CAA blocks Nats bid for £200m

Paul Armstrong12 April 2012

THE future of National Air Traffic Services is in the hands of its banks today after the Civil Aviation Authority refused to authorise an increase in the fees its charges airlines.

The airline watchdog said the impact of 11 September was not exceptional enough to justify the rise, which would have generated additional revenue of about £200m over the next four years.

The decision makes it crucial for Nats to find an investor willing to inject about £50m, which would trigger a Government promise of a similar amount. This would help it to cut its £720m debt - compared with its asset base of about £640m - and proceed with a £1bn investment scheme over the next 10 years.

Nats' search for an investor hit a snag on Mopnday when management facilities group Serco withdrew. It is believed Serco wanted outsourcing contracts from Nats and a role in the day-to-day management of the business in return for the investment.

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