NATS gets cash reprieve

UK government transport secretary Stephen Byers has agreed to subsidise the financially strapped National Air Traffic Control System (NATS) to the tune of £30m of taxpayer cash.

The controversial funding comes just after Byers sold off NATS to a consortium of seven major airlines for a massive £750m.

NATS' bank backers have matched the government's cash with another £30m on top of the £1.4bn they have already loaned to NATS and are demanding it produce a new business plan.

Air traffic to the UK slowed and cut NATS' revenues to a trickle following 11 September.

The banks are concerned that their massive combined loan to NATS will wash down the plug hole and have been conferring with the Civil Aviation Authority (CAA) and the government about protecting their interests.

Since September, NATS has been forcing it to re-evaluate financial targets for the next five years as well as plan £200m in cost cutting, seek further funding from its investors and beg for cash from the government.