David Learmount/LONDON
A group of nine UK airlines is preparing to bid for 49% of the country's National Air Traffic Services (NATS) when it is sold by the government in the next two years. The nine, collectively known as Airline Group, say that, as NATS' major users, it is in their interest for it to be safe and to improve levels of service.
Airline Group consists of British Airways, British Midland and Virgin Atlantic, together with charter carriers Air 2000, Airtours, Britannia Airways, Flying Colours and Monarch Airlines, and low-cost carrier easyJet. The group insists it is not led by any single carrier, and may add new members, including foreign NATS users.
Airline Group backs the UK Government's aim of setting up a "public private partnership" (PPP) to own and run NATS. Group representatives report "a reasonably favourable hearing" by "very senior" officials at the Department of the Environment, Transport and the Regions. The airlines say they will need to see the proposed legislation defining governance of the new PPP before the Group commits itself to a bid.
If the bid were successful, NATS' new structure could be similar to that of Nav Canada, which is operated by a trust on behalf of stakeholders, including airlines, government and employees. Airline Group says it is interested in the government's proposals that a stakeholder council should guide NATS. The group would not, however, be a trust, according to current Airline Group thinking. Equal share ownership by the various airlines is being considered, and a senior executive remarks that finance would not be a problem, because, as a unique monopoly, NATS would have an impeccable credit rating.
Companies already considering a bid include UK utility supplier National Grid, Thomson-CSF and contract management group Serco.
The sale is expected to raise around £500 million.
Source: Flight International