A Blueprint for the Single European Sky

Delivering on safety, environment, capacity and cost-effectiveness

A Blueprint for the Single European Sky 1 CONTENTS

1 – EXECUTIVE SUMMARY 02 SES Blueprint 02 Key Reforms 03 Performance 03 Rationalization 03 Modernization 03

2 – PRESENT STATUS OF THE SINGLE EUROPEAN SKY 05 Technology 05 Safety 06 Legislative 06 Performance Scheme 06 Functional Airspace Blocks 06 Network Manager 07 Airports 07 Human factors 07

3 – KEY CONSIDERATIONS TO DELIVER SES 08 Economic and Social Opportunity 08 Environmental Opportunity 08 Key Reforms 09

4 – A BINDING PERFORMANCE SYSTEM 10 Performance: Key Challenges 10 Performance: Key Reforms 10 Performance: Key Benefits 11

5 – RATIONALIZATION 12 Consolidation: Key Challenges 12 Consolidation: Key Reforms 12 Reducing support costs of Services 12 Reducing the number of Centers 13 Regrouping en route air navigation services at FAB level 13 Rationalizing the ATM infrastructure 14 Unbundling the CNS, AIM and MET services 14 Clarifying the role of EASA 14 Expanding the role for the Network Manager 15 Reform of 16 Civil-Military Alignment 16 Human Factor 16 Consolidation: Key Benefits 16

6 – MODERNIZING THE ATM SYSTEM 17 Modernizing: Key Challenges 17 Modernizing: Key Reforms 17 SESAR governance 17 Funding and incentives mechanisms 18 Human factors 18 Modernizing: Key Benefits 19

7 – CONCLUSION 20

SUMMARY OF THE KEY REFORM MEASURES REQUIRED 21

SUMMARY OF THE NEW ATM ENVIRONMENT BENEFITS 22 1 – EXECUTIVE SUMMARY

The European aviation sector is The current ATM structure and a major driver of economic growth performance is a genuine threat to for the (EU). More on-going growth and viability of the than 800 million passengers1 were European air transport sector and transported by air in during unless appropriately addressed will 2011. It is estimated that the air impair European competitiveness transport sector provides 7.8 and restrict economic growth and million jobs and contributes €475 job creation. billion in Gross Domestic Product With fewer air traffic (GDP) across the European Union2. This report integrates many of the controllers the With economic globalization and existing “silo approach” analyses such FAA is able to deliver 70% increasing travel demand, up to as the ATM Master Plan to provide an a two-fold increase in air traffic is overall vision of the Single European more controlled flight hours projected within the next 20 years3. Sky and the necessary reforms to than Europe. realize the anticipated benefits. To support the expected growth in a safe and sustainable manner, a seamless and modern air transport SES Blueprint system is required for Europe. This is the objective of the Single European When fully realized, the Single Sky (SES) initiative which carries European Sky will handle more than high-level goals to achieve by 2020 20 million flights per year with the relative to 20054: highest level of safety in the world. will arrive within one minute • A three-fold increase in capacity of the planned arrival time regardless where needed; of weather conditions. Travel will be reduced by 10 minutes on average. • Improve safety performance by a A total cost reduction across Euro- factor of 10; pean ATM of €9 billion per annum will be achieved through structural • A 10% reduction in the effects and operational improvements. The flights have on the environment; and institutional and technical reforms will • Reduce the cost of ATM services to reduce the additional costs caused airspace users by at least 50%. by fragmentation and inadequate A new approach is required service quality across Europe by over to increase the performance €3 billion per annum. Better proce- and efficiency of the air However the current approach to dures and flight profiles will provide the SES has not accelerated the €6 billion of fuel savings and 18 mil- transport system while decreasing environmental evolution of a Single European Sky lion tonnes of CO2 emissions savings to the extent anticipated. Progress every year. Additional capacity, more impact and overall cost. has been painfully slow and the efficient routes, fewer delays, less inefficiencies of the European Air cancelled flights, and lower fuel burn Traffic Management (ATM) system are will considerably increase the efficien- still generating more than €5 billion of cy and economy of air transport while direct additional costs and 8.1 million reducing costs and generating €419 tonnes of additional CO2 emission billion additional GDP for the Euro- every year5. pean economy and 320,000 jobs7.

The slow progress continues to cause passenger flight delays of more than 100 million hours annually6. The incentives of a competitive market are absent, and the coordination required across borders makes national oversight inadequate.

1 From statistics (Eurostat): http://epp.eurostat.ec.europa.eu/portal/page/portal/transport/data/main_tables 2 From ATAG: www.aviationbenefitsbeyondborders.org/around-the-world/eu27-nations 3 From EUROCONTROL Long-Term Forecast - Flight movements 2010-2030 4 From European ATM Master Plan Edition 1 2009 5 Performance Review Report (PRR) 2011 6 800 million passengers have suffered from an average 10 minutes delay (PRR report 2011) 7 From SESAR JU “Assessing the macroeconomic impact of SESAR” 2011 A Blueprint for the Single European Sky 02 Key Reforms Rationalization Modernization

To achieve the future European air The rationalization of ATM institutional The modernization of airborne transport environment and realize structures includes a range of reforms systems and ground infrastructure these economic gains, three key to better clarify and streamline both and procedures will ensure that reforms are necessary: regulatory and service provision the forecast of increased traffic can across European skies. be safely managed through better • The creation of a mature situational awareness for both performance system; The expansion of EASA scope is not pilots and air traffic controllers. supported as this time. Instead the Simultaneously, the deployment of • The rationalization of air traffic focus on addressing potential over- advanced decision support tools will management institutional laps between the EASA and SES enable the rationalization process structures; and frameworks should be addressed through increased system efficiency • The modernization of the ATM through coordination mechanisms. allowing the same number of air system. The activities of National Supervisory traffic controllers to safely handle Authorities (NSAs) relating to FAB a doubling of traffic. level activities should be centralized Performance in regional offices under the supervi- The new generation of systems sion of EASA. will use open architecture allowing The establishment of an independent much greater flexibility, innovation European economic regulator for air The grouping of en route air and interoperability ultimately leading navigation charges to define the targets navigation services provision at to significant efficiencies and further to be achieved, oversee progress and Functional Airspace Block (FAB) supporting rationalization activities. determine binding financial corrective levels with no more than 40 Air action is fundamental to the success Traffic Control Centers (ATCC) across These systems also facilitate the of SES. Consideration should be Europe and the centralization of efficient routes and flight profiles given to evolving the role of the operational management, training, that result in 300kg8 of fuel savings Performance Review Body into such procurement and support functions per flight; €6 billion of fuel cost a body given it present function and would be a primary driver for cost- savings and 18 million tonnes of capability. effective services and reducing the CO2 emissions savings per annum. cost of fragmentation by €3 billion The targets and financial incentives per annum (improved service through These new sophisticated tools set must cascade through the entire reduced delay in all phases of flight necessitate an upgrade of skills ATM supply chain with binding and reduced number of support for the traditional role of air traffic mechanisms between the states professionals). The rationalization controllers as they become air traffic and their various air navigation process also enhances safety and managers. This evolution, much services providers issued on a environmental outcomes through like the transition pilots experienced limited and regularly reviewed term reduced interface and transfer points, with modern , will support a with binding performance obligations. improved information sharing and system requiring no increase in ATC better matching of resource to staffing levels beyond today. The new The approach to operational demand. technologies also offer a broadening performance improvement must of skills for the technical workforce enhance service quality on a gate- A reorganization of supporting as they will have to manage new and to-gate basis. ATM infrastructure at a European more automated systems in larger air or FAB-level, provided by the best traffic control facilities. To support these activities, the value operator and subject to a European Commission needs to periodic tendering process, will The modernization and rationalization develop a clear, integrated roadmap deliver better value services and of the ATM supply chain ultimately for the 5 Pillars (Technology, Safety, reduce the waste from infrastructure results in a need for fewer support Legislative, Airport and Human Factor) duplication designed along national professionals in air navigation of SES including the expected borders rather than European air services but will generate more than performance contribution from each transport network need. 300,000 additional jobs across the pillar to achieve the high-level goals. European aviation sector. A Network Manager taking accountability for the central functions of flight information, demand and capacity management, as well as implementation of new ATM infrastructures to ensure common standards and interoperable rules will ensure that European airspace is managed as a community resource.

