Air navigation service providers across Europe will share a £1.1bn support package to maintain services, with the UK’s enroute air navigation service provider, NATS, in line for up to £92m.
The international bailout was in response to the collapse in air traffic due to the coronavirus resulting in a dramatic loss of income.
The UK and other European states have supported the intergovernmental organisation, EUROCONTROL - which manages charging for air navigation services across Europe - to secure the £1.1bn loan to maintain critical air navigation services.
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.'
NATS' £92m in support enables 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.
The news follows an announcement last week that airlines would be able to temporarily defer payments for route charges for up to 14 months.
The arrangement provides financial relief to air navigation service providers also facing disruption as a result of coronavirus.
The UK government holds a 10% share of the vote for any such action passed by EUROCONTROL and voted in favour of the loan.
Founded in 1963, the organisation has 41 member states and is not an agency of the EU.
Register now for full access
Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.
Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors.
Use the link below to register your details for full, free access.
Already a registered? Login
