UK air traffic controller can raise airline fees by 26%, says regulator

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The UK’s air traffic controller has been given regulatory approval to raise the fees it charges airlines by more than a quarter, weeks after a systems failure left thousands of passengers stranded and triggered a row with carriers.

The Civil Aviation Authority said on Thursday it would allow the National Air Traffic Services to lift charges to about £2.08 a passenger per flight between 2023 and 2027 at its regulated business, which provides air traffic control services for aircraft flying in UK airspace.

Since the charge per passenger per flight is £1.65 at present, the new fee amounts to a rise of 26 per cent. 

The watchdog’s decision angered airlines, which have spent weeks unsuccessfully calling for compensation from Nats for the disruption over the August bank holiday weekend.

Tim Alderslade, chief executive of sector body AirlinesUK, said the increase “simply cannot be justified” and that airline passengers would “inevitably end up footing the bill” as the charges would be passed down through higher ticket prices.

The CAA said its decision would allow Nats to recover the losses suffered during the pandemic and improve its services.

“Our decision will provide the resources and investment required . . . to provide a resilient, high-quality service for passengers and modernise its services, while recovering costs from the pandemic,” said Andrew Walker, CAA chief economist.

Mike Clancy, general secretary of Prospect union, which represents air traffic control workers, welcomed the regulator’s decision.

“The CAA have been right to resist pressure from airlines to lower costs even further. This would have led to less investment, fewer air traffic controllers and a less resilient system with more delays for passengers,” he said.

Nats, a public-private partnership, is owned by the government, pension funds and a group of airlines. It has apologised for the major disruption caused by its failure over the busy bank holiday, which caused the cancellation of more than 1,500 flights on August 28 and more on subsequent days as airlines tried to recover their schedules.

A preliminary report by Nats found that a “one in 15mn” technical failure occurred after a part of its system incorrectly processed a flight plan from an airline that was due to fly over UK airspace. The CAA has launched a review into the collapse.

Walker said it recognised “the disruption caused by the technical issue in August and we will consider any further regulatory steps as appropriate following the outcome of the independent review”.

Nats has a separate, non-regulated business running control towers for airports. This has also come under scrutiny after staff shortages in the control tower at Gatwick, Britain’s second-busiest airport, led to delays and cancellations over the summer.

Last month, Gatwick was forced to impose a cap on flight numbers because of staffing shortages in the tower.

Nats said it would “study” the CAA’s decision.