Open consultation

UK airspace design service: proposed modifications to NERL licence terms

Published 4 September 2025

We are seeking views on proposed modifications to the terms of the air traffic services licence held by NATS (En Route) plc (NERL). This will support the implementation of the government’s decision to establish a UK airspace design service (UKADS), to be provided by NERL.

Introduction

This consultation is a formal notice under section 11A(1) of the Transport Act 2000 (the act) of the Secretary of State for Transport’s proposal to modify the licence terms granted to NERL, dated 28 March 2001 (the licence).

The proposed modifications to the licence terms are made under the power granted to the Secretary of State in section 11(3)(b) of the act to modify prescribed terms in a licence for air traffic services granted under section 6 of the act. It will authorise NERL to make, or develop with a view to making, an airspace change proposal in the London, Scottish and Shanwick Oceanic Flight Information Regions.

Modifications to the conditions of the licence will be subject to separate notice under section 11A of the act, given by the UK Civil Aviation Authority (CAA), under the power in section 11(1) of the act. Subject to consultation, this will set out what NERL is required to do as the UKADS provider ^{[footnote 1]} and enable it to recoup relevant costs.

Together, these modifications will authorise NERL to provide airspace design services and specify the areas of UK airspace in respect of which they may be provided.

Policy background

The Department for Transport (DfT) and the CAA have a shared vision for the modernisation of UK airspace, as set out in the airspace modernisation strategy (AMS).

Under the Civil Aviation Authority (Air Navigation) Directions 2023, the Secretary of State has given the CAA the function to maintain and keep under review the AMS, which is a coordinated strategy for the use of all UK airspace for air navigation up to 2040.

The AMS aims to enable quicker, quieter and cleaner journeys and greater capacity for the benefit of those who use and are affected by UK airspace.

Modernised, efficient airspace design is an essential component of the AMS. The basic design of much of UK airspace has not changed significantly for decades, despite technological advances and a tenfold increase in demand from airspace users.

At present, no single organisation in the UK is responsible for airspace design. Airspace design is sponsored and carried out by individual airports and air navigation service providers. The existing model has led to problems with the delivery of airspace change proposals (ACPs), particularly in more congested areas such as London, where there are multiple overlapping ACPs, each with a separate sponsor. This fragmented approach adds complexity and means that the development of a more efficient airspace design is at risk.

As the co-sponsors for airspace modernisation, DfT and CAA held a joint consultation on proposals to establish a UK airspace design service (CAP 3029) to produce a modernised and holistic airspace design for the UK.

Both DfT and CAA published a response to this consultation (CAP 3106), stating that NERL will provide the UKADS, subject to changes to the licence, granted under section 6 of the act. The government’s approach to implementing this policy is to make the UKADS a function of NERL, with any licence obligations falling on NERL itself.

To achieve this, the Secretary of State for Transport has used the power set out in section 98(2) of the act to make the Transport Act 2000 (Air Traffic Services) (Amendment) Order 2025. This order, which came into force on 15 August 2025, amends the definition of ‘air traffic services’ in section 98(1) of the act to add the activity of developing and making an airspace change proposal to the CAA.

The Secretary of State for Transport has also used the power in section 11(4) of the act to make The Transport Act 2000 (Air Traffic Services) (Prescribed Terms) Regulations 2025. These regulations, which also came into force on 15 August 2025, designate certain terms in the licence as ‘prescribed terms’. Those prescribed terms may then be modified by the Secretary of State, under section 11(3)(b) of the act.

The prescribed terms are:

1. Any term specifying air traffic services authorised under a licence.
2. Any term specifying the area in which a licence authorises the provision of air traffic services.

