PRN: NATS Reports Strong Performance and Pursues Growth
NATS Reports Strong Performance and Pursues Growth
FAREHAM, England, June 29, 2012 /PRNewswire/ --
• Financial results improved in 2011/12, following the price control review for 2011-2014
• Strong operational performance delivers economic and operational benefit to airlines
• A growing commercial and international business
NATS, the UK's leading provider of air traffic services, has today announced strong financial performance for the year to 31 March 2012. Revenue increased by Â£88 million to Â£865 million, while pre-tax profits rose by Â£89 million to Â£195 million.
The exceptional increase in profit mainly arises fromÂ the price control review for 2011-2014 (CP3) which:
Contract renewals and growth in NATS' commercial business also contributed.
Delivering performance targets to customers of regulated business
NATS' core en route air traffic control service is economically regulated and incentivised to deliver specific performance targets that create economic value for its airline customers. In the year, these involved delivering:
During the year, NATS also delivered a number of major projects with minimal disruption to services. This included transitioning iFACTS, one of the most advanced controller decision support systems, into full operational service at Swanwick, requiring some 30,000 hours of training to 480 staff. The system brings improvements to both safety and capacity.
This performance, supported by proactive communications, resulted in our best-ever customer satisfaction score with 81.1% of respondents satisfied or highly satisfied with the company's service.
Richard Deakin, Chief Executive, said: "We are acutely aware of the high cost to our airline customers of delay and flight inefficiency. This explains our focus on continuing to provide the highest standards of safety, environmental and service performance, cost-effectively. We believe this delivers the greatest economic value.
"We are looking to find innovative solutions that add even more value in the future. For example, if we deliver on our CP3 flight efficiency targets, enabling our customers to save 600,000 tonnes of CO2, we will reduce their fuel bill by some Â£120m at today's prices.
"And increasingly we are seeking to enhance these outcomes by working collaboratively with other air navigation service providers under the European Commission's Single European Sky programme."
A growing commercial and international business
Outside its economically regulated business, NATS provides a range of commercial air traffic and airport optimisation services. Through renewing existing domestic airport contracts and winning business in new markets in the year, the company secured forward orders worth Â£495m in the UK and 20 other countries. These included:
NATS' expertise in information management, designing and managing complex airspace, and optimising runway capacity for customers, supports the world's busiest single and dual runway airports at Gatwick and Heathrow and is now helping to win new business internationally in markets from the USA to India, and from the UAE to Singapore.
Richard Deakin added: "We made excellent progress in generating business in new markets and, with a clear strategy and operating under the NATS brand, we have made a good start towards achieving our vision for 2015 of Â£1bn sustainable revenue.
"We are now looking forward to the Olympic and Paralympic Games. Our planning and preparations have been extensive, including the design and introduction of temporary new airspace. We have done this in close cooperation with airlines, airports, military, Civil Aviation Authority and Government. The significant volumes of air traffic during the Games represent one of NATS'Â greatest operational challenges ever, but we are confident we can play our part in making it a successful event for the UK."