8 2010 US/Europe comparison of ATM related Operational Performance commissioned by Eurocontrol and the FAA Key Benefits

A Blueprint for the Single European Sky 04 2 – PRESENT STATUS OF THE SINGLE EUROPEAN SKY

The EU launched the SES To achieve these goals the European The SESAR Joint Undertaking (JU) initiative more than ten years ago. Parliament established a framework has been tasked to manage the The objective was to reduce the of five pillars based on technology, update of the European ATM Master fragmentation of air navigation safety, performance, airports and Plan, but if the document defines a services in Europe and to improve human factors. clear technology roadmap for SESAR the performance of the ATM system. deployment, it still lacks the broader The EU has played an important and ambitious targets which the This initiative was largely based on leadership role in the establishment SES promised and air transport a white paper9 issued by the Com- and implementation of the SES stakeholders had anticipated. This mission in 1996, which warned that pillars; however, various initiatives is an opportune time to consider lack of capacity of the existing system are in differing stages of development the next steps as the governance was a risk to the future growth of air and have not been brought together structure for SESAR deployment is transport in Europe. The inefficiencies into a comprehensive, integrated still under discussion, the longevity of air navigation services were re- and action-orientated roadmap. of the SESAR JU is currently being sponsible for approximately €4 billion considered, and most important, the per annum of extra costs for the air- business case for SESAR deployment lines in delays (€2 billion), extensions Technology has yet to be consolidated. The of route (€1.2 billion) and additional level of EU funding to mobilize air navigation charges (€0.6 billion). The Single European Sky ATM and support SESAR deployment Research (SESAR) program has is also uncertain, as the €3 billion The EU adopted two SES packages been a strong focus for many budget proposed by the European in 2004 and in 2009 in order to stakeholders across the industry. Commission (EC) for the period 2014 reduce this fragmentation, to better More than €2 billion has been to 2020 is not approved. Issues also define the responsibilities of regula- committed to the development phase remain unanswered regarding the tors and operators, enhance the and is estimated that around 3,000 harmonization of SESAR and Next performance of air navigation ser- people are currently engaged in Generation Air Transportation vices and reduce the cost of these this unprecedented research and System (NextGen) programs. services. The second package was development effort to improve ATM Specifically, concerns exist in intended to accelerate the realiza- efficiency. The encouraging results relation to standardization, tion of the SES and its benefits with of this development phase have certification and aligned high-level goals to achieve by 2020 demonstrated that new concepts are regulation. relative to 2005. feasible however the benefits will be much delayed and at a reduced level Enabling EU Improving than originally planned. Importantly, skies to handle safety by a SESAR deployment will only deliver 3 times more factor of 10 a portion of the SES high-level goals. traffic If the technology component is not deployed in synchronization with the Reducing the Cutting ATM other pillars, it will lead to further environmental Unit costs by waste and non-delivery of benefits. impact per 50% flight by 10%

Figure 1: SES implementation five pillars

TECHNOLOGY LEGISLATIVE SAFETY AIRPORT HUMAN FACTOR PILLAR PILLAR PILLAR PILLAR PILLAR

SESAR FABs EASA Network Manager Perform. Scheme

Safety, Environment, Cost Effectiveness and Capacity

9 ATM White Paper: COM(96)57 final Safety Functional Airspace Blocks

To date the SES I and II packages (Performance Review Report (PRR) focused on making progress in 2011) shows that the inefficiencies areas of safety and clarified the of air navigation services were still respective roles of regulators, generating more than € 5 billion NEFAB supervision authorities and service per annum of extra cost for providers. The evolution of the airspace users: DK-SE European Aviation Safety Agency UK-IR (EASA) to cover ATM and airports • En route delays (€900 million), Baltic is also an important step towards FAB EC FAB • Route extensions (€1930 million), CE Danube the supervision of safety across the entire air transport supply chain. • Airports delays (€550 million), SW Portugal- Blue MED • Arrivals holding and sequencing However, at this point, it is (€950 million), and considered that EASA must improve its cost-efficiency. Importantly, it • Taxi out (€850 million). is lacking some of the necessary resource capability in order to ef- The FABs are a vital foundation fectively perform new responsibilities, element of the SES, designed to especially with respect to appropri- rationalize European ATM. There are ately experienced and skilled currently 9 FABs either established or professionals. under construction: two of these (UK- Ireland and Denmark-Sweden) are Reporting and transparency are established. The others were required also insufficient. It is concerning to be established by 4 December that in the PRR for the 2011 2012. Despite considerable expecta- calendar year, that 12 European tion, progress has been minimal and Civil Aviation Conference states did the substantive requirements of the not submit safety template data to regulation are not considered to have the Eurocontrol Safety Regulation been met. Against any reasonable Commission. assessment of progress, it cannot be said that FABs have optimized air- In addition, the cost of air navigation space along air traffic flows, or opti- Legislative services provision is more than €8 mized human and technical resources billion per annum (en route and and the European Commission is The legislative pillar consists of terminal air navigation services). expected to announce infringements three components which have close This means that the total cost of procedures against non-compliant interrelationships; the Performance air navigation services provision states. Scheme, the FABs and the Network in 2011, including current system Manager. inefficiencies was €13 billion per Route design has seen an increase annum. in operational efficiency, however, major technical, cultural and Performance Scheme €13 billion in 2011 industrials challenges still need to be addressed. Most EU ANSPs Air navigation services provision  The performance scheme has continue to develop their own ATM (€8 billion) been operational since January 2012, systems and their own training and monitoring and reporting is new System inefficiencies capability, which leads to difficulty for this first performance review (€5 billion) in standardizing EU-wide service period (termed RP1) from 2012- delivery, inhibits staff mobility and 2014. However, the development Between 2005 and 2011 an adds significantly to overall costs. of performance plans by states and improvement in the en route air More needs to be done to rationalize FABs has been unacceptably slow navigation costs has occurred. the ATC supply chain by reducing and passive. The last report of the However, this is still far from the the numbers of ANSPs, AIM, CNS Performance Review Body objective of the SES implementation, and MET providers. This has to which requires a 50% reduction by be one of the priorities of the 2020. Most states have presented SES implementation. plans that are not fully compliant with the objectives contained in the performance scheme.

