Draft Final Report - PRR 2008

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Performance Review Commission Draft Final Report - PRR 2008 Consultation Meeting Thursday 05 March 2009 Today’s Agenda 10h00: Opening 10h10: PART I - BACKGROUND - Introduction (Chapter 1) - Traffic (Chapter 2) 10h30: PART II - ANS PERFORMANCE ASSESSMENT - Safety (Chapter 3) 11h15: Coffee Break 11h30: PART II - ANS PERFORMANCE ASSESSMENT (continued) - Air transport Punctuality/Predictability (Chapter 4) - En-route Operational Performance (Chapter 5) - Operational Performance at main airports (Chapter 6) - Comparison of US/Europe Operational Performance (Chapter 7) 13h00: Lunch 14h00: PART II - ANS PERFORMANCE ASSESSMENT (continued) - Cost-Effectiveness (Chapter 8) 14h30: PART III - TRADE-OFFS AND OVERALL ASSESSMENT - Environmental Assessment (Chapter 9) - Economic Assessment (Chapter 10) 15h00: Coffee Break 15h15: PART IV - GOING FORWARD - Going-forward/Driving Performance (Chapter 11) - Conclusions and draft recommendations of PRR 2008 16h00: Conclusions 16h30: Close of meeting 2 Performance Review Commission 3 Process 21 January: PCC – Advance information on key messages 05 February - 05 March : Draft PRR 2008 circulated for comments 17 February: MILHAG 5 March: Consultation meeting 6 March: PRC meeting Finalises report Adopts recommendations 11 March: PCC 19-20 March: CMIC 7 May: Presentation to PC Performance Review Commission 4 PART I – BACKGROUND Performance Review Commission 5 Introduction • New features of PRR 2008 – Overview of European ANS performance and targets in Executive summary – New report structure – Operational performance by flight phase rather than by KPA – Specific chapter for airside operational performance at main airports – A first assessment of the KPA Access, addressing civil-military aspects – Comparison of operational performance in the US and in Europe – Environmental and economic assessments, trade-offs – Draft recommendations • SES II Performance scheme being negotiated by EU institutions – Impact on performance review to be anticipated Performance Review Commission 6 Overview of European ANS performance and targets EUROPEAN LEVEL - AVIATION PERSPECTIVE TRAFFIC N° of entities with maturity below 70% 35 30 25 20 15 10 5 0 EUROPEAN LEVEL - ANS PERSPECTIVE SAFETY 33 30 28 24 22 19 11 18 13 9 Target Regulators 14 12 30% MEASURE TRAFFIC ~ 10.1 M KPIs DATA TARGET KPIs KPIs <70% MATURITY DATA 2007 TARGET TARGET DATA 25% 20% 15% 10% 5% 0% -5% DATA 2007 ACTUAL 2008 YEARLY VARIATION VARIATION YEARLY % VARIATON TREND ACTUAL ACTUAL YEARLY VARIATION VARIATION TARGET MET TREND million IFR flights ANSPs 0 Reg: 13 ANSP: 9 ▼ Awaiting survey 10 8 6 4 2 0 Yearly variation IFR flights FLIGHTS 10.0 M 10.1 M ▲ 0.4% Traffic growth has slowed down in 2008 (0.4% in 2008 vs. 5% in 2007) and is expected to be negative in 2009 (-3%). ESRA 2008 The Provisional Council target is "to raise the framework safety maturity level of ANSPs and National Regulators to a minimum of 70% in each State by end of 2008". The number of ANSPs and Regulators below acceptable maturity decreased but was still far from 0 in the survey conducted in March 2008. 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ATFM DELAYS (EN-ROUTE) En-route ATFM delay/ flight (min.) 6 5 2013 5.5 4.1 Summer KPIs OTHER (Special event, military, etc.) WEATHER ATC Other (strike, equipment, etc.) KPIs TARGET AVIATION SAFETY 18 TARGET ACTUAL DATA DATA YEARLY VARIATION TREND TARGET MET ACTUAL VARIATION 4 3 2 1 0 3.6 3.1 1.9 MINUTES/ FLIGHT 1.0 1.9 ▲ No Total number of acccidents 16 14 12 10 8 6 4 2 0 KPIs MEASURE TARGET ACTUAL 2007 DATA DATA 2008 YEARLY VARIATION TREND 1.8 VARIATION 1.2 1.2 1.3 1.4 1.6 The target was not met in 2008 in spite of low traffic growth. En-route ATFM delays increased for the fourth consecutive year and exceeded the agreed target by 90%. Target ATC Capacity & Staffing 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Accidents Trend There was no ATM-induced accident in 2008. 1 1998 1999 1 2000 2001 2 FLIGHT - EFFICIENCY 1 2003 2004 2005 2006 1 2007 2008 2009 2010 2011 2012 2013 2013 Direct ATM ATM-INDUCED ACCIDENTS 1 0 ▼ 2002 route extension (km/flight) data source: Flight Safety Foundation - Aviation Safety Net 60 48.7 48.2 48.9 48.8 40 KPIs - 2 km per flight (agreed target) KPIs TARGET TARGET ACTUAL DATA DATA YEARLY VARIATION TREND TARGET MET ACTUAL VARIATION Direct en-route extension TMA Interface KM / FLIGHT 44.4 48.8 = No PUNCTUALITY 30% 25% 20 Agreed target The Provisional Council target was not met in spite of the Flight Efficiency initiative. The average route extension has increased since 2006, mainly due to increasing average flight distance (+3% in 2008). 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009 2010 2011 2012 KPIs DEPARTURES delayed by more than 15 min. (%) ARRIVALS delayed by more than 15 min. (%) ARRIVALS more than 15 min. ahead of schedule (%) MEASURE DATA TARGET DATA ACTUAL 2007 VARIATION 2008 YEARLY VARIATION TREND YEARLY % VARIATON % of flights 20% 15% 10% 5% 0% ARRIVALS > 15 MIN % 22.1% 21.5% ▼ - 3% 1.0 COST - EFFECTIVENESS Total en-route ANS costs (€2007)/ km 250 Air transport punctuality slightly improved in 2008, but remains unsatisfactory. 2013 PRC notional target 0.9 0.8 0.7 0.6 0.5 130 0.4 0.3 100 KPIs KPIs DATA TARGET DATA 2007 TARGET ACTUAL ACTUAL VARIATION YEARLY VARIATION TREND TARGET MET PC adopted target 220 190 Costs Per Km Total Costs (1998=index 100) REAL UNIT COST/ KM -3.0% -1.8% ▼ 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source:AEA & CODA * preliminary estimate for December 2008 160 Traffic (1998=index 100) On track to meet the PRC notional target over 20032008 period (-14%, i.e. 3% per year). Based on forecast data of November 2008, the PC target for 2008-2010 (3% per year) will not be met. 