Andrew Doyle/MUNICH Carol Reed/SWANWICK
EADS has dropped plans to take a 10% equity stake in the Serco-led Nimbus consortium, which had been one of two short-listed bidders for 46% of the UK's state-owned National Air Traffic Services.
The European aerospace company declines to comment on the reasons for its decision. But UK sources involved in transforming NATS into a public-private partnership say the company's board was not satisfied that the investment would give an adequate return to shareholders, given the perceived level of risk and the lack of time to analyse the financial consequences of its involvement.
The rival Airline Group, formed by the UK's leading carriers, has described as "ridiculous" media reports that it pressured EADS to pull out because the bid would have put the manufacturer in direct competition with its customers. EADS, drafted into Nimbus at the end of January after the withdrawal of UK investment firm PPM Ventures, will continue to provide technical support for the Serco bid, which is opposed by UK air traffic controllers.
The Novares group, linking Lockheed Martin and Airways Corp, New Zealand's state-owned air traffic control provider, was excluded from the UK Department of the Environment, Transport and the Regions' shortlist, but retains "reserve" status. Sources close to the privatisation say the government is nevertheless wary about putting control of UK airspace into foreign hands.
Long delays in the development of the UK's new air traffic control centre at Swanwick - now due to go 'live' in June next year - may also have damaged Lockheed Martin's credibility, the US company being the prime contractor on the project. The successful bidder for NATS will be chosen later this month, with the government retaining a 49% holding and employees receiving 5%.
Source: Flight International
