What they wanted from the deal

Achieved

Comments

To secure the benefits of the PPP in terms of a stable and enhanced Air Traffic Control service. To avoid the worst case of NATS going into administration, with the attendant uncertainties and strategic risks to their own UK airports business

Yes

As HMG

To obtain a relatively certain (although modest) rate of return on most of their investment in NATS

Yes

As HMG

To obtain some future flexibility to dispose of part of their investment without loss of rights (e.g. vetoes)

Unclear

To obtain an appropriate level of representation on NATS' Board in return for their investment

Yes

Two Directors

What the other parties wanted them to contribute to the deal [Which parties]

Conceded

Comments

An investment of £5 million in pure equity and £60 million in loan notes, on terms that were competitive in market terms [All others]

Yes

As HMG

Accepting constraints over their rights to intervene in NATS, including the voting rights of their two non-executive directors over BAA-related matters. [HMG and the Airline Group]

Yes

To address the potential risks of direct influence over the main supplier of ATC at their airports

Bears own transaction costs (total £2-3 million) [All others]

Partly

Mainly advisers fees, not reimbursed above a £1 million threshold

To justify their investment through their own due diligence, rather than reliance on warranties and assurances from NATS or other parties [All others]

Partly