Airways moves step closer to British deal

The shortlisted consortiums have three months to sort out their bids, writes DANIEL RIORDAN.

Airways Corporation has made it to the shortlist of three for bidding on Britain's air traffic control system, after US defence group Raytheon was dropped.

Revealing the trimmed list, British Transport Minister Lord Macdonald said the sale of 46 per cent of National Air Traffic Services (Nats) was on track for completion by the 2001 northern spring.

Airways is part of the Novares consortium, which includes equity partners Lockheed Martin and Apax Partners alongside British company AEA Technology and the British Government's Defence Evaluation and Research Agency, which are providing technical assistance.

The other consortiums shortlisted are: The Airline Group, comprising British Airways, British Midland, Virgin Atlantic, Airtours, Britannia, JMC, Monarch and EasyJet, with technical assistance from British Telecom and several European air traffic service providers; and Nimbus, whose equity participants are international management group Serco and financial services group Prudential, with technical assistance from US company ARINC and Cranfield University in Bedfordshire.

Boeing and Italy's Alenia Marconi Systems are seeking to join a consortium.

Airways corporate communications manager Heather Hayden said the company was pleased to make the final shortlist.

"It underlies our international standing."

Lord Macdonald said the final three bidders were "substantial [consortiums] with a good track record in the aviation business.

"They now have a tough job to do in convincing us that they are the right partner for the Government and can ensure a robust, independent future for Nats," he said.

Those on the shortlist have about three months to do due diligence, with final binding bids due in early February.

The $1.8 billion sale received a political setback just over a week ago when the House of Lords voted to delay the process until after the British general election, expected to be called in the first half of next year.

But the Government and those managing the sale process on its behalf expect legislation enabling the sale to make it through both the Commons and Lords on its return to power.