Bid to buy British air traffic system stalled

Airways Corporation's chances of buying the British air traffic control system in conjunction with US giant Lockheed Martin have received a setback.

The British House of Lords has voted to delay the $1.8 billion part-privatisation of the system until after the British general election, expected to be called in the first half of next year.

By 112 votes to 90, the Lords backed an Opposition amendment that blocked the British Government's plans. The peers' concerns at lower safety standards from private ownership were increased by last week's commuter rail crash at Hatfield that killed four people, including New Zealander Rob Alcorn.

A Government spokesman said ministers would seek to overturn the defeat when the bill returned to the Commons.

Observers rank the Airways Corp/Lockheed bid highly in the British Government's pecking order.

The nature of Airways Corp executives' involvement in the bid has been criticised by NZ First leader Winston Peters, although an Auditor-General's report into the matter cleared them.