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UK air traffic control desperate for cash

Could this turn out to be the most expensive computer system in the history of technology?

By Julian Goldsmith

Published: 23 October 2001 17:05 BST

The UK's National Air Traffic Services (NATS) is already finding it difficult to find funding, just months after half of it was handed over to private investors.

The organisation's bankers are encouraging it to go cap in hand to the UK government for emergency funds, according to a report in the Financial Times.

The system is funded by fees paid by individual airlines, but it is now experiencing the severe economic downturn which has affected the entire airline industry.

However, the government is certain to come under heavy flack if it helps NATS out, as it is only a matter of weeks since it was presented with the financial dilemma of rail infrastructure operator Railtrack.

In addition, the government will face a storm of protest by MPs who opposed the privatisation of NATS in the first place.

The service has planned for a £1bn capital expenditure programme over the next ten years, but its bankers have refused to supply the funding, unless the government provides extra funds in the form of a long-term loan.

The UK government currently owns 49 per cent of NATS, with 46 per cent owned by a consortium including British Airways and Virgin Atlantic. NATS employees own the remaining 5 per cent.

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