CONTENTS
ROMATSA MANAGEMENT IN 2017
BOARD OF DIRECTORS
Radu Carmen president (to 12.05.2017) Titea Dragoş president (since 12.05.2017 until 20.10.2017) Neacşa Petre president (since 20.10.2017 until 12.11.2017) Niţu Mărioara president (since 14.12.2017 until 27.12.2017) Gavrilă Georgeta chairman (since 27.12.2017)
Costaş Bogdan member (to 12.05.2017) Brezeanu Dragoş member (to 12.05.2017) Niţu Mărioara member (since 28.02.2017 until 28.08.2017) (since 27.09.2017 until 14.12.2017) (since 27.12.2017) Ionescu Răzvan Ştefan member (to 10.01.2017) Neacşa Petre member (since 01.01.2017 until 20.10.2017) Titea Dragoş member (since 10.03.2017 until 12.05.2017) Tărteaţă Cristina member (since 12.05.2017 until 12.11.2017) (since 27.12.2017) Andronic Cristina member (since 12.05.2017 until 12.11.2017) Gâdea Adrian member (since 14.06.2017 until 14.12.2017) (since 27.12.2017) Udroiu Mihaela member (since 14.06.2017 until 14.12.2017) (since 27.12.2017) Gavrilă Georgeta member (since 14.12.2017 until 27.12.2017) Husaru Nicoleta member (since 14.12.2017) Alexandru Cosmin member (since 14.12.2017)
MANAGEMENT TEAM
Dumitrescu Gabriel p. general manager (to 01.03.2017) Cimpuieru Valentin p. general manager (since 01.03.2017) Cârnu Fănică assistant general manager Şerban Adrian Remus operating department manager Cimpuieru Valentin technical development department manager (to 01.03.2017) Bondor Bogdan technical development department manager (to 01.04.2017) Grama Alexandru ATM manager (since 10.01.2017 until 01.03.2017) Mircea Cosmin ATM manager (since 06.04.2017) Nicolai Eugen p. economic manager Miroiu Valentin safety and quality manager Dumitrescu Cosmin technical manager Titea Dragoş legal and administrative manager
- 1 - OPERATIONAL, ENGINEERING ACTIVITY, SAFETY AND QUALITY OF THE SERVICES PROVIDED
OPERATIONAL ACTIVITY
Management of En-Route Activities
The activities carried out in 2017 were the following:
- the optimization of the ATS en-route structure to comply with the existing ERNIP structure - European En-Route Network Improvement Plan.
The activities for the implementation of projects/activities foreseen in the ERNIP edition in force were carried forward.
- in 2017 were carried forward the activities started in 2016 to solve the issues of air traffic flows in the FIR Bucharest generated by the reorganization of the Bulgarian airspace caused by the reorganization of the air traffic flows in the UDROS-ODERO area due to the Crimean conflicts, and subsequently, due to the Middle East conflicts. Within the mentioned context, ROMATSA addressed EUROCONTROL and the involved countries - Bulgaria and Turkey - an invitation to organize an official meeting to present the results obtained by ROMATSA following the summer season of 2016 to identify the most suitable solutions for network improvement, convenient for all parties. The official meeting took place between 12 and 13 January 2017, and the discussions took place without any favorable results.
- activities regarding the implementation of a changed ATS en-route structure in the vicinity of CTR Iasi
The three new routes - Y32, Y33 and Y34 - were implemented on 2 March 2017. This context includes as well the change of a route segment on T802, namely for lowering the minimum level to optimize/streamline flight operations for landing/take- off to/from Chisinau. This change has been approved and shall be implemented on the AIRAC cycle date of April 2018.
- activities regarding the implementation of a changed route structure in the vicinity of CTR Craiova
Two routes were changed, ATS - Y88 and T226, regarding the lowest level of flight on the airway on two segments in the specified routes. The change shall take effect on the AIRAC cycle date of April 2018. The necessary steps have been taken to accept the CMSA's approval for changes additional to those mentioned in the ATS route structure in the vicinity of CTR Craiova, which will result in the streamline of flight operations for aircrafts departing and landing in Craiova, meaning that they will permanently be improved in a controlled airspace, and it will consequently increase the ATM safety.
These changes are: - the expansion of the T285 route by entering a new route segment TITEK-CRV
- 2 - - WPT defined as IAR T226 with (AAAAA) North West CTR Craiova limit - AAAAA-SODGO FL055 minim - WPT defined as IAR T226 with (BBBBB) South East Craiova CTR limit - BBBBB-AAAAA FL055 minim.
The provided implementation deadline is the AIRAC cycle date available as soon as possible after taking all the steps necessary to obtain the approval of changing the system, according to the regulations in force.
- activities concerning the implementation of two new ATS routes interfering with Ukraine and of a new ATS route between FIR Chişinău, Bucharest and Sofia.
After obtaining the CMSA approval, activities to prepare the documentation for obtaining the approval of the ATM system change shall be performed. Implementation deadline: April 2019
- medium-term operational capacity planning
Within the meaning of the participation in the NETOPS Capacity Planning group activities:
A. Operational capacity planning during the summer of 2018:
- the optimization of the coding of sector configurations for ACC Bucharest, according to the tender book of the ”Provision of CACD Data" document - Network Operations Handbook, ed. 12.1, 09.03.2017; - the determination of the capacity of the DINAR (DINSI + ARGEŞ) merged sector by organizing a real-time simulation within the Bucharest DR Simulator. To support this simulation, SMR has designed dedicated exercises with gradually increased traffic load according to actual traffic peaks and according to the STATFOR Base forecast for the summer of 2018.
B. The review of the STATFOR Base Forecast for the medium-term traffic evolution (published in March 2018) and the estimation, with the help of the NEST application, of the number of sectors required to be available during the week and in the weekends, in the summer of 2018, by complying with the following (in the listed order):
- the classification within the declared sector capacities; - the reduction of the ATC overload; - reducing the number of operating positions used.
- the participation in the activities coordinated by the ATM System Service in order to expand the operation of the FRA at night between the ATC from Bucharest, Budapest and Sofia - SEEN-FRA. The activities carried out in the line of business of the Management of En-Route experts are related to the preparation of the supporting documentation for the implementation of the SEEN-FRA concept, submitted to RCAA and Airspace Management Council in order to obtain the Airspace Management Council's consent, the participation in the preparation of the safety study (from ROMATSA, the study shall be prepared by the Safety and Quality Directorate), the procedures for cooperation between the ATS units involved (LoA), the participation in
- 3 - the issuance of AIC to inform air operators about the SEEN-FRA implementation, and the issuance of the AIS base to be published in AIP Romania.
- the participation in the line of business of the Management of En-Route experts, in the analysis of the draft laws and regulations sent to for consultation by RCAA, MT (Air Code, Government Decision no. 9012/2010, etc.), and the provision of the opinion concerning new legislative proposals on the expert line of responsibility.
At present, at European level, EASA is performing a wide process for the amendment/alignment of the applicable in the NSA/ATM field. Within this context, opinions are provided in the line of responsibility of experts on the legislative proposals submitted to the air navigation service providers for consultation, for example: EASA - NPA 2016-09/Air Traffic Services Requirements, NPA 2016- 02 on the technical requirements and operational procedures for aeronautical information services and aeronautical information management.
- the comparative review of the existing proposals for the national change of the Air Code; - the legal interpretation, on its line of responsibility, of various European Regulations applicable to the operational field; - reviewing and preparing proposals and remarks for the regulation of RACR-ATS, ed. 3.0 and for PIAC-ATS, ed. 2.0, the 7th amendment; - reviewing the support documentation for the Network Management Board meeting (November 20/29, 2018) and preparing the detailed Agenda for the General Manager to attend this meeting (the General Manager of ROMATSA is participating in the NMB as Danube FAB representative); - the review of the supporting documentation for SSC meetings (on the line of responsibility) and the submission of the opinion to the RCAA as the representative of Romania in this forum; - internal coordination to provide a legally documented answer related to the national provisions applicable to the ATC strike (Social Dialogue Law No. 62/2011) by the ROMATSA representative in the Minimum Service Level operating group developed at the request of the Network Management Board.
- to develop or update, as appropriate, operational procedures applicable to Class G en-route air traffic and to airspace services:
Collaboration procedures between ROMATSA ATS units and between ACC Bucharest and the ACC (LoAs) adjacent units, ATC Instructions for Bucharest ACC Sectors, ed. 6.0/30.03.2017, Operational procedure for the distribution/agglomeration of the ACC Bucharest sectors, ed. 2/2017, The procedure concerning the delivery and acceptance certificate of the shift service, ed. 2.0/2017, ATCO Manual, ed. 6.1/July 2017, Procedure concerning the delivery and acceptance certificate of the shift service ATM-SMR-PIN 2131, ed. 3.0/2017, Operational working procedure without flight progress strips in the ATM ROMATSA System Phase 4 for ACC and APP, ed. 2.0/2017, Instructions on flight information service and on allerting service in FIR Bucharest, ed. 4.0/15.12.2017 (update according to the provisions of the (EU) Implementation Regulation no. 2016/1185 of the Commission of 20 July 2016 for the amendment of the (EU) implementation Regulation no. 923/2012 of the Commission (SERA part C) and for the abrogation of the Regulation (CE) no. 730/2006, preparation of a design for the VFR pilots concerning provision by ROMATSA of FIS and ALRS.
- 4 -
In all, 9 procedures, 6 external LoAs amendments and 5 internal LoAS amendments were prepared.
There have also been prepared the safety assessments for the changes of the ATM system related to the scope.
Preparation, in relation with the other services involved, of the Operational Working Procedure with the „Safety Nets” alerting systems for INDRA system.
- activities concerning implementation of the ATM 2015+ - INDRA system
En-Route management experts prepared the documents and the working procedures with the new system related to its scope, namely: ATCO Manual, ATM-INDRA System, 1st edition, and Operational Warning Procedure with Safety Nets systems for INDRA system.
- activities concerning the implementation of the (EU) Regulation no. 1079/2012 concerning the implementation of the carriage of radios with the 8,33 kHz channel spacing below FL 195- preparation of the risk assessment and of the treaties on the unequipped aircrafts or which have been granted exemption from being equipped with 8,33; activities shall be carried out in cooperation with ATM experts.
- performance indicators
Within the RCAA's request regarding the provisions of exceeding the reference value of the KEA performance indicator in 2016, the experts the en-route management have performed, in order to elaborate an argumentative point of view, a series of complex operational tests by using a significant traffic data volume queried and processed by using the SAAM/NEST dedicated applications.
- reviewing the Romanian part of the Danube FAB Performance Plan for the second reference period (2015-2019).
En-Route management experts have been directly involved in the work carried out by the working group:
- active participation in the group working sessions; - designing the approach, performing operational reviews using the SAAM / NEST applications and coordinating the preparation of operational reasoning document for the review process until its completion, in close collaboration with the head of the working group as well as with the contribution of two volunteer students. This activity implied the review of a large volume of real traffic data for July 2013, 2014, 2015, 2016, 2017, 2018, and 2019 (according to the STATFOR Base forecast). Complex comparative reviews were carried out, which aimed to unambiguously demonstrate the increase of the operational complexity due to external factors, independent of the actions of ROMATSA or of other national institutions; - the participation in the PRB/EC/IATA/RCAA consultative meetings; - assisting in and contributing to the drafting of the ROMATSA response letter after receiving the IATA opinion, as well as to the documentation including clarifications following the PRB's requests, in particular on the following issues:
- 5 - - reviewing the ATC workload and ATC overload in July 2013-2019 (Base). It should be mentioned that in order to support the forming of an informed opinion, the en-route management experts provided comparative review in all the European states belonging to the same comparison cluster within the ACE Benchmarking (28 states); - within the context of the comparative assessment of productivity required by PRB, the review of flight times in the years 2016-2019 (Base) in the following lines: ACC Bucharest, ACC Bucharest + APPs, APPs.
The average time (hours) spent in the airspace according to ACC Bucharest and to the APP units was evaluated by using the updated traffic with radar data available on DDr 2 in NEST format.
- coordination of the FCM06 objective implementation - Traffic Complexity Assessment, defined in the European ATM Master Plan - Implementation Plan 2016 (ESSIP 2016) applicable to Romania, to be completed in December 2021.
- on 10.11.2017, a ROMATSA delegation participated in the workshop at the Skyguide - Geneva headquarters, where the CRYSTAL application was presented for air traffic complexity management. - starting with November 2017, the documentation provided by Skyguide and the one developed by SESAR experts was studied and published on the dedicated website, and its topic was the implementation of an automated application for air traffic complexity management. - in 2018, the necessary actions to implement this goal will be initiated by developing, in a first stage, a "Pre-feasibility study for the implementation of an integrated application for the automated assessment and prediction of air traffic complexity. - the review, with the use of the SAAM/NEST airspace design applications, of certain proposals discussed within RDGE, SEERM and RNDSG, which include the implementation of the following en-route/point segments:
- LOMOS – REBLA – EROMO – TADUN (eastbound) - SOMAT – NAVA1 (FIR BDRY) – AKUPO – SIB – OSTOV (westbound) - BINOM – TAVRU – BADKA – (bisens) - ODERO – BINBI – BADKA (westbound) - BADKA – AAAAA – NAVA2 (FIR BDRY) – UDROS (eastbound) - BAGRI – AAAAA (eastbound)
In 2017, the cooperation with the Bulgarian partners continued from an operational point of view, so that, the implementation of the Free Routes Airspace (FRA) project, at night, between Danube FAB FRA (ROMATSA - BULATSA) and N -FRAB (ROMATSA - HungaroControl) took place on 30 March.
Moreover, in 2017, the Feasibility Study on Danube FAB Expansion within Danube FAB was completed, identifying Moldova, Macedonia and Serbia as potential partners. Thus, the Danube FAB partners have drawn up a short list of operational activities to be proposed to air navigation service providers, according to these countries. Macedonia, following a meeting with its partner in the Republic of Bulgaria, showed its interest in becoming part of the Danube FAB. ROMATSA and BULATSA deemed necessary to propose the creation of a Task Force consisting of experts from the main fields (Ops, Teh, Fin, Legal, etc.) to review the impact on Danube FAB in the event of Macedonia's accession.
- 6 - - the development or update, as appropriate, of certain protocols and/or of civil and military collaboration procedures, of pre-tactical and tactical airspace management procedures, and the participation in military activities with impact on the en-route activity, as follows:
- the participation in the first Airspace Access Working Group meeting organized by the USAF, the conclusions to be applied in the development of the coordination documents concerning the US military aircraft flights, including of unmanned (MALE) aircrafts in FIR Bucharest; - the participation in redefining the military flight areas within the FRA implementation and in the entry into operation of the new type of combat aircraft; - the participation in the development of protocols for complex, national or international civil and military activities with impact on the en-route air traffic.
- the development of proposals for corrective measures in line with the scope of the SMR, following the inspections and audits carried out by the CAA, RCAA and the follow-up of their implementation.
- the performance of operational controls at ACC Bucharest, according to the approved planning.
- the review of the reported safety events (REAC) and the follow-up of the implementation of corrective actions, if applicable. The participation of the en-route management experts in committees for the subsequent research of certain ATM events.
- the training activities of the staff taking an initial training course in order to obtain the trainee license for ATC - ADI / TWR and APP qualification, taking place at DSNAR Constanta and for the ACS/RAD and APS/RAD qualification, taking place in Bucharest at the location rented at SSAvC (for the training subjects related to the scope of activity).
- the participation in the selection process of the staff taking the initial training course in order to obtain the ATC trainee license.
- the coordination of the establishment of new restricted areas for activities specific to hail suppression (green-listed on the map below) and the appropriate completion of specific procedures.
Given the increasingly important impact on the civil air traffic, the airspace restriction for launching of anti-hail rocket, ROMATSA experts will continue to request/recommend the development of the National System for Hail Suppression, by being used by the operators of the relative systems and of other methods of dissipating the anti-hail agent (soil generators or specialized aircraft).
- the participation in the CECM/CANSO
CANSO is the organization representing the interests of air navigation service providers within various high-level international forums, in prevalently the European Commission. ROMATSA is a full member of CANSO since 1999. Regular participation in the CECM meetings ensures the European coordination of important topics in the ATM field, and the close cooperation with the European ANSPs on various topics of
- 7 - interest. Reviewing and providing opinions within this forum ensures European influence by taking position by CANSO, of the legislative proposals and not only with impact on the ANSP's activity.
During this period, at the CANSO (CECM and other subsequent TASK Forces) level, various documents that could have an impact on the ATM field in the future were reviewed, namely: Study on Airspace Architecture (The European Commission will appoint SESAR JU for implementation, involving the Network Manager), the European Court of Auditor’s (ECA) Report "Single European Sky: a changed culture but not a single sky", NM designation, etc.
- permanent activities of en-route management experts:
- the preparation of the bases for amending AIP Romania in accordance with the airspace changes related to competence - the participation in RNDSG/ICAO (Route Network Development Sub Group - ICAO EUR Region) meetings; - the participation in RDGE/ICAO (Route Development Group – Eastern Part of the ICAO EUR Region) meetings; - the participation in APDSG (ATM Procedures Development Sub-Group) meetings, subordinated to NETOPS; - the participation in CPSG (Capacity Planning Group) meetings, subordinated to NETOPS; - the active participation in the optimization of SAAM/NEST applications, developed by EUROCONTROL/NM; - conducting various studies using the NEST application - developed by EUROCONTROL - to review the sector closure/opening schemes and under the update of the capacity plans for LSSIP (material prepared for CAPLAN group works); - conducting various studies to optimize the airspace structure by using dedicated applications as follows:
- NEST (Network Strategic Tool), developed by EUROCONTROL - preliminary review - RAMS (ISA Software) - Fast Time type simulation
- the civil and military collaboration for applying the concept of flexible use of airspace; - the development of corrective measures and the tracking the implementation of corrective measures as a result of audits and controls performed by RCAA and DSC; - the participation in the conclusion of protocols, procedures, regulations in collaboration with domestic institutions - MT, RCAA, the Romanian Air Force Staff and airspace users - TAROM, AOPA, ARCA, etc.; - the participation within the teams of specialists in the development and implementation of the ATM System 2015+; - the participation in the development/review of procedures related to the implementation of the National System for Hail Suppression and Rainfall Enhancement; - the participation in activities specific to civil and military collaboration and in the unmanned flight execution programs (RPA); - the participation in the review of the draft regulations submitted for consultation by the RCAA, the Ministry of Transport, as well as in the review of the draft documents elaborated by the international organizations in which Romania participates - EASA, EUROCONTROL, ICAO etc.;
- 8 - - the implementation of the Collaboration/Cooperation Project between ROMATSA and MoldATSA and its coordination at divisional level.
Management of Terminal Control Activities
The main activities carried out in 2017 in the management of terminal control activity were:
- the coordination of the implementation of the TMA Bucharest sectoring project - the set-up of the DIRECTOR sector:
- the drawing-up of documentation - the coordination with the RCAA to obtain approvals;
- the airspace structure optimization:
- the development of the proposal for optimization of the routes in the Iasi region - the determination of new routes configuration (minimum levels, new points, distances etc.); - the development of the basis of the amendment to enter new segments at Iasi CTR;
- the optimization of instrument flight procedures;
Activity description:
- the coordination of implementation or the optimization of instrument flight procedures (the coordination of ATC/air operators/SMFA operational requirements laid down, the coordination with the designer, the coordination for flight validation, the coordination of the ACC approval process and of the publication process); - the launch of instrumental flight procedures design process for:
- LRTC - the completion of the procedures design report including the revision of the existing procedures and the implementation of the GNSS procedures on both directions of the runway, the development of risk mitigation and assessment report for the implementation of procedures - LRAR - the completion of the design report procedures including the revision of the existing procedures and the standard departure/arrival routes and the implementation of the GNSS procedures on both directions of the runway, the development of risk mitigation and assessment report for the implementation of procedures - LRBM - the determination of operational requirements for the revision of the existing procedures and the conclusion of an addendum for designing a NDB temporary procedure without DME for the period in which the DME equipment is not available - LRBC - the determination of the operational requirements within airline meetings with air operators and airport representatives and the coordination with the design service provider to complete the design report for the revision of the existing procedures and the implementation of the GNSS procedures with minimum LNAV - LRCV - the determination of operational requirements in meetings with air operators and airport representatives and the coordination with the design
- 9 - service provider to complete the design report for the revision of the existing procedures and the implementation of the GNSS procedures - Câmpia Turzii and Boboc - the determination of the operational requirements in meetings with the SMFA representatives and with the airbases representatives, the development of a first concept of the new procedures;
- LRSM assist on the airport contract - the Coordination of design service providers for the revision of the ILS and VOR procedures - the definition of the operational requirements, the documentation review (under publication); - LRTR support on the airport contract - the coordination with Timisoara Airport regarding the establishment of operational requirements for revision of instrument approach procedures, the document analysis, the risk analysis development; - coordination with RCAA - requirements for the implementation of the GNSS/LNAV instrument approach procedures in FIR Bucharest (under the non-availability of EGNOS coverage on the eastern part of Romania); - the coordination with SMFA and the Military Topograp Directorate concerning the development and implementation of the instrument approach procedures at Boboc and Câmpia Turzii - draft version submitted to SMFA for verification; the coordination regarding the publication of the GNSS procedures designed for LRSV and LRCK in AIP MIL.
- airport modernization projects
Activity description:
- the coordination/the development of specific documents for airport modernization projects (instrument approach procedures, risk analyzes, plan coordination); - the coordination with Baia Mare Airport - the modernization of the airport infrastructure and the relocation of the ILS equipment; - the coordination with Tulcea Airport - the rehabilitation of runways; - the coordination with Craiova Airport and with the technical experts of ROMATSA - the ILS CAT II upgrade-area (risk analysis, suspension of procedures); - the airport coordination - the application of Regulation 139/2014:
- the participation in the Working Group on the implementation of the Regulation 139/2014 - the coordination and the completion of the air navigation service agreements and of joint local procedures with most of aerodrome operators.
- ATM 2015+ project
- the participation to the ATM 2015+ Working Group:
- the completion of the adaptation data for the system configuration (the introduction of the changes to AIP amendments);
- the centralization of the state of movements in FIR Bucharest and in the terminal area
- the monthly centralization of the state of movement in all airports from Romania;
- 10 - - the monthly centralization of the situation of the movements in FIR Bucharest; - the quarterly data submission to RCAA
- ATC training/information
- informing the ATC on the entry into force of new regulations or their modification, the determination of the ATC training level; - the information of the ATC regarding the entry into force of some operational changes, the determination of the MBI level; - the provision of the theoretical and practical examination for the ATC candidates; - the participation in the assessment committees for the promotion/career development of the air traffic controllers.
- operational inspections
- monitoring the implementation of the measurement plans set as a result of the operational audits or controls performed by the RCAA and the internal bodies; - performing operational controls and developing control reports (Târgu Mureş, Arad, Cluj, Timişoara, Satu Mare, Iaşi, Bacău, Constanţa, Tulcea);
- the coordination of ab-initio training in the Constanța Training Centre
- theoretical courses and SIM provided by experts of terminal management.
- the drawing up of the documentation specific to the scope
- the preparation of risk assessment and risk mitigation reports for the installation or replacement of new radio-navigation equipment (replacement, relocation, upgrade); - the specification of operational requirements for the installation of new ground radio-navigation equipment; - the coordination of the development of the AIPI training facility; - the issuance of NOTAM facilities; - the coordination of airports - implementation/update of LVP procedures (Târgu Mureş, Timişoara, Cluj, Sibiu, Arad, Suceava); - the update of TWR APP Operational Manuals; - the participation in audits on the legislative changes and the proposals for amendments (RACR - CPPZI Ed. 2.0, PANS - OPS amendments, RACR - ATS amendments, Air Code, OMT 125/2014, RACR - ZSAC); - the coordination of the development of the LoA internal amendments between the air traffic units in FIR Bucharest; - the coordination of the development of the collaboration procedures of local flying clubs, private air operators; - the coordination of the preparation of collaboration procedures between the DSNA sub-units and airports; - the coordination of the preparation of collaboration procedures for air shows/competitions, balloon launching (BIAS 2017, air show at Satu Mare, Cluj, Baia Mare etc.);
- 11 - - the participation in the development of the collaboration procedures for military exercises that take place in the terminal airspace; - the coordination of the development of the National PBN Implementation Plan in Romania; - the coordination of the development and completion of the LRTR push-back risk assessment and mitigation report.
- operational activities
- the monitoring of the risks related to the activity specific to aerodrome control towers (TWR) and of the approach control units (APP), the review of the Civil Aviation Event Reporting (REAC), the specification of requirements or recommendations for risk mitigation;
- consultations with the RCAA
- planning meetings to determine the means of implementation of the GNSS procedures in Romania (the approval of design documentation, the discussions on the GPS use, the discussions on the flight testing of the GNSS procedures, etc.);
- consultations with air operators
- planning periodical meetings with TAROM, WIZZAIR and BLUEAIR, the involvement of operators in specifying instrument flight operational requirements (participation in the meeting for determining the operational requirements for the LRTC, LRAR, LRBM, LRCV design); - the participation or the preparation of the proposals for the mandate for the participation in meetings of the Association of Romanian Airports - AOPA, AROPA meetings - meetings with the Romanian Flying Club
- the participation in the examination committees for the promotion/career development of the ATC TWR/APP; - the participation in the management group of the transfer from the Leonardo system to the INDRA system; - going to seminars and operational meetings (Rai SG-EUROCONTROL, EUROCONTROL Capacity Planning, Tokyo workshop, EUROCAE wg 100 - Moscow); - the coordination of the PBN procedures design and implementation in Romania, included in the SPICE European funding programme. The participation in the SPICE working group, the completion of the documentation of progress reporting, the coordination with the Association of Romanian Airports for synchronizing the programme activities (design vs. Development of field studies and obstacles); - The implementation of the GNSS instrument approach procedures could not advance (the goals proposed for 2017 not being achieved) for reasons independent of the activity of ROMATSA. The malfunctions that led to the adjournment of the implementation process are legal (the impossibility of using the GPS in Romania where EGNOS coverage in the eastern part of Romania is deficient, the legislation is unclear regarding the obstacle data with effects on the design methodology ) and technical (the impossibility of flight validation of the GNSS procedures due to the lack of aircraft equipped with SBAS receiver). There are a series of designed GNSS procedures
- 12 - (mentioned above), but which could not be published due to the above- mentioned malfunctions. The GNSS procedures design process will be able to be resumed after solving the identified malfunctions. - the correlation of the LSSIP objectives with the objectives defined in the Strategic Business Plan and the review of the impact, and the phase of implementation of the European Regulations provisions; - the specification of the requested answers/opinion on fireworks launching (Mogoșoaia, Romexpo, etc.); - the consultation with air operators, the RCAA, and with the safety and quality authority within the administration concerning the information about noises in the airport areas - the submission of answers to solicitors.
- other activities:
- vocational guidance for the students of the Faculty of Aerospace Engineering who are in the training stage
The differences registered in relation to the goals
The implementation of the GNSS instrument approach procedures could not advance (the goals proposed for 2017 not being achieved) for reasons independent of the activity of ROMATSA. The malfunctions that led to the adjournment of the implementation process are legal (the impossibility of using the GPS in Romania, because the EGNOS coverage in located the eastern part of Romania is scarce, the legislation is unclear regarding the obstacle data with effects on the design methodology ) and technical (the impossibility of flight validation of the GNSS procedures due to the lack of aircraft equipped with SBAS receiver). There are a series of designed GNSS procedures (mentioned above), but which could not be published due to the above-mentioned malfunctions. The GNSS procedures design process will be able to be resumed after solving the identified malfunctions. There are a series of designed GNSS procedures (mentioned above), but which could not be published due to the above-mentioned malfunctions. The GNSS procedures design process will be able to be resumed after solving the identified malfunctions.