A Blueprint for the Single European Sky 06 Airports

The 2010 U.S./Europe Comparison The comparison also demonstrates The release of the EU airports of ATM related Operational Perfor- that both systems have inefficiencies, package in late 2011 focused on mance, commissioned by EURO- which generate extra cost in terms matters associated with slots, ground CONTROL and the Federal Aviation of delays and fuel burn, and that a handling and noise. It remains an Administration (FAA)10, indicates the global enhancement of performance issue that this package addresses potential results which rationalization has to be delivered by a global only allocation and utilization issues of these services can generate. With modernization of the ATM system. and not capacity issues. similar sized airspace (11.5 million km² for Europe, 10.4 million km² for The need to better integrate airport the U.S.), a comparable number of Network Manager processes with airspace management airports (450 in Europe, 509 in the using a standardized approach is U.S.) and with very similar service The Network Manager function was evident if the capacity goals of the levels, the U.S. ATM system is able established at the beginning of 2012. SES are to be realized and we are to manage 67% more flights (15.9 The function has a governance not to continue wasting €2.35 billion million flights in the U.S., compared to structure supportive of airspace in additional costs attributable to 9.5 million flights in Europe) with less user needs and will be a useful the airport and associated terminal air traffic controllers (14, 600 in the tool to drive the implementation of airspace. U.S., 16, 700 in Europe) and 38% SES operations towards increased less staff (35,200 in the U.S., performance. However, there are also 57,000 in Europe). some unresolved matters that relate Human factors to the on-going EUROCONTROL The report from Eurocontrol and network technology research and Of all of the pillars, the least FAA11 identifies the fragmentation development and not the SESAR JU. tangible progress has occurred of the European ATM system as the This should be consolidated to the with respect to the human factors main driver behind such difference SJU program. and social issues involved in SES with 38 ANSPs in Europe (only one implementation. It is well recognized in the U.S.) and 63 en route centers To ensure the effectiveness of this that this is a challenging area and will in Europe (20 in the U.S.). role, the SES regulation must explicitly take commitment and diligence by state that the Network Manger has ANSP management and staff to This analysis indicates that the SES the authority to enforce coordinated work through this transition. objective of reducing the unit cost of actions by ANSPs. Additionally, the air navigation provisions by 50% is Network Manager role needs to be Without a successful human factors clearly achievable and this should strengthened to ensure that it can element to this transition, the SES be a key objective of each FAB. rationalize the network and identify will result in the deployment of opportunities for service quality new technology that will not be improvement by FABs. fully utilized and not deliver the anticipated benefits. A clear focus on better planning the engagement with ANSP staff is needed.

EUROPE USA

Surface 11.5 million km2 10.4 million km2 Airports 450 509 ANSPs 38 1 En route centers 63 20 Traffic 9.5 million 15.9 million Total Staff 57,000 35,200 Air Traffic Controllers 16,700 14,600 Controlled flight hours 13.8 million 23.4 million

10,11 2010 U.S./Europe Comparison of ATM-Related Operational Performance 3. KEY CONSIDERATIONS TO DELIVER SES Environmental Opportunity

The Single European Sky is a • There would be nearly half a million The aviation industry agreed in flagship transport initiative for the fewer direct jobs in the air transport 2008 to the world’s first set of European Union, delivering significant sector. sector-specific climate change European-wide economic, social and targets. The industry is already environmental improvements as well • Taking into account the indirect delivering on the first target – to as aviation sector specific benefits. and induced impacts, the total improve fleet fuel efficiency by 1.5% number of jobs supported by the per year until 2020. From 2020,

To deliver a truly Single European air transport sector would be over aviation will stabilize its net CO2 Sky and realize these opportunities, 1.9 million fewer than the base emissions while continuing to grow the European Union, member states forecasts. to meet the needs of passengers and institutions must be prepared to and economies. make the necessary and challenging • The direct, indirect and induced reforms. contribution of the air transport By 2050, the industry intends to

sector to European GDP would be reduce its net CO2 footprint to 50% €127 billion (2010 prices) lower, below what it was in 2005. Economic and with an additional €64 billion lost Social Opportunity through lower tourism activity. Companies across the sector are collaborating to reduce emissions The modernization and rationalization using a four-pillar strategy of new of many European industries including For the SES directly, the SESAR technology, efficient operations, energy, communications and transport Joint Undertaking Macroeconomic improved infrastructure and economic has been marked by the successful Impact Assessment demonstrated measures to fill the remaining transformation of European national that implementation could deliver emissions gap. leaders into global champions, 320,000 additional jobs and €419 delivering innovation, better service billion of additional GDP in the period There are three key European and lower prices to domestic and 2013-203013. programs which bring together international markets. European Commission institutions Disturbingly, Europe’s status as and industry to deliver these ambitious In air transport, this transformation a leading hub of world trade, a objectives: SESAR, the Clean Sky has supported the tremendous position held for centuries due to its technology program and European growth in demand to date and relative development and geographic Biofuel Flightpath. facilitated the emergence of major position, is increasingly under threat European carriers that are now from rapidly developing competitive Europe’s Single Sky program alone is among the world’s largest airlines. nations and regions. supposed to deliver a 10% reduction Additionally, rationalization has in environmental impact and so is occurred in the manufacturing A key factor in the EU’s ability to considered as one of the key drivers industry, allowing European remain competitive in the future will of a sustainable development of the manufacturers to become world be the seamless connectivity with air transport in Europe. leaders in many aspects of the the emerging economies of Latin aviation sector. America, , the Middle East and Asia. Today the air transport sector in Europe supports 7.8 million jobs This connectivity will not be possible and €475 billion in economic impact. without a new ATM system capable In fact, if European aviation were a of managing the anticipated growth. member state, it would rank 7th in The SES is designed to deliver this size by GDP. connectivity.

The study led by ATAG on the benefits of aviation beyond borders12 indicates that should growth in passenger and cargo traffic be one percentage point lower during the period 2010-2030, then in 2030:

12,13 From SESAR JU “Assessing the macroeconomic impact of SESAR” 2011 A Blueprint for the Single European Sky 08 Key Reforms

This opportunity for the European economy to create millions of new jobs, many billions of additional GDP in the coming years and to reinforce the position of Europe in the evolving global market must not be allowed to fail.

A new round of stronger and targeted SES legislative reforms is urgently required so that the benefits of SES can be achieved. To achieve stronger regulation it will be vital that the European Commission is supported by a Single Sky Committee free from conflicting interests with member We see three key reform state ANSPs, a strong consultation mechanism with airspace users and measures to achieve these greater transparency and account- goals: ability of decision making.

Member states and FABs will 1. The creation of a mature have to be fully engaged in the performance system implementation of all SES pillars with a clear commitment to structural 2. The rationalization of changes, which will have binding air traffic management targets and financial incentive institutional structures mechanisms. 3. The modernization of the In order to reach the SES goals, ATM system the key stakeholders, but particularly service providers will need to form different relationships and reach a greater level of collaboration.

This new ATM environment will have to be efficient, dynamic, highly- integrated and innovative.

Stakeholders will have to be willing and able to integrate developing technologies and capabilities both on the ground and on board.

