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CAA turns down NATS request to raise fees
The UK’s Civil Aviation Authority (CAA) has turned down a request by the partly-privatised national air traffic control service (NATS) to raise its charges to airlines.
NATS was hoping to increase the fees it charges airlines for air traffic control services in the UK. It wanted to raise its charges from 1 January 2003 to 31 December 2005 following a fall in demand for its services following the events of 11th September 2001.
The CAA’s decision means the sum NATS can charge airlines is due to fall in real terms between now and the end of 2005.
CAA pointed out that, when the present charging regime was introduced, it was understood that NATS would face the financial risk if traffic volume fell below expected levels. The CAA said its preliminary view is “that accepting NATS’ application as submitted simply to repair its balance sheet would not best meet the CAA’s statutory objectives.”
However, the CAA said it “recognises the importance of a sustainable financial structure being put in place for NATS at an early date in order to give NATS a firm platform for expanding capacity. If user airlines are sufficiently concerned about the risk of adverse effects on NATS’ performance because of difficulties in improving its financial situation and, consequently, are prepared to pay somewhat higher charges to assist a financial strengthening, the CAA will be prepared to consider these.”
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