Airlines don’t want Government NATS sale
06.02.11
Seven of Britain's leading airlines have warned the Government not to sell NATS, the air traffic control service, arguing that the system is a key strategic asset not suitable for full privatisation, the Observer reports. In a letter obtained by the newspaper, the Airline Group, which has a 42% stake in NATS, warns of ‘highly damaging’ consequences if the Government sells all of its 49% stake, an option under consideration by transport secretary Philip Hammond.
The Airline Group – British Airways, Virgin, BMI, easyJet, Monarch Airlines, Thomas Cook and Tui Travel – said in the letter to Mr Hammond that it would sell its interest if the Government failed to retain a shareholding of at least 25%. Peter Read, the group's chairman, said a government sell-out would risk relegating Britain to the status of a bit-player in discussions over reforms of European air traffic control.
He said: ‘It would be highly damaging if we were left on the sidelines to watch while others, notably France, Germany and Spain, decided the future of the air traffic control [ATC] industry. The evidence indicates a real risk that such an outcome would occur if the UK was the only country without a Government shareholding in its national ATC company. The country's interests would be best served if the Government were to retain a significant shareholding, 25% as a minimum.’
A Department for Transport spokesperson said: ‘The DfT remains in discussions with the Treasury over NATS and no announcement will be made until the budget next month.’
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