European airspace will need to be operated collaboratively as a network if the safety, environment, capacity and cost-effectiveness goals are to be achieved. 4. A BINDING PERFORMANCE SYSTEM

Performance: Performance: Key Challenges Key Reforms

There remains considerable scope A fundamental issue in the approach These targets and financial incentives to improve performance through a to date for SES is the lack of an over- will take into account the necessary stronger more targeted performance all roadmap identifying the process investments required for the moderni- framework where states and service to deliver the high-level goals. The zation and rationalization of the ATM providers are held strictly accountable. European Commission needs to services and be cascaded at a na- establish such a plan and clearly tional or FAB level within the various The bottom-up approach, whereby identify the interrelationships between ANSPs through binding mechanisms. decision making is devolved to state the 5 SES Pillars and their individual This means that the performance and ANSP level and consultation contribution towards the trajectory plans will have to be based on the with local stakeholders, has failed to for safety, environment, capacity European Commission established deliver the targets. States have not and cost-effectiveness by 2020. roadmap. fully reached the targets they had Such a roadmap would set the previously agreed. The incentives necessary policy guidance to drive To ensure this process is transparent, of a competitive market are absent, the consequent performance frame- providers will report regularly to their and the coordination required across work, regulation and measures. customers on a series of Key Perfor- borders makes national oversight mance indicators (KPIs), which will inadequate. A new package of regulation estab- be incorporated into binding service lishing an independent EU economic charters between customers and FABs. Between 2004 and 2011, air regulator is essential. Evolution of navigation unit costs for en route the PRB into such an entity given its Future funding through charging services have decreased by 15%, current function and capability is a will be dependent upon achievement however this is mainly due to the logical step to take. To this end, the of those KPIs. Pricing caps will also be increase in traffic as the service units PRB should be detached from Eu- overseen by the economic regulator have increased in the same period by rocontrol and transformed into a full which will consider progress against more than 30%. Some progress has EU body overseen by the Commis- KPIs in determining the efficiency of also been made in flight efficiency but sion. The members of the PRB shall each provider. delays have significantly increased be appointed directly by the Com- and were in 2011 more than 30% mission. To guarantee that these There are a number of examples higher than in 2004 (60% higher that members exercise their functions in in Europe, such as the telecommu- the targeted objective with 1.6 min an independent manner and with- nications sector, where economic per flight as an average)14. out any conflict of interest effective regulation has successfully supported safeguards should be introduced the establishment of a cost efficient through regulation. and fair market for consumers.

The independent economic regulator Three instruments have been used to should establish milestone EU positive effect: targets to be achieved by each State or FAB, control the conformity of the • Progressive liberalization of former performance plans with these targets monopolies, and require appropriate corrective • Accompanying harmonization measures when necessary. measures, and • Competition rules.

Future funding will be dependent upon achievement of KPIs, overseen by an independent EU-wide economic regulator

14 Performance Review Report (PRR) 2011 A Blueprint for the Single European Sky 10 As indicated by ongoing regulations tives of the performance scheme, An overall SES roadmap is a founda- for other sectors, amongst the most but also considering the situation of tion tool that will set the policy guid- important characteristics of a regula- each individual ANSP and the level ance necessary for member states tory system are: of efforts made to engage in the and institutions to ensure each of the structural reforms and investments 5 Pillars interrelate and contribute • Transparency should apply to requested to deliver SES benefits. appropriately to the SES high-level the regulatory process: The targets, A robust airspace users’ consultation goals. This will serve to mitigate con- which are established, should be mechanism must be implemented in cerns regarding roles, responsibilities based on a set of KPIs, which are this process. and accountability as well as setting easily measured. The KPIs must be the overall trajectory for stakeholders independent and airspace users • Binding performance obligations: to deliver the SES. must be involved in the process. Where monopoly ATM services are maintained at local, national or FAB The establishment of a European-wide • Cost-effectively deliver an level, because rationalization of these independent economic regulator for adequate level of investment: services is considered to provide air navigation charges will ensure that The new regulation package should better cost efficiency, the new regu- a consistent, fair and accountable ensure that the future framework lation will have to clearly state that performance system is established provides the right mechanisms in providers of these services have to to facilitate the realization of SES. the context of the challenges facing be designated from member states This essential reform will make best the FABs, with increased emphasis as service providers for a limited and use of scarce resources and ensure for behavioral change and for regularly reviewed term and with a best practice economic regulation investments in rationalization and service level agreement containing is applied. modernization of the ATM supply binding performance obligations chain. aligned to the performance scheme.

• The profitability or return on invest- • Performance plans: The National Su- ments is a key driver: This can be pervision Authorities (NSAs) will still Price caps would be achieved by a change in the air be responsible for the elaboration set to provide financial navigation charges regulation, link- of the performance plan. However incentives for improved ing the rate of return on the invest- those plans will have to be submit- ments made by the ANSP and ted to the economic regulator for performance. equity of their shareholders to the endorsement before adoption by achievements of the performance individual states. scheme. This process will considerably reduce • Penalties: To ensure the compliance Performance: Key Benefits of states and FAB operators, the the timeframe performance scheme will be binding, A binding performance system de- required to finalize with the regulator having the ability signed to drive the right behaviors the Performance Plan to require reasonable and automatic is essential to realize the benefits of sanctions when divergence from the SES. To date the approach has been process and thereby performance scheme is observed fragmented, inconsistent and lacking increase the quality for a state or a FAB. Vigilance is accountability. This critical reform through traffic forecasts required to guard against the poten- must be approached with the benefits tial for costs associated with any to Europe and its citizens as the prime determined nearer to the penalties being included in charges. consideration and must not be ob- commencement of the The framework for penalties must be scured by vested interest or historical Performance Period. designed at an EU level to ensure institutional practices. inappropriate “trade-offs” cannot occur.

• Pricing: A key role of the economic SES Roadmap Independent Economic Regulator Incentivised Performance regulator would be to manage and monitor the approval process for • 5 Pillar Plan • EU-wide focus • Clear target setting the unit rates of the air navigation • Clear contribution • EU, FAB and State level • Strong financial penalties charges according to the objec- • EC determined for non-compliance 5. RATIONALIZATION

Rationalization: Key Challenges

Rationalization of European ATM is These ancillary services should be The Performance Review Report the foundation of SES implementation. liberalized through separating them (PRR) for 2011 also indicates that In the future ATM environment, a from the core bundled ANSPs and today’s support costs in Europe reduced number of FABs will have opening the market for competition. represents more than 70% of ATM/ to deliver efficient Air Traffic Services CNS costs which are estimated to (ATS). This will be achieved through SES implementation needs strong be approximately €300 out of a a limited number of air traffic control centralized functions to tightly coordi- total cost of €400 per flight hour. centers and rationalized ATM infra- nate the programs contained in the structure that operates with open five pillars. The European Commission For some smaller European ANSPs architecture, fully-standardized sys- will need the regulatory powers and the support cost is more than 80% tems and procedures. This evolution resources to ensure this is achieved. of their total unit cost. It is recognized will necessitate meaningful social that nine European FABs will not dialogue to ensure the ATM workforce Rationalization: provide the same unified system is engaged with these important that applies in U.S., however a changes. Key Reforms reasonable objective should be to reduce the ratio of European ATCOs The cost of services for the airspace Reducing support costs to additional staff from the present users will be reduced, while flight of Air Navigation Services ratio of 2.4 to 1.6. A slightly higher efficiency steadily improves. ratio is considered reasonable based Communication, Navigation and Comparison with the U.S.15 indicates upon the additional interface and Surveillance (CNS) services will that the ratio of Air Traffic Control requirements associated with multiple be provided at lower cost and with Officers (ATCOs) to additional staff FABs. This would in fact result in more higher efficiency. CNS, Aeronautical in the U.S. is 1 to 1.4 whereas in than 3000 additional professional Information Management (AIM) and Europe it is 1 to 2.4. staff providing support functions Meteorological (MET) services will across Europe if the 1.4 US ratio be re-organized with successful was applied. providers offering the most efficient and cost effective service.

