Memorandum by BAA plc (NAT 8)
NATS FINANCING
Thank you for giving BAA the opportunity to
comment on the Select Committee's current investigation into the
financing of NATS.
BAA owns and operates seven airports in the
United Kingdom. The provision of high quality en route, approach
and airport ATC services is critical to the success of our business,
and of the aviation industry generally. This in turn is vital
to meeting the needs of travellers, and supporting the UK economy.
To this end we need NATS to be able to provide:
— the highest levels of safety and
operational reliability;
— a high overall quality of service,
with delays kept within acceptable levels; and
— sufficient capacity to meet growing
expected levels of demand.
For NATS to be able to meet these needs requires
not just that it is profitable, but also that it is able to raise
money for investment. In this respect we place sound financing
above small short-term variations in the level of charges for
NATS services. We believe that this view is consistent with the
CAA's duties under the Transport Act.
We therefore look to the Government, NATS management
and its shareholders to reach a settlement of the current application
for a revision of the price control formula, which allows for
NATS to implement its business plan with confidence.
M R Toms
Group Planning and Regulatory Affairs Director
31 May 2002
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