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 PREDICTABILITY Arrival time (compared to schedule ) in minutes 25 20 15 10 All States in CRCO system KPIs 20th Percentile MEASURE TARGET ACTUAL 2007 DATA DATA 2008 YEARLY VARIATION TREND YEARLY % VARIATON 1.4 TOTAL ANS USER COSTS (EN-ROUTE) VARIATION STANDARD DEVIATION 19.8 min 19.1 min ▼ -3.5% €/km 1.2 1 -1.2% -1.0%-1.5% 1.9% KPIs KPIs DATA TARGET DATA TARGET ACTUAL ACTUAL VARIATION YEARLY VARIATION TREND TARGET MET 80th Percentile 5 0 -5 Standard Deviation The variability (standard deviation) of the gate-to-gate flight time improved in 2008. 0.8 0.6 0.4 0.2 0 Cost of route extension Cost of ATFM delay Cost of capacity TOTAL UNIT COST/ KM None 1.16 €/km ▲ N/A 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Performance Review Commission 2013 -10 The total en-route unit cost borne by airspace users for en-route (charges + delays + route extensions) decreased slowly from 2003 to 2007 and increased in 2008 (+1.9%) Performance Review Commission Chapter 2 – Traffic demand 8 Traffic demand 16 14 12 10 8 6 4 2 0 32 TRAFFIC ~ 10.1 M FEB 2008 Forecast 30 28 26 24 22 GROWTH : + 0.4% 2006 thousands daily flights 2007 2008 million IFR flights per year 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 20 18 Jan Feb Jun Jul Aug Sep Nov May 10% 5% 0% -5% ( before 1997, estimation based on Euro 88 traffic variation) FEB 2008 FORECAST % annual growth source : EUROCONTROL 10% 5% 0% -5% -10% % 2008/2007 growth data source : EUROCONTROL/STATFOR (ESRA2008) source : EUROCONTROL/STATFOR (ESRA2008) Negative growth was recorded from September onwards Performance Review Commission Dec Mar Apr Oct 9 Factor influencing traffic growth 200 180 2008 US dollar per barrel 160 140 120 100 80 60 40 20 0 Price in € 2008 per barrel 1 Jan 1987 1 Jan 1988 1 Jan 1989 1 Jan 1990 1 Jan 1991 1 Jan 1992 1 Jan 1993 1 Jan 1994 1 Jan 1995 1 Jan 1996 1 Jan 1997 1 Jan 1998 1 Jan 1999 1 Jan 2000 1 Jan 2001 1 Jan 2002 1 Jan 2003 1 Jan 2004 1 Jan 2005 1 Jan 2006 1 Jan 2007 data source : US Department of Energy (Rotterdam Jet Fuel Spot Price) 100 90 80 70 33% FUEL COST SHARE 22.8% 2008 € per barrel Striking correlation with economic growth Wide variations in fuel price  Traffic demand becoming more volatile, less predictable  Need for improved ANS flexibility 60 50 40 30 20 10 0 14.8% 2000 2001 2002 2003 2004 2005 2006 2007 1 Jan 2008 Performance Review Commission 2008 10 PART II – ANS PERFORMANCE ASSESSMENT Performance Review Commission Performance Review Commission Chapter 3 – Safety 12 Safety - PRC approach Safety performance review Occurrence reporting and investigation Surveys (e.g. maturity) Risk management Audit findings and recommendations Mandatory Other TCAS Incident incident reports reporting reporting Risk Risk assessment modelling and mitigation Maturity CIP State surveys reports CAPs (REG) Peer reviews Safety Management Safety regulation & oversight PRC approach to reviewing ANS safety performance Target setting and monitoring of safety performance should be harmonised in ECAC, taking account of all aspects of safety, including regulation, oversight, accident/incident investigation and SMS. Performance Review Commission 13 Safety: accidents 20 Direct ATM 18 Accidents Trend Total number of acccidents 16 14 12 10 8 6 4 2 2 0 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 Data source: Flight Safety Foundation - Aviation Safety Net 1 1 1 1 1 No accidents with direct ATM contribution in 2008 in Europe. Performance Review Commission 14 Reported high-risk incidents 500 400 Severity A 42% Severity B % : Proportion of Severity A+B 23% 22% Classified events Severity A 80 Severity B 16% % : Proportion of Severity A+B 10% 9% 6% Classified events 60 9% 40 9% 20 27% 300 200 100 0 2002 2003 20% 19% 0 2004 2005 2006 2007P 2002 2003 2004 2005 2006 2007P Data source : EUROCONTROL SRU Data source: EUROCONTROL SRU Separation Minima Infringement Runway Incursions In 2007, ATM safety appears to have improved, in a context of growing traffic (+5.3%). Performance Review Commission 15 Results of ESIMS audits in 15 ECAC States CE1 CE-1 Primary Aviation Legislation St a S a Sy te A fet ste via Fu y O m a ti on n c ve n d tio rsi ns gh t CE2 100 90 S R e Ope pec gu r a ific la tin tio g ns CE -2 CE3 -3 CE 80 Technical Guidance, Tools & Provision of Safety Critical Information 70 Qualified Technical Personnel & Training CE-4 ESTABLISH IMPLEMENT CE-5 CE4 60 CE5 CE -7 g, , in n ns tio ion l ce ca at a Li rtifi ris rov s n o C e th App tio Au nd liga a Ob Resolution of Safety Concerns S O urve bli il ga lan tio ce ns -6 CE CE6 CE7 CE-8 CE8 Performance Review Commission 16 ESARR Implementation in EUROCONTROL Member States ANSP implementation of ESARRs 100% 100% REG implementation of ESARRs 80% 80% 60% 60% 40% 40% 20% 20% 0% ESARR2 ESARR3 ESARR4 ESARR5 0% ESARR1 ESARR2 ESARR3 ESARR4 ESARR5 Ok Partial Late Ok Partial Late Safety regulations are not fully implemented in all States. A structured ANS safety oversight scheme tailored to the European environment is needed, based on a combination of surveys, peer reviews and audits. Performance Review Commission 17 Number of ANSPs and Regulators with maturity below target level 35 30 25 20 15 11 10 ANSPs 5 0 2002 2003 2004 2005 2006 2007 Regulators 9 33 30 28 24 19 22 18 13 Target 2008 2009 Performance Review Commission 18 Conclusions and Recommendations • No accidents with direct ATM contribution in 2008 in Europe. • ATM safety appears improved in 2007, in a context of growing traffic (+5.3%). • Safety regulations are not fully implemented in all States. A structured ANS safety oversight scheme is needed in Europe beyond 2011. • Target setting and monitoring of safety performance should be harmonised in ECAC, taking account of all aspects of safety. • The PRC supports confidentiality applied in a just culture environment but maintains that the safety performance of ANS providers should be transparent. The PRC is minded to recommend: a. the public availability of States’ ESIMS and USOAP audit reports concerning ANS safety (including Corrective Action Plans); b. c. d. that EUROCONTROL presents a plan to ensure a permanent oversight of ANS safety in Europe beyond 2010, in liaison with EASA; that each State adopts a “just