Daily traffic > 2000

Daily traffic > 1000

Daily traffic < 1000

15 2010 US/Europe Comparison of ATM Related Operational Performance commissioned by A Blueprint for the Single European Sky 12 Eurocontrol and the FAA. Reducing the number of Air Traffic Control Centers

The comparison with the U.S.16 also It is considered that this could career path options for ATCOs, indicates that the U.S. ATM system be achieved without major capital and other professionals, appropriate is able to manage 67% more flights investments and would ensure the training of front line management to with 38% less staff. A major reason capacity to manage future growth enable their active involvement in for this disparity is that the number of of air traffic. the transformation program and the air traffic control centers in the U.S. is development of common standards 20, whereas in Europe there are 63 In addition to this rationalization, to address a range of workforce centers. innovative approaches should also be issues related to rationalization. considered. This includes concepts This fragmentation is a major driver in such as the “Virtual Center” where Synergies within FABs should not the relatively poorer performance of standardization of ATM equipment prevent other types of partnership the European ATM network. The US- could drive ANSP efficiency, facilitate between ANSPs drawn from differ- Europe comparison suggests that we load sharing and reduce investment ent FABs. The deployment of new need to be able to manage up to 20 costs via shared services models. infrastructure should be able to be million flights safely with the existing transferred to all FABs. All forms of number of ATCOs (16 700) and with collaboration between providers from a reduced proportion of additional Regrouping en route air different FABs should be encouraged professionals 26 720 (1.6 x 16 700). navigation services at FAB level to reduce service fragmentation. This fragmentation occurs at multiple To reduce the number of Air Traffic Whilst the number and design of levels within the existing European Control Centers (ATCC) in Europe FABs will be rationalized and evolved, ATM system and it contributes to the from 63 to 20 would require high they will remain the major organiza- current inadequate levels of overall capital investment in new facilities tions for the state to deliver ATM efficiency. and additional costs for organizing performance services. The objectives the mobility of the staff. of reducing the number of air traffic It is necessary that each FAB be control centers and support costs required by regulation to develop a However, a reasonable program should be fulfilled at FAB level. roadmap for rationalization of ATCC’s of rationalization of ATCCs will including key steps necessary for so- be necessary if Europe is to regain FAB initiatives should therefore cial dialogue, cost-benefit and safety competitiveness and achieve the SES. be reviewed against the following analysis. It is therefore necessary to identify objectives: opportunities where rationalization is appropriate from a performance, • The provision of en route air traffic investment and human factor control services is regrouped at perspective. In this regard, it will FAB level with centralization of be necessary to merge or integrate operational management, training, the smaller ATCCs, with the larger procurement and support functions. or those that have been recently modernized to leverage the existing • A clear program of rationalizing With the objective of investment. Analysis indicates that and regrouping air traffic control limiting investments in new no more than 40 ATCCs should centers and other facilities at FAB facilities and being able to be required to operate European level is developed in each national airspace with the current number performance plan to reduce the control the anticipated 20 of ATCOs. total number of centers in Europe million flights per annum from 63 to not more than 40. with the existing number Present situation SES implementation of ATCOs and a reduced • A wide-ranging and robust change 10 million flights 20 million flights management program is established number of additional in each FAB to ensure staff are support professionals, directly and continuously engaged not more than 40 air traffic in the transition. This also includes 16,700 ATCOs 16,700 ATCOs a review of current work practices control centers should be 40,300 additional 26,720 additional (to make the optimal use of new required in Europe professionals professionals technology), the development of 63 AIR TRAFFIC NOT MORE THAN CONTROL 40 AIR TRAFFIC CENTERS CONTROL CENTERS

16 2010 US/Europe Comparison of ATM Related Operational Performance commissioned by Eurocontrol and the FAA. Rationalizing the ATM infrastructure

In parallel, European ATM regulatory framework to steer the the new regulation will have to infrastructure has to be rationalized. implementation of standardization clearly state that providers have Currently ANSPs operate separate and consolidation measures in a to be designated for a limited and ATM platform which multiplies consistent and coherent manner. regularly-reviewed term and with a costs and makes a coordinated Within the FABs a common steering service level agreement containing deployment at EU level much more body should be established in order binding performance obligations difficult. There is a need for shared to ensure consistent and coordinated aligned to the performance scheme. and more effective coordination of deployment. procurements at FAB level which Where states have opened markets could also occur between FABs and As standardization measures are to competition for services, such as at EU level under the supervision realistic and effective means to control tower services, it is important of the Network Manager. Globally, achieve the EU-wide performance that the same rules that govern this there are countries including the targets, respective roadmaps for type of competitive service provision U.S., and that have standardization and infrastructure should apply throughout Europe. successfully deployed new ATM consolidation shall be developed infrastructure such as ADS-B and and endorsed. data-communication systems through Clarifying the role of EASA a large-scale infrastructure and Procurement would then be services tender process. Indeed, it implemented through tenders issued The Commission intent to expand can be the case that the “unbundling” at EU level or FAB level, providing the scope of the EASA to deal with of traditional functions can enable suppliers with the opportunities to all technical regulation and oversight, technology deployment using achieve economies of scale and including issues not related to safety alternative investment and service to reflect this in pricing. These is noted. However, overloading EASA models. economies of scale will reduce the with new tasks might create more initial investments required for the problems than benefits and could This is an approach that should new infrastructures and result in distract EASA from its core safety be applied in Europe, where all the a decrease of the global level of mission. The expansion of EASA’s new infrastructures for ATM should investments of the ANSPs. scope should not be a priority at be based on fully standardized and this point in time. Instead, potential interoperable systems defined at EU overlaps between EASA and SES level. Unbundling the CNS, AIM frameworks could be solved through and MET services proper coordination mechanisms Standardization of ATM equipment between EASA, Eurocontrol and the is an effective means of increasing The provision of Communication, Commission without changing the the efficiency of ANSPs. A common Navigation and Surveillance (CNS), institutional framework. standardized ATC interface leads AIM, and Meteorological (MET) to improved FAB performance, by services will also have to be reorgan- Regarding rulemaking, a more introducing effective load sharing ized to reduce fragmentation and transparent governance is needed to processes. It also contributes to duplication and to drive increased ef- ensure that the needs of those that functional convergence of equipment ficiency. This can be achieved through finance the system have appropriate by automatically solving the uneven consolidation at FAB level using a input to decision making processes. spread of performance arising from tender process that encourages all Certification of new components different levels of sophistication in the European providers to compete and of the ATM system should be the operational concepts and technical to extend their services beyond the exclusive role of EASA. support. national borders.

