Serco pulls out of Nats rescue - report
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Serco pulls out of Nats rescue - report
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Serco pulls out of Nats rescue - report
Serco PLC, the London-quoted UK facilities management group, has withdrawn from negotiations to provide financial backing for National Air Traffic Services, the Financial Times said without citing sources.
The move is a setback for efforts by the government and a group of airlines to find a private sector investors to come to the rescue of Nats with an injection of equity worth up to £50 million, the paper added.
Serco had been regarded as a front-runner along with BAA PLC, the UK airports group, to take part in the financial restructuring of Nats.
Nats will learn on today whether the Civil Aviation Authority, the economic regulator for its monopoly air traffic control services, is likely to provide any financial relief by agreeing to Nats' emergency request to be able to raise its charges to the airlines.
© AFX News
Story filed: 06:59 Monday 20th May 2002
Serco PLC, the London-quoted UK facilities management group, has withdrawn from negotiations to provide financial backing for National Air Traffic Services, the Financial Times said without citing sources.
The move is a setback for efforts by the government and a group of airlines to find a private sector investors to come to the rescue of Nats with an injection of equity worth up to £50 million, the paper added.
Serco had been regarded as a front-runner along with BAA PLC, the UK airports group, to take part in the financial restructuring of Nats.
Nats will learn on today whether the Civil Aviation Authority, the economic regulator for its monopoly air traffic control services, is likely to provide any financial relief by agreeing to Nats' emergency request to be able to raise its charges to the airlines.
© AFX News
Story filed: 06:59 Monday 20th May 2002
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From the Financial Times.....
Serco shuns UK air traffic control rescue
By Kevin Done, Aerospace Correspondent
Published: May 19 2002 21:17 | Last Updated: May 19 2002 21:17
Serco, the UK facilities management group, has withdrawn from negotiations to provide financial backing for National Air Traffic Services.
The move is a setback for efforts by the government and a group of airlines to find a private sector investor to come to the rescue of Nats with an injection of equity worth up to £50m ($73m).
Serco had been regarded as a front-runner along with BAA, the UK airports group, to take part in the financial restructuring of Nats.
Nats will learn on Monday whether the Civil Aviation Authority, the economic regulator for its monopoly air traffic control services, is likely to provide any financial relief by agreeing to Nats' emergency request to be able to raise its charges to the airlines.
In its application in February, Nats warned that if it was unable to raise the fees it could "ultimately" risk financial collapse and be unable to "meet its liabilities".
The government, which still holds a 49 per cent stake in Nats following the controversial part-privatisation of the UK national air traffic control system last year, has pledged to match further private investment with an additional injection of about £50m of taxpayers' money.
Serco's withdrawal is understood to be due partly to the reluctance of the airline group to cede some of its management control over Nats.
The Airline Group, a consortium of UK airlines led by British Airways and Virgin Atlantic and chaired by Sir Michael Bishop, chairman of BMI British Midland, acquired a 46 per cent stake and management control of Nats last year for £50m.
Nats' present financial crisis was triggered by the sharp fall in airline traffic last year resulting both from economic recession and the impact of the September 11 terrorist attacks in the US.
Serco, which is already a leading player in taking over the out-sourced management of previously state-run organisations, had been aiming to work with Nats to expand its international air traffic control activities.
A computer failure at the new £623m air traffic control centre at Swanwick, Hampshire, brought chaos on Friday to London's airports and disruption to the rest of the UK and continental Europe.
Tens of thousands of passengers were stranded after the cancellation of many flights.
-----
WF.
(edited because the link to the FT site didn't work)
Serco shuns UK air traffic control rescue
By Kevin Done, Aerospace Correspondent
Published: May 19 2002 21:17 | Last Updated: May 19 2002 21:17
Serco, the UK facilities management group, has withdrawn from negotiations to provide financial backing for National Air Traffic Services.
The move is a setback for efforts by the government and a group of airlines to find a private sector investor to come to the rescue of Nats with an injection of equity worth up to £50m ($73m).
Serco had been regarded as a front-runner along with BAA, the UK airports group, to take part in the financial restructuring of Nats.
Nats will learn on Monday whether the Civil Aviation Authority, the economic regulator for its monopoly air traffic control services, is likely to provide any financial relief by agreeing to Nats' emergency request to be able to raise its charges to the airlines.
In its application in February, Nats warned that if it was unable to raise the fees it could "ultimately" risk financial collapse and be unable to "meet its liabilities".
The government, which still holds a 49 per cent stake in Nats following the controversial part-privatisation of the UK national air traffic control system last year, has pledged to match further private investment with an additional injection of about £50m of taxpayers' money.
Serco's withdrawal is understood to be due partly to the reluctance of the airline group to cede some of its management control over Nats.
The Airline Group, a consortium of UK airlines led by British Airways and Virgin Atlantic and chaired by Sir Michael Bishop, chairman of BMI British Midland, acquired a 46 per cent stake and management control of Nats last year for £50m.
Nats' present financial crisis was triggered by the sharp fall in airline traffic last year resulting both from economic recession and the impact of the September 11 terrorist attacks in the US.
