Air traffic control system left in crisis by 'penny-pinching' sell-off, MPs warn

The sale of Britain's air traffic control system was seriously flawed and should be reviewed by ministers before it "does terminal damage to the United Kingdom's aviation industry", a powerful committee of MPs said yesterday.

The Government's botched handling of the part-privatisation, carried out with a "cost-cutting and penny-pinching mentality", has left the National Air Traffic Services (Nats) deep in debt. It is "far from capable of meeting the challenges of the long-term future of air traffic control services in the United Kingdom", the committee said.

MPs on the Transport, Local Government and the Regions Select Committee warned that the financial structure created by the Government during the part-privatisation had left Nats "extremely vulnerable" to any reduction in air traffic.

They said Nats' finances could collapse and called on the Department of Transport to publish details of a "full contingency recovery plan".

The committee, which took evidence from a range of experts in the aviation world, concluded that Government claims that the public-private partnership deal would "deliver a more efficient air traffic control service" were unfounded.

It warned that Nats' plans to reduce the number of "safety critical staff" trained to provide emergency support if computers fail were gravely mistaken. "Air traffic control assistants are vital to the safe operation of air traffic control," it said.

It added that doubts remained over the new computer system at the air traffic control centre at Swanwick.

The National Audit Office has warned that the service is facing a crisis with debts of £733m due to Government miscalculations about the amount of air traffic it would handle.

The Tories accused ministers of being "complacent" about the "flawed financing" of Nats and said the select committee had "got it right".

The Shadow Transport Secretary, Tim Collins, said: "Of course, Nats has been seriously affected by 11 September and its aftermath, but that cannot be used as an excuse."

The MPs' report also called for more detail about plans to bring in the British Airports Authority as an investor. The airport operator would bring a financial injection of up to £65m.

ATransport Department spokesman said it was recognised that, "Nats' financial position needs strengthening" and promised to match BAA's investment "on the right terms".

"Airport operator BAA are interested in becoming equity partners, and discussions with them are ongoing," he said. "In the meantime ... Government and the banks have each made £30m available to ensure Nats' short-term liquidity."