Ryanair threaten air traffic deal to NATS

RYANAIR is threatening the financial bailout of Britain’s air traffic control service claiming the rescue package is anti-consumer.

The budget airline plans to launch a complaint with the Office of Fair Trade in London over the aide package to National Air Traffic Services (Nats).

According to the Independent on Sunday newspaper, Ryanair’s submission to the OFT will state that as a result of the package airlines will face higher air traffic control charges and these will be passed on to consumers, meaning higher air fares.

The Irish airline also says Nats has not guaranteed an increase in service levels in return for their co-operation on the deal.

The move of Britain’s air traffic control centre to Swanick earlier on this year has been blamed on the numerous delays on flights across Europe this year.

The new centre, which was several hundred million euros over budget, has been plagued by technical problems causing havoc for travellers this summer.

Nats was partially privatised by the British government in March 2001 with 46% of the company sold to British Airways, Virgin Easyjet and BMI British Midland.

The rescue will see the British government inject stg£60 million of public money pumped into Nats to be matched by the main airport operator BAA.

Nats will be allowed to increase the levies which it charges airlines, like Ryanair.

However, the budget carrier wants strict performance targets to be built into the plan.

The paper said that if the objection to the OFT fails Ryanair may take it to the EU courts, believing that the deal breaches European competition laws. Britain’s Civil Aviation Authority will rule on the rescue package in two weeks time.

The Ryanair referral could delay the process.