4 NATS Management

What they wanted from the deal

Achieved

Comments

To avoid the company going into administration or other sub-optimal situations which would cause uncertainties and risks to the business and its customers

Yes

Other sub-optimal situations included "do-minimum" programmes

To avoid having to divest assets in a way that would damage the future viability of the company

Yes

In particular, NATS Services Ltd

To free NATS management to run the business without being subjected to the full range of project finance-type constraints imposed by lender banks within the original PPP facilities agreements

Within reasonable limits, Yes

 

To enable the Company to commence procurement within its 10 year investment programme

Yes

Initial contracts have been signed for Radars and software

To ensure that NATS' finances should be sufficiently robust to withstand future downturns in traffic

Yes

Though the Company is still exposed to some traffic risk from the severest scenarios

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

Conceded

Comments

Cost cuts estimated at some £170 million over CP1 [ALL]

Yes

Down from £200m, (pay settlement)

Agreement to a tighter performance regime, which will penalise them more heavily for causing delays to flights [CAA]

Yes

Ceiling doubled to £10m

Agreement to more exacting financial reporting to the CAA, and restrictions on NATS' freedom to change financial arrangements without referral to CAA [CAA]

Yes

Listed in revised licence requirements

Bears own transaction costs [All parties]

Yes

Mainly advisers fees