Individual ANSPs will no longer Regardless if these services are be compelled to purchase a fully- centralized at EU level or fully fledged system of their own, but rationalized at FAB level, the The fostering of will be able to acquire a service providers should be designated from a competitive supplier or share through processes that allow all rationalized providers equipment with another provider, European licensed service and industries able to such as within the framework of a providers to compete. deliver air navigation FAB project. This will reduce not only the investment costs but also Where these services are services beyond borders the overall costs of providing the rationalized at FAB level because must occur. services concerned. Legislation is rationalization is considered as needed to provide an appropriate providing better cost efficiency,

A Blueprint for the Single European Sky 14 The activities of National Supervi- The Network Manager therefore of these projects, and penalties sory Authorities (NSAs) concerning should be empowered with new should apply in the event that the services that are rationalized at FAB responsibilities and functions allowing FAB Member States do not comply level, or delivered by one service pro- this role to develop a clear strategic with the proposed measures and vider for several countries, should be view of the network improvements to deadlines. centralized in regional offices located be coordinated between the different in each FAB under the supervision stakeholders. The role should be The new regulation of SES should of EASA. This will ensure a more specifically mandated to define and clearly state the functions to be fully efficient use of the existing resources supervise all the centralized functions centralized at EU level as part of and avoid duplication of checks or of the SES implementation including the responsibilities of the Network lack of coherence in compliance the introduction of technology that Manager; which services are to be regimes between states. Importantly, will increasingly drive the European delivered at FAB level; and which EASA has also to be more efficient aviation network, such the System services are to be submitted to with less complex regulation, rule Wide Information Management competition in accordance with making processes easy to understand (SWIM) and Air Traffic Flow the rules of the EU open market. and to implement by operators. Management initiatives. It is also With potential for significant critical that the Network Manager rationalization these functions will This means a more operational ensures that these systems effectively be evaluated through cost benefit regulator, driven by a relationship interface with Airport Collaborative analysis, which will analyze the with the operators governed by two Decision Making. benefits of full centralization at EU main principles: responsibility and level of some existing ATM services transparency. A new governance Additionally, the Network Manager such as ATFM, and SWIM but and stronger consultation process should be given the competence to also a next generation flight plan will have to be established to better propose and to carry out specific management system. integrate operators concerns in projects for the optimization of FAB the setting up of the regulation. At governance, airspace as well as present, the move towards a more technical and human resources. comprehensive technical “European Realistic but ambitious time lines Aviation Agency” should not be should be set by the Network considered, as the slow progress Manager for the implementation on the establishment of a SES is not due to the lack of streamlined and balanced application of aviation The Network Manager legislation in the EU. • Focuses across many European airspace blocks to manage overall network performance through optimized trajectory and SWIM Expanding the role • Manages demand and capacity across the of the Network Manager network through techniques such as advising flights to delay on the ground where necessary The Network Manager has a critical • Re-designs airspace, air-routes to be more role to play in the rationalization of efficient and maximize capacity across Europe the European ATM system and this role has to be empowered to be Functional Airspace Blocks the architect of the ATM network in Europe, working in collaboration • Focuses on a small number of European with all aviation stakeholders. airspace blocks to optimize airspace, human and technical resources Moreover, the ability of the Network • A new state and institutional structure to organize air navigation services Manager to effectively cover all of Europe, to reach all operators and • Will rationalize European airspace from 27 blocks to only 9 to facilitate military coordination will make it the primary custodian of delivering network benefits, which is Air Traffic Control Centers an essential element for the success • Focuses on one European airspace of SES implementation. • Provides air traffic services to flights • Currently 63 individual centers across Europe with potential for significant rationalization

Reform of Eurocontrol Human Factor

The evolution of EASA combined The necessary process of With the achievement of that, the with the Network Manager develop- rationalization must be done with objective of a 50% reduction of the ing a greater role in rationalizing the full participation and transparency unit ATM costs would be realized. European ATM architecture, further of staff and their representatives; necessitates the reform of Eurocontrol. the risk of not having an engaged The regrouping of en route air workforce for such a change is navigation services at FAB level will R&D activities will need to be well significant. also allow more direct routes and aligned with Horizon 2020 and SJU free routing in the upper airspace, programs and the Maastricht ACC To address this risk, the European with a 50% reduction of the route should be fully integrated in the Commission needs to establish a extensions in the interim term. It FABEC structure. planning framework across all FABs should result in an annual €1 billion to identify and track the progress of cost saving and a 3 million tonnes

Eurocontrol will focus on activities human factor engagement. reduction in CO2 emissions. related to its enhanced role as the EC appointed Network Manager, the new A better organization of the airspace at governance should be based around Rationalization: FAB level, and an enhanced air traffic industry leadership on these activities. Key Benefits flow management system developed However, this should not limit the role by the network manager at EU level and use of expertise of Eurocontrol to Rationalization will contribute should eliminate most of the en route continue support of SES and SESAR. significantly to the reduction in unit delays representing a €1 billion cost and to the absorption of the €5 annual cost saving. Eurocontrol will have to achieve billion of current inefficiencies. the performance targets set by the independent economic regulator. The immediate regrouping of The cost base reform of Eurocontrol en route air traffic control services Rationalization alone must continue to decrease regardless at FAB level with centralization of will mean the unit cost of of traffic growth. operational management, training, procurement and support functions ANS provision is reduced should allow a 10% cost saving by 20% in the interim term Civil-Military Alignment (€700 million per annum). In the interim term, the other benefits of Military operations must be given reducing the number of air traffic appropriate regard in the rationaliza- control centers, and a better cost More direct routes and tion process. Importantly, as ration- efficiency for CNS, AIM, MET alization leads to reduced fragmenta- services, should deliver an additional free routing whenever tion and using airspace as a single, 10% reduction in unit cost and and wherever possible, flexible resource, it is anticipated that inefficiencies. It should reduce the elimination of most of the both existing and emerging military unit cost of ANS provision by 20% mission need will be better accom- in the interim term. en route delays, should modated and integrated with growing result in a €2 billion cost civil air transport sector demand. In the end state, with the US ratios saving and a 3 million applied to the European context, 16 700 ATCOs and a total number tonnes reduction in CO2 of less than 45 000 professionals emissions. should be able to manage twice the amount of traffic.

Immediate Term Interim Term End-State Total savings • 10% unit cost reduction • 20% reduction in unit cost • 50% reduction in unit cost €3.7 billion per annum • €700 million cost savings • €1 billion of cost savings • €2 billion of additional cost • CO2 emissions savings: per annum per annum savings per annum 3 million tonnes per annum • Enroute Services grouped • Reduced number of ATCC • 16,700 ATCOs for 10 million flights at FAB-level and better cost efficiency • Total number of less than • 6 million tonnes for 20 • Centralization of operational for CNS,AIM & MET 45,000 professionals million flights services. management, training, • 40 ATCC able to manage procurement and support • More direct routes and twice the traffic with direct functions lower delays routes and no delays

A Blueprint for the Single European Sky 16 6. MODERNIZING THE ATM SYSTEM

Modernizing: Key Challenges The expected increase in productivity ATM modernization cannot be of the European ATM system will not successful if human factors are not be possible without the successful fully integrated into the development deployment of new technologies and and validation of new concepts and The lack of coordination operational concepts that support procedures supporting SESAR in the implementation of the ATM transformation process, deployment. All the professionals a data link infrastructure including the better integration concerned by the structural changes of airborne and ground systems. required to deliver the high-level at EU level is one of the This has to be supported by a robust goals of the SES implementation major failures of SES validation and implementation process must be involved in the decision- implementation today. but also by funding, financing and making process. incentive mechanisms.

