OrsonCart
30th Dec 2001, 16:46
Taxpayer to bail out air traffic control
Nick Mathiason
Sunday December 30, 2001
The Observer
The government looks set to bail out Britain's troubled air traffic control network less than six months after it was privatise Sources close to the National Air Traffic Service (Nats) have indicated that the Government will inject more than £30 million into the organisation, which controls the flightpaths of aeroplanes over UK skies. An announcement is expected early in the new year and would be a severe embarrassment for Labour's much vaunted public-private partnership initiative.
It was in July, amid bitter opposition, that a 46 per cent stake in Nats was sold to the Airline Group, a consortium of six carriers including British Airways and Virgin Atlantic, for £750m. But the downturn in transatlantic air traffic blew a hole in optimistic Nats revenue projections. It is thought to be losing more than £50m in its first year, instead of making a predicted £60m profit. In return for a cash injection, the Government may increase its 49 per cent stake in Nats to a majority interest, although this has not been finalised. The Government is also expected to rubber-stamp further job losses within the service. A Government official said: 'Talks with Nats and the Airline Group are ongoing.'
Iain Findlay, national co-ordinator at Prospect, the air traffic controllers' union, said: 'We welcome the fact that the Government can't just stand back and watch Nats fail. The Government should be a full partner within Nats.' A Nats spokesman said he was unaware of any imminent Government statement. He did say that the proposed £60m control centre at Prestwick, Scotland was now on the back burner, with no new date for a go-ahead. 'But it will be built before the end of the decade,' he said. A spokesman for the Airline Group said: 'We are still in the process of evaluating what exactly have been the effects of 11 September on our business.'
Nick Mathiason
Sunday December 30, 2001
The Observer
The government looks set to bail out Britain's troubled air traffic control network less than six months after it was privatise Sources close to the National Air Traffic Service (Nats) have indicated that the Government will inject more than £30 million into the organisation, which controls the flightpaths of aeroplanes over UK skies. An announcement is expected early in the new year and would be a severe embarrassment for Labour's much vaunted public-private partnership initiative.
It was in July, amid bitter opposition, that a 46 per cent stake in Nats was sold to the Airline Group, a consortium of six carriers including British Airways and Virgin Atlantic, for £750m. But the downturn in transatlantic air traffic blew a hole in optimistic Nats revenue projections. It is thought to be losing more than £50m in its first year, instead of making a predicted £60m profit. In return for a cash injection, the Government may increase its 49 per cent stake in Nats to a majority interest, although this has not been finalised. The Government is also expected to rubber-stamp further job losses within the service. A Government official said: 'Talks with Nats and the Airline Group are ongoing.'
Iain Findlay, national co-ordinator at Prospect, the air traffic controllers' union, said: 'We welcome the fact that the Government can't just stand back and watch Nats fail. The Government should be a full partner within Nats.' A Nats spokesman said he was unaware of any imminent Government statement. He did say that the proposed £60m control centre at Prestwick, Scotland was now on the back burner, with no new date for a go-ahead. 'But it will be built before the end of the decade,' he said. A spokesman for the Airline Group said: 'We are still in the process of evaluating what exactly have been the effects of 11 September on our business.'