Duck and cover: Airlines take over NATS

Two unions representing aviation workers have warned that the billion pound debt behind today's privatisation of the air traffic control system will endanger passenger safety.

The long running privatisation deal was finalised today, with British Airways, British Midlands, easyJet, Virgin Atlantic and charter airlines Airtours International, Britannia and Monarch paying £50m for a 46 per cent holding in the national air traffic control service (NATS).

The government has retained a 49 per cent stake, with five per cent going to NATS 5,700 staff.

But the Institution of Professionals, Managers and Specialists (IPMS), which represents air traffic controllers, and the British Airline Pilots Association (BALPA), representing pilots and flight engineers, told silicon.com that essential engineering jobs could go, and staff workloads could increase as the new stake holders cut costs to repay their investment.

The consortium, operating as the Airline Group, has pledged to invest one billion pounds over the next ten years in new technology, and has arranged a loan facility with a group of banks headed by Barclays and Abbey National.

Both unions are worried about the high level of debt. Ian Findley, aviation officer with IPMS, said: "There is pressure on the airlines to repay the money they have invested and that could mean cost cuts and job cuts. I would like to think safety would be a main focus but I'm not totally convinced."

He added: "There are two sorts of people in organisations, the operations people and the accountants, and unfortunately in most organisations it's the accountants who have final say."

Christopher Darke, general secretary of BALPA, said the union would have preferred NATS to remain state owned, but the new consortium should make safety and staff work levels a top priority.

He said: "We have been assured that the Airline Group will not work for commercial gain. Its priority should be to continue to improve the safety record of NATS, and to invest not only in the infrastructure, but in staff who are already under pressure."

The Airline group is to undertake a 100-day consultancy period after which it will outline its future strategy.