More trouble for SERCO bid?

[Der SimMeister]

From todays Guardian....

http://www.guardian.co.uk/Archive/Article/0,4273,4142175,00.html

[OrsonCart]

FT.com | | Airlines force EADS to quit air traffic control bid

Airlines force EADS to quit air traffic control bid
By Kevin Done, Aerospace Correspondent
Published: February 25 2001 20:03GMT | Last Updated: February 25
2001 23:49GMT


Airlines including British Airways and Virgin Atlantic have forced Europe's biggest aerospace group to pull out of a consortium bidding against them to take over Britain's air traffic control system. European Aeronautic Defence and Space company, the main parent company of Airbus, the European aircraft maker, has decided to abandon the Nimbus consortium led by Serco.

The development plunges the government's controversial part-privatisation of National Air Traffic Services into fresh uncertainty only weeks before an expected election. Nimbus is bidding against the Airline Group, which comprises eight British airlines, to acquire a 46 per cent stake in NATS. Several of the airlines, including BA, Virgin Atlantic, BMI British Midland and Monarch, are among Airbus's leading customers in Europe and were furious to hear of EADS's involvement in a rival bid for NATS.

It is understood several top UK airline executives contacted Airbus to express their unhappiness.
Alarmed at the airlines' response, EADS' directors decided at a board meeting to reverse the decision to join Nimbus as an equity partner.

"Their arm has been twisted," said one insider involved in the negotiations between the government and the two rival groups. EADS, which had agreed to take a 10 per cent stake in Nimbus, owns 80 per cent of Airbus, which accounts for the lion's share of the group's profits and turnover and is seeking to increase its sales to UK carriers.

EADS agreed through another subsidiary, EADS Services, to join Nimbus last month shortly before the January 31 deadline for submitting final binding offers for NATS. EADS said the group had no comment to make on its sudden U-turn but Serco sought to put a brave face on the EADS withdrawal by insisting that the aerospace group could still provide technical support. "EADS will not be an equity partner in Nimbus but will make available to Nimbus its know-how and technical experience as
requested," it said.

The government is aiming to select its preferred bidder by mid-March and is hoping to complete the deal by the end of the month. "I don't think there is a favourite any more," said one official close to the negotiations. "Whereas two to three weeks ago Serco was a strong front-runner, it is a much more even race now. The Airline Group has put in a major effort and has drawn neck-and-neck."

The decision to part- privatise the air traffic control system is a pioneering move in Europe but has run into heavy opposition from unions and a substantial group of Labour MPs.

[Special VFR]

Keep praying brothers. http://www.pprune.org/ubb/NonCGI/cool.gif

[niteflite01]

Good news indeed - on the face of it.

We shall see http://www.pprune.org/ubb/NonCGI/tongue.gif

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"Go around..I say again...go around"

[OrsonCart]

Let us hope that PPP is shelved and NATS gain some commercialism and can borrow freely to ensure capacity.

REALITY. If the Government go with PPP, let it be with the airline group. Let us ensure that the employees gain 'Worker Director' status via our unions on its board. This should ensure that our concerns and advice reach the minds of control and have an influence upon NATS in the future.

[This message has been edited by OrsonCart (edited 26 February 2001).]