The Irish Aviation Authority has submitted a final offer to operate Britain's air traffic control system with eight airlines.

Its consortium is one of two still in discussions with the British government to purchase 46 per cent of National Air Traffic Control Services (NATS), which regulates civil aviation.

The other bid is led by a British facilities management group, Serco, and backed by venture capital group PPM.

A spokesman at the Department of Environment, Transport and the Regions yesterday said the government hoped to award the contract in early April.

Sources close to the Airline Group bid, backed by the Irish Aviation Authority, said it believed the award of the NATS stake could be taken as early as this week. Airlines in the group include British Airways, Virgin Atlantic, Easyjet and British Midland.

If successful, the Irish Aviation Authority will manage all non-military air movements in Britain, although it will not take equity in NATS.

While NATS has £330 million (€419 million) in debt, the stake being sold has been valued by observers at about £1 billion sterling.