Proposal

Statutory requirements

Under section 11A of the act, before the Secretary of State for Transport can modify a licence term, a notice must be published that:

• states that they propose to modify the licence
• specifies the proposed modification
• gives the Secretary of State’s reasons for the proposed modification
• states the effect of the proposed modification
• specifies a reasonable period for making representations

Part 1 – Terms of the Licence

Current version

1. The Secretary of State, in exercise of the powers conferred by section 6 of the Transport Act 2000 (the “Act”) and of all other powers exercisable by him for that purpose, hereby grants to NATS (En Route) Limited (the “Licensee”) a licence authorising the Licensee:  

a) to provide air traffic services in and in respect of the Licensed Area designated in Schedule 1 (“the En route (UK) Area”) from the date specified in paragraph 5 and for the period specified in paragraph 6, subject to the Conditions set out in Parts II and III of this Licence and the terms in Schedule 3; and 

b) to provide air traffic services in and in respect of the Licensed Area designated in Schedule 2 (“the En route (Oceanic) Area”) from the date specified in paragraph 5 and for the period specified in paragraph 7, subject to the Conditions set out in Parts II and III of this Licence and the terms in Schedule 3.

Proposed amendments

In the first paragraph of the terms, we propose to remove the word ‘him’ and replace it with ‘the Secretary of State’. We also propose that the reference to ‘NATS (En Route) Limited’ be updated to the current name of ‘NATS (En Route) plc’.

The proposed amendment would read:

1. The Secretary of State, in exercise of the powers conferred by section 6 of the Transport Act 2000 (the “Act”) and of all other powers exercisable by the Secretary of State for that purpose, hereby grants to NATS (En Route) plc (the “Licensee”) a licence authorising the Licensee:

To accommodate a new term (1)(c), we propose adding the phrase ’except those set out in paragraph (c)’ to terms (1)(a) and (1)(b), following the existing phrase ‘to provide air traffic services’.

Proposed amendment would read:

a) to provide air traffic services, except those set out in paragraph (c), in and in respect of the Licensed Area designated in Schedule 1 (“the En route (UK) Area”) from the date specified in paragraph 5 and for the period specified in paragraph 6, subject to the Conditions set out in Parts II and III of this Licence and the terms in Schedule 3; and 

b) to provide air traffic services, except those set out in paragraph (c), in and in respect of the Licensed Area designated in Schedule 2 (“the En route (Oceanic) Area”) from the date specified in paragraph 5 and for the period specified in paragraph 7, subject to the Conditions set out in Parts II and III of this Licence and the terms in Schedule 3; and

Lastly, we propose adding the following term (1)(c):

c) to provide air traffic services in respect of making an airspace change proposal to the CAA, or developing such a proposal with a view to making it to the CAA as provided for in section 98(1)(f) of the Act, in and in respect of the London Flight Information Region, the London Upper Flight Information Region, the Scottish Flight Information Region, the Scottish Upper Flight Information Region and the En route (Oceanic) Area, for the period specified in paragraph 6, subject to the Conditions set out in Parts II and III of this Licence and the terms in Schedule 3.

Proposal reasons

In 2023, DfT and CAA jointly initiated a project to identify how a new single entity responsible for airspace design could better achieve the level of ambition set by the AMS.

After analysing several potential models, along with preliminary conclusions regarding their viability, NERL was identified as the only organisation in the UK with the required level of resources and the design expertise to provide the UKADS at pace. A public consultation was undertaken in autumn 2024 to gather views on the approach of tasking NERL to provide the UKADS.

NERL is the regulated monopoly air traffic services provider for ‘en route’^{[footnote 2]} and some terminal approach airspace. Under the act, the Secretary of State licences NERL to provide en route air traffic services in the UK: the licence is the formal means through which NERL is subject to economic regulation by the CAA.

As explained in previous publications^{[footnote 3]}, following the amendments to the definition of ‘air traffic services’ in the act and to set up the UKADS as a function within NERL, it is proposed that modifications will be made both to the terms of the licence – by the Secretary of State – and to its conditions – by the CAA.

Paragraph (1)(a) of the current licence terms authorises NERL to provide air traffic services in respect of the London and Scottish Flight Information Regions and Upper Flight Information Regions, as well as any adjacent airspace delegated to the UK by an international agreement – together described as the ‘En route (UK) area’. Paragraph (1)(b) authorises NERL to provide the same air traffic services in respect of the Shanwick Flight Information Region and Shanwick Oceanic Control Area – together described as the ‘En Route (Oceanic) Area’.