Management of Vocational Training and Organization of ATC resources
The main activities carried out in 2017 in the field of Management of Vocational Training (SMPP) are as follows:
- ATCO Manpower Planning and Human Factors
- the participation in the assessment committees organized at ATS units of ROMATSA for promotion/career development, as the case may be, of the ATCO staff, who met the requirements laid down in the applicable procedures; - observers in audits carried out by RCAA at ROMATSA subunits in the continuous surveillance process carried out by RCAA in its capacity of NSA, in accordance with the applicable regulations; - internal selection conducted in the ATS units; - organizing and monitoring the conversion courses performed for the implementation of the new system at ACC Bucharest and in the other sub-units;
- 13 - - organizing and monitoring the courses performed to obtain additional air traffic control licenses (expansion of competency area) by the ATC students declared admitted in order to fill the vacant positions; - organizing and monitoring the courses taken by the ATC students to obtain the air traffic control license at ACC Bucharest. - organizing and monitoring the courses taken by the ATC student to obtain the air traffic control license at TWR; - organizing and monitoring the execution of the courses to obtain additional air control traffic licenses (expansion of competence area) in order to obtain air traffic control licenses at TWR Otopeni by the ATC from TWR Baneasa and TWR Baneasa by the ATC at TWR Otopeni (air traffic control double license); - organizing and monitoring the courses performed to obtain additional licenses (expansion of competence area) in order to obtain the APP Bucharest license by the ATC students admitted for filling vacancy; - organizing and monitoring the advance training courses taken by the ROMATSA's staff performed by IANS within the administration; - organizing and monitoring the instructor courses for ATC in TWR units; - organizing and monitoring the instructor courses for ATC in the ACC/APP units;
- training
- coordinated and monitored the ATC staff training/retraining activity, as follows:
- retraining courses of the ROMATSA staff at EUROCONTROL - IANS;
- coordinated and monitored the necessary courses performed for changes to the airspace structure: - organizing and monitoring the training courses performed for the implementation of new airspace structures in FIR Bucharest; - organizing and monitoring the training courses performed for the modification of airspace structure following the coordination with adjacent ACC;
- coordinated and monitored the courses performed for the expansion of the competence area:
- ATC training courses in order to expand the area of competence on the ACC Bucharest sectors; - courses for obtaining additional qualifications and authorizations of ATC TWR Otopeni - APP Bucharest; - course for obtaining additional qualifications and authorizations of ATC TWR Sibiu - APP Bucharest; - course for obtaining additional qualifications and authorizations of ATC TWR Cluj - APP Bucharest; - course for obtaining additional qualifications and authorizations of ATC TWR Constanţa - TWR Băneasa; - course for obtaining additional qualifications and authorizations of ATC TWR Oradea – TWR Târgu Mureş; - course for obtaining additional qualifications and authorizations of ATC TWR Tulcea/Suceava – TWR Constanţa; - course for obtaining additional qualifications and authorizations of ATC TWR Suceava – TWR Cluj;
- 14 - - course for obtaining additional qualifications and authorizations at the ATC TWR Bacău – TWR Suceava unit; - course for obtaining additional qualifications and authorizations of ATC APP Bucharest for TMA NAPOC; - course for obtaining additional qualifications and authorizations of ATC TWR Cluj for TMA NAPOC;
- coordinated and monitored the courses performed to maintain the competence:
- training and retraining courses, as well as non-routine and emergency training courses of the ATC staff, conducted at the simulators of ROMATSA; - courses following the termination of the ATC activity;
- coordinated and monitored the courses performed for obtaining the ATC license:
- (UTP) training courses for obtaining the ATC license, conducted at ATC units with the ADI/TWR/APP, APS and ACS qualifications; - coordinated and monitored the courses performed for obtaining the trainer license: - courses for ATC trainers in TWR units; - courses for ATC trainers in ACC/APP units; - license
Experts in the management of professional training reviewed and endorsed, as appropriate, the applications for obtaining/revalidating/renewing the ATC license or the related qualifications and authorizations, as well as:
- monitoring the fulfillment of the REG 2015/340 and the ATC licensing and training plans; - continuation and completion of the development of the documents necessary for the implementation of (EU) Regulation 2015/340:
- took the necessary steps to the RCAA in cooperation with human resources experts to examine the graduates of the ab initio course for obtaining a ATC trainee licence; - took the necessary steps to the RCAA, in cooperation with human resources, to examine ATC trainees to obtain the ATC license with the appropriate qualifications and approvals.
- Language Proficiency
Experts in the professional training management supervise English language proficiency exams (ELPAC) of all guidance and control staff from all ATS ROMATSA units.
ATC ROMATSA training organization
- ROMATSA recertification - Training organization
- Skill supplementation
Initiated and submitted to the RCAA approval the documentation necessary for recertification of ROMATSA as an ATC Training Organization.
- 15 -
To that effect:
- the documentation necessary for licensing has been prepared; - the plan regarding the continuation of supervision of the activity of the ATC ROMATSA Training Organization has been prepared;
- preparation of external courses
- developed the service procurement tender book - training courses for ROMATSA operational staff in a country in which English is the official language, the procurement of this course being in the contracting preparation stage; - developed the service procurement tender book as well - initial training courses to obtain the ATC qualification for the ”ADMITTED” candidates following the 2017 selection session.
- other goals
- coordinated and monitored the fulfilment of goals on the line of the scope of professional training management (HUM goals) in LSSIP Romania; - initiated and implemented contracts with EUROCONTROL IANS for the preparation of ATC within ROMATSA; - has initiated and implemented contracts for the RTF certification of ATC within R.A. ROMATSA staff; - implemented the PAIFA training contract; - participated, by means of its specialists, in the activities of the Training Organization in accordance with the provisions of the (EU) Regulation 2015/340 of the European Parliament and of the Council laying down the common requirements for ATC training organizations; - prepared, developed and kept the record database of the various aspects concerning the ATC training.
Aeronautical Information Management
The main activities carried out between 1 January 2017 and 31 December 2017 in the aeronautical information management were the following:
AIS Management
- the coordination, guidance and control of activities specific to the aeronautical information service activity, in order to achieve the operational goals for 2017; - reviewing and updating, if applicable, the working procedures for aeronautical information executive activities applicable in the AIM service, ARO/Briefing units and in the International NOTAM Office; - reviewing and monitoring the update of the ARO/Briefing Operational Manuals and of the International NOTAM Office; - updating the working procedures for aeronautical information executive activities applicable to aeronautical information management, ARO/Briefing units and in the International NOTAM Office;
- 16 - - providing the Client Security Officer (CSO) position for ROMATSA in relation to AIS - EAD European Database, managing the users and their rights in working with EAD, SDO, PAMS, INO modules; - the training for the RCAA controls and audits; - the review of the RACR and PIAC projects and the submission of the opinions to RCAA or MT, as appropriate; - monitoring and coordinating the training/retraining activity by internal and external courses taken by AIS staff; - drawing up the purchase requisite and the estimation of the value for the purchase of products necessary for carrying out the service activity, according to the PAAP 2017, approved; - drawing up the purchase requisite and the estimation of the value for the contracting of digital printing services for the year 2017, implementation of the contract - signed for printing the aeronautical maps developed in the department; - drawing up the purchase requisite and the estimation of the value for the contracting of the data conversion services (for the implementation of the INSPIRE Directive), purchase accomplishment - signed contract for fulfilling the ROMATSA responsibilities set forth by the applicable law; - drawing up the purchase requisite and the estimation of the value for the contracting of the training services for the general and professional English language intensive class (refresher) for the information staff and participating in the negotiation board for contract assignment - signed contract; - supporting the AIS topics in the ATC and PMO training courses within ROMATSA; - drawing up the curriculum for the recurrent training course for CITA Instructor, obtaining the RCAA approval to organize the course (according to the PICAC-LCITA provisions in force), coordinating its progress and carrying out administrative activities (preparing minutes and graduation diplomas); - developing the curriculum for the training program in order to renew the CITA license, obtaining the RCAA approval for the course (according to the PITA-LCITA provisions in force) and carrying out the activities for the planned course in January 2018; - review of the operational information staff required by R.A. ROMATSA, considering the number of operational working positions in the related departments, of the related tasks and of the working hours for the activity carried out; - coordination of the actions required to implement measures resulting from audits and controls in the aeronautical information; - preparing the planning for the internal operational control; - performing the internal operational control planned in 2017; - participation in the development of SEEN FRA project; - in view of achieving the INF 01 goal - Modernization of systems for aeronautical information services, the following activities were carried out:
- developing the checklist to determine the safety impact on the safety of changing the ATM/ANS ROMATSA system by procuring the Computerized Integrated AIS system - approved document; - developing the risk assessment and mitigation report for the procurement of the Computerized Integrated AIS system - approved document; - the coordination of the Working Group for the development of the procurement documentation for the Computerized Integrated AIS system; - completion of the document Functional and Technical Specifications for the procurement of Computerized Integrated AIS system - Annex 2 to the Tender Book, required to start the procurement process - approved document;
- 17 - - drawing up the Working Statement, Annex 1 to the Tender Book - approved document - developing the architectural model of the Table of compliance with the requirements of the Tender Book - drawing up the purchase requisite and the estimation of the value for the procurement of the Computerized Integrated AIS system - approved document;
AIS provision
- receiving and reviewing the AIS database from originators, submitting remark for correction, and submitting for the RCAA approval the bases received from the originators for publication; - VFR map publication, the second issue; - FRA map reissue (SEEN FRA implementation); - reissuing the route map for the lower and upper airspace; - as a spatial data supplier for the Topic I.7 - Air Transport Networks, ROMATSA has procured data conversion services and completed the migration of the data set it produces or owns according to its scope, with the AIXM 4.5 format in the INSPIRE format; - at the request of ROMATSA, ANCPI has published the data set made available by the aeronautical information experts on its own geoportal, and an updated data set is to be made available for any updates of the route maps; - the publication of the following documents for aeronautical information:
The document Date of Date of entry into Content publication force (briefly) - implementation of RNAV Y32, Y33, Y34 routes - infrastructure changes in LRSV AIRAC AIP 19 Jan 2017 02 March 2017 - LRIA aeronautical map AMDT 02/17 update - LRTS changes: OPC frequency, aerodrome supply facilities - SEEN FRA implementation - FRA map update AIRAC AIP 16 Febr 2017 30 March 2017 - DEVA/Săulești-Constantin AMDT 03/17 Manolache (LRDV) aerodrome publication AIC A 03/17 16 March 2017 30 March 2017 AIC control list, series A Repair works at LROP, RWY AIRAC AIP 16 March 2017 27 April 2017 08L/26R (AIRAC AIP SUP SUP 01/17 02/2015 replacement ) - LRAR, SWY RWY09 elimination - LRBC, RWY change, TWY’s, AIRAC AIP pocket 16 March 2017 27 April 2017 AMDT 04/17 - LRBM, RWY change, TWY’s, APRON, lights and obstacles - LROP, new TWR
- 18 - The document Date of Date of entry into Content publication force (briefly) frequencies - LROD, information update for supply facilities - LRBH heliport elimination from AIP Information on the VFR map AIC A 04/17 13 Apr 2017 01 May 2017 publication for FIR Bucharest (OACI map 1:500000) - Change of the RNAV Y33 lower route limit - LRBC, change of information on RWY lights AIRAC AIP - LRIA, new (REP) report 13 Apr 2017 25 May 2017 AMDT 05/17 point determination - LRTR, elimination of TWY F and of W platform. other changes in the airport infrastructure AIRAC AIP RWY, LRBC (phase 2) repair 13 Apr 2017 25 May 2017 SUP 02/17 works Conducting specialized commercial operations based AIC A 05/17 11 May 2017 11 May 2017 on the provisions of the (EU) Regulation no. 965/2012 LROP, RWY 08L/26R repair AIRAC AIP 11 May 2017 22 June 2017 works (AIRAC AIP SUP SUP 03/17 01/2017 replacement) - LRBS, resistance changes for RWY, TWY - LROP, resistance changes for RWY, TWYs and AIRAC AIP platform, changing the RWY 11 May 2017 22 June 2017 AMDT 06/17 08R/26L band dimension, new markings for platform 3, new pocket - LRSB - new maps published (APDC, PATC) - updating the eastern and western tables AIRAC AIP 08 June 2017 20 July 2017 - changes attributed to AMDT 07/17 DVOR/DME BRV - LRSB – LVP - LRCR - light changes and markings - LRCV – RWY STRIP AIRAC AIP expanded, platform changes, 15 July 2017 17 Aug 2017 AMDT 08/17 AOC reissue - LRCK – NDB (LO) ZZ annulled - LRSB – STAR map update
- 19 - The document Date of Date of entry into Content publication force (briefly) - change of VRF routes in AIRAC AIP 03 Aug 2017 14 Sept 2017 TMA NAPOC AMDT 09/17 - LRAR - closure of tracks - LRCR - new publication of the platform 2, information AIRAC AIP change for the platforms 1 29 Aug 2017 12 Oct 2017 AMDT 10/17 and 3 - update of information on standard track routes - publication of new anti -hail areas - LRAR - THR09 information AIRAC AIP change 28 Sept 2017 09 Nov 2017 AMDT 11/17 - updating maps for LRAR, LRCV, LRIA and LRTR, as a result of new anti-hail areas set forth Information on publication of the 2nd edition of the VRF AIC A 06/17 28 Sept 2017 09 Nov 2017 map for FIR Bucharest (OACI 1:500000 map) AIC A 07/17 28 Sept 2017 09 Nov 2017 AIC control lis t, series A - LRBC map update - aerodrome name change AIRAC AIP 26 Oct 2017 07 DEC 2017 - changing the information AMDT 11/17 on RWY, TWY B lift and on platform 1 Repair works performed at AIRAC AIP LROP, RWY 08L/26R (AIRAC 26 Oct 2017 07 Dec 2017 SUP 04/17 AIP SUP 03/2017 replacement ) AIC B 01/18 23 Nov 2017 01 Jan 2018 AIRAC 2018 calendar AIRAC AIP - LRSV - LVP information 23 Nov 2017 04 Jan 2018 AMDT 01/18 update AIP AMDT 344 21 Dec 2017 05 Jan 2018 TANC, RANC rate update
- keeping the aeronautical data in the European AIS Database - EAD, SDO (Static Data Operations) and PAM (Published AIP Management System) modules; - posting on the personal site, www.aisro.ro of the published elements of the Integrated Aeronautical Information Package - reviewing the answers to the surveys concerning AIS delivery by ROMATSA, received from the subscribers to AIS documents. The results for 2017 are shown in the enclosed chart.
- 20 - Meteorological Information Management
Specialty expertise:
- activities specific to the MET field related to SMS ROMATSA operation:
- performing safety assessments - FHA / PSSA phases for the implementation of the ROMAWOS 4.0 software version; - reviewing the risk assessment and mitigation Report, following the RCAA remarks brought in within the AWOS-APP authorization process, for the implementation of the version 2.0 of the AWOS-APP application at APP Bucharest and submitting this document for approval; - drawing up the checklists for the assessed impact on the security for ATM ROMATSA system changes - MET components - performed or planned to be performed in 2017:
- workstations installation for testing the ROMAWOS 4.0 software version; - ROMAWOS 3.2 software configuration for testing the ROMAWOS 4.0 software version at all operational sites; - operational use of "Hydromet" automatic weather stations as a hot spare at the ROMAWOS system in BMA Baia Mare, Oradea, Satu Mare, Sibiu, Suceava, Tulcea; - republication of the directions for QNH and QFE determination at BMA Baia Mare for the update of the QFE spreadsheets considering the PDA thresholds 09 and 27 published in AIP Romania; - use of digital barometers as a hot spare at ROMAWOS; - implementation of ATIS system at DNSA Iași; - implementation of the low level wind shear detection system based on LIDAR at AIHCB; - implementation of SODAR system at AIHCB; - integration of the celiometer 09 direction in the ROMAWOS Arad system; - purchase of a portable weather station for BMA Bucharest.
- activities related to installation and configuration of ROMAWOS software application:
- drawing up and submission of the ROMAWOS operational configuration sheet applicable to DSNA Baia Mare, ensuring the update of the runway direction at 09-27, of the runway thresholds and of the Baia Mare aerodrome elevation, according to the values published in AIP Romania, valid from 27.04.2017; - preparing the ROMAWOS operational configuration sheet applicable to DSNA Sibiu from the date of entry into force of the Procedure for low visibility operations (LVP) - "Operational collaboration between R.A. Sibiu and R.A. International Airport ROMATSA – DSNA Sibiu”, submitted by the communication no. 5865/21.03.2017; - coordinating the development, forwarding for approval and distributing the document "Testing instructions at ROMAWOS Software Installation Sites - Version 4.0"; - coordinating the development, forwarding for approval and distributing the document "Testing instructions at ROMAWOS Software Installation Sites - Version 4.0"; - coordinating the check of ROMAWOS 4.0 software application after performing the installation in the monitoring operational environment: taking the written or
- 21 - telephonic reporting from the PNA/CNS local departments including the malfunctions of the ROMAWOS 4.0 software application, assessing their initial testing on the existent platform at CDZ Bucharest, and, if applicable, providing guidance on the local remedy, or drawing up of malfunction (bug) reports registered on the JIRA KEPLER dedicated server.
- activities related to the performance of the ROMATSA 2017 Procurement Annual Plan:
- the contracting, installation and entry into operation of a SODAR system at AIHCB (December 2017) was completed by the following actions:
- obtaining the RCAA principle opinion for the location of the SODAR system in the area adjacent to the Henri Coandă International Airport in Bucharest; - coordinating the development of the Specification for the purchase of a SODAR System; - participation in the activity of the procurement committee of the SODAR System at Henri Coandă International Airport in Bucharest; - participation in the SAT activities, training and final acceptance; - participation in the activity of the committee appointed for the procurement of an ATIS system at DSNA Iași: drawing up the Tender Book and other documents related to the procurement; - participating in the drawing up of the Specification for the procurement of a low wind shear detection system at AIHCB "Tender Book for the Procurement of Low Level Wind Shear Detection System for AIHCB"; - the procurement "Meteorological sensors for the ROMAWOS Craiova System" was completed, through the following actions: participation in the drawing up of the tender book, participation in the negotiation committee, concluded by signing the purchase agreement with Vaisala Oyj - coordinating the installation and commissioning of 6 subunits of the Hydromet weather stations for the measuring the temperature, humidity and thickness of the snow layer; - an upgrade contracting of the IBL Visual Weather data processing System was completed to ensure the processing of meteorological data in IWXXM format.
- activities related to the modernization and improvement of meteorological support:
- coordination of the actions necessary for relocating the aerodrome meteorological office, on specialty line, to its new location in the building of the control tower of Bacău airport; - the participation, together with the experts, in the review of the Rules regarding the meteorological traceability of meteorological instruments used to ensure the meteorological traceability of the meteorological instruments used at ROMATSA aeronautical meteorological stations; - participation in the completion of the documentation, requested by the RCAA , enclosed to the application for issuing the authorization of commissioning of the ROMATSA "AWOS-APP" system by preparing and submitting for signature the Statement of suitability for the given use of "AWOS-APP" composition no. 7836 / 13.04.2017; - the preparation of annual statistics on the quality of observation message coding and the quality of aerodrome forecasts;
- 22 - - providing specialized expertise, at request, for the MET field necessary for the implementation of the ATM 2015+ system; - organizing and conducting internal operational inspections planned for 2017 in all MET sub-units; - preparing the aerodrome climatic tables for LRIA, LRBC, LROD, LRTM and the provision of other climatic statistics required for LRAR, LRTR, LROD and LRCL; - configuring Visual Weather and PBS applications for the processing of additional levels provided by WAFC London (FL080, 210 and 480); - configuration of the Visual Weather application for the provision of the altitude wind data, the maps with significant phenomena, and the satellite images to the NIDS system; - coordination of the preparatory and testing activities related to the transfer of the weather data source for NIDS; - the participation in the preparatory actions for operational entry into operation of the Volmet System from DR Bucharest (including the configuration and installation of the CNPMNA workstation).
Staff training:
- coordination of the activity related to the operation of the Aeronautical Meteorology Training Center of ROMATSA; - the participation of meteorologist experts, as lecturers, in supporting the refresher courses in MET, within ROMATSA, for MET AERO PROG staff, as well as for the METEO AERO TEHN staff; - organizing MET courses for ATS staff within ROMATSA; - the participation of service experts, as lecturers, in supporting the courses in the class teaching technique (TTI), within the administration, for CNS and ATS staff; - the participation of meteorologist experts in the online activities of the OMM experts for education, training and skills; - the participation in the working groups for planning and developing the European training course for MET skills assessors training developed within EUMETCAL; - preparing the training programs for the use of new equipment or for implementation of new software versions with impact on users; - updating the personal records of the meteorological staff.
- other activities:
- current monitoring of the operation of the PBS-MET/Lotus and Self-Briefing MET systems used for obtaining the flight meteorological documentation, as well as of the new IBL system intended for aeronautical meteorological data processing; - intervention for the manufacturer to solve certain VOLMET system malfunctions related to the wrong decoding of some groups in the METAR message (SNOCLO, R99 ///); - monitoring the availability and regularity of weather messages and monthly reporting of associated performance indices; - the participation, as members of the COMPET Expert Team EUMETCAL, in the development of the ”Train the Assessors” curriculum; - participation in the annual convocation on civil-military cooperation, elaboration of topics of common interest in the MET field.
- 23 - Civil-military collaboration
Throughout 2017, specific civil-military collaboration activities in the field of air traffic management guaranteed the continuity and coherence necessary for the constant application of SES regulations in the planning and carrying out of complex activities in view of complying with the general and specific duties set forth under the legislation and the national and international aeronautical regulations. Within this context, the civil air traffic control units have safely provided the control of the GAT segments of military aircrafts, the operational support for certain special missions (formation flight, special tactics) and, along with the military traffic units, has managed to coordinate the GAT-OAT flights and the pre-tactical and tactical airspace management. During the specified period, the high level of the intensity and complexity of the military flights in the Romanian airspace has been maintained during the previous years. In this respect, the deployments of certain NATO forces, which carried out intensive flights with combat aircraft in areas with significant civil air traffic, continued to be carried out in Romania. Moreover, the NATO E-3A AWACS aircrafts performed flights almost every day in Romania's airspace, the most of the missions being carried out with inflight refueling. Concurrently, the missions performed by the RQ-4 "Global Hawk" unmanned US military aircrafts of the High Altitude Long Endurance class - HALE continued, with a 2 flights per week average rate. The fact that these complex military activities were carried out without major traffic events proves the efficiency of the entire civil-military collaboration mechanism, which included the airspace management by assigning specific areas and their dynamic management, as well as the coordination of civilian and military traffic in real time via dedicated structures. The exercises, demonstration flights, or flights performed on the national holiday or on other holidays are also deemed to be complex military activities. In this respect, in 2017 the civil-military coordination was provided for 18 complex activities, which required the preparation of dedicated protocols under which concrete elements of flexible reservation and use of airspace and tactical coordination of general air traffic with the operational air traffic have been agreed.
The main complex military activities that required the drawing up of protocols were:
- the first inflight refueling training performed by the F-16 Romanian aircrafts (28.02 - 03.03.2017); - the joint exercise with the Serbian Air Forces ”Air Solution 2017” (19-26.06.2017); - the Romanian-American exercise ”DACIAN EAGLE 2017” (14.06-31.08.2017); - the demonstrative flights performed by the Romanian and British military airplanes by flying over the Bucharest on the celebration of the UK Queen's birthday (22.06.2017); - calibration flights for Deveselu AEGIS facility (22-26.06.2017); - demonstration flights performed on the "Open Doors Day at Bz. 90 Tp. Aer. Otopeni; - NATO ”SABER GUARDIAN 2019” exercise (14-23.07.2017); - the Romanian-American bilateral exercise "Carpathian Summer 2017" (14- 31.07.2017); - trainings and flights performed on the Day of the Romanian Aviation and Air Force (18-20.07.2017); - the Romanian-American bilateral exercise ”CARPATHIAN FALL 2017” (19.08- 01.09.2017); - trainings and demonstrative flights performed on the Romania's Navy Day (13- 15.08.2017);
- 24 - - aerophotogrammetric flights performed in FIR Bucharest with AN-30 aircrafts belonging to the Romanian Air Force (10.09-15.12.2017); - the Romanian-Bulgarian cross-border air police exercise ”BLUE BRIDGE 2017” (25.09-06.10.2017); - NATO electronic warfare exercise ”RAMMSTEIN GUARD 11” (25-29.09.2017); - calibration flights of the new types of Long range military radar equipment of the Romanian Air Force (October-December 2017); - trainings and demonstrative flights performed on the Romania's Army Day (23- 25.10.2017); - air defense skills check flights in the Capu Midia shooting area (07-09.11.2017); - trainings and flights performed on the Romania's National Day (21.11-01.12.2017).
In order to ensure the conditions for conducting sporting activities without affecting the military operational requirements, during the specified period, three protocols were concluded between ROMATSA, the Romanian Flying Club and the Air Force General Staff dedicated to the wave current glider-plane flights, the hot air balloon flights to determine the height records and the National Gliding Championship. In order to meet the requirements concerning the civil-military coordination of some special flights, three protocols were concluded between ROMATSA, the Air Force Staff, and the private air operators on certain aerophotogrammetric and atmospheric parameter measurement flights. The Annual Convocation for the review of the civil-military cooperation in air traffic management took place in Târgu Mureş between 25 and 26.05.2017. The convocation was organized under the coordination of the Operational Department with the participation of the technical and safety representatives, the ROMATSA regional directorates, and the representatives of the Romanian Civil Aeronautical Authority and the Romanian Flying Club. Representatives of the Air Force Staff, the Naval Forces Staff, the Ministry of Internal Affairs, the Romanian Intelligence Service and the Craiova Flight Test Center participated from the military part.
During this period, the civil-military collaboration experts carried out the following activities as well:
- further support granted to the implementation of Local and Sub-Regional Airspace management system-LARA, by participating in the LARA User Groups meeting and by organizing the EUROCONTROL team support visit for LARA Program (31.05.2017, ROMATSA headquarters); - organizing two meetings between ROMATSA and SMFA at the level of technical specialists for the development of joint programs on radar data, radio communications and common technical systems; - continuation of the operational activities of the ROMATSA Reserve Center (CR-2) collocated with the Air Operations Center (COA) by reviewing and updating the ROMATSA staff access procedure in the COA and the collaboration with the DTA/MT and the specialized structures of the Romanian Military Ministry for the update and promotion of the draft Government Decision on the transfer of CR-2 related spaces under ROMATSA management; - participation in the review of the activities of active intervention in the atmosphere by using anti-hail missiles (30.01.2018, at the headquarters of the Ministry of Agriculture) and the development of the new coordination procedures for such activities;
- 25 - - organizing three meetings of the ROMATSA - SMFA working group for the redefinition of the military areas under the implementation of FRA and rending operative the new type of combat airplane; - preparation of ROMATSA proposals and situations for the Airspace Management Board decisions; - relationships with the unmanned aircraft operators to ensure the activities carried out with these types of aircrafts without an impact on the safety of flights under the responsibility of ROMATSA; - participation in the Airspace Access Working Group (AAWG) meeting held in Ramstein, Germany (05-08.12.2017), which mainly addressed operational and airspace requirements for the operation of the unmanned USAF military aircrafts in the HALE and MALE class; - participation in two meetings with representatives of the Romanian Intelligence Service, DTA/Ministry of Transport, RCAA and the Romanian Air Force Staff for the preparation of a protocol on the notification of civil aviation security situations and which are acts of terrorism or which are suspect of cts of terrorism; - ROMATSA representation within the committees relevant to the civil-military collaboration organized at EUROCONTROL and NATO.
ATM systems
1. SEEN FRA (South East Europe Night FRA) implementation
ATM system experts have provided the coordinated the SEEN FRA project for its scope. SEEN FRA requires the implementation of FRA in the ATC Sofia, ATC Bucharest and ATC Budapest during the night. ROMATSA, BULATSA and HungaroControl benefited from Network Manager support in the implementation process. SEEN FRA implementation has been achieved starting with 30.03.2017 (AIRAC cycle date). In the initial implementation schedule agreed by Danube FAB partners, the 2nd phase was scheduled for the first quarter of 2016, but this delay was postponed as a result of the route changes implemented in the summer of 2016 in the Danube FAB airspace.
2. SEE FRA implementation
The SEE FRA project involves the implementation of FRA H24 in ATC Sofia, ATC Bucharest and ATC Budapest and it is scheduled to be implemented in the autumn of 2019 (as planned at Danube FAB). EUROCONTROL will provide implementation support (SEE FRA and expanded SEEN FRA) both on operationally and safety side.
3. Implementation of the (EU) Regulation no. 1079/2012 for setting up the requirements on the difference between the voice channels for the Single European Sky
ATM experts ensure the coordination of the implementation of the (EU) Regulation no. 1 079/2012 in the operational field and they participate in the implementation activities in its scope.
4. GOFRA implementation
During the Gate One meeting at CEO (GOCEO/5) in November 2015, following the HungaroControl initiative, all participants agreed with the review of the opportunity of the
- 26 - Gate One ANASP members to participate in the development of a Study on the feasibility of implementing the Free Routes (FRA) concept in the Gate One (GO FRA) airspace and with the application for European funding (CEF) through the SESAR Deployment Manager (SDM). Subsequently, all Gate One members expressed their intention to participate in the GO FRA Study by sending mails to CEO. To make their intention to participate official, each interested member shall have to sign a Letter of Intent that will be part of the funding application package. The final version of the Letter of Intent was subject to coordination and approval following the kick-off meeting of 19 May. ATM experts have ensured the coordination of the project and the contact point for operational issues. As a result of the ANSPs CEO's decision in the FAB CE to recede from the project, including from the coordination of the study, leading to the receding of other partners (as in the end remained only PANSA, ROMATSA and Oro Navigacija), the administration receded from the project in its turn. The feasibility of future performance of the study will be reconsidered by the Gate One partners.
5. GMT Indra and AviBit
ATM Systems Experts coordinate the work of the GMT (Transfer Management Group) operational subgroup, who are members of this group as well. Up to now, meetings and conference calls were held within the operational subgroup, where both the existing and the forthcoming operational situations have been assessed. The identified issues were submitted to the Indra project manager with whom the correspondence is in progress, especially on the issues raised by the TWR facilities in which the Indra (EFS and FDO) system is implemented.
6. Participation in the Development Program and the implementation of the New ATM ROMATSA 2015+ System
SATM experts participated in activities that involved system testing, preparation, introduction, update, and system check of configuration data (Adaptation Data). Other activities have also been carried out: direct management, monitoring and direct control of the Project, endorsement of all project documents, preparation of project end-of-stage reports and approval to start the new stages, risk management (together with Project Managers of the working groups), planning the training of ROMATSA staff. Activities shall be carried out according to the approved chart. They have also had technical-operational meetings on the taxation activity of the terminal area.
7. Implementation of the TMA Bucharest Managing Sector
ATM experts participated in the implementation of the TMA Bucharest managing sector, along with the APP Bucharest and SMT in 2016 and during the year, refineries related to the managing sector have been tested.