culture” in relation to the reporting of ATM safety incidents; the use of automated tools, wherever possible, to complement manual reporting of losses of separation. Performance Review Commission Performance Review Commission Chapter 4 - Punctuality/ Predictability 20 Quality of service chapters CHAPTER 4 Air Transport Performance (Network) Scheduled departure CHAPTER 5 ANS-related contribution (En-route) CHAPTER 6 ANS-related contribution (Airport) ANS related predeparture delays Local dep. delays ATFM delays Reactionary delay En-route ATFM delays Departure Punctuality Airport ATFM delays Actual Off-block time Gate-to-gate performance Excess time in the taxi-out phase Actual take-off time Flight efficiency Actual landing time Actual in-block time Arrival Punctuality Scheduled arrival time En-route Flight efficiency Airborne holding & sequencing Scheduling Excess time in the taxi-in phase Performance Review Commission Punctuality and Predictability 30% DEPARTURES delayed by more than 15 min. (%) 21 25% 20% % of flights 20th Percentile 80th Percentile Standard Deviation 25 ARRIVALS delayed by more than 15 min. (%) 15% 20 15 minutes 10% ARRIVALS more than 15 min. ahead of schedule (%) 10 5 0 5% 0% 2001 2002 (AEA data) 2003 2004 2005 2006 2007 2008 Source: Coda -5 -10 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 Departure time (compared to schedule) Taxi-out + holding Flight time (cruising Taxi-in + waiting for + terminal) the gate Arrrival time (compared to schedule) Source: CODA Gate-to-gate phase • Although slightly improving, air transport punctuality remains unsatisfactory in Europe (21%). • Predictability is important for scheduling purposes. • There is a clear interrelation between airport capacity utilisation, variability of operations and quality of service. Performance Review Commission 22 Departure punctuality trend Primary departure delay causes (all delay from 1 minute) 100% 90% 80% 70% delay per flight (minutes) 10 9 8 7 6 5 4 3 2 1 0 Jan-02 Flights with a departure delay>15 min. Turnaround (Airline, Airport, Security, etc.) Airport ATFCM (capacity & weather) En-route ATFCM Reactionary delay 50% 45% % of flights delayed by more than 15 min. 40% 35% 30% 25% 20% 15% 10% 5% 0% 60% 50% 40% 30% 20% 10% 0% 2005 2006 2007 2008 Security Misc. Airline Weather (Non-ATFM) ATFCM-Weather Airport (Non-ATFM) Source: ATFCM-Airport CODA ATFCM-En-route Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 • 73% of late departures are caused by airline and airport processes • ATFM-related departure delays caused by en-route or airport constraints account for approximately 27%, but show an increasing trend in 2008 despite the overall improvement of departure punctuality. Performance Review Commission Jul-08 Performance Review Commission Chapter 5 – En-route Operational Performance 24 En route Operational Performance En-route ATFM delay/ flight (min.) Summer ATFM en-route delay target 6 5 4.1 5.5 Actual: 1.9min/flight Target: 1.0min/flight OTHER (Special event, military, etc.) WEATHER 4 3 2 1 0 1997 1998 1999 2.9 3.6 3.1 1.8 1.2 Target 1.2 1.3 1.4 1.6 1.9 ATC Other (strike, equipment, etc.) ATC Capacity & Staffing 350 Traffic volume (km) 7 Forecast 2000 2001 2002 2003 2004 2005 2006 2007 2008 300 km index 1990=100 Traffic growth (Summer) traffic growth (%) 10% 5% 0% -5% Effective Capacity En-route ATFM delay per flight (summer) Traffic forecast 6 5 4 3 2 1 ATFM delay in minutes per flight 250 200 150 100 50 source: EUROCONTROL/CFMU Closing capacity gap Widening capacity gap Closing capacity gap Widening capacity gap 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 0 Source : EUROCONTROL •ATFM En-route delay target was not achieved (1.9 min. against 1.0 min.) •Insufficient capacity delivery which continues lagging behind demand •Even if traffic decreases in 2009, capacity should continue increasing Performance Review Commission 25 Capacity planning in the 12 ACCs generating most delays traffic growth (%) Traffic growth Actual and forecast (SUMMER) Traffic forecast (band between baseline and high) Actual traffic (Summer) 14% 12% 10% 8% 6% 4% 3 million minutes of en-route delay Elementary Sectors Combined Sectors 2% 0% -2% -4% Zagreb Rhein Wien Madrid Kobenhavn London AC Zurich Nicosia Reims Geneva Athinai+ Macedonia Maastricht Warszawa Canarias 2 1 0 Summer Summer Summer Summer Summer Summer Summer 2002 2003 2004 2005 2006 2007 2008 Top 25 most penalising en-route delay sectors ATFM en-route delay Actual and forecast (SUMMER) Delay forecast (band between baseline and high) Actual delay (Summer) minutes/ flight 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Sources: NOP, CFMU so urce : EUROCONTROL • The failure to meet or keep below forecast delay levels is surprising in view of the significantly lower than expected traffic growth for most ACCs. The main reason for this failure was the unexpected staffing issues that were not made known by these ACCs during the planning period. • Capacity plans need to take account of collective agreements and those agreements need to be valid for the duration of the plans. Performance Review Commission Flight-efficiency performance route extension (km/flight) 26 60 48.7 km 48.2 km 48.9 km 48.8 km - 2 km per flight (agreed target) 40 Direct en-route extension TMA Interface 20 Agreed target 0 2005 900 880 860 840 820 800 2005 2006 2007 2008 2009 2009 km/flight 2006 2007 2008 2009 2009 Great circle distance Source: PRC Analysis/CFMU • Flight Efficiency has both an environmental and cost impact. Direct routing is unachievable because airspace structure is a key element of safety and capacity design. • In May 2007, the Provisional Council of EUROCONTROL adopted the horizontal flight efficiency target aims at an annual reduction of the average route extension per flight by two kilometres until 2010 (8 Km in total) The target was not achieved, although there have been some improvements which were offset by an increase in average flight distance Performance Review Commission • 27 Improving en-route flight