Ministers rejected NATS reimbursement plan before 2,000 UK flights were cancelled

The UK government opposed a proposal to make air traffic control provider NATS reimburse airlines for passenger compensation arising from its failures, weeks before a massive tech glitch led to 2,000 flight cancellations. During a House of Commons debate, Liberal Democrat MP Luke Taylor pointed out that the government had opposed the amendment in the months before this week's computer outage, which disrupted travel for around 330,000 passengers. The UK Civil Aviation Authority (CAA) told affected passengers: "We consider that disruption caused by the NATS outage is likely to be considered the result of 'extraordinary circumstances' under passenger rights rules. "This means that although passengers should be looked after by airlines, they are unlikely to be entitled to compensation for delays or cancellations that were directly caused by the incident." NATS is a public-private partnership in which the government owns 49 percent and a consortium of airlines holds 42 percent. Computer outages have hit the organization three times in three years, beginning with an August 2023 failure that disrupted hundreds of thousands of passengers. NATS said it had fixed the latest technical problem, but warned that the resulting disruption could continue for several days. Taylor told MPs that after earlier NATS computer problems, the government said it had been assured that "NATS took the necessary steps to prevent a recurrence of those particular circumstances." He explained that while the Civil Aviation (Consumer Protection and Regulatory Reform) Bill was passing through the House of Lords, Lord Young of Cookham had proposed an amendment that would require NATS to reimburse airlines for compensation paid to passengers following cancellations caused by its failures. The government opposed the amendment, which Lord Young subsequently withdrew. Taylor quoted the government's earlier response that it had been "able to place considerable pressure on" NATS. Taylor told MPs: "Following the third major failure of our airspace management in the past three years, it is imperative that this Bill is amended to include measures to stop that happening again. NATS is quite clearly not fit for purpose. We cannot suffer a major air traffic outage once a year." Also speaking in the debate, transport secretary Heidi Alexander said she had asked the CAA to conduct an independent review into the cause of the failure and report within six months. NATS was also ordered to give the CAA an initial account of the failure within a week. The minister told MPs that she did "not believe this issue was unavoidable." In a statement yesterday, NATS said: "Our operations are stable and we continue to work closely with airlines and airports to support their recovery from the ongoing disruption to their operations. We would also like to reiterate our apology to all those affected – passengers, airlines and airports – by our system issue. While our immediate focus is on safely managing today's flights, a full investigation will be conducted to establish what happened and identify any further action needed." Ryanair, meanwhile, called for NATS CEO Martin Rolfe to resign after "yet another UK ATC system failure caused widespread delays and cancellations across UK airspace… disrupting over 65,000 Ryanair passengers and cancelling over 50 scheduled flights." Wizz Air said in a statement that it was "extremely disappointed that another NATS technical failure has caused widespread disruption across the UK aviation network. Passengers are once again facing delays and cancellations because of a failure entirely outside airlines' control." It added: "This is not the first time NATS has failed during a peak summer period, and here we go again. A critical national infrastructure provider should not repeatedly bring the aviation system to a standstill." ®