Glossary

Term

Meaning

(In) Administration

At the discretion of the Courts, NATS' regulated en route business (NATS' regulated business) could have been placed in administration if it were, or was likely to become, insolvent

Administrator

An administrator would have been appointed with a duty to carry on NATS' licensed business pending the transfer of the business as a going concern

Airline Group

Group of seven UK airlines that formed to become the private sector partner in the NATS Public Private Partnership

Air Proximity (or Airprox) incident

An incident reported by a pilot or controller in which standard minimum separation distances between aircraft have been breached. A risk-bearing airprox is one where the UK Air Proximity Board considers there was a potential risk of collision

BAA

BAA plc, owner of seven UK airports including Heathrow, Gatwick and Stansted

CAA

Civil Aviation Authority, the safety and economic regulator of NATS and national airspace regulator

Composite Solution

A solution devised by NATS, with contributions from the Banks, the Airline Group, UK Government, BAA plc and the CAA, designed to provide them with more robust finances

CSFB

Credit Suisse First Boston, the financial advisers to the Department for Transport

Due diligence

The process through which a party to a proposed transaction, such as a business acquisition, investigates in detail the risks associated with it

The Department

The Department for Transport. Name of the vendor Department. Formerly the Department of the Environment, Transport and the Regions (1997-2001) and Department of Transport, Local Government and the Regions (2001-2002)

En route

Aircraft flying in UK controlled airspace, other than aircraft taking off or landing

Eurocontrol

The European agency for the safety of air navigation, based in Brussels

Investment Grade Rating

Indicates a relatively low probability of default and high likelihood of timely repayment. Specifically, a rating of BBB- or above by Standard and Poor's, or Baa3 and above by Moody's Investor Services

NATS

National Air Traffic Services Ltd

NATS (Services) Ltd

The unregulated subsidiary of NATS which provides air traffic services to airports and consultancy services to customers worldwide.

PPP

Public Private Partnership between the Government and a private sector strategic partner

Senior debt

Debt that has first call on the cash of the borrowing business when due for repayment

SSSB

Schroder Salomon Smith Barney, initial financial advisers to NATS, having earlier been advisers to the Airline Group in their acquisition of the controlling stake in the PPP

Strategic Partnership Agreement

The agreement between the shareholders in NATS; the Department, the Airline Group and BAA plc

UBS Warburg (now UBS Limited)

Financial advisers to NATS from October 2002