NATS Profit After Decade as PPP

After ten years of being the world’s first part-privatised provider (PPP) of air navigation services, NATS has reported making a profit for the financial year ending March 31, 2011.  NATS Holdings Limited (NHL) and its subsidiaries (the NATS Group or NATS) reported a turnover of £777.3m (US$1.2bn) and a pre-tax profit of £106.1m (US$170m).  The company paid dividends of £40m (US$64m).
The price control review for the economically regulated en route business for 2011 to 2014 was also concluded. It shows a balanced outcome for both company and customers.  Service performance and operating cost efficiency targets have been set, with a particular focus on maintaining past achievements.
Over the past decade, NATS says it has invested £1.1bn (US$1.8bn) in renewing infrastructure and new systems. Delays have been cut by 95% to just 4.3 seconds per flight.  Financial performance has improved from a loss of £80m (US$128m) in 2002 to a profit of £106m (US$170m) in 2011.
NATS says is also on track to be the first ATC provider to establish an environmental performance metric.  In the past financial year, more efficient flight profiles have enabled airline savings of 12,000 tonnes of fuel and 38,000 tonnes of CO2 emissions.  These savings were worth £7.5m (US$12m) at average fuel prices.
NATS Chief Executive Richard Deakin is pleased with the company’s financial results.  He said: “This is just the start of a much bigger journey reflecting a greater ambition for NATS.  “We have developed a strategy to grow our business and to ensure that we have the capabilities and skills to enable that growth. In the meantime, the new price control effectively secures a £2.2bn (US$3.5bn) contract for the next four years and the investment required to provide capacity to meet forecast traffic growth.  Our customers will continue to benefit from the tough service performance and operation cost efficiency targets set by the CAA to ensure we continue to maintain and improve service,” he said.
The economically regulated subsidiary, NATS (En Route) plc, reported a profit before tax of £70.8m (US$113.8m). NATS Services Limited reported a profit before tax of £35.6m (US$57.3m).