British services group Serco has denied press reports that it is in talks to bailout the country's troubled air traffic control system.

"We are not in negotiations with Nats or the Airline Group," a company spokesmen told BBC News Online in response to an Independent on Sunday (IoS) report.

The IoS said senior Serco managers had held secret talks with National Air Traffic Services (Nats) chief executive Richard Everitt over the last few weeks about injecting new equity into the company.

"We are always interested in business opportunities, should they arise," said the Nats spokesman adding the company routinely held talks with other parties in the industry.

Air turbulence

In February, the UK government was forced to pump �30m into a �60m emergency bailout of the part-privatised air traffic control service.

Nats has seen a step fall in revenues, from charges to airlines using British airspace, following a reduction in air travel after the 11 September attacks on the US.

The government last year sold a 46% stake in Nats to a consortium of UK airlines - including British Airways, British Midland, easyJet and Virgin Atlantic - for �750m.

The Airline Group was chosen by the government as its partner in the part-privatisation over Serco's bid.