8. Operational System Activities (Leonardo)
- Leonardo system improvement
The representatives of the ATM Systems Service participated in the review of the system documentation and testing of the Leonardo software versions. These activities took place when software corrections were performed that aimed to the implemented functionality. The activities related to the maintenance contract concluded with Leonardo are in progress.
- 27 - In May 2017, testing activities in TDS of the new software version were carried out, operationally installed in July 2017 (as a result of the acceptance by the RCAA of the modification of the ATM system). From the software package for which the change was accepted, CDB, MTCD and HCI modules are to be installed.
- geographic testing for the implementation of AIRAC changes
The activity consisted in TDS testing of environmental changes in AoL and AoR FIR Bucharest for each AIRAC cycle, followed by the installation in operational environment (route changes, point, CWP maps).
9. A-SMGCS
In its scope, the ATM experts ensured the coordination of activities for the operational commissioning of the surveillance system of the movements on the AIHCB aerodrome movement area (SMR component of A-SMGCS). In the first semester of 2017, the SMR component of A-SMGCS was put into operational use. The activities provided in the contract for the implementation of customized OLDI messages (interface with INDRA) were carried out: documentation review, meetings with the provider for the DIFLIS interface refinement in terms of OLDI dialogue with the INDRA system, 2 integrated test sessions, 2 SAT sessions (successfully completed). The package of documents was sent to RCAA (December 2017) to accept the change of the ATM system. Following SAT, there resulted a series of improvement proposals.
10. JEPPESEN
ATM experts were part of the negotiating committee appointed by the ROMATSA General Manager's decision to purchase the NavData services. The contract was concluded with Jeppsen in January 2018.
11. SESAR
ATM representatives participated in the working group to prepare the participation of ROMATSA in the development phase, at the management and implementation levels of the application phase of the SESAR Program.
12. NIDS improvement
The operational requirements development were attended and the activities on the NIDS change/improvement/testing were coordinated. These activities take place when the NIDS customization/implementation of end-user (ATC) improvements and they were operationally assessed as feasible. During 2017, the documents were customized in the area, the CTR page, and the frequency page.
13. Coordination of LSSIP Romania document issue.
The ATM Systems experts have ensured the coordination of the development of the annual issues of the LSSIP Romania document. This activity is permanent and involves both the coordination of specific activities within ROMATSA and the collaboration with the other institutions (MT, RCAA, SMFA, AIHCB).
- 28 - In 2017, the specific activities for developing the LSSIP Romania 2016 were completed, and in October 2017, the activities for the elaboration of LSSIP Romania 2017 were started, the current stage being the completion of LSSIP Level 1.
14. Participation in the development of the ROMATSA Strategic Business Plan and the Annual Business Plan
The ATM system service participation in the correlation of the LSSIP objectives with the objectives defined in the Strategic Business Plan and the review of the impact, and the phase of implementation of the European Regulations provisions;
15. Danube FAB
From the operational point of view, ATM experts participated in Danube FAB activities: ATM development, ConOps, OSC. They participated in the correlation of the terms of objectives included in the national editions of LSSIP Romania and LSSIP Bulgaria with the commitments and objectives defined at the Danube FAB level within the Danube Fab Strategic Program, as well as the Annual Plan.
16. Performance assessment
The ATM representatives participated in the works performed by the working group assigned by the Decision of the ROMATSA General Director no. 841/12.12.2016) for the develpoment of the procedure for assessing the performance of ROMATSA staff.
17. Performance plan
The experts participated in the works performed by the working group concerning the opening and change of the RP2 Performance Plan. In accordance with the provisions of Articles 17 and 19 of the Regulation (EU)no. 390/2013, in May 2017, Romania formally requested the European Commission, by the letter no. 18 493/23.05.2017 submitted by the Minister of Transport to the European Transport Commissioner, to review the performance targets of the Danube FAB Performance Plan for the second reference period for the years 2018-2019. The subsequent activities performed under the review process, in which they participated, were:
- submitting to the European Commission (EC) on 31.05.2017 of the first set of technical documents, as well as the 2018 preliminary cost reporting tables for the route activity and for the Bucharest Airport Terminal activity; - submitting to the EC, PRB and to the airspace users, on 14.09.2017, the detailed technical information, including the revised drafts of route and terminal cost bases of the Bucharest Airports 2018-2019; - the preparation of consultations with the representatives of the European Commission (EC) and with the PRB President dated 12.10.2017, Brussels (informative session) and of the consultations with airspace users on 15.10.2017, Bucharest; - preparation of consultations with the PRB representatives on 16.11.2017, regarding the content of the review documentation and supporting the underlying arguments of the review process.
All activities provided for by the Regulation and/or requested by the representatives of the European Commission and PRB have been carried out. The confirmation of the completion
- 29 - of all activities under Romania's responsibility came from the PRB as well, which stated that, once the last answers to the clarifications were submitted, the conditions for issuing the assessment report have been met. This report and its conclusions will lay at the basis of the decision of the European Commission regarding the Romania's review approach.
18. The operational decommissioning of the Leonardo Phase 2 system
ATM experts participated in the Leonardo Phase 2 operational dismantling activities on their area of responsibility (procedures, activity plan).
19. SRS
It was also planned to update the SRS work instructions to TWR in order to use the traffic monitoring application. The consultation with RATCA has already been carried out, following which the document is to be reviewed at the Operational Department.
20. VCS to TWR
Together with the Technical Department, steps were taken for the procurement of VCS at TWR Bacău, Băneasa, Oradea, Tulcea, Arad, Craiova and of APP / TWR DSNA Cluj Simulator.
21. Implementation of the Regulation (EC) no. 73/2010
ATM experts participated, within the designated working group, in the activities coordinated by the aeronautical experts in the information management on the development of procurement documentation for the AIS computerized integrated system.
22. CR1
The development of the documentation on CR1 authorization in the ”Sala Vioară” has been attended.
23. Other activities
- GAMMA
This activity materialized in the review of the WP9 related documentation - Validation, participation in workshops and operational validations;
- Control tower modernisation
The activities related to the modernization of TWR Bacău and TWR Suceava on the operational domain have been attended;
- ITT Exelis
ATM Systems experts coordinated ROMATSA's response in the periodic assessment of the implementation stage of the recommendations included in the Modernization Study of the surveillance systems "Romania: Aviation Surveillance Modernization" prepared between January and August 2013 under the technical support contract concluded with the ITT Exelis American company.
- 30 - According to the provisions of the USTDA Grant, ROMATSA is liable to answer in the process for assessing the implementation of the recommendations made by Exelis experts in the modernization study "Romania: Aviation Surveillance Modernization" for a period of 5 years from the date of final report completion (September 2013).
- implementation of the FCM06 - Traffic Assessment objective, as defined in the European ATM Master Plan - Implementation Plan 2017 (ESSIP 2017) applicable to Romania:
- participation in the CRYSTAL application, in November 2017, for the management of air traffic complexity (SKYGUIDE, Geneva); - the participation in the analysis of the way in which an integrated automated assessment and prediction application for complex air traffic may be implemented within ROMATSA, by developing a working document (pre-feasibility study) by the working group - in progress.
- courses
Internal professional reconversion courses in the aircraft subjects, air navigation, on-board equipment, emergency procedures for ATC Ab-initio and rating 2016/2017 were prepared and conducted at DSNAR Constanța and SSAvC and CTA Ab-initio and rating 2017/2018 were prepared and conducted at DSNAR Constanța.
- current activities:
- developing procedures, rules, instructions (PINs), manuals specific to the activity of the service and to the processes carried out within or specific to the operation of the ATM System. Such activity involves the participation in the development of new PINs or the update existing ones. Experts participate in the development of working operational procedures with the new AviBit and Indra systems. The review of the results of the OLDI technical tests is in progress in view of adequate amend the LoA with the external partners; - review and approval of the ROMATSA documentation investment objectives with operational impact. The ATM representatives examine and endorse documentations (design topics, pre- feasibility and feasibility studies, execution projects, etc.) regarding the investment objectives with operational impact (communication and surveillance systems, navigation aids, control rooms improvement, etc.). - keep the record of the implementation of operational measures set up following the controls and audits. The concerned tables shall be constantly updated through the other services in The Operational Department. - updating the aircraft data basis The activity consists of the regular update of the aircraft database of Leonardo system. - update of the database of ATM system The activity is permanent and consists of continuous update of the AIRAC Cycle of the FPPS/FDP Leonardo geography, check and test of the implementation of changes in the FDP/FPPS systems. Recurrent activity of the AIRAC cycle. - review of the General Action Plan in special situations
- 31 - The activity consists of the regular update of the local contingency Plans and of the general Plan. - SAF The ATM experts participate in the review of the ANS/ATM specific events concerning the FDP, RDP, NIDS, RSUR components related by REAC - 03 forms. - participation in LSSIP Expert Group This activity involves the participation in specific activities with the improvement of the ESSIP/LSSIP process as a main objective; the activities are carried out by correspondence and conference calls. - SESAR C.02 Task 007 – European Deployment Reports & Assessments - preparation of the ESSIP annual report This activity materialized in 2017 with the participation in the development of the ESSIP Report 2016 that assess the progress in the implementation of the ESSIP Plan objectives included in the ESSIP Plan in the ECAC states and propose remedial actions at the EATMN network level. - participation in the CANSO EASA Task Force The Working Group is dedicated to the determination of the CANSO position to the EASA regulatory projects at different stages of development. Participation consists in the review and assessment of the impact of the proposals for new regulations or of the amendments to existing SES/EASA regulations on ROMATSA activity, the statement of supportive point of view, and of the opinions of the specialists within the administration and correlated by taking other position/views and their submission within the consultation processes initiated by CANSO. The activity is carried out by correspondence, conference calls and working meetings. - participation in the ODSG ATFCM Operations and Development Sub-Group The ATM experts participate in the ODSG, EUROCONTROL working group, which tracks both the improvements in the ATFCM and IFPS services. - management of the SSR codes In this activity, the use of SSR codes shall be monitored related to EUROCONTROL issues found (insufficient codes, codes to be exchanged in FIR Bucharest, as ATSU from upstream did not change the ICAO CAL codes, the SSR code conflicts). Reporting is carried out within the EUROCONTROL/SCPG - SSR Code Planning Group, which takes the necessary steps to address the identified problems. The ATM experts participate in the EUROCONTROL/TCFG Transponder Code Function Group. Limited resource management (frequencies, SSR codes) is one of NM functions. The TCFG has a dual role to support both the ICAO EUR Region and the NM in performing the TCF. - preparation of the documents and their amendments for introduction in the NIDS System The documents to be entered in the NIDS system or their amendments are collected from the responsible departments, which have been converted into the format accepted by the system and submitted to the Technical Department to be uploaded to the servers according to the agreed procedure. - operational review of regulatory drafts issued by the European Commission This work is being carried out within the context of the initial EASA/CANSO/MT/RCAA consultations, (EC) Regulations with impact on air navigation services have been studied and reviewed. The activity is materialized by stating operationally reasoned opinions, which are then submitted in the formal consultation processes. - SATM participated in the impact study on potential legislation for RP#3 (SDG study - Steer Davies Gleave) - November 2017. - Regulation (EC) 793/2004
- 32 - The ATM experts participated in the review regarding the ROMATSA designation as schedules facilitator coordinator (according to the Regulation (EC) 793/2004).
- SESAR
Collaboration with the SES experts in the ATM Systems scope of activity
- participation in workshops on the implementation FRA implementation The ATM experts participated in the workshop organized in Vienna, prior to the SECSI FRA implementation. During the meeting, the "lessons learned" implementation steps were exposes, the meeting being a valuable exchange of experience between the experts of the participating ANSPs.
The ATM experts participated in the workshop organized by FAB CE in Ljubljana regarding the inter-FAB operational cooperation. Apart from the facts related to the FRA implementation, the FAB contingency was brought into discussion as well. Taking into account the FAB CE experience, regarding the contingency (there is a designated working group that studies the contingency insurance methods, including discussions with the NM on this topic) the representatives of ROMATSA and BULATSA found that the participation in future FAb CE meetings on contingency was useful. In this respect, the participating specialists of both ANSPs were included in the correspondence list of the respective working group.
TECHNICAL ACTIVITY
Programme coordination
In 2017, it was aimed to the continuous provision of air navigation communication, navigation and surveillance services to the safety level provided by the applicable standards and to the investment programs carried out in accordance with the approved modernization objectives. Thus, from a technical point of view, the following actions were taken:
- development and approval of the R.A. strategic planning documents. ROMATSA:
- drawing up the Report on the stage of evolution/performance of the main lines of action of the objectives assumed by R.A. ROMATSA in the Annual Business Plan - ABP 2017 and in the Strategic Business Plan - SBP 2016-2020, December 31, 2016; - Strategic Business Plan (SBP) 2017 - 2021 ed. 10.0; - Annual Business Plan (ABP) 2017 - Ed. 11.0; - participation in the ROMATSA - BULATSA working group on the activities specific for the preparation of the Strategic Program for Danube FAB 2017-2021 and of the Annual Plan for Danube FAB 2017.
- participation in the activities of the management programme ”ROMATSA ATM 2015+ Development and Implementation System”, consisting of project management for:
- improving the ACC hall, 2nd floor in CDZ Bucharest - providing operational, technical and infrastructure conditions necessary to implement the ATM 2015+ system in order to ensure the full interoperability of the ATM system with the applicable SES requirements:
- 33 -
- technical project developed according to the contract submitted to ROMATSA from 2016 - the technical and operational requirements and the Design Topic for the DALI development have been updated.
- The expanded technical hall 2 (STE 2) - will technically support the operational activity to be carried out in the ACC Hall at the 2nd floor; - the development of the ACC Simulator Room to operate as TDS/CR1/SIM -the improvement of the current ACC Simulator Room (Vioara) to provide the following functionalities:
- TDS for SELEX system Phase 4 - TDS for INDRA system - ACC simulator (ROMATSA) - INDRA simulator - CR1 contingency - the necessary equipment other than INDRA has been installed to operate as TDS/CR1/SIM - The project management and Contract signing activities for CR1 activation in Vioara Hall has been attended - the development of the APP Arad Room and APP Constanta Room - ensuring the operational and technical conditions necessary for the control of the approach air traffic in the Arad and Timisoara terminal areas in CDZ Arad and for TMA/TWR Constanta, as well as the installation and commissioning of the components of the new ATM 2015+ system:
- preparation of the procurement documentation for the commissioning display components of the runway in use ILS system on the airports of Arad, Timișoara, in the APP Arad, and on the airport of Constanța in the APP Hall; the commissioning correlated to the development and implementation activities for the ATM 2015+ system - support activities (in Program Manager Support Office - for project management in the ATM 2015+ Programme):
- ensuring the conformity of the processes carried out within the Programme with the Instructions on the Management of Projects and Programs performed in the R.A. ROMATSA staff; - the correlation of project information with the Strategic Business Plan information, the Annual Business Plan and the Multi-Annual Investment Plan - tracking the performance of the contract for the development and implementation of ATM 2015+ system with INDRA; participation in SC # 10 and SC # 11; - preparation, negotiation and signing of the Addendum to the Contract with INDRA - participation in the meetings within the ATM 2015+ programme for the correlation with the related projects: modernization of the ACC Hall 2nd floor, STE 2, Vioara, etc. - participation in the activities of the team of the project "Development and Implementation of the E-Management System" as well as in the key experts' teams regarding the development of modules on project planning and
- 34 - execution, as well as of the ECM module; participation in the reconciliation of the observations made in the minutes for putting into service of the system.
- project management, other projects
- execution of a new TWR infrastructure located in the Cluj airport perimeter:
- the New Control Tower project at Cluj - Napoca airport will enhance the carrying out of operational activity (direct visibility) in relation to the new take-off/landing runway (PDA). This project leads to increased air traffic safety in the airport area, CTR (Control Zone); it concentrates the technical activities (ROUTE and TERMINAL PNA/CNS equipment to be merged into one PNA/CNS technical room), the administrative and logistics activities under a single department and in a location (TWR building) to meet the future requirements for the development of Cluj Airport. - the profitability Study for the execution of works related to the "New Control Tower at Cluj-Napoca Airport", but it has been decided to stop the investment in this design phase and to initiate discussions with the Cluj-Napoca Airport to take over the project for the execution of works and for further investment.
- TWR Bacău equipment and relocation:
- signing the collaboration protocol between ROMATSA and Bacău Airport during the implementation of the airport infrastructure modernization programme, whereby: - R.A. George Enescu International Airport of Bacău undertakes to build the Control Tower and the Enlargement under the project approved by the two parties; - ROMATSA will perform the endowment of the operational, technical and administrative zones intended for the Bacău DSNA terminal activity and for the route activity of DR Bucharest - PNA/CNS Section Bacău; - ROMATSA shall transfer the route and terminal operational and technical activities in the developed areas; - submitting the design topic to the Bacău Airport, extracted from the feasibility study approved by ROMATSA concerning the construction and assembly works and the electrical installation and voice-data works required in the operational, technical and administrative zones created for ROMATSA;
- CDZ Constanța simulator:
- it has been decided to continue the target solely for the TWR sector;
- New tower control equipment and relocation of TWR Suceava activity
- project planning:
- A-CDM (Airport Collaborative Decision Making) at Henri Coandă International Airport: - the review and submission of the point of view of R.A. ROMATSA to CNAB, in the first decade of August. Regarding the Protocol notifying the intention of project implementation.
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Other activities:
- preparation and approval of the quarterly Report on the executive directorship and on the R.A. ROMATSA development - 1st, 2nd, and 3rd semester 2016, according to the Government Emergency Ordinance 109/2011 (updated); - elaboration and approval of the annual Report on the activity of R.A. ROMATSA for 2015 according to GEO 109/2011 (updated); - the preparation and approval of the Report on the activity carried out in the first semester of 2019 by R.A. ROMATSA staff; - the Report on the activity carried out in the second semester is being prepared; - the preparation of monthly reports to MT on the state of completion of the commitments specific to the civil aviation in the Government Action Programme - specific measures related to the scope of the administration; - the drawing up of the Report on the stage of development/completion of the main lines of action of the objectives undertook by R.A. ROMATSA in the Annual Business Plan - ABP 2016 and in the Strategic Business Plan - SBP 2016-2020, the 1st semester of 2016; - participation in the working groups formed in the range of responsibility; - the participation of the representatives in the project teams within the SESAR Development Phase - the SESAR 2020 Programme, taking into account the capacity of ROMATSA as supporting third party (Link Third Party) of INDRA, a candidate member, holder of the new SJU, namely: PJ16 Controller Working Position/HMI and PJ17 Enabling Aviation Infrastructure - SWIM Infrastructure.
The differences registered in relation to the goals
- According to the Schedule for the development and approval of the ABP/SBP new editions, approved in the CD meeting on 17.06.2016, the deadline for the completion of the two documents was 28.02.2017. The reasons for failure to complete such documents up-to-date were as follows:
- delayed discussions/negotiations with the social Partner and the late receipt of the human resources, training and staffing section - July 2017; - failure to complete the relevant chapters/annexes on the performance and financial projections 2017-2021 in ABP/SBP; - delayed start (May 2017) of the regulated/unregulated process for the preparation of the route and terminal cost Basis for 2018; - non-completion of the process for reviewing the Romanian part of the Danube FAB Performance Plan for the second reference period (RP2).
NB: ABP 2017 was approved at the CA meeting of 25.08.2017. By the end of 2017, SBS 2017-2021 was still in place; working on the document was completed in December 2017, and the internal signing process was completed in February 2018; the document was approved in the CD session of 19.04.2018. In the HCA no. 9/25.04.2018 it was requested the document review and reopen for discussions in the ordinary session of July 2018.
- delays in starting the related Projects of the ROMATSA ATM 2015+ Programme, "Modernization of the ACC room at the second floor" and the "Extended Technical Room 2" due to the lack of agreement between the Executive Management and the Social Partner regarding the concept of modernization of the main driving hall, in the
- 36 - implementation of the new ATM 2015+ system as well as the transfer conditions in Operational Phase 1 in the 0 level of the ATM2015+ system; such delays are in direct correlation with the delay of the project for the development and implementation of the ATM2015+ system;
Investment objectives
Item Completion Achieved Appointment of investment objectives no. deadline (%) FOLLOWING OBJECTIVES Implementation of an e -management system for 1 May 2019 100 R.A. ROMATSA 2 Wind shear detection system at AIHCB (LIDAR) March 2019 0 ILS/DME Craiova (Cat II) system modernization July 2017 3 100
Moderni zation of ACC room in CDZ Bucharest 4 (room development for the implementation of the October 2018 0 ATM system 2015+, INDRA contract in progress) Light warning system for the controlled crossing of 5 December 2018 0 the N and C runways from AIHCB 6 ATM 2015+ (SW, HW) system February 2019 63.58 Wind vertical profile monitoring system based on 7 December 2017 90.32 SODAR at AIHCB 8 VHF radiant system at Co știla December 2017 0 9 COM/VHF Cluj Training Centre December 2017 0 CDZ Constanţa buildin g enlargement December 2017 10 1.46 implementation Concrete platforms at Emission Center 1, Emission 11 Center 2, VHF reception Center in the AIHCB June 2018 5.79 premises Building a false ceiling in the CDZ Bucharest June 2017 12 82.29 electrical workshop Modernization of the fencing and of the access June 2017 13 4.97 gates at DSNA Sibiu 14 ILS/DME equipment installation in Constan ța December 2017 6.13 15 ILS/DME 08L Otopeni equipment replacement December 2017 69.39 16 New tower control equipment at Suceava Airport June 2018 81.65 17 Băneasa control tower improvement December 2017 82.0 4 18 APP Arad modernization December 2017 0 19 APP Constanţa modernization December 2017 0 ACC simulator room development to operate as 20 December 2017 58.77 TDS/CR1/SIM 21 Extended Technical Room 2 October 2018 0 Development of car access to the remote DSNA 22 June 2018 0 Sibiu radio-beacon building NEW OBJECTIVES Integrated AIS computerized system (for ADQ 1 provision, drawing up of maps, procedures, and December 2018 0 AIPs) Installation of ROMAWOS weather sensors for 2 June 2018 35.28 Class II RWY 27 at Craiova Airport
- 37 - Platform development with meteorological 3 April 2018 4.37 instruments at Craiova airport 4 Tower equipment and endow ment at Bacău airport December 2017 65.94 5 SDSI modernization December 2017 34.42 6 DOS dispatching modernization December 2017 0 7 Thermal power station funnels December 2017 0 8 Fencing of the Arad weather observatory June 2017 99.17 9 Timi șoara x emission centre relocation December 2017 91.22 10 Car shed displacement to DNSA Suceava December 2017 65.95 11 Perimeter detection system modernization December 2017 8.97 12 AMHS/CIDIN/AFTN system upgrade June 2018 20.49 13 DSNA Craiova voc al record system, Arad airport December 2017 20.18 14 VoIP record system March 2018 0 15 VoIP and 8,33kHz compatible radio stations June 2018 0 VCSS systems at TWR Craiova, TWR Băneasa, 16 TWR Tulcea, TWR Bacău, TWR Oradea , TWR Arad March 2018 0 and APP/TWR DSNA Cluj simulator 17 CDZ Arad – MSSR Mănăştur radio relay line March 2018 0 18 DSNAR Arad access control system December 2017 0 19 INEA DME/PBN agreement implementation December 2020 0
Single European Sky and SESAR
The Single European Sky (SES) initiative aims at strengthening the current air traffic safety rules, contributing to the sustainable development of the air transport system and improving the overall performance of air traffic management (ATM) and air navigation services (ANS) for the general air traffic in Europe by complying with the requirements of all airspace users.
In accordance with the provisions of SES legislation, the provision of air navigation services within the European Union is subject to certification granted by the competent authority. The air navigation service providers, who comply with the common requirements, shall be issued with a certificate, in accordance with the art. 7 of Regulation (EC) No. 550/2004 and with the art. 8b par. (2) of Regulation (EC) No. 2016/2008. In this respect, ROMATSA was certified as an air navigation service provider by the document no. CN07 issued by RCAA as a National Supervisory Authority on 14 December 2012, with the current amendment no. 1 of 18 February 2014 in force. The certificate is valid until 15 December 2018, subject to ROMATSA compliance with all the terms mentioned or attached to it, as well as with the common requirements for the provision of air navigation services established by the applicable community laws. The European context is also dominated by the SESAR Programme as technological and operational support of the SES initiative. The SESAR programme aims at the implementation, by 2030, of a high-performance ATM infrastructure that allows the safe and environmental development of air transport in the European Union. The ATM Master Plan (ATMP) is the main planning tool that determines the link between the R & D and the implementation activities in fulfilling the SES performance targets. Thus, it defines priorities for the modernization of the ATM system and for the placing into practice of the SESAR target concept, by determining WHO, WHAT and WHERE. 2017 was an important year for the SESAR Development Phase, as it was the starting year of the SESAR 2020 Programme.
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SESAR Development
ROMATSA participates in the SESAR 2020 Programme by the PJ.16-04 - Solution Workstation Controller Productivity project and the PJ.17-08 - SWIM-TI Common Runtime Registry project, as a supporter third party of INDRA, a SJU supervisory member, established based on the SJU Membership Agreement, signed in November 2015. The project PJ.16-04 is part of the SESAR 2020 Multi Annual Work Program (MAWP) for the period 2016-2020, as part of the "Industrial research & Validation" phase, developed under the SESAR Joint Undertaking management. The project "PJ.16 - 04 Control Position/Human Machine Interface - CWP / HMI" is included in the chapter "Enabling Aviation Infrastructure". The PJ.17-08 - SWIM-TI Common Runtime Registry project in line with the SWIM (System Wide Information Management) concept, the SWIM Registry department aims to increase the visibility and accessibility of the ATM information and services available by SWIM. This will allow a common insight on the SWIM for all participants: service providers and consumers, regulatory authorities. The SWIM Registry will be the reference source for information related to services in SWIM. In 2016, after ROMATSA had signed the joint responsibility statements of the third party supporters (Annexes to the Grant Agreement signed by INDRA with the SJU) as documents preceding the collaboration agreement between ROMATSA and INDRA. In 2017, the company carried on its activities related to the two projects, by endeavouring to sign the Cooperation Agreements with INDRA for the two projects, by setting up the project teams, targets, by assigning responsibilities within each project team, and by actually participating in the R & D activities of the two projects.
SESAR Deployment
Pilot Common project (PCP) review
In September, the SDM launched the consultation phase on the PCP review. The review proposal submitted by the SDM was developed jointly with the SJU (SESAR Joint Undertaking) to ensure the compatibility with the development of the second joint project (CP2) and with the NM (Network Manager) to ensure the appropriate ATM functionalities with specific relevance for the network. In 2017, ROMATSA submitted the comments on the documents being consulted so that they allow a faster implementation of the essential operational and performance improvements.
Participation in the implementation of European projects
In 2017, ROMATSA was involved in four projects co-funded under the Connecting Europe Facility (CEF), as follows: - WXXM – Pilot Platform for access services to OPMET (worldwide/ECAC) data (METAR, TAF, SIGMET) în WXXM format; Project 50% co-financed with CEF funds by the "Specific Grant Agreement No INEA/CEF/TRAN/M2015/1037259 under the Framework Partnership Agreement No MOVE/E2-2014-717/SESAR FPA". The project completed in September 2017. - NewPENS – Stakeholders contribution for the procurement and deployment of NewPENS Project 85% co-financed from CEF funds by the ”Specific Grant Agreement No INEA/CEF/TRAN/M2015/1132963 under Framework Partnership
- 39 - Agreement No. MOVE/E2-2014-717/SESAR FPA”. The project is coordinated by EUROCONTROL, and ROMATSA participates as a contributor/beneficiary. - SPICE – Synchronized PBN Implementation Cohesion Europe/2015-EU-TM- 266-W Project 85% co-financed from CEF funds by Grant Agreement under the Connecting Europe Facility (CEF) – Transport Sector Agreement No INEA/CEF/TRAN/M2015/1125723. ROMATSA participates as a contributor. - eGAFOR – electronic general Aviation Forecast Project 85% co-financed from CEF funds by Grant Agreement under the Connecting Europe Facility (CEF) – Transport Sector Agreement No INEA/CEF/TRAN/M2016/1352262. ROMATSA participates as a contributor.
Centralized services
During the session of the Provisional Council of EUROCONTROL, in June 2017, the following decisions were taken regarding the Centralized Services for ROMATSA concern: - the award of the CS#4 AFUAS contract (Advance Flexible Use of Airspace Support Service) has not been approved; - the decision on the Centralized Services CS#6-7 Management of Common Network Resources Service/Operation and Coordination of Network Security (CNR/OCNS) and CS#6-6 Management of Common Network Resources Service/Security Certificate Service (CNR/SCS) has been postponed.
During the session of December 2017, the Provisional Council decided to stop the Centralized Services CS#6-7 and CS#6-6. Therefore, ROMATSA has started the procedure for the termination of the contract with the consultancy firm that provides the support for the preparation of EUROCONTROL Centralized Services documentation.
Compliance with the requirements of the Regulation (EU) no. 1035/2011
The process of complying with the means, procedures and other arrangements established and/or used and described by the organization's written detailed statement shall be carried out in accordance with the provisions of the implementation Regulation (EU) no. 1035/2011 laying down the joint requirements for the provision of air navigation services. In 2017, ROMATSA requested the Romanian Civil Aeronautical Authority to amend the air traffic management provider certificate/air navigation service certificate due to the introduction of some changes to the supplied services. At the same time, steps have been taken concerning the involvement of ROMATSA in the process of RCAA consultation on ensuring the transition for the enforcement of the implementation Regulation (EU) 2017/373 to establish the joint requirements for air traffic management providers and for their oversight. In parallel, ROMATSA has developed an impact assessment to support the internal decision-making process by identifying new requirements and their effect on ROMATSA certification.