efficiency 6% Direct route extension 5% 4% 3% 2% 1% 0% 2004 2005 Week Days 0.3% 0.3% 0.3% 0.3% 0.3% FAB interfaces 26% Routing within state 63% State interfaces within FAB 11% 2006 2007 Week End 2008 • The joint initiative to improve European flight efficiency (IATA, EUROCONTROL, CANSO), is expected to bring a reduction which represents 1 km from airspace design and 6Km from route availability and airline flight planning. However the latter is already offset by ATC routing reductions. • Approximately 63% of route extension is due to domestic airspace design issues, but 26% is linked with cross-FAB airspace design, which illustrates the need for a network approach to airspace design. • Although there is virtually no military activity during weekends, only little improvement in performance can be observed Performance Review Commission 28 Conclusions and draft Recommendations Network management (Chaper 4, 5 and 6) The PRC is minded to recommend: l. that detailed requirements and associated performance indicators be defined for the network management functions; m. the accelerated implementation of functions which improve network performance, such as airport collaborative decision-making. En-route Capacity (Chapter 5) The PRC is minded to recommend: k. that States and Air Navigation Service Providers take advantage of the current crisis to close current existing capacity gaps where possible, to improve system flexibility and to prepare for traffic recovery. Flight efficiency-environment (Chapter 5) The PRC is minded to recommend: e. that States actively support the implementation of the joint EUROCONTROL-IATA-CANSO Flight-Efficiency Plan; f. that the CFMU and airspace users co-operate to increase the use of shorter alternative routes at the flight planning stage, including conditional routes; g. further development Networkparticularlyof route structures coordinated by EUROCONTROL, and that conditional routes are open as often management as possible, at week-ends. Performance Review Commission Performance Review Commission Chapter 6: Operational Performance at main airports 30 Operational performance at airports • Airports are key nodes of the aviation network, therefore airport system performance is a main challenge for future air traffic growth • Provides analysis of airport airside performance at 20 airports and identifies some influencing factors • Significant improvements from previous PRRs, further refinements will follow ARRIVALS (inbound) Upstream ATFM delays (at gate) Excess time within the ASMA (airborne) DEPARTURES (outbound) Airport Pre-departure delays (at gate) Excess time in the taxi-out phase (ground) Performance Review Commission 31 Airport arrival ATFM delays 5 4 3 2 1 ATFM delay per arrival (min.) Avg. arrivals per day 1,000 800 600 400 200 0 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 0 Frankfurt (FRA) 5 4 3 2 1 0 2006 2007 2008 2006 London (LHR) Vienna (VIE) Rome (FCO) Amsterdam (AMS) Dublin (DUB) Zurich (ZRH) Brussels (BRU) Munich (MUC) Copenhagen (CPH) 1,000 800 600 400 200 0 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 Palma (PMI) Madrid (MAD) Paris (ORY) Paris (CDG) Barcelona (BCN) Milan (MXP) Lisbon (LIS) Prague (PRG) London (LGW) Helsinki (HEL) ATC & Aerodrome Capacity WEATHER Avg. Arrivals per day ATC Other (strike, equipment, etc.) OTHER (Special event, military, etc.) Source: PRC Analysis CFMU Performance Review Commission 2008 32 Excess (transit) times in the ASMA area - methodology EGLL Jet 50 0 2 4 6 8 10 13 16 19 22 25 28 31 34 ASMA transit times are affected by a number of parameters such as aircraft type, congestion level, airspace design, airport configuration, pilot performance, environmental restrictions, and to some extent the objectives agreed by the airport scheduling committee. Performance Review Commission 0 10 20 30 40 Arrival congestion 33 Excess (transit) times in the ASMA area - measurement Average excess time within the last 100 NM (ASMA) 10 9 8 7 6 5 4 3 2 1 0 Rome (FCO) London (LHR) London (LGW) Madrid (MAD) Zurich (ZRH) Milan (MXP) Vienna (VIE) Munich (MUC) Frankfurt (FRA) Average excess time between 100 and 40NM Average excess time within the last 40 NM minutes European System Average (2.1 min.) Lisbon (LIS) Barcelona (BCN) Brussels (BRU) Copenhagen (CPH) Prague (PRG) Paris (CDG) Dublin (DUB) Palma (PMI) Paris (ORY) Source: PRC analysis/ CODA/ CFMU Performance Review Commission Amsterdam (AMS) 34 Measurement of excess times in the taxi-out phase Average excess time in the taxi-out phase (min.) 9 minutes per departure 8 7 6 5 4 3 2 1 0 Copenhagen (CPH) London (LHR) London (LGW) Barcelona (BCN) Madrid (MAD) Vienna (VIE) Amsterdam (AMS) Prague (PRG) Lisbon (LIS) Frankfurt (FRA) Munich (MUC) Brussels (BRU) Helsinki (HEL) Dublin (DUB) Zurich (ZRH) Rome (FCO) Palma (PMI) Milan (MXP) Paris (CDG) Paris (ORY) European average (2.5 min.) Source: PRC analysis/ CODA/ CFMU • CDM improves performance in the maneuvering area • At CDM airports, AOs need to commit to a TOBT Performance Review Commission 35 Total excess times related to airport airside operations Lo ndo n (LHR) Frankfurt (FRA ) Ro me (FCO) Vienna (VIE) Lo ndo n (LGW) Arrivals Dublin (DUB ) M adrid (M A D) M unich (M UC) Zurich (ZRH) P aris (CDG) A msterdam (A M S) B arcelo na (B CN) P aris (ORY) B russels (B RU) M ilan (M XP ) P alma (P M I) Co penhagen (CP H) Lisbo n (LIS) P rague (P RG) Departures 15 10 5 0 0 5 10 15 m inutes per arrival minutes per departure Departure Congestion (IATA Codes 87, 89) DEP Weather (IATA Codes 71, 75, 76) Excess time in the taxi-out phase ATFM - OTHER (Equipment, Special event, Strike, etc.) ATFM - ATC & Aerodrome Capacity ATFM- WEATHER ASMA excess time (airborne) Performance Review Commission 36 Factors affecting operational performance at airports Congestion level Operational constraints Technical constraints Environmental constraints Coordination Committee - Slot Coordinator - Airport authority - Air carriers - ATC - Regulator Declared airport capacity Number of allocated slots/ Saturated hours