Air traffic was hit by the travel slump following September 11

The chief executive, Richard Everitt, told BBC Radio 4's Today programme that the deal secured Nats' future and provided a "robust financial structure for the company".

"(It will) enable us to get on with a very demanding investment programme which will, in effect, renew the whole of the UK air traffic control over the next 10 years."

The refinancing deal was approved by the Civil Aviation Authority on Tuesday evening.

The airports operator BAA will also invest �65m ($102m) to make sure the long-term future of the organisation that controls UK air traffic is safe.

Higher fees

Under the rescue deal, Nats will be allowed to increase the fees it charges airlines over the next three years.

The move will affect not just UK carriers such as British Airways and Easyjet, but every airline using UK air space.

The higher charges have already been opposed by airlines because they will have to bear the extra cost.

But the government was pleased with the deal.

"We are more than ready to sign-up to the composite solution," a Transport Ministry spokeswoman said.

Nats was part-privatised nearly two years ago, giving a controlling stake to a consortium of airlines led by Virgin and British Airways.

Nats makes nearly half of its money from transatlantic flights and was hit hard by the slump in air travel following the terror attacks on September 11.