This requires a clear commitment Modernizing: of the states and ANSP to implement Key reforms the requested infrastructure and systems in synchronization with the the evolution required for airborne SESAR governance equipage. Mandates have to also apply to ground based equipment. Considerable scope exists to To successfully deploy Penalties against states not fulfilling improve system performance through SESAR, the regulations their obligations on time must be the introduction of new technology and implementation rules enforced. and new operational concepts. This is the objective of a successful SESAR established by the EU will The “Best Equipped Best Served” deployment. To realize this ambition, have to ensure that the (BEBS) principle must be broadened the institutional framework must governance mechanisms to a “Most Capable Best Served” avoid duplication and ensure cost (MCBS) to encompass aircraft efficiency. are driven by the SES equipage, crew training, operational high-level goals. certification, flight planning capability Airspace users will have the exclusive and the ability to efficiently and responsibility to endorse business seamlessly convey the pertinent cases for Common Projects before capability to ATM. The discussion European Commission adoption. on applying this principle for Following such endorsement the encouraging investment needs to delivery of improved performance progress. It should be applied as outcomes will be binding upon a progressive tool to facilitate and ANSPs and airports. accelerate the transition towards a more effective airspace use concept. Common Projects will define, Harmonization between The €3 billion support for SESAR in total transparency, which capa- SESAR and NextGen will deployment, which was forecasted by bilities and technologies are to be have to be guaranteed EC in the next TEN-T program for the deployed and where, within an as- period 2014 to 2020, needs to be sociated timeframe on which ANSP, through fully interoperable adopted by the states and European airports and airspace users can com- systems. Airspace users Parliament. mit. Whilst the manufacturing industry and industry suppliers will cannot be involved in the governance Without this funding, airspace of SESAR deployment, they do have have to be fully engaged users will have difficulties funding a role to support end users through in this harmonization investment both directly and indirectly information exchange. This will assist process through constant in the new technologies required decision making to ensure global exchanges between the for SESAR. A powerful funding and interoperability as well as to ensure incentives mechanism is required to that the most effective solutions are key stakeholders of the support the efforts required for the evaluated, independent of any vested two programs. modernization of the European ATM interest. system. Human factors

Proposed Common Projects will This approach will support the The new, sophisticated tools have to demonstrate early benefits airspace users to fund directly and necessitate an upgrade of skills and the process will have to be fully indirectly the estimated €23 billion for the traditional role of air traffic transparent and driven by airspace they will contribute to deliver SESAR controllers as they become air traffic users’ expectations. The review of (estimated €30 billion total cost less managers. This evolution, much the deployment program should the estimate €7 billion military costs). like the transition pilots experienced include geographical and technical with modern airliners, supports a analysis of the present European ATM It will be important that transparency system requiring no increase in ATC performance deficiencies and the of planned service provider capital staffing levels beyond today. The new options for improvement. expenditure is adequate to ensure technologies require a broadening that there is no duplication or of skills from the technical workforce The consultation processes for the reallocation of cost. as they will have to manage new and deployment of SESAR will also have more automated systems in larger air to be reinforced. A high-level body The timing of allocation of community traffic control centers. similar to the NextGen Advisory funding will be important. The com- Committee (NAC) will have to be munity funding needs to be aligned An effective on-going social dialogue established. with the critical period of SESAR de- must be developed to assist the ployment from 2014-2019 to ensure transition process. If staff are not that Europe has in place the essential fully engaged in this transition, the Funding and incentives capabilities on which subsequent risk to a successful outcome will be mechanisms conceptual changes to ATM are significantly increased. anticipated and on which substantial It is absolutely necessary that the benefits are expected. proposed budget for the period 2014 to 2020 is confirmed so that a This will also align with the perfor- funding mechanism can be built that is mance scheme second reference able to provide efficient support and period and thus ensure distribution incentives to the SES implementation. of funds can be clearly linked to not Governance rules must ensure that only technology/infrastructure invest- the use of this fund provides a real ment, but performance outcomes. incentive to SES implementation. Additionally, European Union financ- The requested €3 billion community ing mechanisms must de-risk the funding is the minimum contribution investments required by airspace acknowledging the estimated users through repayment terms €30 billion total investment cost. linked to benefit realization.

The airspace user community is the seminal investor in funding the ATM supply chain. It is therefore necessary to direct community funding specifically to support these stakeholders in their role as the principal investor of SESAR deployment in an efficient manner.

In order that community funding support is managed in a transparent, efficient and fair manner whilst driving a timely and synchronized SESAR deployment, it is considered that a mechanism to off-set user charges is essential.

A Blueprint for the Single European Sky 18 Modernizing: Key Benefits

Modernization will facilitate the safe Improved and more integrated growth of air transport in Europe, management of operations at airports whilst also improving flight efficiency, will also be delivered and should reducing emissions with the best eliminate most of the taxi out costs possible use of aircraft capabilities. representing today a €0.8 billion annual cost saving, and most of the The 2010 U.S./Europe comparison airports delays, representing today of ATM related operational perfor- a €0.5 billion annual cost saving. mance17 has shown that the estimat- ed total benefit pool actionable by a Whilst implementation of the full 4D better air navigation service provision trajectory, continuous descent and is a reduction of approximately 300kg climb procedures, use of efficient taxi of fuel burn per flight. This translates technologies and procedures, better into a potential fuel saving of 3 mil- flight profiles and more optimized lion tonnes per annum for 10 million speed adjustments allowed by flights with an average reduction in business trajectory management The modernization of the flight time of 10 minutes per flight. should also result in a yearly cost European ATM systems saving of €1 billion and a 3 million will deliver a 300kg fuel The deployment of technologies that tonnes reduction in CO2 emissions. offer improved trajectory options and saving per flight, resulting better manage demand and capacity in €6 billion of cost so that arrival holding and sequencing savings, and 12 million is eliminated are anticipated with a tonnes reduction in CO yearly cost saving of €1 billion when 2 fully implemented and a 3 million emissions when air traffic tonnes reduction in CO2 emissions. is forecasted to grow to 20 million flights annually, with an average reduction of flight time of 10 minutes.

Immediate Term Interim Term End-State Total Savings Taxi out reduction: €1 billion cost savings €1 billion cost savings Total annual cost savings €0.8 billion cost savings per annum per annum €3.3 billion, and 6 million per annum tonnes of CO savings for 3 million tonnes CO 3 million tonnes CO 2 2 2 10 million flights Airports delay reduction: savings per annum savings per annum €0.5 billion cost savings €5.3 billion of cost savings, per annum • Extended AMAN • Full 4D trajectory 10min reduction of flight • PBN • Continuous descent and time, and 12 million tonnes • Surface Management climb procedures • Merging procedures of CO2 savings for 20 systems million flights • i4D trajectory • Efficient taxi technologies • CDM processes on airports and procedures • Better flight profiles • Optimized speed adjustments

17 2010 US/Europe comparison of ATM related Op­erational Performance commissioned by Eurocontrol and the FAA 7. CONCLUSION

