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

The UK government turned down a proposal to have air traffic control provider NATS reimburse airlines for passenger compensation due to its failures, mere weeks before a major technology malfunction caused the cancellation of 2,000 flights. In a House of Commons debate, Liberal Democrat MP Luke Taylor highlighted that the government had previously opposed the amendment months before the current computer outage, which impacted around 330,000 passengers.

The UK Civil Aviation Authority (CAA) informed affected travelers that the disruption caused by the NATS outage was likely considered "extraordinary circumstances" under passenger rights rules, meaning passengers were unlikely to receive compensation for delays or cancellations directly resulting from the incident. NATS, a public-private partnership with government ownership of 49 percent and a consortium of airlines holding 42 percent, has experienced three significant computer outages in three years, with the latest taking place in August 2023.

Despite assurances that necessary steps were taken to prevent recurrence, the government opposed the amendment, which was subsequently withdrawn after Lord Young of Cookham proposed it. Taylor criticized the government's handling of the situation, stating that the Civil Aviation (Consumer Protection and Regulatory Reform) Bill should be amended to include measures to prevent future occurrences.

Transport Secretary Heidi Alexander announced an independent review by the CAA and a requirement for NATS to provide an initial account of the failure within a week. NATS stated that its operations were stable and that they would conduct a full investigation into the incident. Airlines such as Ryanair and Wizz Air expressed disappointment and called for NATS CEO Martin Rolfe to resign, criticizing the repeated failures of the organization during peak summer periods.