What they wanted from the deal | Achieved | Comments |
To avoid NATS going into administration or other drifting situations, raising attendant uncertainties and risks to airlines' flight operations in and out of UK airspace | Yes | The likely outcome of administration being reversion to public sector ownership, with loss of the assured investment programme, and less prospect of improved working practices |
To avoid part ownership of NATS by a new investor that would not share their "not for commercial return" ethos | Yes |
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To maintain their operational control of NATS, [and enhance technical and operational skills on the board] | Yes | The Airline Group still has a majority on the NATS board |
To avoid having to make a further investment in NATS to match the Government's, during a difficult climate for airlines | Yes |
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To avoid the seven member airlines having impairment of the carrying value of their existing investments in NATS | Largely, Yes | Five of the seven airlines have not written down this investment |
What the other parties wanted them to contribute to the deal [Which parties] | Conceded | Comments |
Originally, to contribute a greater cash injection to NATS than was implied by their remaining shareholding | No |
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To continue the £30 million interim loan facility to NATS, pending agreement on the restructuring [ALL] | Yes | As Banks. [Neither facility was actually used] |
An additional investment of £65 million in NATS on equivalent terms to the new investor, BAA plc [ALL] | Yes | Increased from the £50m initially offered |
Tolerating dilution of their pre-existing equity stake in NATS, which ranks behind the new loan stock investment from BAA and HMG [BAA plc] | Yes |
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Tolerating dilution of their Board influence to the limited extent that the number of directors has increased to 15 from 13 to accommodate BAA plc [BAA and the Airline Group] | Yes | All three Partnership directors still retain their various vetoes and inspection rights. The Airline Group could outvote HMG before anyway |
Bears own transaction costs (£3.6 million) | Yes | Mainly advisers fees |