Objectives for 2018
Under the implementation of the SES legislation, ROMATSA shall have the strategic objective to consolidate the position of the provider of performing services both regionally and at the European level, by the maximum development of the operational and technical expertise, taking into account the pan- European competitive environment. European funds access
- 40 - can be one of the instruments allowing the consolidation of ROMATSA's position at the regional and European level and an effective lever for developing new opportunities. Regarding to continued compliance with the joint requirements for providing air navigation services, ROMATSA's firm objective is the renewal of the Air Traffic Management provider certificate/Air Navigation Services Certificate in accordance with the provisions of the applicable legislation, given that the Air Navigation Services Certificate is valid for six years and it expires on 15 December 2018. Efforts started in 2017 to take part in European projects regarding the programmes of the SESAR development and implementation Phases.
System development
In 2017, on the system development line, the following activities were carried out:
- activities related to the ATM 2015+ (INDRA) project implementation:
- coordination and participation in the SAT31 repeat testing procedure; - coordinating and participating in the Patch # 3 and Patch # 4 testing procedures; - participation in the OLDI interoperability testing between the ATM 2015+ system and the external partners' systems in Chișinău, Budapest, Sofia, Belgrade, Lvov and Odessa; - participation in the interoperability testing between the ATM 2015+ system and the ASMGCS Otopeni system (developed by the Avibit firm); - participation in the internal testing of ATM 2015+ system functions; - participating in the development of the phase 2 specifications; - the development of applications providing the necessary data for air traffic billing in the terminal and airport area, based on the information available in the ATM 2015+ and Avibit system logs.
- SDS internal projects:
- SRS (Surveillance Reserve System) to present the SRS CWP component on 2Kx2K displays.
- International cooperations:
- participation in the TWG (Technical Working Group), SAPSC (Strategy and Planning Standing Committee) Danube FAB; - participation in the PJ16.04 (CWP-HMI) project of the SESAR 2020 Programme; - participation in the works of the GAMMA European Consortium for the implementation of a Global Security Management Project in ATM (project completion); - participation in the European Working Group for the review of the OLDI Standard; - participation in the European Working Group to develop an implementation guide of ODI standard regarding the inclusion of new operational concepts (FRA, reentrancy).
- Activities related to other ROMATSA projects:
- participation in SAT testing of the ATM (Leonardo) system with the new software version; - participating in the project for the decommissioning of the Leonardo Phase 2 System;
- 41 - - development and review of specifications for the supplementation of OLDI messages in the ASMGCS Otopeni system; - preliminary testing and participation in ASMGCS Otopeni SAT system; - participation in the additional testing of the ASMGCS Otopeni system; - participation in the Air Traffic Controllers training sessions from the Otopeni Tower on the Avibit system.
The differences registered in relation to the goals
Compared to the initial planning according to the Investment Plan 2017, the participation in the SPICE project is based on a new implementation schedule, agreed with the project coordinator (EUROCONTROL), but by complying with the final deadline (December 2020). SAFETY, QUALITY, ENVIRONMENT AND SECURITY
The main target for the year 2017 of the activities of the Safety and Quality Division was the improvement and consolidation of the Safety Management System and of the Quality and Environmental Management System in order to ensure the validity of the certificates attesting the compliance with the requirements of the EU Regulation no. 1035/2011, ISO 9001: 2015 and ISO 14001: 2015 standards The specific objectives by scope of activity were subordinated to the continuous improvement of the Safety, Quality and Environment Management Systems, the implementation of the ( aeronautical and information ) Security Management System in ROMATSA and the proper operation of the Danube FAB.
Safety area
The main activities carried out during 2017 in the field of "safety management" were:
- improving the Safety Management System in accordance with the RCAA, EASA, EUROCONTROL and ICAO recommendations, in order to increase the safety level of air navigation services provided by ROMATSA; - internal audit for the safety of all administration sub-units ( 16 internal security audit planned missions have been performed ); - developing measures plans following internal security audits and surveillance audits performed by RCAA and Bureau Veritas, and monitoring the state of implementation of these measures as well; - introducing and overseeing the implementation of the version 13.0 of the Safety Management Manual following the amendments of PIN 1210, PIN 1212, PIN 1212, PIN 1212, PIN 1220, PIN 1250, PIN 1280 procedures and of ROF Local Safety Boards; - introducing and overseeing the implementation of the first edition of the Just Culture Policy, a signed document printed by RATCA, ATSR and ROMATSA; - ROMATSA training for external oversight audits by RCAA to maintain the certification as a provider of air navigation services, in accordance with EU Regulation no. 1035/2011; - assessing the safety risks and establishing the measures to mitigate them for major projects of ROMATSA; - collecting the information on reported safety incidents, investigating them and tracking the implementation stage (both on a continuous and dedicated basis, as well
- 42 - as during internal security audit visits) of the necessary corrective and preventive measures; - monitoring and reporting of performance indicators in the SAFETY field, in accordance with the requirements of the National Performance Plan; - the preparation of staff in the ROMATSA safety structure and the one whose activity has implications for safety (within the internal security audit activities, part of the time was allocated to the specific training of the Local Safety Coordinators - CoLS and of the heads of departments) to maintain an appropriate level of competence in the field; - organizing and conducting the Safety Oversight Board 2017/1 meeting, where appropriate steps have been taken to improve the processes of the Safety Management System; - organizing and conducting the Safety Oversight Board 2017/2 meeting within the Management Analysis performed, where the safety level of the air navigation services provided by ROMATSA has been reviewed and the measures have been established for its improvement; - ensuring the ROMATSA representation and contribution on the safety in the working groups on skills at EUROCONTROL, CANSO and DANUBE FAB.
The safety level of the supplied services
In 2017 , the monitoring of the safety had as a result the record and investigation of 1271 civil aviation events ( compared to 1171 in 2016 ). The 1271 civil aviation events reported included 1038 ATM safety events, of which: 753 operational safety events and 285 technical safety events. In 2017, ROMATSA had no contribution to the production of any ”accident” type safety event.
Quality and environment fields
The main activities carried out during 2017 in the field of "quality and environmental management" were:
- updating and amending the Quality Management and Management System Integrated Manual, the SMC Procedures Manual (14 procedures) and the EMS Procedures Manual (11 procedures) in order to achieve the transition to the new ISO 9001: 2015 and ISO 14001: 2015 standards; - quality and environment internal audit of all administration sub-units ( 16 internal quality and environment audit missions have been performed ); - monitoring the satisfaction of internal and external (employees) performed by collecting, centralizing and processing data from specific questionnaires; - monitoring and assessment during the quality and environment internal audit, the degree of maturity and the weaknesses of the Quality Management System and the Environmental Management System of R.A. ROMATSA as a support for management in the continuous improvement process;
- 43 - - the Management Performed Review achieved at the highest level of the Quality and Environment Management System RA ROMATSA in order to improve these systems; - training the own staff and the staff of Local Quality and Environment Coordinators for specific quality and environment issues in order to maintain an appropriate level of competence in the field. Under the internal quality and environment audit activities and on the occasion of the annual meeting of the Local Safety Coordinators and Local Quality and Environment Coordinators of the Central Administration and subunits, part of the time was assigned to specific training in quality and environment; - dissemination in the entire SMC/SMM ROMATSA structure during the internal safety, quality and environmental audit activities, as well as during the activities related to ROMATSA certificate maintenance according to EU no. 1035/2011, ISO 9001: 2015 and ISO 14001: 2015, the information and recommendations included in the RCAA audit and oversight reports, Bureau Veritas and in the internal safety, quality and environment reports; - participation in carrying out the oversight audit by the Bureau Veritas Certification firm in order to reconfirm the certifications for ROMATSA and the transition to the new ISO 9001:2015 standards (field: quality - including for the training of the staff specialized in air navigation services) and ISO 14001 : 2015 (field: environment), in the Central Administration and in the following subunits of the administration: DR Bucharest, DSNA Bucharest, DSNA Timișoara, DSNAR Arad, DSNA Oradea, DSNAR Constanța and DSNA Tulcea; - ensuring the ROMATSA representation and contribution on the quality and environment in the working groups on skills at EUROCONTROL, CANSO and DANUBE FAB.
The quality level of the supplied services
The quality level of the services provided is also certified by maintaining the certification of the Quality Management System ROMATSA following the oversight audit performed by the Bureau Veritas Certification. Noteworthy is that no non-conformities have been identified in the oversight audit and the RA Quality Management System ROMATSA has been assessed as mature, it satisfies the requirements of ISO 9001: 2015, correlated with the safety requirements imposed by the applicable operational regulations, and a continuous improvement of the working method and of the perception of the system has been noticed. The level of service quality is monitored every year by ” indicators for the service quality ”, namely: - traffic fluidity - measured by delay minutes; - capacity per FIR; - client satisfaction; - CNS function availability. These indicators were carried out in 2017 at the entire ROMATSA, their review being carried out within the Management Performed Review.
- 44 - Aeronautical and information security field
The main activities carried out during 2017 in the field of "aeronautical and information security management" were:
- performing surveillance/monitoring activities on the "aeronautical and information security" at DSNAR Arad and at DSNAR Constanța; - monitoring the state of implementation of the plans of actions resulting from internal aeronautical and information security audits conducted in 2017; - carrying on the training specific to the aeronautical security of the own and designated staff in subunits; - implementation and oversight of the implementation of the new edition of the ROMATSA Aeronautical Security Programme (classified document); - assessing the aeronautical/information security risks and establishing the measures to mitigate them for major projects of ROMATSA; - conducting aeronautical security trainings for the Local Aeronautical Security Officers within ROMATSA subunits, the ROMATSA employees and the staff of other companies operating within the CDZ Bucharest; - ensuring the ROMATSA representation and contribution on the aeronautical and information safety in the working groups on skills at EUROCONTROL and Danube FAB.
PERFORMANCE INDICATORS
Performance indicators in the safety field
The following table compares the planned safety objective and the safety level achieved by ROMATSA for 2017.
PLANNED ACHIEVED Annual safety objective Performance indicators Safety level (annual maximum (completed 2017 ) acceptable values ) Number of accidents induced by ROMATSA 0 0 Number of serious incidents max. 1 0 induced by ROMATSA Number of serious risk - bearing incidents max. 9 2 induced by ROMATSA
ROMATSA safety objective for 2017 has been met.
- 45 - Performance indicators in the service quality field TARGETS (annual maximum STATUS OBJECTIVES INDICATORS acceptable 2017 values ) Number of delay Fluidity of minutes en route max.1 min 0 Achieved traffic caused by the Enhance provided service the
quality Capacity per Number of max.178 level of < 178 Achieved FIR; aircrafts/hour/FIR provided
air traffic
services Client Number of ATM max. 6 0 Achieved satisfaction relevant complaints
Number o f operating Availability of CNS hours/total number min. 95% (indicator in the process > 95% Achieved of declared hours sheet) (%)
ROMATSA quality objectives for 2017 have been met.
DANUBE FABproject
FRAMEWORK Danube FAB is the functional airspace block founded by the ”Agreement between Romania and the Republic of Bulgaria on the establishment of the Danube FAB (functional airspace block)” (Danube FAB Agreement) signed at Bruxelles on 12 December 2011 and ratified by the Law no. 192/2012 issued in the Official Gazette of Romania, Part I, no. 741 of 2 November 2012.
NEFAB
DK -SE FAB
UK -Ireland Baltic FAB FAB
FAB CE FABEC
SW FAB
BLUE MED DANUBE FAB FAB
- 46 - Image 1 - Danube FAB Subsequent to the Danube FAB Agreement, the Cooperation Agreement between the two National Supervisory Authorities and the Cooperation Agreement between the two Air Navigation Services Providers, ROMATSA and BULATSA had been signed.
Image 2 - The structure of the main Danube FAB regulatory framework
The entry into force of this document led to establishing the governing bodies governing Danube FAB as follows: the Governing Council, the NSA Board, and the ANSP Board.
Image 3 - DANUBE FAB Organizational structure Concurrently, according to the provisions of the DANUBE FAB Agreement, in order to comply with the duties, the Board of air navigation service providers has founded the SAPSC, which founded, in its turn, other two supporting standing committees: the OSC and the SQSESC.
- 47 -
Image 4 - Supporting bodies created at the ANSP Board
Further information and documents are available on www.danubefab.eu .
Danube FAB governing structures During the year 2017, two meetings of the DANUBE FAB Governing Council took place on 17 May 2017 in Romania and on 1 November 2017 in the Republic of Bulgaria. Moreover, during the year 2017, two meetings of the Air Navigation Service Providers Board took place as follows: on 16 May 2017 in Romania and on 31 October 2017 in the Republic of Bulgaria.
Strategic planning In the first part of 2017, the Danube FAB Governing Council completed and adopted the "Danube FAB Strategic Programme for the period 2017-2021", "The Danube FAB Annual Plan for 2017" and "The Danube FAB Annual Report for 2016" documents, prepared in accordance with the provisions of the Danube FAB Agreement. Consultation with the social partners The consultation process with the social partners within the Danube FAB shall be provided by organizing the Social Consultation Forum (SCF) on a regular basis, in accordance with the provisions of the Cooperation Agreement signed by ROMATSA and BULATSA. During 2017, a SCF meeting took place on 8th of June in the Republic of Bulgaria This meeting was chaired by the General Managers of ROMATSA and BULATSA, who presented to the representatives of the trade unions and of the main professional organizations the operational projects implemented or under implementation within Danube FAB, other priority projects, as well as the legislative developments at European level with impact on air navigation service providers. Priority activities: - Free Routes Airspace (FRA) On 30 March, DANUBE FAB and HungaroControl (SEEN FRA) developed the Free Routes Airspace (FRA) project by expanding the Danube FAB FRA (ROMATSA-BULATSA) and N- FRAB (ROMATSA - HungaroControl)initiatives .
- 48 - - Technical Rationalisation and Infrastructure Within Danube FAB, the CNS infrastructure is jointly planned by ROMATSA and BULATSA and, where appropriate, joint procurement shall be made. In 2017, DANUBE FAB continued the activities provided in the planning documents adopted at the FAB level in order to support the coordination, rationalisation and/or joint use of technical infrastructure. - Inter-FAB cooperation Within the Inter-FAB coordination platform, Danube FAB actively involved by participating in the Inter-FAB Coordination Workshop, in Malta, on 05-06.10.2017, and by participating in the organization of the first inter-FAB workshop on performance (Sofia, January 2018). - FAB Danube expansion In April 2017, the Study on the pre-feasibility of the Danube FAB expansion was completed, based on which the potential candidates will be selected to conduct detailed feasibility studies. Communication activities:
- development and implementation of the new Danube FAB website consisting of a project management online application (extranet); - the participation of Danube FAB as an exhibitor at the ATM 2017 World Congress between 7 and 9 March in Madrid.
INTERNAL AUDIT
A. General view of internal audit
Under the Law no. 672/2002 on internal audit, reissued, including the subsequent amendments and additions at the R.A. level ROMATSA the internal audit dedicated structure is formed, the internal audit function is functional, the internal audit activity being carried out at the department level (Internal Audit Compartment - C.A.I.). The Internal Audit Compartment was founded by the Decision of the Board of Directors of R.A. ROMATSA no. 3/22.03.2004, consisting of a number of two positions from the foundation up to the present, namely an Internal Audit Chief Executive position and an Internal Auditor position.
B. Internal Audit Compartment staff
As specificity for part of the year 2017 regarding the executive position in the compartment, it was vacant between January 2016 and March 2017 (13 months). Thus, steps have been taken to fill the Internal Audit Executive Manager position, and by the Decision of the General Manager no. 204/31.03.2017, the employee declared admitted by the Internal Examination Board has been appointed to this position since 01.04.2017. This led to an improvement of the compartment business in 2017 (compared to 2016, when the compartment business was carried out with only one internal auditor and without managerial position) and to ensuring the permanent oversight activity within the internal audit missions, including to the improvement of the actual ability to conduct audits. Consequently, the activity of the Internal Audit Compartment within R.A. ROMATSA is carried out with a minimum staff, provided by Law no.672/2002, reissued, including the subsequent amendments and additions.
- 49 -
C. Internal audit missions conducted during 2017
In 2017, within R.A. ROMATSA, the Internal Audit Compartment carried out 5 missions, namely 4 four assurance missions and one formal advisory mission, where the financial and accounting, human resources were approached, as well as other positions specific to the administration.
Thus, during 2017, the Internal Audit Compartment carried out the following internal audit missions:
- "The decision-making system within the R.A. ROMATSA” - Report no. 4.278/01.03.2017 (mission included in the annual plan for 2016, subsequently reopened and completed in 2017); - "Development of the Managerial Internal Control System within the R.A. ROMATSA”, Advisory internal audit report no. 13.338/29.06.2017; - "Activities related to the necessary support staff and the staff policy carried out at the Central Administration and Subunits", Internal Audit Report no. 20.241/29.09.2017; - "Communication activity, protocol and prints for the R.A. ROMATSA needs carried out by the Organization and Relations Department”, internal audit report no. 22.835/31.10.2017; - ”Revenue creation at the R.A. ROMATSA, the method of determining the debt securities and the facilities granted for their collection", Internal Audit Report no. 27.633/22.12.2017;
At the end of each mission performed, by the internal audit reports submitted, the R.A. ROMATSA management has been granted conclusions specific to the findings performed concerning the audited topics, a series of recommendations being also made for the improvement of the related activities.
Within the internal audit missions performed at the R.A. ROMATSA, during 2017 :
- there have not been fount irregularities, so FCRI have not been drawn up ; - there were not cases in which the recommendations made in the Internal Audit Reports carried out would not have been accepted by the audited structures as prior to the drawing up, the recommendations proposals have been discussed with their representatives in compliance with the national legislation and with the specific rules concerning the exercise of the internal audit activity to the Ministry of Transport and to the public entities subject to its authority, approved by the order of the Ministry of Transport no. 1380/2016.
D. Other actions performed
In 2017, within the legal framework allowed, the Internal Audit Compartment carried out a series of informal or formalized consultancy that led to a more accurate understanding by the audited specialized structures of certain specific responsibilities, but also to their enhancement, including by the proposed solutions.
Thus, these actions materialized in the following methods:
- 50 - - the participation, as a guest, in the meetings of the Committee for the monitoring, coordination and methodological guidance on the implementation and development of the internal managerial control system, where it helped to review of the respective issues and to find the optimal treatment solutions for each of the topics included in the agenda, where applicable; - specific consultancy related to the development of the Code of Ethics project for the R.A. ROMATSA staff; - consultancy actions on several specific topics, materialized in a series of formalized documents; - support/consultancy in identifying the risks related to the management and support activities/processes whenever the Internal Audit Compartment was requested; - support/consultancy in the self-assessment activity of the status of implementation of the internal/managerial control standards; - every time it was consulted, the Internal Audit Compartment submitted to third persons with executional positions within the R.A. ROMATSA and/or to the specialty structures solutions or information for the enforcement of the legal provisions, under the specific terms applicable to the administration; - from the point of view of the compartment, permanent attempts shall be made so that the quality of the activities and the recommendations made bring an additional value, a contribution that is appreciated by all the participants for the proper course of the activities of the administration.
E. The results obtained:
By the above-mentioned methods, besides the fact that a fund was used for their accomplishment, the employees of the Internal Audit Compartment R.A. ROMATSA estimate that good results have been achieved and will be achieved, the activities carried out leading to a better understanding of those facts by the specialized structures of the administration, to an increase in the quality of the activity carried out, especially regarding the internal/management control system.
The Internal Audit Compartment deems that the activities carried out and mentioned above did not affect the independent nature of the internal audit activity or lead to the occurrence of certain issues/facts related to the incompatibility of the internal auditors.
THE EVOLUTION OF COST- EFFECTIVENESS INDICATORS IN 2017
1) The evolution of performance indicators according to the (EU) Regulation no. 390/2013
In 2017, the evolution of the performance indicators established for ROMATSA by the Danube FAB Performance Plan for the period 2015-2019 was as follows:
1.1. Key safety performance field
a) The level of effectiveness of the safety management
- 51 - 2017 2017 ROMATSA Target Achieved The efficiency level of the safety management Level C Level D - Safety culture The safety management efficiency level - Level C Level D Other safety management objectives
b) Applying the classification of severity based on the risk analysis template (RAT)
2017 2017 ROMATSA Target Achieved Separation minimum infringement (SMI) 80% 75% reporting; ATM (ATMs) specific events reporting 80% 100%
The RAT methodology was implemented 100% for all the minimum scheduling infringement, runway incursions and ATM specific events.
c) Just culture
Field Yes No Policies and their implementation 11 2 Legal/Juridical 2 1 Incident reporting and investigations 6 2
1.2 . Key performance area of environment
Within the key area of environment regarding the key performance indicator - KEA - the en route horizontal flight efficiency related to the effective trajectory shall be established and monitored at FAB level.
2017 2017 Danube FAB Target Achieved KEA 1.46% 1.62%
1.3. Key performance area of capacity
The following table shows the indicator status regarding the average number of minutes of ATFM (air traffic flow management) delay on route per flight at DANUBE FAB:
2017 2017 ROMATSA Target Achieved The average number of minutes of ATFM (Air Traffic Flow Management) delay for route per 0 min/flight 0,01 min/flight flight
- 52 - 1.4. The key performance area of cost-efficiency
The evolution of total en-route costs, of inflation, as well as the unit rate determined by the route of 2017, in relation to the Performance Plan for the second reference period (2015- 2019) is shown in the table below:
Determined Current ROMATSA 2017 2017 Currency
Total ANS costs (air navigation services) expressed in 668,768.54 729,738.89 SAND THOU nominal terms RON S Inflation % 2.8 1.1 Inflation index 134.41 120.96 (100 in 2009) Total ANS (Air Navigation Services) costs expressed in real 497,561.99 603,283.52 USA NDS NDS terms (prices in 2009) THO TH OU Total number of service units for en-route activity 4.219,06 4.756,85 SAN DS
Unit rate expressed in real terms (prices in 2009) 117.34 126.82 RON RON
The following table shows the cost of en-route activity recorded in 2017 broken down by type of costs in relation to the costs determined under the Performance Plan for the second reference period (2015-2019).
Period Difference Difference Determined Current Costs (value) (%) Staff 484,025 513,570 39.546 8,34% Other operating costs 90.725 75.151 -15,574 -17,17% Depreciation 52.015 39.536 -12,479 -23,99% Capital cost 52.004 37.454 -14,550 -27,98% Exceptional costs 0 64.028 64.028 Not applicable Total costs 668,769 729,739 60.970 9,12% (values expressed in lei)
2) Formal consultation process of airspace users
In accordance with the European regulations (the implementation Regulation no. 391/2013 establishing a joint charging scheme for air navigation services) as well as with the national regulations, ROMATSA ensures the consultation of the representatives of the airspace users, regarding the differences between the en route activity achievements of the previous year and the elements determined by the approved Performance Plan. The consulting sessions are organized twice a year, within Eurocontrol Enlarged Committee for route charges. The detailed information regarding the evolution of costs and air traffic, as well as the application of risk sharing mechanisms pertaining to air traffic and costs are made available to the representatives of the airspace users, EUROCONTROL and the European Commission,
- 53 - by the established time limits and in conformity with the reporting tables and additional information laid down in the Regulation regarding the common charging scheme as well as in the EUROCONTROL procedures and document. For the terminal air navigation services provided at airports that fall within the European legislation (the Regulation no. 391/2013 for establishing a common charging scheme for the air navigation services), the consultation of the airspace representatives is conducted on an annual basis, for all member States of the European Union, being organized by the European Commission, with the support of Eurocontrol – PRU. Likewise, for such consultations, detailed information regarding costs and air traffic are made available to the representatives of airspace users, EUROCONTROL and the European Commission, by the established time limits and in conformity with the reporting tables and additional information laid down in the Regulation regarding the common charging scheme. In 2017 the following consulting sessions took place: - on 28th and 29th of June, within the 108th session of EUROCONTROL Enlarged Committee for route charges, multilateral consultation meeting regarding the initial estimates of the cost base and route unit rates for 2018 were performed. - on 16th of October - consultations with the air space users were performed on the review of the 2018-2019 cost effectiveness targets set out in the Danube FAB Performance Plan for the second reference period (2015-2019). - on 22nd and 23rd of November - the multilateral consultations were performed regarding the final estimates of the cost bases and unit rates for the 2018 within the 109th session of the Enlarged Committee for EUROCONTROL route charges.
During 2017, The European Commission did not organized multilateral consultations on cost bases and unit rates for terminal air navigation services for 2018. Moreover, the representatives of the airspace users did not request additional consultations to the above- mentioned ones. In accordance with the provisions of the European regulations, the European Commission examines the data and information included in the cost bases for the route air navigation services.
3) The evolution of performance indicators according to SEIC (Specification for Economic Disclosure) methodology of EUROCONTROL - PRU (Performance Review Body) in 2016
The working hypotheses used for establishing the performance indicators in 2017 were the following: - in conformity with the data published by the STATFOR statistics and forecasting service of EUROCONTROL, the total number of IFR flights increased by approximately 8.5% compared to 2016 for the en-route activity and by approximately 13.5% for the terminal activity; - the total gate-to-gate ATM/CNS costs shall not include EUROCONTROL costs, the payments made to the government and regulatory authorities, MET costs, and VAT costs; - the number of personnel used in the calculation of the performance indicators was the average number in that year, both regarding the ATCO personnel and the support personnel;
- 54 - - eliminating the effects of inflation for the projection of performance indicators, in conformity with the PRU EUROCONTROL practice, by transforming the financial elements related to the performance in Euro 2017 (using the EURO/RON exchange rate for 2017) and adding the inflation (according to EUROSTAT data).
The table below shows the evolution of the cost-effectiveness indicators:
COST-EFFECTIVENESS INDICATORS 2016A 2017A 2017A/201 (values expressed in EURO 2017) 6A %
The financial efficiency of the total 435.58 438.15 0.59 gate-to-gate costs per composite
flight hour
Financial cost -efficiency for the en - 411.58 420.11 2.07 route per IFR flight hour
Financial cost -efficiency for the 164.52 151.36 -8.00 terminal activity per IFR movement
Rate of support costs 3.27 3.34 2.11
Costs of support personnel per 302.34 306.90 1.51 composite flight hour
Costs of sup port personnel salaries 168.02 174.54 3.88 per composite flight hour without PPP effect
After analyzing the values of the cost effectiveness indicators achieved in 2017 compared to those of 2016, the following results were obtained: - the indicator on the financial efficiency of the total gate-to-gate costs showed a slight negative evolution as a result of the increase in 2017 costs to a greater extent than the increase of the number of composite flight hours. The same trend is recorded for en-route activity. In the case of terminal activity, the negative effect caused by the increase in costs is balanced by the increase in the number of IFR flights, ultimately resulting in an improvement in the financial efficiency indicator of the terminal activity per IFR movement; - in 2017 the costs of support per composite flight hour increased by 1,51% compared to the value registered in 2016. The increase in the value of this indicator is due to the increase in total ATM /CNS costs and, tacitly to the support costs to a greater extent than the increase in the number of composite flight hours;
- 55 - - the costs of support personnel salaries per composite flight hour, without PPP (Purchase Power Parity) effect registered a decrease as compared to the value achieved in 2016 against the increased costs for the support personnel.
INTERNAL AND INTERNATIONAL COOPERATION
In 2012, ROMATSA paid special attention to the creation and strengthening of its relations with national and international authorities and bodies. Throughout the year, ROMATSA cooperated with the specialty Directorates of the Ministry of Transports and Infrastructure (the General Directorate of Civil Aviation, the Directorate of Aeronautical Security and Facilities, the Directorate of Public Information and Communication), the Romanian Civil Aeronautical Authority, TAROM Airline, The Ministry of National Defence, the Air Force Staff, the Association of Romanian Airports etc. Such cooperation activities led to the development and refining of the relations and efforts made for the harmonisation and integration of Romania into the European specialised system (EUROCONTROL, The European Union etc.) and provided, together with the Ministry of National Defence, the coordinated use of the Romanian airspace by the civil and military aviation. In cooperation with the General Directorate of Civil Aviation and other specialty Directorates of the Ministry of Transport (MTI), the Romanian Civil Aviation Authority (RCAA) and the Ministry of National Defence (MApN), the Administration provided the logistics for a number of international cooperation actions, beneficial to the interests of the country and aimed at supporting the Euro-Atlantic integration. During the reference period, the relations between ROMATSA and international civil aviation organisations (ICAO, EUROCONTROL, CANSO, EASA), as well as air navigation services providers of other European States were strengthened, mainly due to the necessity to ensure regional cooperation and a lobby at European level, with a view to securing an advantageous position for Romania within the future ATM structures, which will result from the implementation of the Single European Sky concept. ROMATSA did not promoted the image though advertising models. Concurrently, in spite of the (EU) enforcement Regulation no. 1035/2011 for establishing the common requirements for the air navigation service supply and for the amendment of the Regulations (EC) no. 482/2008 and (EU) no. 691/2010, in 2017 was issued the 16th edition (both in Romanian and in English) of the Annual Report of ROMATSA (in Romanian and English), which contributed, through its content, to the promotion of the organisation image, as the Report is distributed to national and international civil aviation bodies, airlines, other air navigation services providers, ministries, banks and air operators, with which ROMATSA cooperates.
