Germany's state-owned air traffic control service Deutsche Flugischerung is planning a bid for a stake in its British counterpart, National Air Traffic Services (NATS).
British air traffic control, which made £106 million in profit last year, was part-privatised in 2001, despite fears that privatising the skies could jeopardise safety.
Last year, Chancellor George Osborne said in his emergency budget that the government was ready to sell its 49 per cent state in NATS - believed to be worth more than £500 million – to raise public funds.
A spokesman for Deutsche Flugsicherung, which manages military traffic as well as civil aircraft, told the Daily Mail: " We can confirm that DFS has expressed an interest in acquiring the 49 per cent stake. We believe there could be good cooperation between us and the operational side of the business appears to be good."
The government is yet to confirm an auction of its stake or whether it will keep any of its shares.
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