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Saturday, 3 November, 2001, 05:13 GMT
Air traffic controllers' cash plea
Heathrow Airport air traffic control centre
Several plans have already been put on hold
Air traffic controllers are calling for an injection of government money into their industry in the wake of the 11 September attacks.

The IPMS union, which represents many controllers, said the government should show it is still an active partner in the recently part-privatised National Air Traffic Services (Nats).

Nats is already in serious financial difficulties just three months after the part-privatisation, the union said.

And it warned that without a cash injection, possibly in the form of a low-cost loan, Nats could be heading for the same financial crisis which destroyed rail operator Railtrack.

'Investment vital'

Nats was partly privatised three months ago, and ministers at the time believed its new owners could raise �1bn of private investment.


The long-term infrastructure must not be allowed to crumble

Iain Findlay, IPMS

But that was before 11 September, and the subsequent massive downturn in the aviation industry.

Now there are concerns that the owners will be unable to raise the funds necessary to keep the service functioning.

Plans for a �400m air traffic control centre in Prestwick in Scotland have already been put on hold.

Union official Iain Findlay was due to tell the controllers' annual conference on Saturday that such decisions could be disastrous.

"Investment in vital infrastructure... must be maintained according to the original timescale to ensure capacity and safety are not affected," he said.

"The government took the money that has put Nats under financial pressure, exacerbated by the recent tragic events.

"The long-term infrastructure must not be allowed to crumble".

'Strong case needed'

However, it is unlikely that the government - which made �800m from the sale of Nats - would be easily persuaded to hand over any cash.

BBC correspondent Simon Montague said: "Nats would have to make a strong case for more investment, and so far officials won't say if government help is needed.

"What controllers and ministers are doubtless keen to avoid is another crisis of the sort that destroyed Railtrack."

A group of seven airlines - including British Airways, Virgin Atlantic and EasyJet - owns 46% of the company.

The government holds 49%, and employees own the remaining 5%.

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 ON THIS STORY
News image The BBC's Tom Symonds
"NATS will have to make a strong case for more investment"
See also:

01 Oct 01 | Business
Air traffic control cuts jobs
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