- 56 - HUMAN RESOURCES MANAGEMENT
Milestones In 2017, the R.A. ROMATSA has a maximum number of in personnel recruiting and 1739 work positions. selection activity in 2017: The number of administration positions increased, with the approval of the Board of Directors, from 1607 to 1739. Total number of recruited persons: During 2017, 53 new persons were employed. 53 persons, of which: 10 ATSEP (ATS In order to increase the effectiveness of the activity in engineering personnel); certain departments, temporary changes in the work place 3 AMT (aeronautical were made for a number of 19th employees. meteorological personnel); Moreover, in 2017, 81 employees of the administration 7 ADP (administrative (old-age retirement, early/partially early reduced standard personnel); age retirement for those who fall into special labour 33 ATC ab initio (future categories, invalidity retirement, death, or resignation) ATC) terminated the labor relations.
The recruitment of future TWR, APP and ACC trainee air traffic controllers, launched in Cluj in 2016, resulted in the employing 33 people in June who started the ab-initio training in October 2017 (basic & rating) within the simulator of DSNAR Constanța and it is to be completed at Milestones in adjusting the the beginning of 2018. personnel number: A new recruitment and selection process was launched in 2017 to train the ATC trainees in order to obtain the license for traffic units. Repartizarea personalului în func ţie de nivelul de studii
Studii RA ROMATSA staff structure on generale: Şcoala 1% 31st of December 2017 is as follows: profesional ă 2% Studii superioare - 43,38% ATC (air traffic controllers); Studii medii 47% 49% Studii - 22,05% ATSEP (ATS engineering personnel); postliceale - 7,95% MET (aeronautical meteorological personnel) 1% - 26,62% ADP (administrative personnel). Repartizarea personalului pe grupe de vârst ă According to the educational level Personnel holding university degrees: 47% 35-54 ani 62% Personnel holding undergraduate certificates: 1% > 55 ani Personnel holding high school certificates: 22% 49% < 24 ani Personnel holding occupational school certificates: 2% 25-34 ani 1% Personnel holding gymnasium certificates: 1% 15%
According to age groups Personnel under 24 years of age: 1%
- 57 - Personnel between 25 -34 years of age: 15% Repartizarea personalului pe sexe Personnel between 35-54 years of age: 62% Personnel over 55 years of age: 22% Feminin 31% 29%
Masculin 69%
71% According to gender
Male personnel: 71% Female personnel: 29%
Milestones in vocational The vocational training of the employees of the training: administration is a priority action line, materialized by planning, coordinating and achieving a complex training internal training and retraining program - the Vocational Training Plan for 2017. programmes with the Recurrent training courses, as well as vocational training participation of over 1600 courses conducted for the ATC, CITA, ATSEP, MET employees; personnel, courses/programmes conducted for external training and obtaining/renewing the professional l. of some new retraining programmes with qualifications and for expanding the competence on the participation of over 500 additional sectors; employees; As mainly aimed at: - the entry into force, as of 31 December 2016, of the (EU) maintaining/increasing the Regulation 2015/340 for laying down the technical aeronautical personnel requirements and the administrative procedures concerning ability to extend/revalidate air traffic controllers' licenses and certificates has called for the validity of the special attention to be given both to the initial training and nominative qualification within the traffic units, and in terms of continuous training documents; in order to comply with the requirements of the Regulation. maintaining ICAO level 4 of the air traffic controllers’ Actions performed in 2017: English proficiency; professional training of ATC - negotiation with the social partner regarding the students in view of implementation of the provisions of GEO no.79 / 2017 for obtaining their licences and the maintenance of the salary entitlements of the associated ratings according employees as of 01.01.2018; to their job description; - carrying on the negotiations for concluding a new training/specialising the Collective Labor Agreement in accordance with the law and personnel for the installation preparing the necessary statements; of new equipment as well as - medical service procurement based on subscriptions and the operation, maintenance occupational medicine services; and repair of existing - starting the actions for developing a Procedure on the equipment. personnel performance assessment within RA ROMATSA; - transnational assignment of 2 employees within SDM (SDA AISBL) Belgium, Brussels.
The necessary actions were planned and monitored regarding the control the revalidation of the medical qualification of ROMATSA personnel as a non-navigable aeronautical personnel (from air traffic control, technical and meteorological protection of air navigation and aeronautical telecommunication) as well as the annual
- 58 - medical checks for the other employees, provided by law. Milestones in the licensing of At the same time, the necessary actions regarding non-flying aeronautical the examination/assessment by the Romanian Civil personnel: Aeronautical Authority for the obtaining/revalidation of the licenses, qualifications and authorizations related to them. Planning and conducting medical visits in medical centers authorized by the Romanian Civil Aeronautical Authority (National Institute of Aeronautical and Spatial Medicine, AEROMED, territorial outpatient clinics within the structure of the Ministry of Transport); Planning and taking the examinations at the Romanian Civil Aeronautical Authority
ACTIVITY IN THE LEGAL AREA
In 2017 in the activity of the Legal Service are included the following:
Permanent activities:
- providing specialized legal support for departments/directorates/compartments of the Central Administration and RA ROMATSA subunits; - representing, supporting and defending the administration's interests before the jurisdiction bodies, the Prosecutors' Offices, the notaries, the local and central state administration authorities, the Court of Accounts, the bailiffs; - preparing and supporting the actions and other proceedings provided by the law in order to recover the incurred material damages of RA ROMATSA; - the attack of judgments deemed unlawful and ungrounded before the competent bodies; - the preparation, along with the departments, directorates and services of the R.A. ROMATSA - the Central Administration and subunits, objections, appeals, complaints to the control minutes drawn up by the Ministry of Finance; - participation in selection boards for tenders or tender contests, negotiation and conclusion of contracts and conventions concluded by RA ROMATSA; - informing the departments of directorates and services/compartments subordinated to the General Manager of RA ROMATSA - the Central Office, as well as the subunits on the issue of laws regarding the activity of the administration.
Activities providing summary information and documentary support needed for the management decision-making related to the legal activities - with the following duties:
- developing materials, tests and summaries and making available to the General Manager and to the Board of Directors of ROMATSA RA the information to enable the most appropriate short-term, medium-term and long-term decisions to be taken in the legal area;
- 59 - - collecting the data necessary for the developing the various reports specific to the carrying out of legal and administrative activities and ensuring their preparation and submission; - performing the summary documents (periodical reports, etc.) for the presenting the Administration and the activity to the Administrative Board, the Ministry of Transport (under the authority of which the administration operates), and of other authorities as well.
During 2017, ROMATSA was involved in a number of 59 litigations, out of which 45 were still in progress on 31.12.2017.
During the year, a number of 14 litigations were finally settled, out of which 9 were settled in favor and 5 against.
- 60 - FINANCIAL STATEMENT ENDED AT DECEMBER 31, 2017
Independent Auditor’s Report
Report on the Audit of the Financial Statement
Opinion
1 We have audited the financial statements of R.A. ROMATSA (the Company), with registered office in Bucharest, Bd. Ion Ionescu de la Brad nr. 10, identified by unique tax registration code 1589932, which comprise the statement of financial position as at December 31, 2017, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, including a summary of significant accounting policies and notes to the financial statements.
2 The financial statements as at December 31, 2017 are identified as follows:
- Net assets/Equity RON 498,068,814 - Net loss for the financial year RON 129.074.877
3 In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2017, and its financial performance and its cash flows for the year then ended in accordance with Ministry of Public Finance Order 1802/2014 with subsequent amendments.
Basis for Opinion
4 We conducted our audit in accordance with International Standards on Auditing (ISAs), Regulation (EU) No. 537/2014 of the European Parliament and the Council (forth named “the Regulation”) and Law 162/2017 (“the Law”). Our responsibilities under those standards are further described in the Auditor’s Responsabilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountant’s Code of Ethics for Professional Accountants (IESBA Code), in accordance with ethical requirements relevant for the audit of the financial statements in Romania including the Regulation and the Law and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
5 Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
- 61 - KEY AUDIT MATTER HOW OUR APPROACH ADDRESSED THE MATTER Provisions for pensions and similar Our procedures regarding the level of benefits provisions for pensions and benefits included: According to the individual employment - the analytical assement of the adequacy contracts, the Company grants employees of the judgments and assumption applied financial benefits at retirement, depending by the management for each category of on seniority. Such benefits represent a benefit provisioned; variable number of salaries, according to the - discussions with the representatives of employee’s position. the specialized departments, and external experts who offered assistance The provisions were in amount of RON in order to understand and confirm the 303,556,426 as at December 31, 2016, and management’s assumptions; RON 320,893,283 as at December 31, 2017. - review and analysis of the reports issued by external experts; Due to the significant amount of such - review of the computation models and provisions and the relevance of the assessment of the reasonability of the professional judgments required, we variables included in the computation; consider that they represent a key audit - assessment of the adequacy of the matter. disclosures against the historical statistical information; - assessment of the existing internal control as regards the manner in which employee benefits were determined and granted (including verification of the provisions stipulated in the individual employment agreement – as the Company does not currently have a Provision for route activity and collective employment agreement). recognition of revenues Our procedures regarding the amount of revenues and provisions for route The Company accounts for revenues based activity included: on the International Convention regarding Cooperation for the Security of Air - assess the methodology used and its Navigation, which offers member states a consistency from one financial year to common system of route taxation (unique another; flight taxation). - assess the assumptions and variables Eurocontrol is the authority that makes sure used; that this Convention is implemented, offering - review whether the revenues recorded all Member States calculation, invoicing and for the financial year ended December collection services through the Central Route 31, 2017 are accurate and complete Charges Office. (including procedures to confirm the Revenues thus obtained are regulated by transactions in the relationship with regulatory cycles and, periodically, at the Eurocontrol); end of each cycle, the level of such revenues - assessthe adequacy of necessary is settled, i.e., the over – or undercharges disclosures. are recovered. The current settlement cycle covers the period 2015 – 2019.
The Company must assess and adjust in
- 62 - KEY AUDIT MATTER HOW OUR APPROACH ADDRESSED THE MATTER advance the revenue settlements obtained from Eurocontrol for the toute activity, which are estimated to be made at the end of the regulatory cycle.
According to the Fiscal Code, Law no. 227/2015, is amended, such adjustment must be made quarterly by recording a provision.
This presentation in the financial statements is specific to statutory regulations (ministry of Public Finance Order 1802/2014 and Fiscal Code 227/2015, as amended).
The International Financial Reporting Standards recommend entities to present this adjustment directly at the level of the revenue line, not as revenues and provision for expenses.
We consider that it is important to underline this key audit matter given the Company’s obligation to prepare IFRS financial statements starting with the financial year ended December 31, 2018.
Provisions for expenses related to the finalization of tax audits
For the financial year ended December 31, 2017, the Company recorded provisions for Our procedures regarding the additional tax liabilities in amount of RON 58 provisions for expenses established million (Note 8 (d)). further through tax audits:
These were estimated and recorded based - analysis of the documents presented by on the draft documents issued by inspection the management, which are drafts of the authorities and refer mainly to income tax, final tax inspections reports; VAT and accessory charges. - assess the calculation and the The 2 audits carried by fiscal authorities management’s judgments to determine cover financial years 2006-2014. the provisions thus recorded; assess the adequacy of the information We consider that this is a key audit matter disclosed in the financial statements. for audit due to the significant amount and the extended timeframe covered, i.e., 2006 – 2014.
Other information – Administrator’s Report
- 63 -
6 The administrators are responsible for preparation and presentation of the other information. The other information comprises the Administrator’s report which includes the non-financial information declaration but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and, unless otherwise explicitly mentioned in our report, we do not express any form af assurance conclusion thereon.
In connection with our audit of the financial statements for the year ended December 31, 2017, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
With respect to the Administrator’s report, we read it and report if this has been ptrepared, in all material respects, in accordance with the provisions of Ministry of Public Finance Order 1802/2014 with subsequent amendments, articles no. 489-492.
On the sole basis of the procedures performed within the audit of the financial statements, in our opinion:
a) the information included in the administrators’ report for the financial year for which the financial statements have been prepared is consistent, in all material respects, with these financial statements; b) the administrators’ report has been prepared, in all material respects, in accordance with the provisions of Ministry of Public Finance Order no. 1802/2014, articles no. 489-492.
Moreover, based on our knowledge and understanding concerning the Company and its environment gained during the audit on the financial statements prepared as at December 31, 2017, we are required to report if we have identified a material misstatement of this Administrator’s report. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
7 Management is responsible for the preparation and fair presentation of the financial statements in accordance with Ministry of Public Finance Order 1802/2014 with subsequent amendments and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
8 In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
- 64 - 9 Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsabilities for the Audit of the Financial Statements
10 Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements;
11 As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: - identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional onissions, misrepresentations, or the override of internal control; - obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstrances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control; - evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management; - conclude on the appropriateness of managements’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainly exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainly exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern; - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation..
12 We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
13 We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationship and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards;
- 65 - 14 From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
15 We have been appointed to audit the financial statements of R.A. ROMATSA for the financial year ended December 31, 2017. The interrupted total duration of our commitment is of 1 year, covering the financial year ended December 31, 2017.
We confirm that:
- Our audit opinion is consistent with the additional report submitted to the Audit Committee of the Company that we issued in the same date we issued this report. Also, in conducting our audit, we have retained our independence from the audited entity.. - We have not provided for the Company the non-audit services referred to in Article 5 (1) of EU Regulation no. 537/2014.
The engagement partner on the audit resulting in this independent auditor’s report is Alina Mirea
DELOITTE AUDIT SRL Registered with the Chamber of Financial Auditors of Romania under certificate no. 25/25.06.2001
BALANCE AS AT DECEMBER 31, 2017 (all amounts are expressed in RON, unless specified otherwise)
- 66 - Balance as at Balance as at Name of caption December 31, January 1, 2017 2017 A. NON -CURRENT ASSETS I. INTANGIBLE ASSETS 1. Concessions, patents, licenses, trademarks, similar rights and 7,070,485 5,415,745 assets and other intangible assets 2. Advances and intangible assets in progress 13 ,688 ,862 41 ,312 ,875 TOTAL: 20 ,759 ,347 46 ,728 ,620 II. PROPERTY, PLANT AND EQUIPMENT 1. Land and buildings 22 5,194 ,437 207 ,642 ,419 2. Installations and machinery 145 ,983 ,532 140 ,401 ,212 3. Other fixtures, plant and furniture 7,017 ,197 6,468 ,467 4. Tangible assets in progress 75 ,301 ,944 71 ,693 ,437 5. Bearer biological assets 6,552 2,308 6. Advances - 688 ,041 TOTAL: 453 ,503 ,662 426 ,895 ,884 FINANCIAL ASSETS 1. Shares held in related parties - - 2. Other loans 136 ,338 ,120 139 ,933 ,038 TOTAL: 136 ,338 ,120 139 ,933 ,038 NON -CURRENT ASSETS – TOTAL 610 ,601 ,129 613 ,557 ,542 B. CURRENT ASSETS I. INVENTORIES 1. Raw materials and consumables 13 ,633 ,496 11 ,216 ,432 2. A dvances 16 ,496 61 ,322 TOTAL: 13 ,649 ,992 11 ,277 ,754 II. RECEIVABLES (amounts receivables in more than one year shall be presented separately for each caption) 1. Trade receivables 141 ,893 ,463 153 ,808 ,211 2. Amounts receivable from affiliates - - 3. Other receivables 6,267 ,301 15 ,308 ,040 4. Capital subscribed and not paid - - TOTAL: 148 ,160 ,764 169 ,116 ,251 III. SHORT -TERM INVESTMENTS TOTAL: 150 ,000 ,000 100 ,000 ,000 IV. PETTY CASH AND BANK ACCOUNTS 344 ,741 ,131 327 ,170 ,640 CURRENT ASSETS – TOTAL 656 ,551 ,887 607 ,564 ,645 C. PREPAID EXPENSES 13 ,625 ,035 13 ,591 ,289 Amounts reversible within one year 12 ,223 ,943 11 ,927 ,997 Amounts reversible in more than one year 1,401 ,092 1,663 ,292 D. LIABILITIES: PAYA BLES WITHIN ONE YEAR 1. Advances received on account of orders - - 2. Trade payables 22 ,438 ,877 20 ,595 ,453 3. Amounts due to affiliates - - 4. Other payables, including tax and social security 59 ,990 ,054 69 ,985 ,155 TOTAL: 82 ,428 ,931 90 ,580 ,608 E. NE T CURRENT ASSETS/NET CURRENT LIABILITIES 585 ,988 ,531 528 ,391 ,619 F. TOTAL ASSETS LESS CURRENT LIABILITIES 1,197 ,990 ,752 1,143 ,612 ,453 G. DATORII: SUMELE CARE TREBUIE PLĂTITE ÎNTR -O PERIOADĂ MAI MARE DE UN AN TOTAL: - - H. PROVISIONS
- 67 - Balance as at Balance as at Name of caption December 31, January 1, 2017 2017 1. Provisions for pensions and similar obligations 303 ,556 ,426 320 ,893 ,283 2. Other provisions 226 ,756 ,104 323 ,743 ,552 TOTAL: 530 ,312 ,530 644 ,636 ,835 I. DEFERRED INCOME 1. Subsidies for investments 968 ,419 1,154 ,693 Amounts reversible within one year 139 ,724 247 ,789 Amounts reversible in more than one year 828 ,695 906 ,904 2. Deferred income, of which : 218 ,644 272 ,526 Amounts reversibl e within one year 218 ,644 272 ,526 Amounts reversible in more than one year - - 3. Deferred income pertaining to the assets received by transfer from - - clients TOTAL: 1,187 ,063 1,427 ,219 J. EQUITY AND RESERVES I. EQUITY 1. Company patrimony 21 4,684 ,295 214 ,684 ,295 TOTAL: 214 ,684 ,295 214 ,684 ,295 II. SHARE PREMIUMS - - III. REVALUATION RESERVES 281 ,069 ,540 278 ,091 ,915 IV. RESERVES 1. Legal reserves 18 ,972 ,159 18 ,972 ,159 2. Statutory or contractual reserves - - 3. Other reserves 112 ,417 ,740 112 ,417 ,740 TOTAL: 131 ,389 ,899 131 ,389 ,899 V. PROFIT OR LOSS CARRIED FORWARD Cr balance 93 ,541 ,616 2,977 ,582 VI. PROFIT OR LOSS FOR THE YEAR Cr balance - - Dr balance 53 ,835 ,823 129 ,074 ,877 Allocation of profit - - EQUITY – TOTAL 666 ,849 ,527 498 ,068 ,814 TOTAL EQUITY 666 ,849 ,527 498 ,068 ,814
INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 (all amounts are expressed in RON, unless specified otherwise)
Financial year Financial year Name of caption ended ended December 31, December 31, 2016 2017 1. Net turnover 829 ,144 ,946 824 ,810 ,379 Product sold 829 ,144 ,946 824 ,810 ,379 1. Income from sale of goods - - 2 Income from the revaluation of property, plant and equipment 713 ,871 - 3. Operating subsidies 1,927 ,170 994 ,555 4. Other operating i ncome 5,394 ,226 6,287 ,322
- 68 - Financial year Financial year Name of caption ended ended December 31, December 31, 2016 2017 - of which, income from negative commercial fond - - - of which, income from subsidies for investments - 38 ,108 I OPERATING INCOME - TOTAL 837 ,180 ,213 832 ,092 ,256 5, a) Expenses with raw materials and consumables 4,46 8,237 6,617 ,352 Other material expenses 1,262 ,792 711 ,452 b) Other external expenses (power and water supply) 5,036 ,681 4,824 ,167 6. Personnel expenses 584 ,061 ,054 662 ,717 ,468 a) Salari es and incentives 451 ,909 ,306 496 ,463 ,743 b) Social security 132 ,151 ,748 166 ,253 ,725 7 . a) Impairment adjustments regarding the tangible and intangible 40,541,007 50,756,863 assets a)1. Expenses 40 ,541 ,007 50 ,756 ,863 b) Impairment adjustments regarding the current assets 4,218 ,212 1,123 ,647 b)1. Expenses 4,865 ,117 4,241 ,133 b)2. Income 646 ,905 3,117 ,486 8. Other operating expenses 136 ,543 ,005 118 ,455 ,818 8.1 External provisions 117 ,761 ,173 115 ,259 ,312 8.2 Other taxes, levies and similar payments; expenses representing 3,063,188 2,248,205 transfers and contributions owed based on special legislation 8.4 Expenses with revaluation of property, plant and equipment 6,366 ,783 - 8.6 Other expenses 9,351 ,861 948 ,301 Adjustments regarding the provisions 100 ,612 ,018 114 ,324 ,306 Expenses 162 ,422 ,290 274 ,214 ,690 Income 61 ,810 ,272 159 ,890 ,384 II OPERATING EXPENSES – TOTAL 876 ,743 ,006 959 ,531 ,073 A. OPERATING PROFIT OR LOSS - loss 39 ,562 ,786 127 ,438 ,817 9. Income from participating interests - - 10. Interest incom e 1,745 ,752 3,068 ,952 - of which, income from affiliates - - 11. Income from operating subsidies for the interest owed - - 12. Other financial income 25 ,127 ,098 24 ,795 ,326 - of which, income from financial assets - - I. FINANCIAL INCOME – TOTAL 26 ,87 2,850 27 ,864 ,278 13. Impairment adjustments regarding the financial assets and 1,260,000 - financial investments held as current assets Expenses 1,260 ,000 - 14. a) Interest expenses - - Other financial expenses 20 ,986 ,339 11 ,709 ,765 II. FINANCIAL EXPENSES – TOTAL 22 ,246 ,339 11 ,709 ,765 B. FINANCIAL PROFIT OR LOSS - profit 4,626 ,511 16 ,154 ,513 I. TOTAL INCOME 864 ,053 ,063 859 ,956 ,534 II. TOTAL EXPENSES 898 ,989 ,345 971 ,240 ,838 C. GROSS PROFIT OR LOSS - profit - - - loss 34 ,936 ,28 2 111 ,284 ,304 15. INCOME TAX 18 ,899 ,541 17 ,790 ,573
- 69 - Financial year Financial year Name of caption ended ended December 31, December 31, 2016 2017 16. Other taxes not included in the captions above - - 17 . NET PROFIT OR LOSS FOR THE YEAR - profit - - - loss 53 ,835 ,823 129 ,074 ,877
CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 (all amounts are expressed in RON, unless specified otherwise)
De cember 31, December 31, 2016 2017 Cash flow from operations Profit after tax (53 ,835 ,822) (129 ,074 ,877) Adjustments for: Amortization/depreciation of tangible and intangible as sets 40 ,541 ,007 49 ,927 ,700 Expenses/(Income) related to value adjustments of fixed assets 5,352 ,734 829 ,163 Expenses/(Income) related to inventory allowances - - Expenses/(Income) related to receivables and similar accounts 1,830 ,281 1,123 ,647 Expenses /(Income) related to provisions for risks and charges 106 ,113 ,089 114 ,324 ,306 (Net gains)/Net loss on the disposal of tangible assets (1 ,484 ,746) (32 ,510) Income from subsidies - (994 ,555) Interest income (1 ,745 ,753) (3 ,068 ,952) Tax expenses 18 ,899 ,541 - Cash flows from operations before changes to working capital 115 ,670 ,332 33 ,033 ,922 (Increase)Decrease in assets 275 ,781 ,969 (22 ,079 ,135) (Increase)/Decrease in prepaid expenses (1 ,718 ,667) 33 ,746 (Increase)/Decrease in inventories (1 ,816 ,602) 2,372 ,235 Increase/(Decrease) in liabilities 19 ,527 ,182 40 ,156 ,876 (Increase)/Decrease in deferred income (85 ,719) 240 ,156 Income tax paid (33 ,380 ,315) (30 ,097 ,969) Payments to State budget - (39 ,705 ,837) Net cash from operating activities 373 ,978 ,180 (16 ,046 ,005) Cash flows from investing activities: Purchase of tangible assets (46 ,467 ,683) (21 ,051 ,246) Purchase of intangible assets (4 ,754 ,121) (29 ,528 ,224) Proceeds from sale of non -current assets - 151 ,832 Interest received 3,632 ,081 2,498 ,070 Loans (granted)/repaid and financial assets (131 ,748 ,179) (3 ,594 ,918) Net cash flows from investing activities (179 ,337 ,902) (51 ,524 ,486) Cash flows from financing activities: Net cash flows from financing activities - - Net (decrease)/increase of cash and cash equivalents 194 ,640 ,278 (67 ,570 ,491) Cash and cash equivalents at the beginning of the year 300 ,100 ,856 494 ,741 ,131 Cash and cash equivalents at the end of the year 494 ,741 ,131 427 ,170 ,640
- 70 -
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEAR ENDED DECEMBER 31, 2016 (all amounts are expressed in RON, unless specified otherwise)
Item of equity Balance as Increases Reductions Balance as at January at 1, 2016 December 31, 2016 Total, By transfer Total, By transfer of which of which 0 1 2 3 4 5 6 Company patrimony 214 ,684 ,295 - - - - 214 ,684 ,295 Revaluation reserves 257 ,023 ,333 52 ,796 ,184 - 28 ,749 ,977 - 281 ,069 ,539 Legal reserves 18 ,972 ,159 - - - - 18 ,972 ,159 Other reserves 112 ,259 ,993 157 ,747 - - - 112 ,417 ,740 Result for the year – 792,847 (53,835,822) - 792,847 792,847 (53,835,823) profit/(loss) Allocation of profit (437 ,918) - - (437 ,918) (437 ,918) - Retained profit ------representing surplus Retained earnings representing surplus 67,804,946 25,736,670 - - - 93,541,616 from revaluation reserves Retained earnings representing profit - 354,929 354,929 354,929 - - not allocated or loss not covered Total equity 671 ,099 ,655 25 ,209 ,708 354 ,929 29 ,459 ,835 354 ,929 666 ,849 ,527
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEAR ENDED DECEMBER 31, 2017 (all amounts are expressed in RON, unless specified otherwise)
- 71 - Item of Balance as Increases Reductions Balance as equity at January at 1, 2017 December 31, 2017 Total, By transfer Total, By transfer of which of which 0 1 2 3 4 5 6 Company 214,684,295 - - - - 214,684,295 patrimony Revaluation 281,069,539 - - 2,997,625 2,997,625 278,091,915 reserves Legal reserves 18 ,972 ,159 - - - - 18 ,972 ,159 Other reserves 112 ,417 ,740 - - - - 112 ,417 ,740 Result of th e year – profit/ (53,835,823) (129,074,877) - (53,835,823) (53,835,823) (129,074,877) (loss) Allocation of ------profit Retained profit representing ------surplus Retained earnings representing 93,541,616 2,977,625 2,977,625 93,541,660 53,835,823 2,977,582 surplus from revaluation reserves Retained earnings representing - (53,835,823) (53,835,823) (53,835,823) (53,835,823) - profit not allocated or loss not covered Total equity 666 ,849 ,527 (164 ,954 ,405) (50 ,858 ,198) (11 ,152 ,362) (50 ,858 ,198 ) 498 ,068 ,814
During the year, the Company transferred the revaluation reserve in amount of RON 2,977,625 to retained earnings when the revaluation reserve was deemed realized gain, specifically when the assets for which the revaluation reserve was set up were written off.
In 2017, the Company’s Board of Administration decided to cover the accounting loss of 2016 in amount of RON 53,835,823 from retained earnings, and the remainder of RON 39,705,837 was transferred to the State budget in accordance with the provisions of GO no. 64/2001 regarding the allocation of profit in national companies, national undertakings and fully State-owned business entities, as well as autonomous companies.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 (all amounts are expressed in RON, unless specified otherwise)
- 72 - 1. PRESENTATION OF THE COMPANY
RA ROMATSA was established as an autonomous company on January 26, 1991 following Government Decision no. 74/1991, based on Law 15/1990 (on the reorganization of state undertakings in Autonomous Companies). The incorporation documents were subsequently amended through Government Decisions (“GD”) 731/1992, 125/1992, 405/1993, 75/2005, 1090/2006 and 1251/2007. The Company is a wholly owned undertaking of the State and cannot be privatized.
The address of the Company’s registered office is: Str. Ion Ionescu de la Brad no. 10, Bucharest, Romania.
The Company’s main activity is provision of air navigation services, including air traffic services, aeronautical communication services, aeronautical navigation and surveillance, aeronautical meteorological services, aeronautical information services and search and rescue services for endangered aircraft.
The Company may be delegated by the Ministry of Transport to represent Romania in the relation with EUROCONTROL - European Organization for the Security of Air Navigation.
2. SIGNIFICANT ACCOUNTING POLICIES 2.1. Significant accounting policies
The elements presented in the financial statements for the years ended December 31, 2016 and December 31, 2017 have been measured in accordance with the following accounting principles:
Going concern principle
The Company will continue its operations in the foreseeable future without the threat of liquidation or significant reduction of its activity.
Permanence of methods
The Company uses the same rules, methods, principles regarding the evaluation, recording and presentation, ensuring the comparability in time of the accounting information.
Principle of prudence
The elements included in the financial statements were measured on a prudential basis, in particular:
a) only the profit obtained on the balance sheet date has been included;
b) all payables arising during the current financial year or a previous year have been considered, even if they become obvious only between the balance sheet date and its preparation date;
c) all foreseeable payables and contingent losses arising during the current financial year or a previous year have been considered, even if they become obvious only between the balance sheet date and its preparation date;
- 73 - d) all impairments have been considered, regardless whether the result of the year is profit or loss.