Traffic patterns (variability) Quality of service Ability to sustain capacity in bad weather Weather conditions • Significant progress has been made, but more work is needed to assess all affecting factors • Airport Community (Airport Operators, Airlines, ANSPs and Airport Slot Coordinators) are welcomed to provide contributions to PRC Performance Review Commission Performance Review Commission Chapter 7 – US/ Europe Comparison 38 Airspace Density Comparison (CONUS & European Centers) *Note due to Mercator projection, northern areas appear larger Density (flight Hr per Sq.Km) <1 <2 <3 <4 <5 >= 5 • Actual sizes are comparable (USA 10.4 vs Europe 11.5 M km2) • Relative density (flight hours per km2) is 1.2 in Europe and 2.4 in US Europe: EUROCONTROL States plus Estonia and Latvia, but excluding oceanic areas and Canary Islands. US: Area, flight hours and center count refer to CONUS only. The term US CONUS refers to the 48 contiguous States located on the North American continent south of the border with Canada, plus the District of Columbia, excluding Alaska, Hawaii and oceanic areas. Performance Review Commission 39 Some facts about the 34 main airports in the US and in Europe Main 34 airports in 2007 Europe US Difference US vs. Europe Average number of annual movements per airport (‘000) Average number of annual passengers per airport (million) Passengers per movement Average number of runways per airport Annual movements per runway (‘000) Annual passengers per runway (million) 267 25 94 2.5 108 10.0 441 32 72 4.0 110 8.0 +65% +28% -23% +60% +2% -20% The list of the Operational Evolution Partnership (OEP) airports - 35 in total – was compiled in 2000, by agreement between the FAA and Congress, drawing on a study that identified the most congested airports in the US. That list has remained unchanged since then. Key FAA performance measures are based on data from this set of airports. For comparison reasons, Honolulu (HNL) was removed from the sample. Performance Review Commission 40 On-time performance in the US and in Europe On-time performance compared to schedule (flights to/from the 34 main airports) 90% 88% 86% 84% 82% 80% 78% 76% 74% 72% 70% Source: E-CODA 90% Intra-Europe 88% 86% 84% 82% 80% 78% 76% 74% 72% 70% US (conus) Arrivals/ departures delayed by more than 15 minutes versus schedule Source: ASQP data 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 Departures (<=15min.) 2008 Arrivals (<=15min.)  Similar pattern in US and Europe with a comparable level of arrival on time performance;  The gap between departure and arrival punctuality is significant in the US and quasi nil in Europe suggesting differences in flow management strategies Performance Review Commission 2008 41 Efficiency: Trends in the duration of flight phases Trends in the duration of flight phases (flights to/from main 34 airports) 6 5 4 3 DEPARTURE TIMES TX-OUT TIMES AIRBORNE TIMES TX-IN TIMES TOTAL 6 5 4 3 2 1 0 -1 -2 EUROPE -3 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-08 2 1 0 -1 -2 -3 Actual times are compared to the long term average for each city pair. minutes US Data Source: CODA/ FAA  Europe: Performance is driven by departure delays with only very small changes in the gate-to-gate phase.  US: In addition to a deterioration of departure times, there is a clear increase in average taxi times and airborne times. Performance Review Commission 42 Airline Scheduling: Evolution of block times Evolution of Scheduled Block Times (flights to/from 34 main airports) 4 4 Europe 3 2 3 2 1 0 -1 -2 US (conus) 1 0 -1 -2 Scheduled block times compared to the long term average at city pair level. minutes Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Source: FAA/PRU  Europe: Block times remain relatively stable (left side)  US: In addition to decreasing on time performance, there is a clear increase in scheduled block times (right side)  Seasonal effects are visible in the US and in Europe Performance Review Commission Jan-08 43 Analysis by phase of flight IFR flights To/from Main 34 airports DEPARTURE ANS-related Holding at the Gate (ATFM/ EDCT) Taxi-out efficiency GATE-to-GATE En-route Flight efficiency Efficiency In last 100NM Taxi-in efficiency IFR flights To/from Main 34 airports  Analysis is broken down by phase of flight to better understand the ATM contribution and differences in air traffic management systems Performance Review Commission DEPARTURE GATE-to-GATE Taxi-out efficiency En-route Flight efficiency Efficiency In last 100NM 44 Excess time within the last 100NM Average Excess Minutes within the last 100NM miles (only top 20 airports in terms of movement 2007 are shown) 10 9 8 7 6 5 4 3 2 1 0 Milan (MXP) Manchester (MAN) London (LHR) London (LGW) Vienna (VIE) Madrid (MAD) Frankfurt (FRA) Munich (MUC) Dusseldorf (DUS) Zurich (ZRH) Rome (FCO) ANS-related Holding at the Gate (ATFM/ EDCT) Source: FAA/ PRC analysis minutes Europe Top 34 Average (3.2 min.) Barcelona (BCN) Copenhagen (CPH) Amsterdam (AMS) Paris (ORY) Paris (CDG) Oslo (OSL) New York (JFK) New York (LGA) 10 9 8 7 6 5 4 3 2 1 0 Newark (EWR) Philadelphia (PHL) minutes US OEP 34 Average (2.5 min.) Denver (DEN) Minneapolis (MSP) Charlotte (CLT) Phoenix (PHX) Las Vegas (LAS) Atlanta (ATL) Boston (BOS) Orlando (MCO) San Francisco Houston (IAH) Chicago (ORD) Washington (IAD)  Average excess time for main 34 airports is higher in Europe  Mainly driven by London Heathrow (LHR) which is clearly an outlier Performance Review Commission Salt Lake City (SLC) Los Angeles Detroit (DTW) Dallas (DFW) Stockholm (ARN) Brussels (BRU) Istanbul (IST) DEPARTURE GATE-to-GATE Taxi-out efficiency En-route Flight efficiency Efficiency In last 100NM 45 En-route efficiency: Direct Route Extension Direct en-route extension ((A-D)/G) (flights to/from the 34 main airports 2007) 5.0% ANS-related Holding at the Gate (ATFM/ EDCT) Direct route extension (%) 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 0-199 NM 200-399 NM 400-599 NM 600-799 NM European top 34 average (4.0%) US OEP 34 average (2.9%) 800-999 NM >1000 NM Great Circle Distance between 40NM circles (D40-A40) % of all flights 40% 30% 20% 10% 0% 0-199 NM 200-399 NM 400-599 NM 600-799 NM 800-999 NM >1000 NM Europe USA  Direct route extension is approximately 1% lower in the US  US: Impact of Miles in trail restrictions, passed back from constrained airports?  