These recommendations build on those made in our earlier report on the NATS PPP. There are different points of view on the reasons for NATS' financial difficulties which necessitated the refinancing. NATS themselves and the Civil Aviation Authority tend to emphasise the importance of the heavy indebtedness of the original financial structure. The Department for Transport and their advisers put more emphasis on the severity of the downturn in traffic following September 11th, which they regard as unprecedented. We recognise both points of view, and that these issues are interrelated, but consider that there are important lessons for Departments to learn from this case on the financial structuring of PPPs.