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Germans plot air traffic swoop

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    Germans plot air traffic swoop

    The foreign bidder Deutsche Flugsicherung is preparing an offer for a stake in Britain’s airways after George Osborne’s decision to sell up
    This is damn awful. Having worked in NATS in the past I know it works. "Nats, which has 5,000 staff, controls nearly all flights — 2m a year — in British airspace." There's a reason for this and you don't replace safety with pound signs.


    Germany is planning an audacious bid for a stake in Nats, the part-privatised company that runs Britain’s air traffic control service.

    Deutsche Flugsicherung (DFS), Germany’s state-owned air traffic service, has been spurred into action by George Osborne’s move to sell the government’s stake in Nats, which could be worth more than £500m.

    DFS wants the deal to be a catalyst for a radical shake-up of European air traffic control, and to create an Anglo-German champion that could bid for lucrative contracts in Asia. It is likely to have fierce competition from rival bidders, and may face flak from politicians opposed to foreign investment in Britain’s airways.

    Nats, which has 5,000 staff, controls nearly all flights — 2m a year — in British airspace. Last year it had sales of £770m, and made a £106m profit, from which it paid a dividend of £40m to shareholders.

    It was part-privatised in a controversial sale a decade ago. After a rebellion by MPs and peers, the deal was pushed through only when the Labour government agreed to keep a 49% stake.

    The private investors, which named themselves the Airline Group, include British Airways, Easyjet, Virgin Atlantic and other leading airlines. They own 42%.

    BAA, the owner of Heathrow, owns 4%, having invested when Nats got into financial difficulties after the terrorist attack on the World Trade Center in New York sharply reduced flight numbers across the Atlantic. Staff hold the remaining 5%

    Osborne said in his emergency budget last year he would sell the government’s stake. Little has happened since, with plans for a float or trade sale hampered by political sensitivities.

    DFS is now pressing ahead. Last week it asked London investment banks to tender for an advisory role in a bid. Sources said the timing was linked to a recent Airline Group decision not to sell its holding in Nats at the same time as the government, and to remain as a cornerstone investor.

    “They [the airlines] have realised they have too great an interest in the successful operation of air traffic control not to remain at the table,” said one source.

    The Germans are understood to have drawn up an “industry solution” that would see DFS invest alongside the Airline Group. City sources said it hopes the scheme will appeal to ministers, who are sensitive to accusations that a sale to a financial institution could lead to charges of profiteering from Britain’s airways.

    DFS’s move could provide a catalyst for a long-anticipated consolidation of European air traffic control. Jealous guarding of national control operations has caused bottlenecks in the skies, forcing aircraft to deal with several agencies when crossing the Continent.

    The Germans will also argue DFS and Nats could create a European champion capable of winning business in fast-growing Asian and African markets.

    Meanwhile, another potential bidder for Nats, the investment group that owns Gatwick airport, is raising a huge new fund. Global Infrastructure Partners (GIP) said last week it had already raised $3 billion (£1.9 billion), putting it on track for its target of $5 billion. It raised $5.6 billion for its first fund in 2008.

    GIP, a joint venture between Credit Suisse and General Electric, is expected to lead the field in the race to buy Edinburgh airport from BAA.
    http://www.thesundaytimes.co.uk/sto/...icle839653.ece
    Last edited by scooterscot; 11 December 2011, 10:19.
    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

    #2
    Mind you, the more chunks of British industry are owned by the French and Germans the less inclinded they might be to try and stitch us up economically.
    Work in the public sector? Read the IR35 FAQ here

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      #3
      Originally posted by OwlHoot View Post
      Mind you, the more chunks of British industry are owned by the French and Germans the less inclinded they might be to try and stitch us up economically.
      EDF prices have worked out so well for customers in the UK so far...

      What happens when flights into UK airspace see an increase in clearance charges by their German operator?
      "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

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        #4
        Originally posted by scooterscot View Post
        This is damn awful. Having worked in NATS in the past I know it works. "Nats, which has 5,000 staff, controls nearly all flights — 2m a year — in British airspace." There's a reason for this and you don't replace safety with pound signs.


        http://www.thesundaytimes.co.uk/sto/...icle839653.ece
        And this is the result .... BBC NEWS | World | Europe | Jet crash controller 'overburdened'
        "A people that elect corrupt politicians, imposters, thieves and traitors are not victims, but accomplices," George Orwell

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          #5
          Originally posted by Paddy View Post
          It's a risk.

          From what I remember at NATS 3 people per control screen (navigator, comms, the other I don't remember) with none spending more than 90 minutes without taking a break.

          The end result will be like anyone other business looking to make cost savings through compromise. Neither should we put our faith in the Germans for managing this, I've been around enough German companies to know not all pay attention to detail, in fact some just go out of their way to tick boxes so the invoice can be sent.
          "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

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