Serco, which is already a leading player in taking over the out-sourced management of previously state-run organisations, had been aiming to work with Nats to expand its international air traffic control activities.
A computer failure at the new £623m air traffic control centre at Swanwick, Hampshire, brought chaos on Friday to London's airports and disruption to the rest of the UK and continental Europe.
Tens of thousands of passengers were stranded after the cancellation of many flights.
-----
WF.
(edited because the link to the FT site didn't work)
niknak
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And who can blame them?
I know that hindsight is a wonderful thing, but who in their right mind would want to invest in NATS anyway, and even if it does return to the state sector, who would want to be involved in trying to turn it round and would it improve things for the coalface workers - I think not.
I know that hindsight is a wonderful thing, but who in their right mind would want to invest in NATS anyway, and even if it does return to the state sector, who would want to be involved in trying to turn it round and would it improve things for the coalface workers - I think not.
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I guess that makes NATS staff SERCO rejects!!
Sorry had to slip that one in.
More seriously if the story is correct SERCO have identified the management weakness but until the chips are right down the present management will continue with their heads buried in the sand.
Sorry had to slip that one in.
More seriously if the story is correct SERCO have identified the management weakness but until the chips are right down the present management will continue with their heads buried in the sand.
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BBC News item link
Last edited by tug3; 20th May 2002 at 17:57.
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Maybe now that Serco has had it in aviation - NATS staff can get on with making the ATC system work. New ATC and engineering management would be a great start. Get rid of some of the dinosaurs that will not accept that the world has changed.
There are dozens of really good NATS people that could do a far better job!
There are dozens of really good NATS people that could do a far better job!
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It doesn't look to be getting better ...
Air traffic system faces crisis over bar on price rises
http://news.independent.co.uk/uk/tra...p?story=296885
Air traffic system faces crisis over bar on price rises
http://news.independent.co.uk/uk/tra...p?story=296885
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Bigears
I see I need to be more specific. Dozens of ggod people that are capable of making a far better job of managing NATS. Thousands of skilled professionals making the thing work in spite of existing management. Sorry for any confusion.
I see I need to be more specific. Dozens of ggod people that are capable of making a far better job of managing NATS. Thousands of skilled professionals making the thing work in spite of existing management. Sorry for any confusion.
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Minesapint
And your point being? SERCO has nothing to do with NATS - so why do you infer that they're being out of any interest in NATS will improve things? NATS are now in a worse state as a source of necessary funding has disappeared.
Now if you were to say that TAG were to pull out of ATC and leave it to NATS professionals, with public funding - that would have made more sense
If you're going to knock - knock the right people.
CM
Maybe now that Serco has had it in aviation - NATS staff can get on with making the ATC system work.
Now if you were to say that TAG were to pull out of ATC and leave it to NATS professionals, with public funding - that would have made more sense
If you're going to knock - knock the right people.
CM
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Chilli
Quite right. The thing is that whenever the Serco word is mentioned NATS staff cross their arms and - rightly - say "no way". That is beacuse of the way Serco approached NATS staff during the initial bidding process - big hammer. Now that Serco has "withdrawn" probably hoping that the whole thing will collapse and they can have at NATS on the cheap, NATS staff can put the threat, seen as considerable, behind them.
The Serco threat caused immense problems for NATS staff and (I was at LATCC the day TAG won) the relief was tangible, not only for keeping ones job/salary/pension/sanity(ish) but believing that Serco were and are wrong for national, large scale ATC.
NATS should not have been privatised, we all know that. The govt will not re-nationalise unless there is absoloutly no other option. As long as BAA and govt dish up the dosh we will be ok. If they don't............who knows.
Quite right. The thing is that whenever the Serco word is mentioned NATS staff cross their arms and - rightly - say "no way". That is beacuse of the way Serco approached NATS staff during the initial bidding process - big hammer. Now that Serco has "withdrawn" probably hoping that the whole thing will collapse and they can have at NATS on the cheap, NATS staff can put the threat, seen as considerable, behind them.
The Serco threat caused immense problems for NATS staff and (I was at LATCC the day TAG won) the relief was tangible, not only for keeping ones job/salary/pension/sanity(ish) but believing that Serco were and are wrong for national, large scale ATC.
NATS should not have been privatised, we all know that. The govt will not re-nationalise unless there is absoloutly no other option. As long as BAA and govt dish up the dosh we will be ok. If they don't............who knows.
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Don't keep knocking SERCO. They are good at what they do. Air traffic is NOT their business, making money is.
Why would they want to be the knight in shining armour when you can make more money by waiting for NATS to be kicked totally to the ground, then pick over it's bones like a vulture.
That's what SERCO do. They buy, rip the guts out if there are any left, do it cheap, and make as much money as possible.
They have no interest in a quality service, mind you has NATS in the current mindset?
Money, Money, Money. That's what it's all about. Wake up you lot.
Why would they want to be the knight in shining armour when you can make more money by waiting for NATS to be kicked totally to the ground, then pick over it's bones like a vulture.
That's what SERCO do. They buy, rip the guts out if there are any left, do it cheap, and make as much money as possible.
They have no interest in a quality service, mind you has NATS in the current mindset?
Money, Money, Money. That's what it's all about. Wake up you lot.
