Nats wrangle over jumbo jet charge

AS WORRIES increase over the safety and reliability of air traffic control, the regulator and the National Air Traffic Service (Nats) are locked in a dispute over just £28 per jumbo jet. That is the amount which Nats wants to raise the prices it charges airlines to cover the current crisis. The Civil Aviation Authority has turned it down.

With the service just recovering from breakdown, and new safety fears, the subject is going to a two-month review. This sounds a little like Railtrack with wings. The slump in air travel since 11 September has hit jumbo jet long-haul travel hardest. That is where Nats traditionally gets most of its money.

A jumbo flying from Heathrow to New York pays £550, a Boeing 737 from Stansted to Paris just £110. Nats wants to raise prices 5.5% - £28 for a jumbo and £6 for smaller planes. Europe's other, government-controlled services have raised prices since September.

A consortium including British Airways, Virgin, British Midland and easyJet paid £750m last summer for 46% of Nats. In return they received the troubled new Swanwick centre, built over 12 years at a cost of £623m. It opened in January.

Nats claims its £1bn, 10-year investment plan is in jeopardy without the price rise, though it should still make profits in the year just ended. It is hoping for another investor. The likeliest, BAA, is not commenting.