffic control at regional airports.
The National Air Traffic Service (Nats) runs air traffic control at Britain's biggest airports including Heathrow, Gatwick, Luton and Stansted.
Lord Macdonald, the transport minister, promised a three-month moratorium on the sale last December, since when a consultation process has been carried out on safety regulations and standards of service.
The results are due to be announced and debated in the House of Lords on Thursday and observers think Macdonald may take the opportunity to commit the government to a preferred bidder.
This timing would make it virtually impossible to push the unpopular legislation through both houses of parliament before the general election.
The successful bidder consists of firms ranging from BA and Virgin Atlantic to BMI British Midland and the Irish air traffic control service.
Neither bidder is considered ideal. Serco faces safety questions from a consultative group appointed by Nats to advise it about the bidders' qualifications. The airline group, backed by the controllers as a last resort, faces considerable costs running Nats.
However, Department of Transport sources claim John Prescott, the deputy prime minister, has been persuaded to accept the airline group's bid after Eads, the European aerospace giant, said it would not put money into the Serco bid.
It is understood that BA and Virgin put pressure on Eads via Airbus Industrie, its 80%-owned subsidiary.
Choosing the airline consortium would avert strike action by traffic controllers who are opposed to Serco. A spokesman for IPMS, the union that represents most controllers, said: "It's like being given a choice between hanging or quartering.
"On balance, we would rather be hung with the airline consortium then quartered by Serco."
* Tony Blair's attempt to create a single air traffic control system for Europe was thwarted yesterday by Spain, which wants Britain to concede ownership of the airspace over Gibraltar.
The government believes the "European single sky" would reduce congestion. A 25% cut in delays could also save Europe's air industry and the public £1.2 billion a year.
Branson group set to run air traffic control
Jonathon Carr-Brown
THE government is expected to hand over Britain's air traffic control service to a consortium of airlines led by Sir Richard Branson's Virgin Atlantic in an attempt to dampen controversy over the sell-off.
The decision, expected within a fortnight, will be touted by Labour as a windfall for taxpayers worth between £500m and £1 billion. Ministers are likely to announce that the money will be available for public transport schemes.
Privatisation is strongly op-posed by Labour MPs, unions and professional bodies, but the blow will be softened if the "strategic partnership" contract is given to a consortium whose members, the airlines, have a vested interest in air safety.
The other bidder in what has been a closely fought race is Serco, a diverse private concern involved in government contracts, rail maintenance and air traffic control at regional airports.
The National Air Traffic Service (Nats) runs air traffic control at Britain's biggest airports including Heathrow, Gatwick, Luton and Stansted.
Lord Macdonald, the transport minister, promised a three-month moratorium on the sale last December, since when a consultation process has been carried out on safety regulations and standards of service.
The results are due to be announced and debated in the House of Lords on Thursday and observers think Macdonald may take the opportunity to commit the government to a preferred bidder.
This timing would make it virtually impossible to push the unpopular legislation through both houses of parliament before the general election.
The successful bidder consists of firms ranging from BA and Virgin Atlantic to BMI British Midland and the Irish air traffic control service.
Neither bidder is considered ideal. Serco faces safety questions from a consultative group appointed by Nats to advise it about the bidders' qualifications. The airline group, backed by the controllers as a last resort, faces considerable costs running Nats.
However, Department of Transport sources claim John Prescott, the deputy prime minister, has been persuaded to accept the airline group's bid after Eads, the European aerospace giant, said it would not put money into the Serco bid.
It is understood that BA and Virgin put pressure on Eads via Airbus Industrie, its 80%-owned subsidiary.
Choosing the airline consortium would avert strike action by traffic controllers who are opposed to Serco. A spokesman for IPMS, the union that represents most controllers, said: "It's like being given a choice between hanging or quartering.
"On balance, we would rather be hung with the airline consortium then quartered by Serco."
* Tony Blair's attempt to create a single air traffic control system for Europe was thwarted yesterday by Spain, which wants Britain to concede ownership of the airspace over Gibraltar.
The government believes the "European single sky" would reduce congestion. A 25% cut in delays could also save Europe's air industry and the public £1.2 billion a year.