Air traffic control cuts jobs

No air traffic controllers are expected to be cut yet

The operators of Britain's air traffic control system have brought forward planned staff cuts over fears of a revenue slump following the attacks on the US.

National Air Traffic Services (Nats), of which the government has sold a 46% stake to the Airline Group consortium, will cut 225 of its 1,128 support and management staff, a spokesman told BBC News Online.

"The affect of the 11 September is to bring forward the reductions. There will be a 20% cut in support and management stuff, on a volunary basis but we've set no time scale," a Nats spokesman said.

But there are no plans to make cuts to 2,000 existing air traffic controllers or reduce the recruitment intake.

"We have recently stepped up recruitment on air traffic controllers from 120 to 180 to meet forecast demand," he said.

Attack impact

The Airline Group spokesman said it is "too early to say" what the impact 11 September would have on revenues and that "we inherited Nats' own plans to cut staff".

Although air traffic has returned to normal levels after falling 6.5% in the week after 11 September, Nats is anticipating a significant income drop this autumn as airlines cut flight schedules and fleet sizes.

About 40% of Nats' income comes from transatlantic flights, where most of the airlines' cuts are being made.

New schedules for the airlines come into effect in late October.

The Airline Group, whose members include British Airways, Virgin Atlantic and Easyjet, bought its stake in Nats two months ago from the government for £800m ($1.18bn).

'Unworkable'

The cuts come after the Independent on Sunday reported a member of the Airline Group saying that the Nats business plan was now unworkable.

"The bottom line is that Nats' revenue has got to be affected," Easyjet chief executive Ray Webster, chief executive of Easyjet told the Independent on Sunday.

"We have to reassess our business priorities and review our expenditure plans."

The Airline Group has until December to submit a business plan to secure the funding promised by the government earlier this year.

"We have a financing deal completely pinned down with the banks," the Airline Group spokesman said.