Airline group wants to sell NATS stake
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Airline group wants to sell NATS stake
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Airlines announce sale of NATS stake
by Gareth Robertson June 5th, 2012
A group of UK airlines has announced plans to sell off its stake in the country’s air traffic control service National Air Traffic Services. The move comes despite an apparent decision by the government to give up on plans to sell its share of the part-privatised company.
NATS is 42 per cent controlled by a group of seven airlines including Virgin Atlantic, British Airways and easyJet. The companies are hoping that a buyer or buyers for their stake will come forward before the end of the year.
The original plan was to sell NATS along with the government’s share which is a 49 per cent stake. The government had been hoping to raise some £250 million through the sale. However experts are attributing a change of heart by ministers to fear that there could be a significant public backlash against a government seen to be disposing of a major strategic asset.
Shadow Transport Secretary Maria Eagle said the proposed sale by the government was ideologically driven and reckless. She called on the Coalition at the weekend to confirm that it understood how vital it was that NATS remained in the hands of the government as it was not a burden on the taxpayer and is a key strategic asset.
A potential buyer for the airline’s stake in the air traffic control service is German air traffic controller DFS. This could be widely criticised if allowed to go ahead. Other interested parties include trade buyers, pension funds and infrastructure funds.
Last edited by eastern wiseguy; 5th Jun 2012 at 20:11.
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From todays Glasgow Herald.....LABOUR last night accused the UK Government of yet another policy U-turn after it was suggested Chancellor George Osborne was getting cold feet over a £1 billion plan to sell off the Coalition's 49% controlling stake in Britain's National Air Traffic Services (Nats).
Industry sources claimed that the Treasury was rethinking the proposal to sell off the air traffic control provider because it was fearful the German equivalent to Nats would make a move to take over the UK's air space after it was suggested the seven British airlines, which form the Airline Group, might sell their collective 42% share to Germany's state-controlled DFS.
One industry source said: "It would not be a good idea to hand control of Britain's skies to Berlin.
"This is what is making the Treasury nervous. All the signs are that the Government is not now going to go ahead with the sell-off of its share."
In 2010, the Government indicated it was prepared to sell off all or part of its golden share in Nats – which has two centres, at Prestwick in Ayrshire and Swanwick near Southampton – following on from the decision by the previous Labour administration to sell a 51% stake to airlines and BAA, the airport operator.
Yesterday, Maria Eagle, the Shadow Transport Secretary, accused Prime Minister David Cameron of presiding over "yet another U-turn from a shambolic Government".
"It is incredible that ministers have until now ignored our warnings that a foreign government would be the most likely buyer if a controlling stake in Britain's airspace was put on the market," she declared.
"This sell-off would have delivered no benefits to the aviation industry, passengers or the taxpayer."
The Airline Group has previously warned of "highly damaging" consequences such as threats to safety if the UK Government sold off its controlling stake.
A Treasury spokesman declined to comment because the matter involved "commercial issues".
Industry sources claimed that the Treasury was rethinking the proposal to sell off the air traffic control provider because it was fearful the German equivalent to Nats would make a move to take over the UK's air space after it was suggested the seven British airlines, which form the Airline Group, might sell their collective 42% share to Germany's state-controlled DFS.
One industry source said: "It would not be a good idea to hand control of Britain's skies to Berlin.
"This is what is making the Treasury nervous. All the signs are that the Government is not now going to go ahead with the sell-off of its share."
In 2010, the Government indicated it was prepared to sell off all or part of its golden share in Nats – which has two centres, at Prestwick in Ayrshire and Swanwick near Southampton – following on from the decision by the previous Labour administration to sell a 51% stake to airlines and BAA, the airport operator.
Yesterday, Maria Eagle, the Shadow Transport Secretary, accused Prime Minister David Cameron of presiding over "yet another U-turn from a shambolic Government".
"It is incredible that ministers have until now ignored our warnings that a foreign government would be the most likely buyer if a controlling stake in Britain's airspace was put on the market," she declared.
"This sell-off would have delivered no benefits to the aviation industry, passengers or the taxpayer."
The Airline Group has previously warned of "highly damaging" consequences such as threats to safety if the UK Government sold off its controlling stake.
A Treasury spokesman declined to comment because the matter involved "commercial issues".
Originally Posted by Red Dragon
Meaning?
BBC News | UK Politics | Selling-off the skies
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Yesterday, Maria Eagle, the Shadow Transport Secretary, accused Prime Minister David Cameron of presiding over "yet another U-turn from a shambolic Government".
"It is incredible that ministers have until now ignored our warnings that a foreign government would be the most likely buyer if a controlling stake in Britain's airspace was put on the market," she declared.
"This sell-off would have delivered no benefits to the aviation industry, passengers or the taxpayer."
"It is incredible that ministers have until now ignored our warnings that a foreign government would be the most likely buyer if a controlling stake in Britain's airspace was put on the market," she declared.
"This sell-off would have delivered no benefits to the aviation industry, passengers or the taxpayer."
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I also think that it shows the contempt that politicians in general hold the electorate.
Hoping that the voters forget that "New Labour" started it all.
No wonder fewer and fewer people are bothering to vote nowadays.
Hoping that the voters forget that "New Labour" started it all.
No wonder fewer and fewer people are bothering to vote nowadays.
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If UK airlines sell off its stake... And next, if EU sells off our FAB'skies, you know what I say since a long time ago...
The ATCO's collective answer will have to be to create finally our European ATCO's company, to sell our services to EU/states/airlines/airports'n so on to be sure to keep hand on our profession, there is no other solution...
The ATCO's collective answer will have to be to create finally our European ATCO's company, to sell our services to EU/states/airlines/airports'n so on to be sure to keep hand on our profession, there is no other solution...
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The sale would most likely be of a portion of a minority stake in a company... Not really anything to get too excited about. From what I've heard, a few of the Airline Group members have been looking to flog their share for a while.. but others wish to continue their rather incestuous position as both part-owner and key customer.
I'd have thought it would be an ideal investment for a pension fund or similar.
I'd have thought it would be an ideal investment for a pension fund or similar.
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Shares within nats were distributed evenly, although long term I would see the company utilising their shares as incentives......ie board remuneration. As for band 5? Keeps from paying the higher tax over 100k 
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Not sure how they think they can increase shareholding to 10%. Would they fund via the company intitially? ....if the whole 5% has been distributed, anyone currently holding all their shares would have a value in the region of 10k......would mean each employee finding another 10k to cover this ...unless they do BOGOF.
and distributed over a 10 yr period.
and distributed over a 10 yr period.
