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Airlines

Airline Group to Appoint Financial Adviser for National Air Traffic Services Stake

Strategic Insights

— 1 min read

The Airline Group, a consortium of seven UK airlines, is set to appoint a financial adviser to evaluate approaches from infrastructure investors for its 42% stake in National Air Traffic Services (Nats). This follows interest from a joint venture between Credit Suisse and General Electric, which is planning to invest in infrastructure and energy assets. The UK government will need to approve any change in strategic investor for Nats, and has already had discussions with the Airline Group and potential investors. The Airline Group's stake in Nats was partially privatized in 2001, and the government maintained a 49% stake.

Key Takeaways:

  • The Airline Group, comprising seven UK airlines, is to appoint a financial adviser to evaluate approaches from infrastructure investors for its 42% stake in Nats.
  • A joint venture between Credit Suisse and General Electric is planning to invest up to $5 billion (approximately £2.7 billion) in infrastructure and energy assets, including potentially Nats.
  • Macquarie, the Australian bank, has also expressed interest in Nats.
  • The UK government has a 49% stake in Nats and will need to approve any change in strategic investor.
  • The Airline Group's stake in Nats was partially privatized in 2001, following the financial crisis that hit Nats after the 9/11 terrorist attacks.
  • Nats was recently rescued and refinanced due to its heavy debt levels.
  • Some charter carriers in the Airline Group, including EasyJet and BMI British Midland, have stakes of around 6% each in Nats.

Statistics:

  • The Airline Group holds a 42% stake in Nats.
  • The joint venture between Credit Suisse and General Electric is planning to invest up to $5 billion (approximately £2.7 billion) in infrastructure and energy assets.
  • The UK government maintained a 49% stake in Nats after partial privatization in 2001.
  • Nats' heavy debt levels became unsupportable in the wake of the 9/11 terrorist attacks.
  • The UK government has had discussions with the Airline Group and some potential investors regarding Nats.

Sources:

  • The Airline Group
  • "Airline Group to appoint financial adviser for Nats stake," The Financial Times (no date provided)
  • Virgin Atlantic
  • Credit Suisse/General Electric joint venture
  • Macquarie

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