Andrew Doyle/LANGEN
German air traffic services provider Deutsche Flugsicherung (DFS)is interested in forming a strategic alliance with the UK's National Air Traffic Services (NATS), as part of efforts to kick-start the rationalisation of Europe's fragmented air traffic control (ATC) infrastructure.
"We think that, in the longer term, we need a cross-border alliance," says DFS chairman Dieter Kaden. He says NATS would be an ideal partner if the UK sells 51% of the company, as planned. Although no talks have taken place between DFS and NATS, a possible area of co-operation could be the joint control of airspace, suggests DFS.
DFS remains state owned, but has been "corporatised" and Kaden hopes that the German Government will follow the same path as that envisioned by the UK.
Kaden favours a "big bang" approach to deregulation of air traffic services in Europe, backed by European Union (EU)legislation, following a similar model to that applied to the airline market. Such a move by the EU, however, is threatened by the reluctance of some countries to expose their ATC providers to competition.
DFS, meanwhile, is preparing to bid for a long term contract to manage the ATC system of an Asian country, believed to be the Philippines or Thailand. Contract award is expected by the end of the year. The German organisation is an established provider of consultancy services, but has yet to take over the running of an ATC system for an outside customer.
DFS reports last year's profits down by over 30%, compared with the previous year, to DM12.1 million ($6.5 million), mainly because it was obliged to cut en route charges 5.7% and terminal charges 0.7% as part of the corporatisation process. Overall revenues were down 2.5%, to DM1.36 billion.
• Europe's air traffic services will continue to fail to meet demand unless they are freed from the constraints of direct political management, says new NATS chairman Sir Roy McNulty.
Source: Flight International
