Part Privatization of United Kingdom’s Airspace: National Air Traffic Services’ Experience One Year On

Abstract

Air traffic in the United Kingdom has increased rapidly in the past two decades and is forecast to grow at a rate of 4.3% per year between 1998 and 2020. The failure to develop the air traffic system to cope with this growth has had undesirable consequences, for example, a rise in flight delays and near misses. Given the investment required in air traffic control systems to cater for this growth, the U.K. government in 2000 part-privatized the National Air Traffic Services (NATS), the body in charge of the United Kingdom’s airspace in a public–private partnership (PPP). The U.K. Airline Group acquired 46% of NATS and effective operational control, although the government retains a share in NATS and safety regulation is in the public sector. However, serious doubts about safety were raised during the debate on the PPP. Main issues surrounding the part-privatization of NATS were analyzed. First highlighted was the U.K. government’s provisions for the PPP and their implementation in the post-PPP NATS in six different categories: funding, new technology and project management, safety, pricing regime, international opportunities, and customer responsiveness. The September 11, 2001, terrorist attacks have had major impacts on air travel, and their consequences for NATS in the six categories are highlighted. Finally, attention was given to concerns that must be addressed to ensure the success of the partnership for NATS.