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Air Turbulence over Britain

© Stuart Buchanan MacWatt

Britain's recently privatized Air Traffic Control system, (Nats), is in financial trouble just months after the government's controversial partial sell off, (51%), to a consortium of seven private airlines and employees. The government, already beleaguered over their handling of Britain's decaying rail network and traffic congested roads, has been forced to ride to the rescue with a cash injection to prop up the new body and ensure air safety in British skies. It appears that the consortium's group of financing banks which include Bank of America have refused to provide additional loan money without the guarantee of matching loan finance from the Government.

The problem stems from the September 11 fallout which has resulted in a considerable downturn in transatlantic air traffic which produced the lion's share of income of some £600 million from the 2 million flights through British airspace. Nats has had to make savings of £200 million to survive this shortfall; reducing staff by 10% and delaying the opening of the new Scottish air traffic control center.

The Airline Group, the private sector consortium involved in running Nats, had optimistically assured the Government that though privatization they would be able to reduce air traffic control charges to the carriers by a massive 17.5%, a figure seen as unrealistic by critics at the time and manifestly impossible since the September 11 fallout. These early projections were probably pie in the sky from the start but carriers now face the daunting prospect of increases in their charges, which can only be passed on to the passengers in these financially straitened times for an industry where airlines like British Airways are reportedly losing a colossal £2 million per day.

The Times notes in its February 20 editorial page leader Britain's air traffic control hits turbulence that Nats is caught in a vicious circle. Stemming losses by putting up charges will decrease air traffic still further with fewer planes landing. Further cost cutting through staff reductions or "jettisoning operations" will compromise air safety. Neither option is palatable and the Government has therefore stepped in with a cash injection and will undoubtedly have to keep bailing if it wants to see visitors in Britain for The Queen's Golden Jubilee Year.

Air safety is of paramount importance to the travelling public now slowly recovering its faith in air travel with the help of aggressive price cutting and marketing strategies by the travel trade. Both the Government and the air carriers know that if the Jubilee Welcome Mat is to draw visitors to a Britain newly reopened after last year's hoof and mouth holocaust, no compromise in air traffic control standards over British airspace can be contemplated or accepted.

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