The proposed modification carves out from (1)(a) and (1)(b) the activity of making and developing airspace change proposals, by adding paragraph (1)(c): this authorises NERL to provide such air traffic services in respect of the:

• London Flight Information Region
• London Upper Flight Information Region
• Scottish Flight Information Region
• Scottish Upper Flight Information Region
• En Route (Oceanic) Area

The proposed modification furthers the Secretary of State’s duty under section 1 of the act to maintain a high standard of safety in the provision of air traffic services.

Proposal effects

The proposed modifications to the licence enable NERL to make, or develop with a view to making, an airspace change proposal to the CAA, throughout UK airspace.

By making such airspace change proposals and sponsoring them through the CAA’s airspace change process (CAP 1616) to deployment, NERL will be able to contribute to the delivery of modernised airspace.

While the Secretary of State’s proposed modification will authorise this activity to be carried out throughout UK airspace, it is envisaged that the geographical scope for providing the UKADS will initially be narrower, based on priorities which the co-sponsors will set through a separate process in due course. This could mean, for instance, requiring NERL to begin with airspace re-design for the London TMA region^{[footnote 4]}, which is the UK’s most complex airspace and where modernisation can provide the greatest benefits.

Proposal questions

Question 1: Do you agree or disagree with the proposed modifications to the NERL licence terms?

Question 2: Why do you think this? Provide evidence where possible.

Question 3: What, if any, further comments would you like to make on the proposed modifications to NERL’s licence terms?

How to respond

See the Ways to respond section of the consultation page on GOV.UK to find out how you can respond to this consultation.

The consultation period began on 4 September 2025 and will run until 23:59 on 1 October 2025. Ensure that your response reaches us before the closing date.

What will happen next

Once the closing date for representations has passed, we will consider those that have been received. The Secretary of State for Transport will then decide what modifications, if any, to make to the terms of the licence before publishing the:

• notice of its decision
• date on which it will come into effect, as required by section 11A of the act

No modification may come into effect until a minimum of 28 days after publication of the decision notice.

Any modifications to the licence will be incorporated by the CAA and published on the CAA’s website.

Full question list

These questions are listed here to give you an overview of what we are asking. The consultation response form may include more questions, for example, questions about who you are.

See the Ways to respond section of the GOV.UK home page for this consultation to read a full list of questions and find out how you can respond to them.

Question 1: Do you agree or disagree with the proposed modifications to the NERL licence terms?

Question 2: Why do you think this? Provide evidence where possible.

Question 3: What, if any, further comments would you like to make on the proposed modifications to NERL’s licence terms?

Freedom of information

Information provided in response to this consultation, including personal information, may be subject to publication or disclosure in accordance with the Freedom of Information Act 2000 (FOIA) or the Environmental Information Regulations 2004. 

If you want information that you provide to be treated as confidential, please be aware that, under the FOIA, there is a statutory code of practice with which public authorities must comply and which deals, amongst other things, with obligations of confidence. 

In view of this, it would be helpful if you could explain to us why you regard the information you have provided as confidential. If we receive a request for disclosure of the information, we will take full account of your explanation, but we cannot give an assurance that confidentiality can be maintained in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not, of itself, be regarded as binding on the department.

Data protection

Your consultation response and the processing of personal data that it entails is necessary for the exercise of our functions as a government department. DfT will, under data protection law, be the controller for this information.

 DfT’s privacy policy has more information about your rights in relation to your personal data, how to complain and how to contact the Data Protection Officer.

1. As set out in CAP 3106: Airspace modernisation: Outcome of the consultation on a UK airspace design service, the mandate of the UKADS is to submit a single design that prioritises maintaining a high standard of safety, is consistent with the AMS, secures system-wide benefits and overall network optimisation that results in the most efficient and resilient airspace network possible, while giving due consideration to local circumstances and environmental impacts. ↩

2. ‘En route’ means that part of the flight from the end of the take-off and initial climb phase to the commencement of the approach and landing phase. ↩

3. See the CAA’s useful links related to the UKADS for more information. ↩

4. ‘London TMA region’ means the London terminal control area (generally abbreviated to London TMA) and adjoining airspace serving neighbouring airports (for example, Bournemouth and Southampton) that is outside the area but has interdependencies with the London TMA. ↩