More taxpayer money to be pumped into NATS

The Department of Transport has confirmed it will plough millions more into the nation's air traffic control system to prop it up its flagging operations.

The UK government owns just over half of NATS, with a consortium of airlines and employees owning the rest.

The organisation hit severe difficulties following the slump in air travel after 11 September. This problem was compounded by a catalogue of computer system errors.

Last month, a glitch during a software upgrade at its Swanwick headquarters caused misery for thousands of holiday makers stranded at European airports.

NATS is currently surviving on a loan of £60m from its shareholders which should keep the company afloat until September.

But the government has now said it will give even more cash - matching any amount raised by NATS and BAA.

Whitehall is now in talks with these organisations to establish how much funding is required and has until financing runs out to decide.

Although a spokesman for the Department of Transport would not be drawn on the amount the government would donate, reports in the Daily Mail citing a transport select committee meeting, suggest the sum could be anything up to £65m. This means NATS could in theory receive £130m in total.

A NATS spokesman also refused to be drawn on any figure but added the company is looking for another equity partner and is currently in talks with a number of entities.