HL Deb 08 May 2002 vol 634 cc182-3WA
Lord Bowness

asked Her Majesty's Government:

  1. (a) What is the present financial position of National Air Traffic Services;
  2. (b) for how long the Government short-term loan has been made available;
    3. WA183
  3. (c) what progress has been made in connection with securing additional equity; and
  4. (d) what actions they propose to take, in the event of the discussions and negotiations with banks and other shareholders proving unsuccessful, to preserve the National Air Traffic Control Systems. [HL4062]

Lord Falconer of Thoroton

NATS has experienced financial difficulties as a result of the downturn in traffic following the events of 11 September. To relieve NATS' cash flow position, its lending banks and the Government, as the largest shareholder, have agreed to make available a short-term bridging loan to a maximum of £60 million up to 30 September 2002. Normal commercial terms apply to the loan.

As part of the long-term solution for NATS finances, the company is currently conducting a search for a new equity investor on a competitive basis.

The Transport Act 2000 provides for the maintenance of safe services in the event of financial failure by a company providing services under the Act.

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