Manufacturing Industry
UK air traffic service unhappy about new CAA price controls
Airline Industry Information, Nov 30, 2004
AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD
The UK's National Air Traffic Services (NATS) has indicated that it is ready to fight the Civil Aviation Authority (CAA) over a new price plan which would see the price cap lowered by January 2006.
NATS said that the new proposals by the CAA were a lot tougher than it had expected and were very complex, and that instead of focusing on improving services the authority had focused on cutting prices. The CAA has proposed cutting the cap placed on revenue made by NATS for the use of UK airspace by 7.8% by 2006.
Comments on the new proposal are to be submitted by February 2005 with firm proposals to be published by May 2005 and a decision made by December 2005. NATS has been criticised for the quality of service it provides and the equipment it uses but has proposed a GBP1bn modernisation programme, reports Sharecast.
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