Electronic Data Systems (EDS) and the National Air Traffic Services
(NATS) have come face to face in court in a multimillion pound
dispute over a cancelled air traffic control system.
In June 1997 NATS commissioned EDS to design, construct and install
the Oceanic air traffic control centre in Prestwick to cover north
Atlantic flights.
NATS cancelled the project in July 2000, claiming that EDS missed
an important deadline.
EDS is counterclaiming for losses of £42.8m, which the company
claims covers what it would have earned had it been allowed to
complete the deal, less the costs saved as a result of early
termination and the discount for early payment.
If the EDS counterclaim is successful the damages could be higher,
as the company expected to gain extra income from providing
additional services to NATS following the implementation of the
system and from exploiting intellectual property rights to the
software it would have produced.
The full trial will begin early next year, at a crucial time for
NATS. The agency is committed to bring its troubled Swanwick air
traffic control centre into operation during the first quarter of
2002. The £700m Swanwick centre is vastly over budget and almost
six years late.