Europe: Impact of fragmentation of airspace, military airspace? Performance Review Commission DEPARTURE GATE-to-GATE Taxi-out efficiency En-route Flight efficiency Efficiency In last 100NM 46 Excess time in the taxi out phase Average excess time in the taxi out phase 20 ANS-related Holding at the Gate (ATFM/ EDCT) (Top 20 in terms of annual movements in 2007 are shown) Europe Top 34 Average (3.7 min.) 15 10 minutes per departure 5 Madrid (MAD) Barcelona (BCN) Munich (MUC) Istanbul (IST) Amsterdam (AMS) Copenhagen (CPH) Milan (MXP) Dusseldorf (DUS) Manchester (MAN) Vienna (VIE) Zurich (ZRH) Paris (CDG) Paris (ORY) Oslo (OSL) Brussels (BRU) Stockholm (ARN) London (LHR) Rome (FCO) London (LGW) Frankfurt (FRA) 0 20 15 10 5 0 US OEP 34 Average (6.8 min.)  Excess times in the taxi out phase are higher in the US  For the US, excess times also include delays due to local en-route departure and miles in trail restrictions. Performance Review Commission New York (JFK) Newark (EWR) New York (LGA) Philadelphia (PHL) Atlanta (ATL) Chicago (ORD) Minneapolis (MSP) Detroit (DTW) Boston (BOS) Charlotte (CLT) Salt Lake City (SLC) Las Vegas (LAS) Houston (IAH) Phoenix (PHX) Denver (DEN) Washington (IAD) San Francisco Dallas (DFW) Los Angeles Orlando (MCO) Source: FAA/ PRC analysis/ CODA/ CFMU DEPARTURE GATE-to-GATE Taxi-out efficiency En-route Flight efficiency Efficiency In last 100NM 47 ANS-related departure delays 2007 IFR flights (M) % of flights delayed En-route related (EDCT/ATFM) delay per flight (min.) delay per delayed flight (min.) ANS-related Holding at the Gate (ATFM/ EDCT) Airport related (EDCT/ATFM) delay per flight (min.) delay per delayed flight (min.) % of flights delayed US Europe 9.7 5.7 0.2% 7.8% 0.1 1.4 53 18 1.7% 6.8% 1.1 1.4 68 21  US: En-route delays are much lower per flight, but the delay per delayed flight is significantly higher;  Europe: Higher share of flights affected than US, but with a lower average delay.  In the US, ground delays (EDCT) are used when other options are not sufficient, whereas, in Europe ground delays (ATFM) are the main ATM tool for balancing demand with capacity. Performance Review Commission 48 Estimated total benefit pool Estimated excess time on flights to/from the main 34 airports (2007) Gate/ departure holdings Taxi-out phase Horizontal en-route flight efficiency Terminal areas (ASMA/TMA) Total estimated excess time per flight en-route-related airport-related TIME per flight (minutes) EUR 1.4 1.4 3.7 2.2-3.8 3.2 11.9-13.5 US 0.1 1.1 6.8 1.5-2.7 2.5 12.0-13.2 Low Low Medium High Medium Predictability  The benefit pool represents a theoretical optimum. Safety and capacity constraints limit the practicality of ever fully recovering these “inefficiencies”  Similar total estimated excess times in US and Europe but with differences in the distribution along the phase of flight  Inefficiencies have a different impact (fuel burn, time) on airspace users, depending on the phase of flight (airborne vs. ground) and the level of predictability (strategic vs. tactical). Performance Review Commission Performance Review Commission Chapter 8 – Cost-Effectiveness 50 Costs of ANS system in 2007 2007 Gate-to-gate ANS costs (European level) ~€8 300M En-route ANS costs (European level) ~€6 500M ATM/CNS ~€5 550M MET ~€320M Payment to regulatory & governmental authorities ~€110M EUROCONTROL ~€520M Terminal ANS costs (European level) ~€1 800M ATM/CNS ~€1 730M MET ~€60M Payment to regulatory & governmental authorities ~€10M ANSP How much it Benchmarking = costs to provide analysis ATM/CNS? Latest actual costs figures relate to the year 2007 En-route ANS costs analysis (State level) = How much is charged to airspace users? Performance Review Commission En-route cost-effectiveness KPI • Cost-effectiveness improvement for European system between 2003 and 2007 in line with PRC target – 51 En-route unit costs reduction of -3% p.a. between 2003 and 2007  significant outcome as a result of robust traffic growth and greater cost-effectiveness awareness • Positive business cycle will end in 2008 and PC cost-effectiveness objective (-3% p.a. between 2008-2010) will not be met – As a result of the economic downturn, traffic growth will significantly slow down in 2009 (if not negative) – The rise in 2009 unit costs (+0.7%) will certainly be larger since traffic increases planned in some countries for 2009 (e.g. Spain, +13%) will not materialise Changes in chargeable service units (planned 2009 vs actual 2008) 1.0 250 PRC notional target 0.9 0.8 0.7 160 0.6 0.5 0.4 130 4% -2% 2% 3% 19% 4% 7% 2% 1%0% 4% 13% 3% 5% 8% -4% 6% 8% -1% 0% 14% -1% 6% -12% 0 woleB %3 ot %0 %6 ot %3 Total en-route ANS costs (€2007)/ km PC adopted target 220 1% 5% -2% -2.6% -4.4% -3.6% -3.2% -1.8% 0.7% -1.8% %9 ot %6 %21 ot %9 %21 evobA 190 Canarias 14% 0% 100 2% 3% 2% 1 999 2 000 2 001 2 002 2 003 2 004 2 005 2 006 2 007 2 008 2 009 2 010 2 011 2 012 2 013 8% Costs Per Km Total Costs (1999= index 100) Traffic (1999=index 100) So urce : EUROCONTROL All States in CRCO system 4% 2% data source : EUROCONTROL/CRCO Performance Review Commission 52 Trend in cost-effectiveness at ANSP level (2003-2007) Changes in gate-to-gate unit ATM/CNS provision costs (%) 25% 15% 5% -5% -15% -25% European system average (2003-2007): -8.8% Skyguide Avinor Oro Navigacija Finavia DCAC Cyprus -35% Belgocontrol NAV Portugal (FIR Lisboa) ANS CR HungaroControl Slovenia Control MUAC DFS DHMI NAVIAIR DSNA LFV/ANS Sweden Austro Control Croatia Control ATSA Bulgaria UkSATSE ROMATSA NATA Albania MK CAA MATS EANS LVNL ENAV IAA LPS Aena NATS LGS MoldATSA 61% of European system ATM/CNS provision costs • Cost-effectiveness improvement at European system level between 2003 and 2007 (-8.8%) results