The Single European Sky initiative is The benefits of a strong, independ- To achieve this, a strong social expected to make significant contri- ent European-wide performance dialogue is needed to find the right bution to the European economy and framework are clearly evidenced from settings between the varying interests community. Through managing the other industry sectors. Evolution to an and to understand that a safe, modern increased demand for air transport environment where behaviors to deliver and efficient European air transport in a safe, efficient and sustainable on ambitious but realistic targets are industry is a unified single sky. manner, the SES will prove a vital fostered and with reasonable and enabler to the competitive advantage meaningful financial penalties for The Single European Sky is of European commerce as well as non-compliance enforced is essential too important to the European connecting the citizens of Europe for the SES. The establishment of an economy and its citizens to be with the world. independent economic regulator will allowed to fail. The benefits are be necessary to achieve this. clear. The opportunities there to To realize this contribution, the SES be taken. The reforms are understood. has established goals for safety, The comparison with the US The political commitment to see these environment, capacity and cost- shows that the objective of safely challenges though to realization is effectiveness to be achieved managing a doubling of air traffic now the critical element needed to by 2020. with the same number of air traffic assure success. controllers and a reduced number The realization of these goals of support professionals can be requires commitment by the Euro- achieved through the rationalization pean Parliament, European Commis- and modernization of the European sion, member states and institutions ATM supply chain, including the to make material change to the way opening up of support services. in which Air Traffic Management is organized and operated. Such rationalization, includes the rationalization of ACCs from 63 to not A new ATM environment can more than 40 and a reduction in the be implemented; improving quality ratio of support staff from 2.4 to 1.6. of service whilst accommodating growing demand, enabling fuel and Modernization of European ATM time savings, resulting in better en- infrastructure must not be undertaken vironmental outcomes, fewer delays, in isolation, but rather will need to be fewer cancelled flights, and overall aligned with both the rationalization increased European air transport process and the binding performance efficiency. system in order to realize the needed performance improvements. Three key reforms are required to implement the new ATM environment: These reforms will ensure the com- petitiveness, adaptability and mobility • The creation of a binding of air transport professionals and this, performance system, in turn, will improve productivity and drive job creation and sustainable • The rationalization of air traffic growth in real wages. institutional structures and

• The modernization of ATM systems.

A Blueprint for the Single European Sky 20 SUMMARY OF THE KEY REFORM MEASURES REQUIRED

Reform Measure Reform Detail

Implementation of an independent European economic regulator: • Setting EU targets to be achieved by each state or FAB. • Controlling the conformity of the performance plans with these targets. • Requiring appropriate corrective measures or penalties when necessary. • Linking the rate of return on the investments made by the ANSP and equity of their shareholders, to the achievements of the Performance Scheme. Performance • Taking into account airspace users concerns through consultation mechanisms. Implementation of binding mechanisms betweens states or FABs and the air navigation services providers allowing the targets set to be cascaded through the whole ATM supply chain with contracts issued on a limited and regularly-reviewed term according to the performance objectives.

Clarification of the role of EASA: • Safety accountability across the entire air transport supply chain • Supervising all licensing and certification activities

A Network Manager empowered with new responsibilities and functions: • As architect of the ATM network in Europe • To develop a clear strategic view of the network improvements • To define and supervise all the centralized functions

A regrouping of en route air navigation service provision at FAB level: • Base on a centralisation of operational management, training, procurement and ”backroom” support functions • Ensuring a reduction of the number of ATC centers from 63 to not more than 40 Rationalization • Ensuring a reduction of the ratio of ATCOs to other professionals from 1 to 2.4 to 1 to 1.6 • Supported by a development of career path options for ATCOs and technical workforce, an active involvement in the transformation program and the development of common standards to address redundancy, relocation and staff performance

A new ATM infrastructure based on fully standardized and interoperable systems • Defined at EU level • Implemented through tenders issued at EU level or FAB level A rationalization at FAB level using periodic tender process for the CNS, MET, AIS services fostering providers delivering services beyond borders with a better cost efficiency and the support of highly qualified industries.

Implementation of a governance and consultation mechanisms for SESAR deployment allowing airspace users to have a key role in the modernization process.

Deployment packages based on a consolidated business case endorsed by airspace users aligned with both rationalization and performance needs.

Priority given to changes that can be implemented in the immediate term with quick benefits for the Modernization airspace users.

A €3 billion funding from EU for the period 2014 to 2020 to provide efficient support and incentives to the SES implementation.

Implementation of MCBS principle to accelerate changes and allow a appropriate return on investment for airspace users SUMMARY OF THE NEW ATM ENVIRONMENT BENEFITS

Safety Capacity Cost-Effectiveness Environment X2 or 3 where x10 50% reduction 10% reduction needed*

Safety improvement Rationalization of the Regrouping of En Generalisation of is the first objective of airspace design and route air navigation free routing in upper SES implementation. regrouping of en route services will allow airspace allowing more This will be delivered air navigation services a 10% cost saving direct routes will allow by the continuous ef- at FAB level will allow (€0.7 billion annually) a 50% reduction of the fort of the ATM supply a progressive 20% in the immediate term. route extensions in the ATM supply chain chain to improve the increase of capacity in Reduction of the immediate/interim term. rationalization reliability of systems, the immediate/interim number of ATCC and It will result in an annual to maintain a high term. Most of the en better organization €1 billion cost saving standard of qualifica- route delays will be of CNS, AIM, MET and a 3 million tonnes

tion of staff, to fully absorbed representing services should deliver reduction in CO2 integrate human factors a €1 billion annual additional cost savings emissions. in the development and cost saving in the resulting in a 20% implementation of immediate/ interim reduction of unit costs new technologies. term. in interim term. Reinforcement of regulation and controls Annual cost savings Annual cost savings Annual cost savings through EASA will also Immediate/Interim Immediate/Interim Immediate/Interim contribute to this safety term: €1 billion term: €0.7 billion term:€1 billion enhancement. End State: €1 billion End State: €0.7 billion End State: €2 billion The new technologies Development of new New technologies, Extended AMAN will increase the relia- technologies and such as data link combined with PBN, bility of data exchange, operational concepts system for communica- merging procedures facilitate situational ensuring a true gate- tions, better predict- and trajectory awareness of pilots and to-gate approach ability of the traffic with management will controllers and thereby will allow an 80% time based operations, progressively eliminate enhance safety related increase of capacity enhanced conflict de- arrival holding and decision making. Bet- of the ATM system tection and resolution sequencing costs with ter predictability of where and when systems with trajectory a yearly cost saving traffic combined with required through data based management, of €1 billion and a 3 enhanced conflict link communication etc. will allow a 30% million tonnes reduction detection and resolu- systems, enhanced additional reduction in in CO2 emissions for tion systems will allow conflict detection and unit cost of the ATM 10 million flights. the safe management resolution systems, system at the end state Implementation of ATM supply chain of 20 million flights per etc. Implementation of as the same number of the full 4D trajectory, modernization year across European surface management Air Traffic Controllers continuous descent airspace. systems associated to will be able to handle and climb procedures, other CDM processes safely a doubling of use of efficient taxi on airports will absorb traffic. technologies and most of the taxi out procedures, better costs in the immediate flight profiles and and interim term speed adjustments representing a €0.8 allowed by business billion annual cost trajectory management saving, and most of will allow additional the airports delays, yearly cost saving representing a €0.5 of €1 billion and a 3 billion annual cost million tonnes reduction

saving. in CO2 emissions for 10 millions flights.

Annual cost savings Reduction of the unit Annual cost savings Immediate/Interim cost by 30% Immediate/Interim term: €1.3 billion term: €2 billion End State: €1.3 billion End State: €4 billion

A Blueprint for the Single European Sky 22