UK Government Pledges Support To Air Traffic Control Service

LONDON (AP)--The U.K.'s air traffic control service has arranged for emergency funding to carry it through a drop in revenues following the Sept. 11 terrorist attacks, the Press Association news agency reported Tuesday. There was no immediate confirmation from bankers or government agencies.

The Press Association, quoting an unidentified source, said the National Air Traffic Service had arranged for a loan of GBP60 million - half from government, half from the banks - to tide it over while it seeks an increase in fees charged to airlines.

"It is speculation and we wouldn't comment," said a spokeswoman for Barclays Capital, speaking on condition of anonymity.

Reports in The Guardian and The Independent newspapers on Tuesday said the semi-privatized National Air Traffic Service was under pressure from four banks which had financed the 46% stake in the company held by U.K. airlines. In addition to Barclays (BCS), the banks are Abbey National (ANBA), Barclays Capital, Halifax (U.HBS) and Bank of America (BAC).

A banking source, speaking on condition of anonymity, said no deal had been agreed by Tuesday evening.

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