NATS eligible for funding of up to £92 million to maintain services
The DfT has announced that there is to be a £1.1 billion support package for air navigation service providers across Europe affected by COVID-19 events. This is because the pandemic has caused a massive fall in air traffic and hence in their incomes. It was announced earlier that airlines would be able to temporarily defer payments for route charges for February to May 2020, for up to 14 months, due to the virus. That would amount to £1.1 billion. The UK and other European states have supported the intergovernmental organisation, Eurocontrol, which manages charging for air navigation services across Europe, in securing the loan of £1.1 billion (where from?). The UK’s “en-route” air navigation service provider, NATS would be eligible to receive up to £92 million in support, enabling it to continue providing services. The only flights at present are for cargo and repatriation. The money is partly to ensure NATS and Eurocontrol can return to full operations at the appropriate time, “to help the recovery of the aviation sector.” The UK government holds a 10% share in the vote for any such action passed by Eurocontrol, and voted in favour of pursuing the loan.
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NATS eligible for funding of up to £92 million to maintain services
£1.1 billion support package for air navigation service providers across Europe affected by COVID-19 events.
- air navigation service providers to receive a share of £1.1 billion support package to maintain critical services as income plummets due to coronavirus
- the UK’s NATS would be eligible to receive up to £92 million in support
- the government continues to work closely with the aviation sector to support organisations affected by coronavirus
Air navigation service providers across Europe will share a £1.1 billion support package to maintain services, as the fall in air traffic has led to a dramatic reduction in their income.
The UK, along with other European states, has supported the intergovernmental organisation, EUROCONTROL, which manages charging for air navigation services across Europe, in securing a loan of £1.1 billion to maintain critical air navigation services, which have been affected by the fall in air traffic from coronavirus.
As the UK’s en-route air navigation service provider, NATS would be eligible to receive up to £92 million in support, enabling it to continue providing services, supporting cargo and repatriation flights as well as ensuring the organisation can return to full operations at the appropriate time, to help the recovery of the aviation sector.
Following the announcement last week that airlines would be able to temporarily defer payments for route charges for up to 14 months, this arrangement provides financial relief to air navigation service providers also facing disruption as a result of coronavirus.
The UK government holds a 10% share in the vote for any such action passed by EUROCONTROL and voted in favour of pursuing the loan.
Founded in 1963, the organisation has 41 member states and is not an agency of the EU.
Transport Secretary Grant Shapps said:
“The effect of coronavirus is being felt right across the aviation sector which is why we have announced an unprecedented package of support measures to help firms through this extremely testing period. Air navigation service providers rely on airlines operating for their revenue, so this support will enable them to continue providing their safety critical services, as we help stranded Brits get home and transport vital medical supplies.”
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See earlier
UK airlines to save millions as navigation charges deferred
Charges for air navigation services in European airspace deferred for up to 14 months.
- charges paid by airlines for air navigation services while flying through European airspace can now be deferred for up to 14 months
- this could save UK airlines tens of millions of pounds a month
- the government continues to work closely with the aviation sector to support airlines affected by the coronavirus pandemic
Airlines will be able to temporarily defer the payment of air navigation charges, saving them tens of millions of pounds, following action from UK government.
This measure should provide financial relief to airlines struggling as a result of the coronavirus pandemic. Airlines will be able to defer the payment of charges for air navigation services in UK and European airspace for the months of February-May 2020 for up to 14 months.
In February, the 10 largest UK airlines would have been expected to pay a total of £47.2 million for flights in European airspace. EUROCONTROL, the organisation which manages charging for navigation services across Europe, estimates that European airlines could defer €1.1 billion in route charges in total thanks to the move.
The UK government holds a 10% share in the vote for any such action passed by EUROCONTROL and voted in favour of the proposals, helping protect UK airlines and ease some of the current financial burdens faced by the sector as a result of the impacts coronavirus.
Transport Secretary Grant Shapps said:
“This is a very difficult time for airlines, but they continue to provide a vital service bringing UK citizens home and transporting vital medical supplies. Deferring these charges will further help airlines, on top of the unprecedented package of economic measures recently announced by the Chancellor, to support businesses through this challenging period. ”
https://www.gov.uk/government/news/uk-airlines-to-save-millions-as-navigation-charges-deferred
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