from unit costs decrease in a majority of States/ANSPs • • The 5 largest States/ANSPs nearly represent 2/3 of the European system traffic and costs Without significant costs increases in some States/ANSPs (e.g. Spain) during the 2003-2007 period the improvement at European system level would have been even greater Performance Review Commission 53 Trend in cost-effectiveness at European system level (2003-2007) Weight 31% +24.2% Decrease in unit ATM /CNS provision costs 2003-2007 Weight 69% +20.7% +11.9% +11.0% decreased support costs per composite flight-hour +1.8% "Support costs effect" "Traffic effect" increased increased ATCO-hour employment productivity costs per ATCO-hour increased ATCO employment costs per composite flighthour -8.8% -15.6% • Main driver for performance improvement at European system level was containment of support costs while traffic increased by more than 20% • This more than compensated for the increase in unit ATCO employment costs (+11%) Performance Review Commission 54 Forward-looking cost-effectiveness projections (2008-2012) (1/2) 1.25 1.20 1.15 1.10 1.05 1.00 Euro 2007 / km 0.95 0.90 2007 sample average 0.85 0.80 0.75 0.70 0.65 0.60 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 2007 EUROCONTROL Area average United Kingdom Spain Canarias Spain Continental Germany Italy France • When setting 2009 unit rates (November 2008), not all the States/ANSPs seem to have reflected the impact of the economic downturn into their plans Will those planned cost-effectiveness improvements materialise? • Performance Review Commission 55 Forward-looking cost-effectiveness projections (2008-2012) (2/2) United Kingdom 2 000 1 500 En-route national costs (M€) 1 500 -1% -3% -10% -11% -10% -10% 1 000 1 000 0% -2% -3% -3% -7% -7% 500 Kilometres (M) Germany 2 000 1 500 2 007 2 008 2 009 2 010 2 011 2 012 1 500 0% -2% -8% -10% -9% 1 000 Costs planned in Nov.07 Traffic planned in Nov.07 Costs planned in Nov.08 Traffic planned in Nov.08 1 000 3% -4% -1% 7% 8% 8% 500 500 2 007 2 008 2 009 2 010 2 011 2 012 0 Costs planned in Nov.08 Traffic planned in Nov.08 Costs planned in Nov.07 Traffic planned in Nov.07 • Several States/ANSPs revised their planned costs upwards despite the expected slowdown in traffic Performance Review Commission Kilometres (M) 500 0 En-route national costs (M€) -8% Measures to improve flexibility and cost management • The economic downturn requires ANSPs to review their plans to ensure that they are consistent with more straitened economic circumstances A number of ANSPs are considering different measures: – – – 56 • – – • Setting of collective agreements with wages conditions valid for three years Review of current pension arrangements (retirement age, pension scheme, etc.) Reassessment of investment programmes to focus on projects which have the most promising safety and capacity outcomes Measures to ensure flexible deployment and use of operational staff to meet demand Etc. States could also implement transitional measures to stabilise/decrease the chargeable cost-base: – – – Provide subsidies to finance part of the cost-base Limit/defer costs relating to income tax & dividends Instruct ANSPs to make use of reserves to finance potential under-recoveries • Forthcoming SES II performance scheme is expected to drive performance improvements – – Setting of performance targets for European ANS system Local/regional performance plans including binding performance targets – Explicit incentive on ANSP to achieve performance targets Performance Review Commission 57 Draft Recommendation on cost-effectiveness Cost-effectiveness The PRC is minded to recommend: h. that the enlarged Committee for Route Charges develops alternatives to full cost-recovery, in addition to the independent economic regulation option, taking account of risk-sharing between airspace users and Air Navigation Service Providers; i. that unit rates be set in advance for a period of three to five years, as provided for in the EUROCONTROL “Principles for establishing the cost-base for en route charges and the calculation of the unit rates” and in Regulation 1794/2006 of 6 December 2006 laying down a common charging scheme for air navigation services; j. that a balanced incentive mechanism be developed to define the treatment of the cumulated under/over-recoveries arising from differences between actual costs and revenues, so as to ensure a fair sharing of the traffic volume risk and financial risk between users and providers. Performance Review Commission 58 PART III – TRADE-OFFS AND OVERALL ASSESSMENT Performance Review Commission Performance Review Commission Chapter 9 – Environmental Assessment Environment assessment (1/5): Setting the scene 60 Sustainable development of aviation is an important objective Top of political agenda Aviation continues to make significant effort to reduce its impact on environment Important to have reliable facts and figures to make informed decisions Performance Review Commission 61 Environment assessment (2/5): Main emissions Main aviation emissions is a two fold issue: - Greenhouse Gases (GHG) and - Local air quality Affect local air CO2 H 2O N 2O … CO NOx PM … quality (LAQ) at and around airports CO2 is directly proportional to fuel consumption, so easier to measure CO2 is part of the Kyoto Protocol (but international aviation is excluded) CO2 from aviation will be included in EU ETS by 2012 Some complex trade-offs between CO2 and NOx ! EU Directives on LAQ setting clear limits and terms. Performance Review Commission 62 Environment assessment (3/5): Breakdown by sector Contribution of CO2 emissions by sector (EU27 area, 2006 base year) CO2 Emissions from Biomass 7,0% Other 4,3% Manufacturing and Construction 14,3% Road 19,7% Transport 29% Energy Industries 34,4% Other 0,2% Railways 0,2% Residential 8,8% Institutional Commercial 3,5% Marine 4,2% Aviation 3,4% 3.4% of total CO2 emissions in EU area related to aviation Aviation is not the major contributor, but the issue is that its relative share is growing ! Performance