We would also like to bring to your attention the following points:
- NATS has increased the number of sectors to distribute the workload-but it is unable to staff the sectors sufficiently and, as a result, several of these can be short of adequate staffing at any one time.
- NATS is confident that, once the refinancing has been completed, demand will not exceed capacity-whilst this may be true in theory, it will depend on sufficient staffing being available at any one time.
- The Composite solution as proposed by the CAA in its current consultation does spread risk, but we would argue that it does not spread risk equally.
- The comment made by Ms Eagle, that Treasury rules should be looked at, is correct.23 Had the Treasury been more flexible in the first place and more in line with other Member States, NATS could have been released from the PSBR and been free to borrow on the open market. This could have avoided the current NATS situation.
- We do not know what the user contribution will be in the future-in effect, we are being asked to sign a blank cheque.
- Amongst all EU Member States' air traffic control systems, we believe that NATS gives worst value for money.
- NATS mentioned that it hopes to diversify in the future. We are helping them to do so. It seems unfair that we are being forced to make a contribution now and that this will help NATS to become more financially stable so that they are able to diversify and increase the value to shareholders at a later stage.
Senior management from our organisations would be happy to meet with you in the near future to discuss some of the points raised in this letter. We employ many people in Britain and millions of UK citizens use our services every week. We are proud to operate successfully here and hope to grow in the future and thus contribute more to the UK economy. It is very important to us that members of the Committee understand our concerns and we would have communicated earlier had we known of the Committee's vital work.
Jan Skeels Jim Callaghan
KLM Buzz RyanAir
25 November 2002
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23 Qq 87-91.