David Learmount/LONDON

Part-privatisation of the UK's National Air Traffic Services (NATS) is finally set to go ahead, with the controversial scheme winning parliamentary approval last week, and the number of bidders whittled down to three. Boeing and the BAE Systems/Finmeccanica joint venture, Alenia Marconi Systems (AMS), have meanwhile filed individual expressions of interest, reveals the Department of the Environment, Transport and the Regions (DETR).

Three potential investors have been shortlisted from eight original applicants: the Airline Group (Airtours; Britannia Airways; British Airways; British Midland; easyJet; JMC; Monarch Airlines and Virgin Atlantic Airways), Nimbus (services company SERCO; aeronautical communications specialist Arinc; Cranfield University and PPM Ventures) and sole remaining "foreign" bidder Novares (Lockheed Martin - prime software contractor for the new Swanwick en route centre and the new Scottish Air Traffic Control Centre; New Zealand air traffic services provider Airways Corp and Apax Partners).

A contract between the UK Government and the successful consortium should be signed by the end of March, according to DETR, which says new interest from Boeing and AMS could see either or both joining one of the shortlisted partnerships. Boeing's involvement would be in line with current plans to elevate the status of its air traffic management (ATM) business unit, while AMS is a leading European producer of air traffic control systems.

In a NATS public/private partnership (PPP), the government would hold a 49% share, employees 5% and the partner company 46%. The latter would be responsible for raising capital investment necessary for system renewal and expansion, and generally managing the organisation.

The new NATS must also play a leading role in developing a "single European sky" system of ATM, a European Commission-backed move which could see NATS and other national operators bidding for external ATM contracts.

Source: Flight International