Review Commission 63 Environment assessment (4/5): Duration of flight Distribution of flights and fuel burn by duration of the flight 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% >14h >13h >12h >11h >10h 13% of the flights burn 60% of the fue l Flights Fuel >9h >8h >7h >6h >5h >4h >3h >2h >1h >0h Flight duration in hours Most CO2 emissions originate from flights for which there are no real substitutes! Flights <1 hour represent 3% of the total fuel burn – equivalent to the reduction imposed by the EU/ETS on 2012 (allowances capped at 97% of 2004-2006 average level). Performance Review Commission 64 Environment assessment (5/5): What is actionable by ATM? Share of aviation emissions (CO2) actionable by ATM from improvement in flight-efficiency Fuel/flight Aviation emissions within the European airspace Actionable by ATM Horizontal flight path Vertical Flight profile Airborne delays Taxi delays Total flight efficiency 4400 kg 160 kg 25 kg 76 kg 30 kg 287 kg Fuel Total 44 Mt 1.6Mt 0.3Mt 0.7Mt 0.3Mt 2.9Mt CO2 total 140 Mt 5.1 Mt 0.8 Mt 2.2 Mt 1.1 Mt 9.1 Mt 3.6% 0.6% 1.6% 0.8% 6.6% % Airborne delays Taxi delays Vertical Horizontal Messages: 1. 6.6% × 3.4% ≈ 0.2% which is actionable by ATM. Small, but has to be managed; 2. Main scope for improvement lies with horizontal component and airborne delays; 3. If EUROCONTROL horizontal flight-efficiency was met  clear environmental benefits; 4. Due to trade-offs with safety, capacity, environmental (noise) constraints, the 6.6% cannot be reduced to 0%. Performance Review Commission Performance Review Commission Chapter 10 – Economic Assessment 66 Economic assessment: Trade-offs “La raison d’être” Safety The counterpart for being given a statutory monopoly Economic costeffectiveness Costeffectiveness Quality of service Delays KPA Flight-efficiency KPA Must satisfy minimum agreed levels through appropriate regulation and oversight Economic objective: “to reduce the direct and indirect ATM-related costs per unit of aircraft operations” (ATM 2000+ Strategy) Performance Review Commission 67 Monetary assessment of economic ANS costs (en-route) En-route Cost to provide ANS capacity Cost of ATFM delay Cost of route extension Basic assumptions € 6 400 M € 81 per minute for delays > 15’ € 900 M € 5.6 per extra km € 2 700 M In 2008 total economic costs for en-route assessed to be around 10 Billion Euros 27% 9% Cost to provide ANS capacity Cost of route extension Cost of ATFM delay 64% Performance Review Commission 68 Trend of unit economic cost (KPI, en-route) 1,40 1,20 1,00 -1,2% -1,0% -1,5% 1,9% Cost of route extension Cost of ATFM delay Cost of capacity €/km 0,80 0,60 0,40 0,20 2004 2005 2006 2007 2008 Messages: 1. Economic unit costs remained fairly stable; 2. Improvements from lower unit costs of capacity have been cancelled-out by deterioration in the quality of service; 3. Importance to manage the entire system performance; 4. Given lower traffic expected in forthcoming years, importance to improve quality of service as reduction in unit cost of capacity likely to be challenging. Performance Review Commission 69 PART IV – GOING FORWARD Performance Review Commission 70 Driving Performance Political long term target Tecchnology Governance Legislation SES II SESAR Binding targets FABs Network mgt & design 5 years plan Operation Performance Performance Review Commission 71 Conclusions and draft Recommendations Safety The PRC is minded to recommend: a. the public availability of States’ ESIMS and USOAP audit reports concerning ANS safety (including Corrective Action Plans); b. that EUROCONTROL presents a plan to ensure a permanent oversight of ANS safety in Europe beyond 2010, in liaison with EASA; c. that each State adopts a “just culture” in relation to the reporting of ATM safety incidents; d. the use of automated tools, wherever possible, to complement manual reporting of losses of separation. Performance Review Commission 72 Conclusions and draft Recommendations The PRC is minded to recommend: Capacity k. that States and Air Navigation Service Providers take advantage of the current crisis to close current existing capacity gaps where possible, to improve system flexibility and to prepare for traffic recovery. Flight efficiency/environment e. that States actively support the implementation of the joint EUROCONTROL-IATACANSO Flight-Efficiency Plan; f. that the CFMU and airspace users co-operate to increase the use of shorter alternative routes at the flight planning stage, including conditional routes; g. further development of route structures coordinated by EUROCONTROL, and that conditional routes are open as often as possible, particularly at week-ends. Performance Review Commission 73 Conclusions and draft Recommendations The PRC is minded to recommend: Network management l. that detailed requirements and associated performance indicators be defined for the network management functions; m. the accelerated implementation of functions which improve network performance, such as airport collaborative decision-making. Cost-effectiveness h. that the enlarged Committee for Route Charges develops alternatives to full cost-recovery, in addition to the independent economic regulation option, taking account of risk-sharing between airspace users and Air Navigation Service Providers; i. that unit rates be set in advance for a period of three to five years, as provided for in the EUROCONTROL “Principles for establishing the cost-base for en route charges and the calculation of the unit rates” and in Regulation 1794/2006 of 6 December 2006 laying down a common charging scheme for air navigation services; j. that a balanced incentive mechanism be developed to define the treatment of the cumulated under/over-recoveries arising from differences between actual costs and revenues, so as to ensure a fair sharing of the traffic volume risk and financial risk between users and providers. Performance Review Commission 74 QUESTIONS? Performance Review Commission

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