21 March 2003
The government has confirmed it is to throw another multimillion pound lifeline to the beleaguered private company in charge of Britain's skies.
Under a refinancing deal approved by the Civil Aviation Authority on March 18, National Air Traffic Services will receive a £65m cash injection from airports operator BAA. This will be matched by a further £65m from central government, giving a total of £130m.
In addition to the cash boost, Nats has been given permission by the CAA to increase its fees over the next three years.
Nats has had long-running financial woes since the September 11 attacks in the US led to a downturn in air traffic, which caused a collapse in its income.
This is not the first time the firm has had to go cap-in-hand to the government: ministers were forced to grant millions of pounds in loan guarantees last year.
A spokesman for the Department for Transport said the deal would ensure Nats' financial robustness, but he would not be drawn on whether this would be the last time the firm received taxpayers' cash.
'The package is designed to ensure that Nats can go forward with confidence that it is backed by a strong financial structure, capable of withstanding future shocks,' he added.
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