Cut-off principle
All expenses and income for the year, regardless of the collection or payment date thereof, have been considered.
Principle of separate evaluation of assets and liabilities
For the purpose of establishing the total value corresponding to a certain balance sheet line, the value of each individual asset or liability/equity element has been determined separately.
Closing balance principle
The opening balance sheet for each financial year must correspond to the closing balance sheet of the previous financial year.
Non-offset principle
Any offset between the elements of assets and liabilities or between the elements of income and expenses is prohibited. Any offset between the Company’s assets and liabilities towards the same entity may only be performed in observance of the legal provisions, only after registering the income and expenses at full value.
Principle of substance over form
The values of the balance sheet and income statement items have been presented considering the economic substance of the reported transactions and operations, not only their legal form.
Materiality principle
Any element with a material value is presented distinctly in the financial statements.
2.2. Significant accounting policies
A. Bases of preparation
(1) General information
These financial statements have been prepared in accordance with:
- Accounting Law 82/1991 republished in January 2005 (“Law 82”), amended by Law 259/2007; - accounting regulations conformant with the European Directives approved by Ministry of Public Finance Order no. 1802/2014 for the approval of Accounting regulations regarding the annual standalone financial statements and annual consolidated financial statements (“MoPFO 1802”) with subsequent amendments; - the accounting policies described in notes to the financial statements.
- 74 -
These financial statements comprise: - Balance sheet; - Income statement; - Cash flow statement; - Statement of changes in shareholders’ equity; - Explanatory notes to the financial statements.
These financial statements are not intended to present the financial position, results of operations and a complete set of notes to the financial statements of the Company in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Romania. Accordingly, these financial statements are not designed for those who are not informed about Romanian legal and statutory requirements, namely, Ministry of Public Finance Order no. 1802/2014 with subsequent amendments.
The accounting records on the basis of which these financial statements have been prepared are kept in LEI (“RON”) at historical cost, except if fair value was used according to the Company’s accounting policies and MoPFO 1802/2014.
(2) Use of estimates
The preparation of the financial statements of the Company in accordance with the provisions of MoPFO 1802/2014, as revised, requires that the management should make estimates and assumptions that affect the reported values of the income, expenses, assets and liabilities, as well as the presentation of the contingent assets and liabilities at the end of the period. Actual results may differ from estimates. Such estimates are revised periodically and, if required, they are registered in profit or loss in the period they are known.
(3) Going concern
These financial statements have been prepared on a going concern basis, which assumes that the Company will continue to operate normally in the predictable future. In order to assess the applicability of this assumption, management analyses the forecasts regarding the future inflows of cash. Based on these analyses, management considers that the Company will continue as a going concern in the near future and as a result the application of the going concern basis is justified.
(4) Currency of presentation of the financial statements
Accounts are kept in Romanian and in the Romanian currency (“LEI”). The items included in these financial statements are presented in RON.
B. Translation of the transactions in foreign currencies
The Company’s transactions in foreign currencies are recorded at the FX rates communicated by the National Bank of Romania (“NBR”) for the date of the transactions. The monetary elements expressed in foreign currencies are translated in RON at the FX rates communicated by NBR for the balance sheet date. The earnings and losses resulted from the settlement of the transactions in a foreign currency are recognized in the income statement, as part of the financial result.
- 75 -
The foreign exchange gains and losses, realized and unrealized are registered in the profit or loss of the year. The FX rates LEU/USD and LEU/EUR as at 31 December 2017 and 31 December 2016 were as follows:
RON/EUR RON/USD December 31, 2017 4.6597 3.8915 December 31, 2016 4.5411 4.3033
C. Intangible assets
(1) Cost/Measurement
(i) Software
The costs for the software development or maintenance are recognized as an expense, at the moment they occur.
The costs that are directly associated to an unique and identifiable product, which is controlled by the Company and which will probably generate future economic benefits surpassing its cost, for a period longer than 1 year, are recognized as intangible assets. The direct costs include the expenses with the development team personnel and an adequate proportion of the overheads.
The expenses that determine the extension of the lifetime and the increase in the benefits of the software above the initial specifications are added to their original cost. These expenses are capitalized as intangible assets if they are not an integrated part of the intangible asset.
(ii) Other intangible assets
Concessions, patents, licenses, trademarks, rights and similar assets are recorded in the intangible assets accounts at the intake value or acquisition cost, respectively. In this situation, the input value is assimilated to the fair value.
(2) Amortization
(i) Software
Development costs of the software are capitalized and amortized using the straight-line method, over a maximum period of 3 years.
(ii) Other intangible assets
Patents, trademarks and other intangible assets are amortized using the straight-line method over their useful life, but not more than 20 years. The licenses of rights to use computer software are amortized over a maximum period of 3 years.
- 76 - Expenditure which enables intangible assets to generate future economic benefits higher than the originally anticipated performance is added to their original cost. These costs are capitalized as intangible assets if they are not part of tangible assets.
D. Property, plant and equipment
(1) Cost/Valuation
Own assets
The initial cost of the tangible assets consists in the purchase price, including import duties or unrecoverable acquisition taxes, transportation expenses, handling fees, notary fees, costs of obtaining permits and other non-recoverable expenses directly attributable to tangible fixed assets and any directly attributable costs bringing the asset to the location and operating conditions.
As of December 31, 2016, the tangible assets of the entity were revalued according to MoPFO 1802/2014. The purpose of the revaluation was to bring existing inventory values in the accounts at their fair value, which according to MoPFO 1802/2014, is determined based on revaluations carried out, usually by qualified professionals. Revaluation difference is reflected in the revaluation reserve.
Items of property, plant and equipment that are retired or transferred are derecognized along with the corresponding accumulated depreciation. Any profit or loss resulting from such operations is included in current profit and loss.
The cost of repairs made to tangible assets, in order to ensure their continued use is recognized as an expense in the period in which the costs are incurred.
Tangible assets under construction represent the unfinished investments made by the entity or by a third party. They are measured at cost of production or acquisition cost, respectively.
Tangible assets under construction are put in the category of assets completed upon: receipt, placing into service or commissioning them, as appropriate.
Fixed assets in the form of inventory items, including tools are expensed when purchased and are not included in the carrying amount of property, plant and equipment.
Public heritage
The entity has received into administration lands that are in the public heritage, according to GD 1705/2006, GD 758/2008 and GD 624/2010. The lands that are included in the public heritage were presented in the Company’s balance sheet, starting December 31, 2006, which represents the date of the opening of the cadastral file for registration in the land register, at their market value, at that time. Starting March 31, 2014, they were eliminated from the balance sheet as a result of the Ministry of Transport’s letter no. 53874/November 27, 2013, whereby the Ministry requested the removal of these lands from the Company’s accounts, while registering them into an off-balance sheet account, in accordance with MoPFO 1802/2014, as of such date.
(2) Depreciation
- 77 - The depreciation of the fixed assets is computed using the revalued value, through the straight-line method, during the estimated useful life of the assets.
The economical useful lives used for the various categories of fixed assets are the following:
Type Years Buildings and special constructions 10 – 50 Technical installation an d machines 2 – 30 Other fixtures, plant and furniture 2 – 30
Land is not depreciated because it is considered to have an indefinite life time.
Since January 1, 2007 both the accounting revaluations carried out after this date and the remaining unamortized accounting revaluation made after January 1, 2004, are recognized in terms of tax.
(3) Sale/decommissioning of tangible assets
Property, plant and equipment that are decommissioned or sold are written off from the balance sheet together with the related cumulated depreciation. Any profit or loss resulting from such operations is included in the current profit and loss account.
E. Financial assets
Financial assets include shares in affiliated undertakings, loans to affiliated undertakings, participation interests, loans to entities that the entity is directly linked to by virtue of participating interests and other investments held as fixed assets. Financial assets are recognized in the balance sheet at cost or at the value determined by their acquisition contract, adjusted by the value of the impairments recorded.
F. Inventories
The cost of inventories includes all costs of purchase and other costs incurred in bringing the inventories to the condition and place where they are.
The stocks are valued using the FIFO method.
Where applicable, the Company constitutes value adjustments for obsolete, slow moving or defective inventories.
G. Trade receivables
Trade receivables are carried at their original amount less impairment for uncollectible amounts. Uncollectible receivables are recorded as expenses when they are identified. Adjustments for impairment are established when there is evidence to the fact that the Company will not be able to collect the receivables at the initially agreed maturity.
Uncollectible trade receivables are recorded as expenses when they are identified.
H. Short-term financial investments
- 78 - These include short-term deposits held at banks and other short-term investments with high liquidity. Short-term investments in shares admitted to trading on a regulated market are valued at the quotation of the last trading day, while the traded are recorded at acquisition value less any adjustments for loss in value.
I. Cash and cash equivalents
Cash and cash equivalents are carried at cost. For purpose of cash flow statement, cash and cash equivalents comprise petty cash, bank accounts, short-term financial investments, cash advances.
J. Impairment
The carrying amount of the Company’s assets, other than inventories, is reviewed at each balance sheet date to determine possible value decreases. If such a fall is probable, the Company estimates the recoverable amount of the asset in question. If necessary, an adjustment for depreciation is recognized in profit and loss or equity when the carrying amount of the asset is superior to its recoverable amount.
The depreciation adjustment can be reversed if there was a change in conditions at the time of determining the recoverable amount. Reversing an impairment adjustment can only be made so that the net value of the asset does not exceed the net book value historical, taking into account depreciation.
K. Revaluation reserves
Revaluation reserves were established in order to reflect the surplus resulting from the revaluation of the tangible assets owned by the Company. Tangible assets that are in the public domain are not subject to subsequent revaluations. Revaluations should be made with sufficient regularity so that the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
The difference between the value resulting from the revaluation and the net book value is shown in the revaluation reserve as a distinct sub-element "Capital and reserves". The revaluation surplus was recorded in 1999 and 2000 in the assets of the entity, according to Government Ordinance 46/1998. Since 2001, the revaluation surplus was recorded in the revaluation reserve account, within equity.
If the result of the revaluation is an increase of the net book value, then it is treated as follows:
- as an increase in the revaluation reserve, presented in the item "Capital and reserves" - unless there was a decrease previously recognized as an expense for the same asset; or
- as an income, in order to offset the expense with the decrease previously recognized on the asset.
If the result of the revaluation is a decrease of the net book value, then it is treated as
- 79 - follows:
- as an expense, with the full value of the depreciation, when in the revaluation reserve no amount with regard to such assets is recorded (revaluation surplus); or
- as a decrease in the revaluation reserve by the minimum between the value of that reserve and the amount of the decrease; any uncovered difference is recorded as an expense.
The revaluation surplus included in the revaluation reserve is capitalized by transferring it directly to reserves, when this surplus represents a realized gain. The earning is considered realized at the moment when the asset for which the revaluation reserve was constituted is derecognized. No part of the revaluation reserve may be distributed, directly or indirectly, unless the revaluated asset was valuated, in which case the revaluation surplus is actually realized gain.
According to the tax legislation in force (GEO 34/2009), starting May 1, 2009 the revaluation reserve is taxed to the extent of its deduction by depreciation. The reserve deducted until May 1, 2009 is taxed when changing its destination, according to previous legislation.
L. Legal reserves
Legal reserves are constituted in proportion of 5% of the year-end gross profit, until the legal reserves reach 20% of the total assets of the Company in accordance with the law. Legal reserves are deductible from income tax.
M. Borrowings
Short- and long-term loans are initially recognized at cost, less transaction costs. Subsequent to initial recognition, borrowings are stated at amortized value; differences between cost and redemption value are recognized in the income statement over the period of the loan to an effective interest rate.
N. Trade payables
Trade payables are stated at the value of the amounts to be paid for the goods or services received.
O. Provisions
Provisions are recognized in the balance sheet when, for the Company, a legal or constructive obligation is born, related to a past event and it is probable that future consumption of economic resources is necessary to extinguish this obligation. Provisions are reviewed at the end of each period and adjusted to reflect the current most appropriate estimate.
A provision is recognized when:
- an entity has a present obligation, generated by a previous event;
- it is probable that an outflow of resources will be required to settle the obligation; and
- 80 - - a reliable estimate can be made of the amount of the obligation.
Provisions are made for items such as litigation, fines and penalties, damages, claims and other contingent liabilities; expenses related to the activity of service during the warranty period and other expenses related to the guarantee given to customers; restructuring actions; pensions and similar obligations; taxes; other provisions.
P. Employee costs
The rights of the employees on the short term principally include salaries and social security contributions. The rights of employees on the short term are recognized as expenses at the same time with rendering the services. Annually, the Company determines, through the Collective Labor Contract, which are the benefits that shall be granted to its employees.
In the normal course of business, the Company makes payments to the State budget for health, pension and unemployment on behalf of its employees at statutory rates. All of the Company’s employees are members of the Romanian State pension plan. These costs are recognized in the income statement together with the salaries.
The Company grants employees taking early retirement a number wages equal to the number of months of work left to statutory pension. The Company recognizes provisions for early retirement benefits by applying the general criteria for recognition of provisions. According to the individual employments contracts, the Company pays benefits that are represented by a variable number of basic salaries granted, depending on the professional category of the worker who retires. Also, the employees receive jubilee bonuses equivalent to a basic salary, every 5 years starting from the 10 th year of service accumulated. As at December 31, 2017 the Company recorded provisions for pensions and similar obligations.
Q. Tax
Current income tax
The Company records current income tax based on taxable income in tax reporting, according to the relevant Romanian legislation. The taxation system in Romania is in a phase of consolidation and harmonization with EU legislation. In this respect, there are still different interpretations of tax laws. In some cases, the tax authorities may have different approaches to certain issues, proceeding to the calculation of additional taxes and interest and penalties for late payment.
According to tax legislation in force, during 2017, interest and penalties were charged for failure to pay tax obligations by taxpayers.
During January-February 2014, the delay interest was 0.04% per day, and the penalty for delay was 0.02% per day for each day of delay.
Since March 2014, the interest decreased, to 0.03% per day of delay in payment; the penalties remained unchanged at 0.02% daily value of delay in payment.
In Romania, tax periods remain open for tax for 5 years. The Company's management believes that tax liabilities included in these financial statements are appropriate.
The Company assesses whether the provisions established (adjustments made) according to
- 81 - Commission Implementing Regulation (EU) No. 390 of the Commission of 3 May 2013 and Commission Implementing Regulation (EU) No. 391 of the Commission of 3 May 2013 falls under the deductibility conditions, according to the legal provisions of Article 22, paragraph 4 of Law 571/2003 on the Fiscal Code issued by the Romanian Parliament and Government Emergency Ordinance no. 18/2012 amending GO 46/1998 establishing certain measures for the fulfillment of the obligations assumed by Romania by joining the EUROCONTROL International Convention.
Depreciation and amortization of the engaged capital of the entity, engaged and immobilized in tangible and intangible assets is determined by linear method. Undepreciated value, related to the fixed assets of the entity, decommissioned before reaching the normal length of use, reduced by the amounts resulting from the revaluation is recorded in operating expenses.
Tax value remained unamortized of the fixed assets decommissioned before reaching the normal length of use, less the amounts resulting from the revaluation is deductible for tax purposes.
R. Revenues recognition
The revenues relate primarily to the services provided. They are recognized on an accrual basis.
a) Revenues generated through the route activity
Regulation (EU) no. 390/2013 of the Commission of 3 May 2013 laying down a performance scheme for air navigation services and for network functions, as well as Regulation (UE) no. 391/2013 of the Commission of 3 May 2013 laying down a common charging scheme for air navigation services represents the current legal framework for laying down the charges for the users of the air space. Moreover, Member States may exempt certain categories of flights from the payment of route charges. By the Regulation, Member States make sure that providers of air navigation services are reimbursed for the services provided to exempt flights.
In 1996 Romania joined by Law no. 44/27.05.1996 the EUROCONTROL International Convention regarding cooperation for the security of air navigation, concluded on 13 December 1960, and the Multilateral Agreement on air route charges signed in Brussels on 12 February 1981. Therefore, the invoicing and collection of tariffs for route air navigation services provided by ROMATSA is performed by EUROCONTROL in accordance with the rules laid down in the document entitled “Conditions of application of the route charges system”, published entirely in AIP Romania, Section GEN 4.2, art. 1.3.
EUROCONTROL invoices on behalf of ROMATSA the route air navigation services by applying a global unit rate of charge at a certain number of service units corresponding to such a flight:
• The global unit rate of charge consists of the national unit rate of charge, established according to the regulations and rules mentioned above, and the administrative unit rate of charge, laid down by EUROCONTROL to cover its services of invoicing and collection of charges for route air navigation services; • For a given flight, the number of service units represents the product between the distance factor in respect of Romania’s airspace and a weight factor for the aircraft.
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As regards flights exempt from the payment of route air navigation services, Government Emergency Ordinance no. 147/2007 regulates the reimbursement of the counter value of flights exempt by the State budget through the budget of the Ministry of Transport, and the Application rules approved by the Joint Order of the Ministry of Transportation no. 67/2008 and the Ministry of Economy and Finance no. 1645/2008 laid down the calculation procedure and the annexes that are part of the settlement submitted for the reimbursement of the counter value of the services provided.
b) Revenues from terminal activity
Tariffs for the terminal activity are received for the air navigation services rendered in control areas of airports and are approved by the Company’s Board of Directors. Rates vary depending on the airport, flight type and maximum take-off weight (MTOW). Air navigation charges provided in the terminal area of Bucharest International Airport are subject to the provisions of Regulation (EU) no. 391/2013 of the Commission of 3 May 2013 laying down a common charging scheme for air navigation services.
c) Other
Interest income is recognized on a pro-rata basis, taking into account the principal sum as a deposit and the effective interest rate over the period to maturity of the deposit.
In these financial statements, income and expenses are shown at gross value. In the balance sheet, debts and receivables from the same partners are presented at a net amount, when there is a right to compensation.
S. Turnover
Turnover represents amounts invoiced and to be invoiced, net of VAT and trade discounts for goods delivered or services provided to third parties.
T. Operating expenses
Operating expenses are recognized in the period they were incurred.
U. Related parties
A person or close family member of such person is related to the reporting entity if: i. controls or jointly controls the reporting entity; ii. has an interest in the reporting entity, which offers it a significant influence over the latter; or iii. represents a member of the key management personnel of the reporting entity or of its parent company.
An entity is related to a reporting entity if it fulfills any of the following conditions:
- 83 - i. the entity and the reporting entity are members of the same group (which means that each parent company, subsidiary and subsidiary from the same group is related to the others); ii. the entity is an associate or jointly controlled entity of the other entity (or associate or jointly controlled entity of a member of the group the other entity is part of); iii. both entities are jointly controlled entities of the same third party; iv. the entity is a jointly controlled entity of a third party, and the other is an associate of the third party; v. the entity represents a post-employment benefits plan to the benefits of the employees of the reporting entity or for the employees of any entity related to such company. If the entity itself is such a plan, the sponsor employers are also related to the entity; vi. the entity is controlled or jointly controlled by a person of close family member of the family of such person holding control or joint control over the entity, holds a significant influence over the entity; or is a member of the key-management of the entity or entity’s parent; vii. a person or close family member who holds control or joint control over the Company influences significantly the entity or is a member of the key-management of the entity (or entity’s parent); viii. the entity or any member of a group it belongs to provide services to the key management personnel of the reporting entity or the parent company of the reporting entity.
The key-management means those persons with the authority and responsibility to plan, manage and control the entity’s activities, either directly or indirectly, including any (executive or otherwise) officer of the entity.
Close family members of a person mean those family members expected to influence or be influenced by such person in their relationship with the entity and include: a) the offspring and spouse or partner of such person; b) the offspring of the spouse or partner of such person; and c) dependents of the person or spouse or partner of such person.
In accordance with Mop 1802/2014, affiliates mean two or more entities from the same group.
V. Contingencies
A contingent liability is: a) a possible obligation that arises from past events prior to the balance sheet date and whose existence will be confirmed only by the occurrence or non-one or more uncertain future events that may not be entirely under the control of the entity; or b) a present obligation that arises from past events prior to the balance sheet date but
- 84 - not recognized because:
- it is not certain that an outflow of resources will be required to settle the debt; or
- the amount of debt cannot be assessed with sufficient reliability.
Contingent liabilities are not recognized in the balance sheet; they are disclosed only in the notes to the financial statements.
Contingent liabilities are continuously evaluated in order to determine if an outflow of resources embodying economic benefits is probable. If it is considered that a resource outflow generated by an element previously considered contingent liability is necessary, then the Company will recognize appropriately, a debt or a provision in the financial statements in the period when the classification of the event changed. W. Employees’ profit sharing
Obligations regarding employees’ profit sharing are measured at the amounts to be paid upon settlement.
Employees’ profit sharing was reflected in the financial statements by establishing a provision for employees' profit sharing, amounting to maximum 10% of the net profit, but not more than the average monthly basic salary obtained in the Company multiplied by the average number of employees, according to MoPFO no. 128/2005 on certain accounting regulations applicable to economic agents and MoPFO no. 144/2005 for approval of the specifications for determining the profit allocation amounts subject under Ordinance no. 64/2001 on profit distribution of national companies, national undertakings and trading companies fully or majority State-owned, and the autonomous companies, approved with amendments by Law No. 769/2001, as amended and supplemented.
The provision in amount of RON 39,436 was established at the end of 2015 and was not distributed to employees in 2016 and 2017.
X. Payments to the State
The Company recognizes the payments made to the State budget as a liability in the period in which their distribution is approved.
The distribution of autonomous companies’ profit is performed according to GO no. 64/2001, with subsequent amendments, and Ministry of Finance Memorandum no. 40.685/12.02.2018 whereby “the State representatives shall be mandated in the General Meeting of Shareholders/Board of Administration, as applicable, to decide on the allocation of a share of minimum 90% of the net profit obtained in 2017 in the form of dividends/payments to the State budget, upon the approval of the financial statements of such year”.
In 2017, the Company registered an accounting loss, and, consequently, cannot make payments from the profit to the State budget.
Y. Subsequent events
- 85 - The accompanying financial statements reflect events after the end of the year, events that provide additional information about the position of the Company at the balance sheet date or those that indicate a possible violation of the going concern principle (events that cause adjustments). Subsequent events that are not adjusting events are disclosed in the notes when considered significant.
- 86 - 3. NON-CURRENT ASSETS
Between January 1 and December 31, 2017, non-current assets were as follows:
Cost/revalued amount
Items of Balance as Increases Of which Revaluation Redu ctions Of which Revaluation Balance as assets at January transfer transfers at 1, 2017 from non- December current 31, 2017 assets in progress 9=1+2+4 -5- 0 1 2 3 4 5 6 7 7-8 Intangible assets Other intangible 75,984,947 1,723,688 - - 107,291 - - 77,601,344 assets Advances for intangible 13,688,862 - - - 180,523 - - 13,508,339 assets Intangible assets in progress (account - 27,804,536 - - - - - 27,804,536 4094 – advances for intangible assets) Total intangible 89,673,809 29,528,224 - - 287,814 - - 118,914,219 assets Property, plant and equipment
- 87 - Land 9,090 ,028 ------9,090 ,028 Buildings 216 ,104 ,409 981 ,960 964 ,745 - 243 ,647 - - 216 ,842 ,722 Plant and 145,983,532 21,809,661 21,804,026 - 95,291 - - 167,697,902 equipment Other fixtures, 7,017,197 350,927 350,927 - 3,925 - - 7,364,199 plant and furniture Bearer biological 6,551 ------6,551 assets Property, plant and 75,301,945 20,340,354 - - 23,119,698 23,119,698 - 72,522,601 equipment in progress Advances for property, - 688,041 - - - - - 688,041 plant and equipment Total property, 453,503,662 44,170,943 23,119,698 - 23,462,561 23,119,698 - 474,212,044 plant and equipment Financial assets Other 165,226,225 5,863,768 - - 2,268,850 - - 168,821,143 securities Total financial 165,226,225 5,863,768 - - 2,268,850 - - 168,821,143 assets Total non - current 708,403,696 79,562,935 23,119,698 - 26,019,224 23,119,698 - 761,947,406 assets
- 88 - Depreciation
Items of assets Balance as at Increases Reductions Balance as at January 1, December 2017 31, 2017 10 11 12 13 14=11+12 -13 Intangible assets Other intangible assets - - - - Concessions and other intangible 68,914,461 3,377,596 106,457 72,185,600 assets Total intangible assets 68 ,914 ,461 3,377 ,596 106 ,457 72 ,185 ,600 Property, plant and equipment Land - - - - Buildings - 18 ,312 ,463 22 ,132 18 ,290 ,331 Plant and equipm ent - 27 ,336 ,357 39 ,666 27 ,296 ,691 Other fixtures, plant and furniture - 897 ,041 1,310 895 ,731 Bearer biological assets - 4,243 - 4,243 Total property, plant and - 46 ,550 ,104 63 ,108 46 ,486 ,996 equipment Total non -current assets 68 ,914 ,461 49 ,927 ,700 16 9,565 118 ,672 ,596 Impairments – value adjustments Property, plant and equipment in - 829 ,163 - 829 ,163 progress Other non -current assets 28 ,888 ,105 - - 28 ,888 ,105 Total value adjustments 28 ,888 ,105 829 ,163 - 29 ,717 ,268 Total non -current assets 97 ,802 ,566 50 ,756 ,863 169 ,565 148 ,389 ,864
- 89 -
Net value
Items of assets Balance as at Balance as at January 1, 2017 December 31, 2017 15 16=1 -11 17=9 -14 Intangible assets Other intangible assets 7,070 ,485 5,415 ,744 Advances for intangible assets 13 ,688 ,862 13 ,508 ,339 Intangible assets in progress (representing advances - 27,804,536 for intangible assets in progress) Total intangible assets 20 ,759 ,348 46 ,728 ,619 Property, plant and equipment Land 9,090 ,028 9,090 ,028 Buildings 216 ,104 ,409 198 ,552 ,391 Plant and equipment 145 ,983 ,532 140 ,401 ,212 Other fixtures, plant and furniture 7,017 ,197 6,468 ,467 Bearer biological assets 6,552 2,309 Property, plant and equipment in progress 75 ,301 ,944 71 ,693 ,437 Advances for property, plant and equipment - 688 ,041 Total property, plant and equipment 453 ,503 ,662 426 ,895 ,884 Financial assets Other non -current securities - - Other borrowings 136 ,338 ,120 139 ,933 ,038 Total financial assets 136 ,338 ,120 139 ,933 ,038 Total non -current assets 610 ,601 ,129 613 ,557 ,541
(a) Intangible assets
Intangible assets are stated at cost and include software.
Most of the intangible assets are represented by the amount of RON 27,804,536 representing 40% of the value of the software for the operating software ATM 2015+ (40% of the total software value according to contract 268/2013, estimated completion term – February 2019); the balance also includes as at December 31, 2017 the advance paid in 2013 for such software (20% of the total value, according to the contract mentioned above) in amount of RON 13,508,339.
The most important intangible assets are represented by upgrades of the DPS ACC system (net value as at December 31, 2017: RON 1,252,937), and the ROUTER ATN G/G operating software (net value as at December 31, 2017: RON 726,047).
(b) Own property, plant and equipment
Non-current assets are carried in the balance sheet at revalued amount, less accumulated depreciation and impairment.
As at December 31, 2016, tangible assets (except for advances and tangible assets in progress) are revalued. Thus, the outstanding amount as at January 1, 2017 is registered in the balance sheet at revalued amount. - 90 -
Non-current assets in progress
Tangible assets in progress include amounts that refer mainly to projects aimed at implementing the Operational Concept as per GD 536/2000, the most significant amount being related to the implementation of the ATM 2015+ system, in collaboration with Indra Sistemas SA RON 35,331,141 (December 31, 2016 – RON 25,359,039).
During the year, the Company registered an impairment for an investment site, specifically a new tower in Cluj Airport, in amount of RON 829,163, given that as at the date of these financial statements, there are uncertainties regarding the continuation of such project.
(c) Tangible assets in public heritage
Tangible assets in public heritage in amount of RON 122,079,431 are represented by land belonging to the State public domain administered by the Company. Such land was registered starting December 31, 2006 in accordance with GD 1705/2006, GD 758/2008 and GD 624/2010.
By Letter no. 53874/27.11.2013, the Ministry of Transport requested the deregistration of such land from the Company’s accounting, and registration in an off-balance sheet account in accordance with MoPFO 1802/2014, in force as at such date.
The Company wrote off the amount of RON 130,404,974 as at March 31, 2014. In 2015, the value of such property, plant and equipment part of the public heritage dropped to RON 129,404,246. In 2016, two lands were added to such amount, according to GD 359/11.05.2016 in amount of RON 43,743. Subsequently, further to the revaluation performed as at December 31, 2016 the value of the property, plant and equipment part of the public heritage received by RA ROMATSA under administration is RON 125,508,924. As at the balance sheet date, the value of the land included in the State’s public domain and administered by the Company based on the Government resolutions mentioned above is RON 122,079,431.
(d) Financial assets
The Company holds shares in amount of RON 27,628,105 in Tarom SA – The National Airline (“Tarom”), representing 1.24% of the share capital as at December 31, 2017 (December 31, 2016: 1.26%). The shares have a nominal value of RON 2.5. The Company holds 11,051,242 shares. 2,670,034 shares were obtained in July 1998 by converting the receivables against Tarom on September 30, 1997, based on Government Ordinance 45/1997.
In 2001, according to Ordinance 173 issued by the Romanian Government (“GO”) on December 13, 2001 and published in Official Journal no. 831/December 21, 2001, the Company converted the receivable against Tarom in amount of RON 30,224,587 (both the value added tax and the penalties in amount of RON 8,019,625 owed by Tarom further to the delayed payment) into shares in this company.
