Air traffic group posts £1.8m profits

UK air traffic control group Nats moved into the black today as the aviation industry overcame the turbulence that followed the September 11 attacks.

Nats, which stands for National Air Traffic Services, posted pre-tax profits of £1.8m (€2.7m) for the 12 months to March 31.

This marked a turnaround from losses of £29.1m (€44.3m) a year ago and reflected the record levels of traffic using UK airports and the benefits of a financial restructuring.

Nats, which was part-privatised in July 2001, overhauled its balance sheet after being shocked by a drop-off in flights in the wake of September 11.

At one stage the British government had to lend the group money as losses reached £79.9m (€121.5m) in the full year following the terrorist attacks.

The UK government has a 49% stake in Nats, with staff owning 5% and the remainder belonging to a group comprising airports operator BAA and seven UK airlines.

Nats chairman Chris Gibson-Smith today said a “healthier operating environment” had delivered an 8% hike in annual turnover to £599.2m (€911.2m).

A continued drive on costs had enabled the group to transform its financial performance, with net debt lowered to £697.6m (€1bn) during the year.

“Critically, it has given us the confidence to embark on an ambitious £1bn (€1.5bn) modernisation programme to meet future demand and to provide a safe and reliable service,” Mr Gibson-Smith said.

Nats generates the bulk of its revenues from guiding aircraft through the skies from centres at Manchester, West Drayton near Heathrow airport, Prestwick, and Swanwick near Southampton.

The average income from planes using UK airspace has now recovered to levels experienced in 2001, Nats said.

In addition, the group generates one-sixth of its revenues from operating the air traffic control towers at 14 airports around the country.

Mr Gibson-Smith said the group had delivered its best operating performance for some time despite “the brief and regrettable” service interruption two weeks ago.

Tens of thousands of airline passengers suffered delays after the UK air traffic control system crashed, leaving planes grounded at airports including Heathrow and Gatwick.

Details also emerged today of a £446,000 (€678,000) pay-off for Nats chief executive Richard Everitt after he was ousted by the board earlier this year.

The severance deal includes compensation of £353,000 (€536,800) for loss of office, according to the group’s annual report.

It also reflects £93,000 (€141,000) of non-cash benefits such as medical insurance and contributions to the company pension scheme.