Government confirm NATS stake sale plans
25.03.11
The Government has confirmed plans to reduce its 49% stake in air traffic control company NATS despite warnings from airlines of 'highly damaging' consequences, the Telegraph reports. The national air traffic control company has joined the Channel tunnel rail link on the state auction list as the Government pushes on with its asset disposal plans.
The budget confirmed plans to further reduce its 49% stake in NATS, the business it co-owns with seven UK airlines and airport operator BAA. The Treasury said: ‘The Government intends to realise value from its stake in NATS, subject to considering the views of key stakeholders.' However, the newspaper reports that 'Government sources' said no decision had been made on the scale of the stake sale, amid warnings from airlines of ‘highly damaging’ consequences if the state exits the business entirely.
The Airline Group, whose members include BA and easyJet and which owns 42% of NATS, has warned that it might dispose of its stake if the Government reduces its shareholding to zero. The group has expressed concerns over the prospect of a private bidder taking on debt to acquire the business, which made a pre-tax profit of £78.3m last year, and running NATS with profitability as a priority. They are also concerned that the UK would be sidelined in talks about harmonising European air traffic control if it is the only country where the Government does not have a significant stake in its air traffic control company.
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