In 2002, according to Law 323/May 27, 2002 approving GO 173/December 13, 2001, the value added tax and penalties are not accepted as contribution to the share capital of Tarom, following that the Company reduced the value of its participation to RON 27,628,105. In accordance with the legislation in force, the Company may not sell these shares.
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Because of the accounting losses accrued during the latest financial years by C.N. Transporturi Aeriene TAROM S.A., the Company’s management decided to set up an impairment for the securities held in such company.
In addition, the Company holds shares of RON 4,200,000 in the Regional Centre for Excellence in Civil Aviation (CREAC).
The Company’s participation in this company was approved in the meeting of the Board of Directors no. 10/28.07.2011, item 7.3 based on substantiation note no. 13.109/25.07.2011. CREAC is a closed joint stock company whose share capital consists of 1,050,000 nominal shares having a value of RON 10 each. The Company holds 40% of the shares, namely 420,000 shares at a total value of RON 4,200,000 reduced in 2016 by RON 2,940,000 by annulling the payment obligation for 294,000 shares. The holding of R.A. ROMATSA in CREAC was fully adjusted in 2016, therefore, the shares are carried in the balance sheet at their net value (nil).
As at the balance sheet date, the Company is taking steps with the management bodies of the shareholders to establish the concrete measures, specifically, the legal means to dissolve the company.
4. INVENTORIES
Balance as at Balance as at December 31, December 31, 2016 2017 Consumables 11 ,516 ,707 10 ,169 ,090 Materials and consumables with third parties and in 1,553,092 581,502 process of supply Other inventories 563 ,694 465 ,840 Advances for p urchases of inventories 16 ,496 61 ,322 Total 13 ,649 ,992 11 ,277 ,754 Inventories mainly include spare parts related to the equipment used by the Company. At December 31, 2017, the Company conducted a specific analysis of stocks after which it concluded that is not necessary to record a value adjustment.
5. RECEIVABLES
Balance as at Payable December 31, Within 1 year In more than 1 2016 year Advances to services providers 109 ,062 109 ,062 - Trade receivables and similar 163,856,785 163,856,785 - accounts Value adjustments of receivables – (22,072,385) (22,072,385) - clients VAT non -chargeable 393 ,484 393 ,484 - VAT recoverable 2,205 ,040 2,205 ,040 - Other amounts receivable from 951,058 951,058 - State budget Sundry debtors and other 2,339 ,876 2,339 ,876 -
- 92 - receivables Value adjustments of sundry (1,605,588) (1,605,588) - debtors Amounts under settlement 1,983 ,313 1,983 ,318 - Total receivables 148 ,160 ,764 148 ,160 ,764 -
Balance as at Payable December 31, Within 1 year In more than 1 2017 year Advances to services providers 17 ,721 17 ,721 - Trade receivables and similar 176,525,704 176,525,704 - accounts Value adjustments of receivables – (22,735,214) (22,735,214) - clients VAT non -chargeable 323 ,245 323 ,245 - VAT recoverable 4,066 ,925 4,066 ,925 - Other amounts receivable from 1,373,810 1,373,810 - State budget Sundry debtors and other 8,172,058 8,172,058 - receivables Value adjustments of sundry (1,120,914) (1,120,914) - debtors Amounts under settlement 1,856 ,299 1,856 ,299 - Investment subsidies 636 ,618 636 ,618 - Total receivables 169 ,116 ,251 169 ,116 ,251 -
Trade receivables
Balance as at Balance as at December 31, December 31, 2016 2017 Customers – affiliates 3,587 ,488 3,418 ,665 Excepted flights 10 ,574 ,454 17 ,911 ,818 Customers 14 8,706 ,116 154 ,191 ,245 Doubtful or litigating customers 988 ,728 1,003 ,976 Impairments of receivables – customers (22 ,072 ,385) (22 ,735 ,214) Impairments of receivables – excepted flights - - Invoices not issued - - Sundry debtors for provisions of servic es 109 ,062 17 ,721 Total 141 ,893 ,463 153 ,808 ,211
All route air navigation services provided for domestic and foreign customers are listed in the Eurocontrol account. The balance of Eurocontrol account before impairments of receivables – customers as at December 31, 2017 is RON 144,001,618 (RON 132,829,100 as at December 31, 2016). Eurocontrol means the European Organization for the Safety of Air Navigation, established in accordance with the International Convention and the Multilateral Agreement relating to route charges, which Romania joined in accordance with Law 44/1996.
The value of receivables representing flights exempt from paying the route charge December 31, 2017 is RON 17,911,818 (RON 10,574,454 as at December 31, 2016). The counter value of air
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Trade receivables are not interest bearing and are generally due between 30 and 90 days.
Other receivables
Balance as at Balance as at Description December 31, December 31, 2016 2017 Other State budget receivables 3,549 ,582 5,763 ,980 Interest receivable 1,428 ,916 1,999 ,798 Advances granted to employees 78 ,327 37 ,530 Sundry debtors 832 ,633 6,134 ,730 Provisions for sundry debtors and other receivables (1 ,605 ,588) (1 ,120 ,914) Unsettled amounts 1,983 ,318 1,856 ,299 Subsidies - 636 ,618 Total 6,267 ,301 15 ,308 ,041
“Other State budget receivables” as at December 31, 2017 comprise mainly the value added tax receivable in amount of RON 4,066,925 (RON 2,205,040 as at December 31, 2017).
“Unsettled amounts” as at December 31, 2016 include mainly: securities, experts’ fees, forced executions in relation to the lawsuits in which RA ROMATSA is involved against the former employee of D.S.N.A Cluj, Suciu Emil Adrian in amount of RON 1,435,738, as well as litigating amounts representing challenge to the decision of ANAF – Large Taxpayers Management General Directorate regarding accessory payment obligations, in amount of RON 347,114.
The balance of “Sundry debtors” as at December 31, 2017 consists mainly of a compensation in a damage file receivable from MARSH LTD at the end of the year, in amount of RON 4,553,055, representing the equivalent of USD 1,170,000 received on 03.01.2018.
The value adjustments for sundry debtors are represented by the amounts listed by RA ROMATSA in the table of receivables further to the bankruptcy of some companies: MAREEA COMTUR SRL by RON 79,043, ASTRA SA by RON 688,320.
6. SHORT-TERM FINANCIAL INVESTMENTS, PETTY CASH AND BANK ACCOUNTS a) Short-term financial investments
The short-term financial investments as at December 31, 2017 are represented by two short-term deposits each in amount of RON 50,000,000 (totaling RON 100,000,000), due in more than 3 months (September 2018 and November 2018). b) Petty cash and bank accounts
This financial position includes the following:
Balance as at Balance as at Description December 31, December 31, 2016 2017
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Balance as at Balance as at Description December 31, December 31, 2016 2017 Accounts in RON held at banks 35 ,631 ,117 87 ,352 ,935 Current accounts with banks in foreign currency 308 ,399 ,301 239 ,468 ,731 Less than 3 -month due deposits 562 ,876 178 ,848 Letters of credit - - Petty cash in RON 75 ,398 71 ,478 Petty cash in foreign currency 71 ,064 97 ,058 Other values 1,375 1,590 Petty cash and bank accounts 344 ,741 ,131 327 ,170 ,640
For the purposes of cash flow statement, the cash and cash equivalents as at December 31, 2017 and December 31, 2016 are the following:
Balance as at Balance as at Description December 31, December 31, 2016 2017 Petty cash and bank accounts 344 ,741 ,131 327 ,170 ,640 Bank deposits with less than three month due date 150 ,000 ,000 100 ,000 ,000 Total cash and cash equivalents 494 ,741 ,131 427 ,170 ,640
7. PAYABLES
Balance as at Pa yable December 31, Within 1 year In more than 2016 1 year Good performance bonds 183 ,238 183 ,238 - Suppliers 20 ,172 ,909 20 ,172 ,907 - Suppliers – invoices to be received 2,265 ,968 2,265 ,968 - Employee – related debts 22 ,241 ,858 22 ,241 ,858 - Salary – related taxes an d charges 25 ,377 ,725 25 ,377 ,725 - Current income tax 10 ,933 ,833 10 ,933 ,833 - Other payables to the State budget 111 ,064 111 ,064 - Amounts owed to shareholders - - - Sundry creditors 1,142 ,218 1,142 ,220 - Total payables 82 ,428 ,931 82 ,428 ,931 -
Balan ce as at Payable December 31, Within 1 year In more than 2017 1 year Good performance bonds 234 ,455 234 ,455 - Suppliers 18 ,745 ,154 18 ,745 ,154 - Suppliers – invoices to be received 1,850 ,299 1,850 ,299 - Employee – related debts 29 ,280 ,283 29 ,280 ,283 - Salary – related taxes and charges 39 ,495 ,930 39 ,495 ,930 - Current income tax - - - Other payables to the State budget 6 6 - Amounts owed to shareholders - - -
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Sundry creditors 974 ,482 974 ,482 - Total payables 90 ,580 ,609 90 ,580 ,609 -
Trade payables
Description Balance as at Balance as at December 31, 2016 December 31, 2017 Suppliers – related parties 1,569 ,612 1,862 ,592 Suppliers 14 ,305 ,903 13 ,113 ,334 Suppliers of non -current assets 4,297 ,392 3,769 ,228 Suppliers – invoices not received 2,26 5,969 1,850 ,299 Total 22 ,438 ,876 20 ,595 ,453
Other payables
Description Balance as at Balance as at December 31, 2016 December 31, 2017 Employee – related debts and contributions 39 ,061 ,487 60 ,096 ,046 Salary tax 8,538 ,846 8,597 ,517 Sundry creditors a nd good performance bonds 1,325 ,456 1,208 ,937 Other State budget payables 11 ,064 ,147 82 ,655 Total 59 ,990 ,054 69 ,985 ,155
PROVISIONS
Balance as at Increases Reductions Balance as at January 1, December 31, 2017 2017 0 1 2 3 4=1+2 -3 Provisions for employee benefits 303 ,556 ,426 71 ,141 ,825 53 ,804 ,968 320 ,893 ,283 Provisions for route activity 210 ,623 ,270 143 ,393 ,000 105 ,234 ,000 248 ,782 ,270 Provisions for employees’ profit 39,436 - - 39,436 sharing Other provisions for risks and 16,093,398 59,679,865 851,416 74,921,846 charges Total provisions 530 ,312 ,530 274 ,214 ,690 159 ,890 ,384 644 ,636 ,835
(a) Provisions for employee benefits
Provisions for pensions and similar obligations
According to the provisions of the individual employment contracts, the Company grants monetary benefits depending on the length of service and upon retirement for employees. Such benefits consist of a variable number of base salaries granted depending on the retiree’s professional category. Also, employees receive anniversary bonuses the equivalent of one base salary every 5 years, starting from the 10 th year of length of service accumulated. As at December 31, 2017 the Company established provisions for such benefits in amount of RON 320,893,283 (RON 303,556,426 as at December 31, 2016).
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Any actuarial estimate is subjective, and different experts may have different approaches and use different assumptions in determining such estimate. Actual future expenses will not be identical to the estimates, and may vary significantly from such estimates. The calculations related to the estimate are based on certain assumptions described in these financial statements, and the values thus determined depend on such assumptions becoming reality. The assumptions used are the responsibility of the Company’s management.
(b) Provisions for route activity
In accordance with the mechanisms laid down in Commission Implementing Regulation (EU) No. 390/2013 of 3 May 2013 laying down a performance scheme for air navigation services and network functions and Commission Implementing Regulation (EU) No. 391/2013 of 3 May 2013 laying down a common charging scheme for air navigation services, regarding the determined costs laid down in the DANUBE FAB performance Plan for the second reference period (2015-2019) for 2017, adjustments are applied to traffic and inflation (similar to the situation registered in 2015 and 2016).
The provisions of the mechanisms mentioned above are applied as follows: a) Traffic risk sharing mechanism
In accordance with the provisions of article 13 of Regulation (EU) no. 391/2013, to finance the provision of air navigation services through the air navigation charges, a traffic risk-sharing mechanism applies to a series of determined costs for the services provided, less those related to supervision costs, EUROCONTROL, related to MET and other services (according to article 13(2) of Regulation no. 391/2013).
The actual computation modality includes, on the one hand, the categories of cost that fall under the mechanism, and on the other hand, three value thresholds regarding the variation of number of service units, as follows:
- where, over a given year n, the actual number of service units does not exceed or fall below the forecast established in the performance plan for that year n by more than 2 %, the additional or lost revenue of the air navigation service provider in respect of determined costs shall not be carried over; - where, over a given year n, the actual number of service units: o exceeds the forecast established in the performance plan for that year n by more than 2 %, a minimum of 70 % of the additional revenue obtained by the air navigation service provider(s) concerned in excess of 2 % of the difference between the actual service units and the forecast in respect of determined costs established in the performance plan shall result in a corresponding reduction of the determined costs of year n+2; o falls below the forecast established in the performance plan for that year n by more than 2 %, a maximum of 70 % of the revenue loss incurred by the air navigation service provider(s) concerned in excess of 2 % of the difference between the actual service units and the forecast in respect of determined costs established in the performance plan shall result in a corresponding increase of the determined costs starting not earlier than year n+2.
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- where, over a given year n, the actual number of service units: o is lower than 90 % of the forecast established in the performance plan for that year n, the full amount of the revenue loss incurred by the air navigation service provider(s) concerned in excess of 10 % of the difference between the actual service units and the forecast in respect of determined costs established in the performance plan shall result in a corresponding increase of the determined costs starting not earlier than year n+2; o exceed 110 % of the forecast established in the performance plan for that year n, the full amount of the additional revenue obtained by the air navigation service provider(s) concerned in excess of 10 % of the difference between the actual service units and the forecast in respect of determined costs established in the performance plan shall result in a corresponding reduction of the determined costs of year n+2.
In the case of ROMATSA R.A., the provisions of the traffic risk sharing mechanism apply for:
- the route activity;
- the terminal activity of Bucharest Airport. As far as this activity is concerned, the Company does not use the value limits as it applied the provisions of article 13(6) of Regulation (EU) no. 391/2013, so that, the additional revenues/income losses resulting in a given year n are carried over entirely. b) Adjustment to inflation
In accordance with the provisions of article 7 of Regulation no. 391/2013, determined costs are fixed prior to the beginning of each reference period as part of the performance plan for each calendar year during the reference period and in both real and nominal terms. For each year in the reference period, the difference between the determined costs expressed in nominal terms prior to the reference period and the determined costs adjusted on the basis of the difference between the actual inflation recorded by the Commission in the Eurostat Harmonized Index of Consumer Price as published in April of year n and the inflation assumption as specified in the performance plan for the year preceding the reference period and for each year of the reference period, shall be carried over in year n+2 for the calculation of the unit rate. In the case of ROMATSA R.A., the provisions of the inflation adjustment mechanism apply both to the route activity, and the terminal activity related to Bucharest Airport.
In the calculation of adjustments of year n, inflation is calculated based on the cumulated index of prior years, where the reference level is the year preceding the beginning of the reference period.
According to the calculation of adjustments resulting from the application of the two mechanisms in the execution of 2017, at the closing of 2017, the Company set up a provision in amount of RON 143,393,000 to secure the funding of the 2019 costs.
The authority regulating charges for the route and terminal activity of ROMATSA has established, for the periods 2015-2019, the obligation to recover the over/under-charges resulting from variations between the estimated traffic loads and inflation, and the real ones. The effects of such over/under-charges in each current period will be recovered either by EUROCONTROL or ROMATSA, by adjusting the charges levied 2 years after the year generating the above-mentioned variations.
The political conditions in Ukraine in the last two years and the significant reduction of the real inflation have caused significant variations compared to the traffic loads, and the inflation rates for
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2016. Such variations resulted in an overcharging in the current period, and the Company expects the authority to recover such amounts by adjusting the charge levied by the Company in future periods, according to the provisions of the regulation mentioned above.
(c) Provisions for employees’ profit sharing fund
The provision for employees’ profit sharing fund in amount of RON 39,436 was established at the end of 2015 in accordance with the provisions of GO 64/2001 to reflect the Company’s contractual obligations as at December 31, 2015. The RON 39,436 was not distributed to employees in 2016 or 2017.
In accordance with Art. 1e) of Ordinance 64/2001, autonomous companies that undertook and established in the income and expenses budgets the obligation to participate to profit, further to the employees’ services in relation thereto, may grant such rights within the limit of 10% of the net profit, but no more than one monthly average base salary obtained in the Company in the reference financial year.
At the end of 2017, the Company registered a loss and did not establish a provision for the employees’ profit sharing.
(d) Other provisions for risks and charges
Other provisions for risks and charges include the provisions for disputes established for lawsuits in progress which the Company has high chances of losing.
As of 22.08.2014 a team of the Economic and Financial Inspection Department within the National Fiscal Administration Agency – General Directorate for the Management of Large Taxpayers conducted an audit to “verify and establish the actual situation of the touristic services acquired by ROMATSA and the amount thereof between 01.01.2009 and 30.09.2014.” The results of the economic and financial audit were written down in the Minutes concluded on 01.03.2018 and registered under nos. M.F.P.-A.N.A.F.-D.G.A.M.C. 105158/01.03.2018 and ROMATSA Main Office no. 4658/01.03.2018. In the minutes, the tax authorities laid down the amounts paid by the Company in breach of the legal provisions, calculated payment obligations for tax and non-tax budget liabilities, for which accessory liabilities were established. The results of the tax audit for the period 2006-2011 were written down in the Draft Tax Audit Report sent on 23.05.2018.
As at December 31, 2017, the Company provisioned the following amounts based on the above:
- RON 11,762,265 additional corporate tax (RON 4,737,811 as at December 31, 2016); - RON 3,658,363 additional VAT; - RON 34,423,061 accessory amounts calculated as at December 31, 2017. - RON 8,673,258 additional social contributions
Other significant amounts included in the provision for risks and charges are:
• RON 4,670,440 provision in relation to Files 1736/33/2011, 1342/R/2011 and 8876/211/2012 against a former employee of the Company (RON 4,670,440 as at December 31, 2016).
• Provision for Orest, JETT Aliance (File 2105/2010) – RON 7,294,511 (RON 4,775,616 as at December 31, 2016); the increase compared to last year is due to the revision of penalties
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as at December 31, 2017;
Provision for the litigation against Timisoara TSR Airport – RON 4,439,949 (RON 1,058,114 as at December 31, 2016) based on a Decision issued unilaterally by the Timisoara Local Council, the Timisoara Airport changed the lease fees for the spaces leased by the Company inside the airport. ROMATSA continued to pay the counter value of the lease according to the initial contract, but the Airport claimed payment of the price difference as of the date of the Decision of the Local Council. The increase compared to last year is due to the revision of penalties as at December 31, 2017.
9. PREPAID AMOUNTS
Balance as at Payable Prepaid amounts December 31, Within 1 year In more than 1 2016 year Expenses registered in advance 13 ,625 ,035 12 ,223 ,943 1,401 ,092 Total 13 ,625 ,035 12 ,223 ,943 1,401 ,092 Balance as at Payable Prepaid amounts December 31, Within 1 year In more than 1 2017 year Expenses registered in advance 13 ,591 ,289 11 ,927 ,997 1,663 ,292 Total 13 ,591 ,289 11 ,927 ,997 1,663 ,292
Prepaid expenses mainly include contributions from Eurocontrol for the first quarter of next year in the amount of RON 8,835,557 as at December 31, 2017 (RON 7,992,137 as at December 31, 2016) and other expenses related to future periods (personnel licensing, insurance premiums, etc.). Eurocontrol contributions represent amounts that the organization charges in the account of the services provided by the operators of air traffic controllers’ management (ex.: collecting route charges).
10. DEFERRED INCOME
Balance as at Payable Deferred income December 31, Within 1 year In more than 1 2016 year Investment subsidies 968 ,419 139 ,724 828 ,695 Deferred income 218 ,644 218 ,644 - Total 1,187 ,063 358 ,368 828 ,695 Balance as at Payable Deferred income December 31, Within 1 year In more than 1 2017 year Investment subsidies 1,154 ,693 247 ,889 906 ,804 Deferred income 272 ,526 272 ,526 - Total 1,427 ,219 520 ,415 906 ,804
As at December 31, 2017, the Company registered investment subsidies not transferred to income, totaling RON 1,154,693. They are recognized as income on a monthly basis, in line with the depreciation of property, plant and equipment purchased over the entire useful life.
11. EQUITY AND RESERVES
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Company patrimony
The Company’s patrimony as at December 31, 2017 was RON 214,684,295 (December 31, 2016: RON 214,684,295).
The Company’s patrimony is wholly owned by the State, being administered by the Ministry of Transport. The patrimony is not divided into shares. The nominal value of the patrimony includes the statutory revaluation made in 1999 and 2000 for fixed assets. The revaluation of fixed assets in accordance with GO 46/1998 and the Fiscal Code - Law No. 227/2015 conducted in 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2010, 2013 and 2016 has been recognized in reserves.
12. TURNOVER
The Company provides services only in Romania. Its turnover consists of the following income:
No. Description Balance as at Balance as at December 31, 2016 December 31, 2017 1 Route services 722 ,929 ,355 712 ,512 ,768 2 Terminal services 104 ,726 ,031 110 ,834 ,849 3 Other revenues 1,489 ,560 1,462 ,761 Total 829 ,144 ,946 824 ,810 ,379
For the year 2017, the Company has recognized revenues in total amount of RON 7,337,364 (RON 9,153,088 for 2016) for the flights exempt in the route services.
According to Eurocontrol International Convention with regard to the Cooperation for the Security of the Air Navigation Space, the member states operate a common taxation of the routes, which implies a unique taxation of the flights and offers the member states computing, invoicing and collection services through the Central Route Charges Office of Eurocontrol.
13. INFORMATION ON EMPLOYEES, MEMBERS OF THE ADMINISTRATION, MANAGEMENT AND SUPERVISORY BODIES
a) Remuneration granted to members of the administration, management and supervisory bodies
December 31, 2016 December 31, 2017 Directors 621 ,741 1,320 ,411 Officers 9,304 ,301 10 ,333 ,645 Total 9,926 ,042 11 ,654 ,056
b) Advances and loans granted to members of the administration, management and supervisory bodies
As at December 31, 2017 and December 31, 2016 the directors and officers did not receive any loans or advances from the Company. - 101 -
c) Employees
Description December 31, 2016 December 31, 2017 Average number of employees during the year Administrative s taff 398 397 Operative staff 1,111 1,091 Total 1,509 1,488 Expenditure with salaries 451 ,426 ,546 495 ,758 ,822 Salaries to be paid at the end of the period 17 ,960 ,354 19 ,848 ,451
14. OPERATING EXPENSES
No. Description Balance as at Ba lance as at December 31, 2016 December 31, 2017 1 EUROCONTROL contribution 33 ,935 ,450 31 ,410 ,728 2 Personnel license fee 1,118 ,604 1,662 ,390 3 Maintenance and repairs 2,729 ,240 1,693 ,209 4 Employees’ transport and travel 6,866 ,027 6,358 ,156 5 Third party expenses 38 ,76 8,590 38 ,217 ,471 6 Protocol expenses 1,059 ,685 865 ,078 7 Postal and communication expenses 5,746 ,521 5,832 ,036 8 Insurance expenses 6,857 ,734 12 ,260 ,950 9 Expenses with donations 1,443 ,323 568 ,140 10 Training expenses 17 ,219 ,450 13 ,339 ,056 11 Other fe es and similar expenses 3,260 ,517 2,248 ,205 12 Rent expenses 3,262 ,560 3,077 ,087 Expenses with revaluation of non -current 13 6,366,782 - assets 14 Other expenses 7,908 ,499 923 ,312 Total 136 ,542 ,982 118 ,455 ,818
The decrease in other operating expenses for the year ended December 31, 2017 is mainly explained by the fact that in the previous year, the Company’s fixed assets were revalued, and a decrease in the value thereof in amount of RON 6,366,782 was registered as expense. Moreover, the contribution to Euro control decreased compared to the previous year, as well as expenses with employees’ training. Expenses with employees’ training are closely related to the Annual Vocational Training Plan for 2017. On the other hand, insurance expenses increased. Among the highest insurance expenses are expenses with fire insurance and other risks (to insure the property, plant and equipment and other assets), expenses with the third-party civil liability insurance, expenses with loss of license/operating permit for certain categories of staff. For some of such categories, the value of the insurance premiums is higher in 2017.
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15. OTHER INFORMATION
15.1. Allocation of profit
By derogation from the provisions of Art. 1 Para (1) Letter f) of Government Ordinance no. 64/2001 on the allocation of profit in national companies, national undertakings and fully or majority State-owned commercial companies, as well as autonomous companies published in the Official Journal of Romania, Part I, no. 536 of September 1, 2001, approved as amended by Law no. 769/2001, as subsequently amended and supplemented, to national companies, national undertakings and fully or majority State-owned commercial companies, as well as autonomous companies, the remainder of the accounting profit after deducting income tax shall be at least 50% allocated as payment to the State or local budget, in case of autonomous companies, or as dividends, according to law, in case of national companies, national undertakings and fully or majority State-owned commercial companies.
Since in the year ended December 31, 2017 the Company registered a loss in amount of RON 129,074,877, the provisions mentioned above are not applicable.
15.2. Information on income tax
The reconciliation between the result of the year and the fiscal result, as presented in the tax return:
No. Description Balance as at Balance as at December 31, 2016 December 31, 2017 1 Profit before tax (53 ,835 ,823) (129 ,074 ,877) 2 Deductible legal reserve - - 3 Fiscal depreciation (40 ,899 ,299) (49 ,849 ,856) 4 Items similar to income (amortization of 5,593,341 20,470,002 revaluation reserves) 5 Non -taxable revenues (27 ,869 ,077) (74 ,547 ,886) 6 Non -deductible expenses for tax 244,153,767 347,744,571 computation purposes 7 Fiscal loss from previo us years to be - - recovered 8 Taxable profit 127 ,142 ,909 114 ,741 ,954 9 Corporate income tax 20 ,342 ,865 18 ,358 ,713 10 Tax deductible sponsorship expenses 1,443 ,324 568 ,140 11 Owed corporate income tax 18 ,899 ,541 17 ,790 ,573 12 Fiscal result (8 -11) 108 ,243 ,368 96 ,951 ,381 13 Accounting profit (53 ,835 ,822) (129 ,074 ,877)
15.3. Financial ratios
2016 2017 Computation 1. Liquidity ratios Current liquidity ratio 8.13 6.86 Current assets /Current liabilities Immediate liquidity ratio 7.96 6.73 Current assets - Inventories/Current
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liabilities 2. Activity ratios Number of storage days 811 .50 620 .74 Average stock/Stock expenses*365 Receivables turnover days – Average receivables balance/ 123.41 62.42 customers Turnover*365 Average suppliers balance/ Operating Payables turnover days – suppliers 11.52 8.60 expenses*365 Fixed assets turnover days 1.36 1.34 Turnover/Fixed assets Total assets turnover days 0.65 0.67 Turnover/Total assets 3. Profitability ratios Profit befor e interest and tax/Employed Return on capital employed - - capital*100 Gross sales margin - - Gross operating profit/Turnover*100
15.4. Relations with related parties
Related parties include companies belonging to the Ministry of Transport. Transactions and balances with related parties are as follows:
Outstanding receivables in Outstanding payables in 201 6 201 7 201 6 201 7 Tarom 3,538 ,521 3,359 ,143 41 ,818 - Romanian Civil Aeronautical 2,138 8,940 1,507,895 1,856,720 Authority CN Aeroporturi Bucureşti 42 ,943 43 ,484 19 ,899 3,024 Mihail Kogălniceanu - Constanţa International 1,103 975 - 2,848 Airport Timişoara International 2,782 6,123 - - Airport Regional Centre of - - - - Excellence in Civil Aviation Higher Aviation School - - - - Total 3,587 ,488 3,418 ,665 1,569 ,612 1,862 ,592
The Company carries out transactions with the Ministry of Transport representing air navigation services exempted from the payment of the route charge. The consideration of these services is reimbursed by the Ministry of Transport in accordance with GEO 147/2007.
The consideration of the route services exempt from route charges, rendered by the Company and recognized in its turnover for the year 2017 was RON 7,337,364 (2016: RON 9,153,253).
The value of the trade receivables from the Ministry of Transport, as of December 31, 2017 is RON 17,911,818 (December 31, 2016: RON 10,574,454).
The value adjustments for amounts receivable from the Ministry of Transport as at December 31, 2017 are in amount of RON 0 (December 31, 2016: RON 0).
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The transactions of the Company with the related parties are as follows:
Sales Purchases 201 6 201 7 201 6 201 7 Romanian Civil Aeronautical (433) 48,951 22,893,346 19,528,158 Authority Tarom 25 ,195 ,474 20 ,912 ,840 926 ,220 438 ,862 CN Aeroporturi Bucureşti 442 ,498 472 ,904 2,369 ,939 2,042 ,083 Mihail Kogălniceanu - Constanţa International 16,535 18,492 - 145,114 Airport Timişoara International 25,422 33,191 422,324 309,851 Airport Regional Centre of - - - - Excellence in Civil Aviation Higher Aviation School - 6,184 - 111 ,252 Total 25 ,679 ,496 21 ,492 ,562 26 ,611 ,829 22 ,575 ,320
15.5 Other information
a) Analysis of operating result
Caption 2016 2017 1 Net turnover 829 ,144 ,946 824 ,810 ,379 2 Cost of goods sold and se rvices 876,743,006 959,531,073 provided (3+4+5) 3 Core activity expenses 876 ,743 ,006 959 ,531 ,073 4 Auxiliary activity expenses - - 5 Production overheads - - 6 Gross result pertaining to net turnover (47 ,598 ,060) (134 ,720 ,694) (1-2) 7 Marketing expens es - - 8 General administrative expenses - - 9 Other operating expenses 8,035 ,267 7,281 ,877 10 Operating result (6 -7-8+9) (39 ,562 ,793) (127 ,438 ,817)
b) Information on relations with subsidiaries, associates and other undertakings which strategic shareholdings
Information on companies in which the Company holds shares is presented in Note 3 (d).
