The Civil Aviation Authority (CAA) today published its final decision on the regulatory price controls of National Air Traffic Services (NATS) which will come into effect next year. The controls are the same as those set out in the CAA’s formal proposals published for consultation on 29 September.
The price caps cover NATS (En route) plc’s (NERL’s) Eurocontrol and Oceanic businesses for the five years beginning 1 January 2006, and 1 April 2006 respectively.
For the Eurocontrol business there will be an average annual real term reduction in the pence/kilometre allowance of 3.4 per cent each year over the period 2006-2010. The cumulative reduction over the five years is around 15 per cent.
For NERL’s Oceanic business, from 1 April 2006 there will be an annual 4 per cent reduction in prices in real terms.
The decision paper can be found on the CAA website (www.caa.co.uk) in the ‘Economic’ section, click on ‘News’.
