Monday, February 7, 2011

Airlines warn Tories not to sell stake in air traffic control

Plane-watching at Heathrow airport: the government currently owns 49% of national air traffic control. Photograph: David Levene

Seven of Britain's leading airlines have warned the government not to sell Nats, the national air traffic control service, arguing that the system is a key strategic asset not suitable for full privatisation.

In a letter obtained by the Observer, the Airline Group warns of "highly damaging" consequences if the state sells all of its 49% stake, an option under consideration by transport secretary Philip Hammond.

The Airline Group, which has a 42% stake in Nats, said in the letter to 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: "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

No comments:

Post a Comment