Details of related party transactions and the nature of the relations therewith are presented in Note 14.4.
(c) Subsequent events
As described in note 8, as of 22.08.2014 a team of the Economic and Financial Inspection Department within the National Fiscal Administration Agency – General Directorate for the Management of Large Taxpayers conducted an audit to “verify and establish the actual situation of the touristic services acquired by ROMATSA and the amount thereof between
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01.01.2009 and 30.09.2014.” The results of the economic and financial audit were written down in the Minutes concluded on 01.03.2018 and registered under nos. M.F.P.-A.N.A.F.- D.G.A.M.C. 105158/01.03.2018 and ROMATSA Main Office no. 4658/01.03.2018. In the minutes, the tax authorities laid down the amounts paid by the Company in breach of the legal provisions, calculated payment obligations for tax and non-tax budget liabilities, for which accessory liabilities were established. The Company registered the payment obligations and accessory liabilities to provisions, until the issuance of the final report.
In addition, between 07.05.2012 and 14.05.2018, the Company formed the object of an audit conducted by the Economic and Financial Audit Team of ANAF – General Directorate for management of large Taxpayers, which, on 23.05.2018 sent the draft Tax Audit Report, in which it laid down payment obligations representing corporate tax, social contributions, delay penalties and interest/increases. The Company registered the payment obligations and accessory liabilities to provisions, until the issuance of the final report.
(d) Auditors’ fees
The fee paid to auditors for the financial year ended December 31, 2017 is laid down in the contract concluded between the Company and the auditor (Deloitte Audit SRL). e) Legal and fiscal regime
All the amounts owed to the State for taxes have been paid or recorded on the balance sheet date.
The taxation system in Romania is in a phase of consolidation and harmonization with EU legislation. In this respect there are still different interpretations of tax laws. In some cases, the tax authorities may have different approaches to certain issues, proceeding to the calculation of additional taxes and interest and penalties for late payment. If State authorities discover violations of Romanian laws, then they may determine as appropriate: seizure of the concerned amounts, imposition of additional tax liabilities, imposition of fines, the application of delay increases (applied to the amounts actually left to pay). Therefore, tax penalties resulting from violations of the law can reach significant amounts paid to the State.
The Company believes that it has paid on time and in full the duties, taxes, penalties and penalty interest, to the extent applicable. f) Commitments, conditionalities and contingencies
(i) Guarantees
As at December 31, 2017, the Company recognized off-balance sheet the letters of bank guarantee, in connection to the investment contracts in progress.
Name of payment authorizing entity December 31, 2017 (supplier) RECOM 1,883 ASTRA 540 ,488 Total 542 ,371
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(ii) Status of assets that fall under the State’s public domain (GR 624/2010 and GR 359/2016) under the administration of R.A. ROMATSA
No. Sub -unit Name Type of Value as at Law/GR/GEO/etc asset December regulating the (building, 31, 2017 legal status land, etc.) 1 DR BUCUREŞTI Courtyard Land 55,669 ,708 Law 213/1998, GR premises of the 624/2010 Bucharest Flight Command Center 2 ADMINISTRAŢIA Building of Land 6,435 ,097 Law 213/1998, GR CENTRALĂ headquarters of 624/2010 the Central Office of ROMATSA and AACR 3 DR BUCUREŞTI Courtyard Land 6,281 ,15 0 Law 213/1998, GR premises of 624/2010 Stefanesti Emission Center 4 DR BUCUREŞTI Courtyard Land 113 ,918 Law 213/1998, GR premises of 624/2010 THOMSON LONG-RANGE PRIMARY AND SECONDARY RADAR 5 DR BUCUREŞTI Courtyard Land 1,029 ,363 Law 213/1998, GR premises of 624/2010 REMOTE RADIOMARKER OTOPENI 81º R DIRECTION (MSSR RADAR) 6 DR BUCUREŞTI Courtyard Land 62 ,967 Law 213/1998, GR premises of 624/2010 VOR/DME STREJNIC 7 DR BUCUREŞTI Courtyard Land 31 ,370 Law 213/1998, GR premises of 624/2010 VOR/DME FLORESTI STOENESTI 8 DR BUCURE ŞTI Courtyard Land 81 ,917 Law 213/1998, GR premises of 624/2010 ROUTE
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RADIOMARKER FLORESTI STOENESTI 9 DR BUCUREŞTI Courtyard Land 341 ,291 Law 213/1998, GR premises of 624/2010 ROUTE RADIOMARKER TÂRGU JIU 10 DR BUCUREŞTI Courtyard Land 38 ,490 Law 213/1998, GR premises of 624/2010 VOR/DME TARGU JIU 11 DSNA Courtyard Land 2,980 ,256 Law 213/1998, GR BUCUREŞTI premises of 624/2010 CLOSE RADIOMARKER BANEASA 71º DIRECTION 12 DSNA Courtyard Land 3,612 ,627 Law 213/1998, GR BUCUREŞTI premises of 624/2010 RADAR TMA 13 DSNA Courtyard Land 766 ,224 Law 213/1998, GR BUCUREŞTI premises of 624/2010 CLOSE RADIOMARKER OTOPENI 261ºL DIRECTION 14 DSNA Courtyard Land 717 ,862 Law 213/1998, GR BUCUREŞTI premises of 624/2010 CLOSE RADIOMARKER OTOPENI 261ºR DIRECTION 15 DSNA Courtyard Land 860 ,007 Law 213/1998, GR BUCUREŞTI premises of 624/2010 REMOTE RADIOMARKER OTOPENI 81ºL DIRECTION 16 DSNA Courtyard Land 540 ,959 Law 213/1998, GR BUCUREŞTI premises of 624/2010 REMOTE RADIOMARKER OTOPENI 261ºL DIRECTION 17 DSNA Courtyard Land 108 ,033 Law 213/1998, GR BUCUREŞTI premises of 624/2010 RADIO GONIOMETER
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UUS OTOPENI 81ºL DIRECTION 18 DSNA Courtyard Land 1,989 ,070 Law 213/1998, GR BUCUREŞTI premises of 624/2010 CLOSE RADIOMARKER OTOPENI 81ºR DIRECTION 19 DSNA Courtyard Land 2,539 ,619 Law 213/1998, GR BUCUREŞTI premises of 624/2010 CLOSE RADIOMARKER OTOPENI 81ºL DIRECTION 20 DSNA Courtyard Land 548 ,783 Law 213/1998, GR BUCUREŞTI premises of 624/2010 REMOTE RADIOMARKER OTOPENI 261ºR DIRECTION 21 DSNA Courtyard Land 1,538 ,370 Law 213/1998, GR BUCUREŞTI premises of 624/2010 REMOTE RADIOMARKER BANEASA 71º DIRECTION 22 DSNA Courtyard Land 8,547 ,426 Law 213/1998, GR BUCUREŞTI premises of 624/2010 CLOSE RADIOMARKER BANEASA 251º DIRECTION 23 DSNA Courtyard Land 1,756 ,625 Law 213/1998, GR BUCUREŞTI premises of 624/2010 REMOTE RADIOMARKER BANEASA 251º DIRECTION 24 DR ARAD Courtyard Land 167 ,657 Law 213/1998, GR premises of 624/2010 ROUTE RADIOMARKER DEVA 25 DR ARAD Courtyard Land 69 ,465 Law 213/1998, GR premises of 624/2010 REMOTE
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RADIOMARKER 26 DR ARAD Courtyard Land 1,744 Law 213/1998, GR premises of 624/2010 RADIOMARKER 27 DR ARA D Courtyard Land 226 ,760 Law 213/1998, GR premises of 624/2010 CLOSE RADIOMARKER 28 DR ARAD Courtyard Land 180 ,150 Law 213/1998, GR premises of 624/2010 RADIO GONIOMETER 29 DR BUCUREŞTI Courtyard Land 409 ,816 Law 213/1998, GR premises of 624/2010 DVOR/DME GALATI (SENDRENI) 30 DSNA Courtyard Land 34 ,294 Law 213/1998, GR CONSTANŢA premises of 624/2010 REMOTE RADIOMARKER 184º DIRECTION 31 DSNA Courtyard Land 90 ,563 Law 213/1998, GR CONSTANŢA premises of 624/2010 CLOSE RADIOMARKER 184º DIRECTION 32 DSNA Courtyard Land 7,302 Law 213/1998, GR CONSTANŢA premises of ILS 624/2010 GRADIENT RADIOMARKER 184º DIRECTION 33 DSNA Courtyard Land 3,719 Law 213/1998, GR CONSTANŢA premises of ILS 624/2010 DIRECTION RADIOMARKER 184º DIRECTION 34 DSNA Courtyard Land 191 ,230 Law 213/1998, GR CONSTANŢA premises of 624/2010 CLOSE RADIOMARKER 004º DIRECTION 35 DSNA Courtyard Land 116 ,466 Law 213/1998, GR CONSTANŢA premises of 624/2010 REMOTE RADIOMARKER 004º
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DIRECTION 36 DSNA Courtyard Land 10 ,290 Law 213/1998, GR CONSTANŢA premises of 624/2010 VOR/DME ROUTE RADIOMARKER 004º DIRECTION 37 DSNA Courtyard Land 968 ,971 Law 213/1998, GR CONSTANŢA premises of 624/2010 CONSTANTA FLIGHT COMMAND CENTER 38 DSNA Courtyard Land 107 ,883 Law 213/1998, GR CONSTANŢA premises of 624/2010 CONSTANTA FLIGHT COMMAND CENTER (parking) 39 DSNA Courtyard Land 120 ,598 Law 213/1998, GR CONSTANŢA premises of 624/2010 SRE PRIMARY RADAR HEAD 40 DSNA Courtyard Land 57 ,009 Law 213/1998, GR CONSTANŢA premises of 624/2010 REMOTE- CONTROLLED CABLE DISTRIBUTION 41 DSNA Courtyard Land 60 ,215 Law 213/1998, GR CONSTANŢA premises of 624/2010 WEATHER OBSERVER 42 DSNA CLUJ Courtyard Land 441 ,440 Law 213/1998, GR premises of 624/2010 CLOSE RADIOMARKER 43 DSNA CLUJ Courtyard Land 8,575 ,654 Law 213/1998, GR premises of 624/2010 EMISSION CENTER (CDZ CLUJ) 44 DSNA BAIA Courtyard Land 390 ,512 Law 213/1998, GR MARE premises of 624/2010 CLOSE RADIOMARKER 45 DSNA BAIA Courtyard Land 54 ,929 Law 213/1998, GR MARE premises of 624/2010 RADIO
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GONIOMETER 46 DSNA BAIA Courtyard Land 193 ,469 Law 213/1998, GR MARE premises of 624/2010 REMOTE RADIOMARKER 47 DSNA Iaşi Courtyard Land 244 ,961 Law 213/1998, GR premises of 624/2010 CLOSE RADIOMARKER 48 DSNA ORADEA Courtyard Land 769 ,053 Law 213/1998, GR premises of 624/2010 REMOTE RADIOMARKER 49 DSNA SATU Courtyard Land 233 ,172 Law 213/1998, GR MARE premises of 624/2010 CLOSE RADIOMARKER, RADIO GONIOMETER DVOR/DME 50 DSNA SATU Courtyard Land 1,238 ,331 Law 213/1998, GR MARE premises of 624/2010 REMOTE RADIOMARKER 51 DSNA SIBIU Courtyard Land 22 ,887 Law 213/1998, GR premises of 624/2010 RADIOMARKER 52 DSNA SIBIU Courtyard Land 9,169 ,026 Law 213/1998, GR premises of 624/2010 REMOTE RADIOMARKER and EMISSION CENTER 53 DSNA SIBIU Courtyard Land 572 ,015 Law 213/1998, GR premises of 624/2010 CLOSE RADIOMARKER 54 DSNA SUCEAVA Courtyard Land 20 ,544 Law 213/1998, GR premises of 624/2010 CLOSE RADIOMARKER 55 DSNA SUCEAVA Courtyard Land 6,271 Law 213/1998, GR premises of 624/2010 PRCISION RADAR 56 DSNA SUCEAVA Courtyard Land 34 ,708 Law 213/1998, GR premises of 624/2010 WEATHER OBSERVER 57 DSNA TULCEA Courtyard Land 60 ,061 Law 213/1998, GR premises of 624/2010 CLOSE
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RADIOMARKER 58 DSNA TULCEA Courtyard Land 1,558 Law 213/1998, GR premises of 624/2010 RADIO GONIOMETER 59 DSNA TULCEA Courtyard Land 33 ,318 Law 213/1998, GR premises of 624/2010 REMOTE RADIOMARKER 60 DSNA TULCEA Courtyard Land 225 ,988 Law 213/1998, GR premises of 624/2010 EMISSION CENTER 61 DSNA IAŞI Land of CLOSE Land 335 ,351 GR 359 -11.05.2016 RADIOMARKER for Iasi International Airport – objective NDB 62 DSNA Objective ILS - Land 40 ,920 GR 359 -11.05.2016 CONSTANŢA DME- Mihail Kogalniceanu Airport, Constanta county TOTAL 122 ,079 ,431
(iii) Lawsuits
The Company is subject to a number of lawsuits arising in the normal course of business. The Company considers that these actions will not have a material adverse effect on its economic and financial position. One of such lawsuits is:
• an action filed by brothers Micula against the Romanian State and won by the plaintiffs in first court, further to which the Company, as an organization representing the Romanian State, was banned from cashing the amounts owed in relation to EUROCONTROL starting September 15, 2015. Subsequently, further to the appeals filed by the Company starting September 24, 2015, the higher courts ruled in favor of ROMATSA and EUROCONTROL resumed the payment of funds to the Company as part of the amount to be received by the Company.
On January 25, 2016, the Civil Section of the French Tribunal of Brussels admitted the action filed by ROMATSA and the Romanian State and ordered the lifting of the garnishment. Both Viorel Micula, and Ioan Micula and the three companies filed appeals against such Judgment.
The Brussels Court of Appeal has set the following schedule of the proceedings:
- October 31, 2016 – submission of preliminary conclusions by ROMATSA, European Commission and EUROCONTROL;
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- November 15, 2016 – submission of preliminary conclusions by ROMANIA; - March 31, 2017 - submission of preliminary conclusions by appellants Micula; - June 15, 2017 - submission of additional conclusions by ROMATSA, European Commission and EUROCONTROL; - June 30, 2017 - submission of additional conclusions by ROMANIA; - September 29, 2017 - submission of additional conclusions by appellants Micula; - November 30, 2017 – submission of final conclusions by ROMATSA, European Commission, EUROCONTROL and ROMANIA; - On 25.01.2018 appelants Micula requested a new term to file additional conclusion, following which the court set 3 April 2018 as term for Micula to file additional conclusions; - 30 August 2018 term for additional conclusions Romania, Romatsa, European Commission and Eurocontrol
• File no. 2762/11/2017 registered in the Cluj Tribunal, consisting of monetary rights claimed by a former employee of DSNA Cluj, in amount of RON 1,056,480. The proceedings for the file are currently stayed. As at the date of the financial statements, the Company’s management estimates that the risk of an unsuccessful settlement of file 2762 in the upcoming year is very low, for which reason it has not registered a provision for such claims, but presented it as a contingent liability; - As mentioned in note 8, in 2014, the Company was subject to the verification of the Prime Minister’s Control Body. The report was transmitted to the Company’s management and the outcome of the verification speaks of the payment of amounts related to psychological recovery vacations in breach of the legal conditions and the conditions of the collective employment contract. Thus, the report identified certain expenses incurred by the Company between 2010 and 2014, on behalf of its employees, without fulfilling all the related requirements in this respect. Therefore, the Company filed a lawsuit against the services suppliers (tourism agencies) that invoiced such services to RA ROMATSA, for the return of the amount of RON 11,458,637 representing the counter value of the services not provided by the claimants, but paid by Romatsa; the amounts were not registered in these financial statements, but are presented as contingent assets.
• File no. 22428/3/2013* registered with the Bucharest Tribunal, Civil Section IV, in which Romatsa is defendant, along with the Ministry of Transportation and Infrastructure, and its Royal Highness Prince Paul Philippe of Romania as claimant; such file regards only a real estate claim, not financially assessable; on 15.03.2016 the Bucharest Tribunal stayed the settlement of the case until the final settlement of criminal file no. 259/P/2015 regarding the defendant. g) Financial instruments and risk management
Foreign exchange risk
The currency used domestically is the Romanian Leu and for the foreign loans the financing costs are denominated in other foreign currencies. As a result, loans in foreign currencies are subsequently expressed in lei, at the rate valid at year-end. Differences in results are included in the profit and loss account and do not affect cash flow until the debt is settled.
Credit risk
In the course of its activity, the Company is exposed to credit risk, particularly because of trade receivables. The Company’s management monitors credit risk exposure on a regular
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basis. The financial statements contain adjustments in relation to credit risk, which represents the best estimate of the management.
The main exposure to credit risk is determined by the amounts not cashed from the Ministry of Transport representing the value of exempt flights.
Economic environment risk
The Company’s management cannot predict the events that could have an effect on the civil aviation sector in Romania and consequently what effect this might have on its financial statements.
Management is unable to reliably estimate the effects on the financial statements of the Company resulted from the lack of liquidities on the financial market, impairment of financial assets influenced by illiquid market conditions and high volatility of the national currency and the industrial and financial markets.
The Company’s management believes that it has taken all the necessary measures in order to support the Company’s growth in the current market conditions by:
• constant monitoring of liquidities; • strict monitoring of expenses; • daily monitoring of cash flows and assessing the effects of the limited access to funds on its debtors; making more profitable investments.
Informative data
Form 30 I. Data regarding recorded profit Units no. Amounts Units that recorded profit - - Units that recorded loss 1 129 ,074 ,877 Units that recorded neither profit or loss - - II. Data regarding outstanding payments Total, For the For the Out of current investment which: activity activity: A 1=2+3 2 3 Outstanding payments – total - - - Outstanding suppliers – total - - - - over 30 days - - - - over 90 days - - - - over one year - - - Outstanding obligations to social security budget – - - - total - social security contributions owned by the - - - employers, employees and related parties - health insurance cont ributions - - - - additional pension contributions - - -
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- contributions for the unemployment budget - - - - other social debts - - - Outstanding obligations to the special funds budget - - - and other funds Outstanding obligations to other creditors - - - Taxes and contributions to the state budget not paid - - - at the due term Taxes and contributions to the local budget not paid - - - at the due term
III. Average number of employees Decemb er 31 , 201 6 Decemb er 31, 2017 A 1 2 Average number of e mployees 1,509 1,488 Number of employees as at December, 31 1,539 1,510
IV. Royalties paid during the financial year. Grants received and Amounts outstanding claims (lei) A 1 Royalties paid during the financial year for goods from the public domain, - received in concession, out of which: - royalties for the public goods paid to the state budget - Mining royalty paid to the state budget - Mineral Oil royalty paid to the state budget - Rent paid for land during the financial year - Gross incomes f rom services paid to non -resident persons from member states - of the European Union - tax owned to the state budget - Gross incomes from services paid to non -resident persons from member states - of the European Union, out of which: - tax owned to the state budget - Subsidies received during the financial year, out of which: 446 ,801 - subsidies received during the financial year on assets - - subsidies related to income, out of which: - - subsidies for work force stimulus - Outstanding claims th at have not been collected within the time stipulated in 46,204,672 commercial contracts and/or normative documents in force, out of which: - outstanding receivables from entities in the majority of wholly state 17 ,398 ,435 - debts outstanding to private entities 28 ,806 ,237
V. Tickets given to the employees Amounts A 1 Equivalent of the tickets given to the employees 704 ,920
VI. Expenses made for the research and development December 31, December 31, activity 2016 2017 A 1 2 Research and developmen t expenses, out of which: - - - by funding sources : 0 0
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- from public funds - - - from private funds - - - by type of spending 0 0 - current expenses - - - capital expenditure - -
December 31, December 3 1, VII. Innovation expenses 2016 2017 A 1 2 Innovation expenses - -
December 31, December 31, VIII. Other information 2016 2017 A 1 2 Advance payments granted for intangible assets 13 ,688 ,862 41 ,312 ,875 Advance payments granted for tangible assets 0 688 ,041 Financial assets, in gross amounts 165 ,226 ,125 168 ,821 ,143 Shares owned in affiliated entities, participation interests, 28,888,105 28,888,105 other fixed securities and bonds, in gross amounts - non -quotes shares issued by residents 28 ,888 ,105 28 ,888 ,105 - social parts is sued by residents - - - shares and social parts issued by non -residents - - - bonds issued by non -residents - - Long -term receivables, in gross amounts 136 ,338 ,020 139 ,933 ,038 - long -term receivables in RON and expressed in RON, those 54,157 37,196 settlement is made taking into account the currency rate - long -term receivables in currency 136 ,283 ,863 139 ,895 ,842 Commercial receivables, advances for purchases of goods in the nature of stocks and for provision of services to suppliers 163,965,848 176,604,748 and other assimilated accounts, in gross amounts, out of which: - commercial receivables in the relations with non -residents , advances for purchases of goods in the nature of stocks and 148,568,979 154,429,811 for services rendered to non-resident suppliers and other assimilated accounts, in gross amounts Receivables unincorporated at the due date 39 ,521 ,359 46 ,204 ,672 Receivables in relation to the personnel and similar accounts 1,029 ,385 435 ,226 Receivables in relation to the social security budget and state 2,598,523 6,400,598 budget - receivables in relation to the social security budget - - - fiscal receivables related to the state budget 2,598 5,763 ,733 - subsidies to be cashed - 636 ,618 - special funds – taxes and similar expenses - - - other receivables related to state budget - 247 Receivables in relation to the social security budget and state - - budget not cashed in the due term Other receivables 16 ,440 ,870 21 ,184 ,622 - settlements regarding the participation interests of shareholders/associates related to the capital, settlements - - from venture operations - other claims related to individuals and legal persons, other 16 ,437 ,270 21 ,129 ,578
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December 31, December 31, VIII. Other information 2016 2017 A 1 2 than receivables related to public institutions (government institutions) - amounts taken from account 542 “Cash advances”, representing the treasury advances granted under the law not 3,600 55,044 settled until December, 31 Interests collect, out of which: 1,428 ,916 1,999 ,798 - from non -residents 1,428 ,916 1,999 ,798 Loans granted to e conomic operators - - Short -term investments, in gross amounts - - - non -quoted shares issued by residents - - - social parts issued by residents - - - shares issued by non -residents - - - bonds issued by non -residents - - Other values to be collect - - Cash in RON and foreign currency 146 ,462 168 ,536 - in RON 75 ,398 71 ,478 - in currency 71 ,064 97 ,058 Current bank accounts in RON and in currency 344 ,030 ,419 326 ,821 ,666 - in RON, out of which : 35 ,631 ,118 87 ,352 ,935 - current accounts in RON op ened at non -resident banks - - - in foreign currency, out of which : 308 ,399 ,301 239 ,468 ,731 - current accounts in foreign currency opened at non - - - resident banks Other current bank account and letters of credit - - - amounts under settlement, lett ers of credit and other - - receivables to be cashed in RON - amounts under settlement and other receivables to be - - cashed in foreign currency Debts 82 ,647 ,573 90 ,853 ,135 Short -term external bank loans - - - in RON - - - in foreign currency - - Lo ng -term external bank loans - - - in RON - - - in foreign currency - - Credits from the state treasury and related interests - - Other loans and associated interest - - - in RON and expressed in RON, whose settlement is made - - according to the rate of currency - in foreign currency - - Other loans and assimilated debts, out of which: 183 ,237 234 ,455 - received concessions value - - Commercial debts, advances received from clients and other 22,438,876 20,595,453 assimilated accounts, in gross amount, out of which: - commercial debts in relation with non -residents , advances received from non-residents clients and other assimilated 11,718,560 11,791,630 accounts, in gross amount Debts in relation to personnel and similar accounts 22 ,241 ,859 29 ,280 ,283 Debts in relation to social security budget and the state 36 ,422 ,622 39 ,495 ,935
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December 31, December 31, VIII. Other information 2016 2017 A 1 2 budget - debts related to social security budget 16 ,819 ,629 30 ,815 ,763 - tax debts related to state budget 19 ,478 ,194 8,597 ,522 - special fun ds – taxes and similar charges 19 ,250 82 ,650 - other debts related to state budget 105 ,549 - Amounts due to shareholders/associates, out of which: - - - amounts due to individual shareholders/associates - - - amounts due to legal entities shareholders /associates - - Other debts 1,360 ,979 1,247 ,009 - settlements on participating interests , capital settlements to shareholders/associates, settlements from participating - - operations - other liabilities related to individuals and legal persons other than liabilities in connection with public institutions 1,225,571 1,049,581 (government institutions) - subsidies not register as income 135 ,408 197 ,428 - amounts payable for financial assets and short -term - - investments - deferred income related to as sets received by transfer from - - clients Interest payable - - Loans received from traders - - Subscribed and paid capital, out of which: - - - quoted shares - - - non -quoted shares - - - shares - - - subscribed and paid capital by non -residents - - Patents and licenses - -
IX. Information regarding expenses with the 31.12.2016 31.12.2017 collaborators A 1 2 Expenses with the collaborators - -
X. Information on assets in state public domain 31.12.2016 31.12.2017 A 1 2 Value of state public domain assets under administration 122 ,079 ,431 122 ,079 ,431 Value of state public domain assets under concession - - Value of rented state public domain assets - -
XI. Information on assets from the private property of the state subject to inventory according to OMFP no. 31.12.2016 31.12.2017 668/2014 A 1 2 The net value of the goods - -
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XII. Social capital paid 31.12.2016 31.12.2017 - owned by public institution - - - owned by public institutions of central subordination - - - owned by publi c institutions of local subordination - - - owned by state -owned companies, out of which : - - - fully state -owned - - - majority state -owned - - - minority state -owned - - - owned by autonomous administrations - - - owned by private companies - - - owned by individuals - - - owned by other entities - -
XIII. Dividends/payments due to state or local budget, assigned from financial exercises profit from 2016 2017 national companies, autonomous companies and administrations, out of which: - to central public institutions - - - to local public institutions - - - to other shareholders on which the state/administrative - territorial authorities/public institutions owning direct/indirect - - shares or participations unaffected by their contributions
XIV. Dividends/payments due to state or local budget, transferred in reference to 2017 from national 2016 2017 companies, autonomous companies and administrations profit, out of which: - dividends/payments from financial year profit, out of which : 197 ,182 39 ,705 ,837 - to central public institutions - - - to local public institutions - - - to other shareholders on which the state/administrative - territorial authorities/public institutions owning direct/indirect - - shares or participations unaffected by their contributions - dividends/payments from previous financial year, out of 197,182 39,705,837 which: - to central public institutions 197 ,182 39 ,705 ,837 - to local public institutions - - - to other shareholders o n which the state/administrative - territorial authorities/public institutions owning direct/indirect - - shares or participations unaffected by their contributions XV. Receivables by transfer from legal persons 2016 2017 A 1 2 Receivables by transfer fro m legal personas (nominal value), - - out of which: - receivables by transfer from affiliated legal persons - - Receivables by transfer from legal persons (at acquisi tion - - cost), out of which: - receivables by transfer from legal affiliated le gal persons - -
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XVI. Income from agricultural activities 2016 2017 A 1 2 Income from agricultural activities - -
The situation of fixed assets at 31.12.2017
Gross values Decreases Closing Non-current assets Opening balance: Out of which: balance Increases Total (col 5=1+2- decommissioning 3) A 1 2 3 4 5 Intangible assets Set up and - - - X - development costs Other intangible 75,984,947 1,723,688 107,290 X 77,601,345 assets Advance payments for 13,688,862 27,804,536 180,523 X 41,312,875 intangible assets Intangible assets for the exploitation and - - - X - evaluation of mineral resources TOTAL 89 ,673 ,809 29 ,528 ,224 287 ,813 X 118 ,914 ,220 Tangible assets Land 9,090 ,028 - - X 9,090 ,028 Buildings 216 ,104 ,409 981 ,960 243 ,647 243 ,647 216 ,842 ,722 Technical equipment 145 ,983 ,532 21 ,809 ,661 95 ,290 83 ,569 167 ,697 ,903 and machinery Other equipment and 7,017,197 350,927 3,926 3,697 7,364,198 furniture Real estate - - - - - investments Tangible assets for the exploitation and - - - - - evaluation of mineral resources Productive biological 6,552 - - - 6,552 assets Advances and tangible 75,301,944 20,340,354 23,119,698 - 72,522,600 assets in progress Real estate investments in - - - - - progress Advances for tangible - 688,041 - - 688,041 assets TOTAL 453 ,503 ,662 44 ,170 ,943 23 ,462 ,561 330 ,913 474 ,212 ,044
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Financial assets 165 ,226 ,225 5,863 ,768 2,268 ,850 X 168 ,821 ,143 NON -CURRENT 708,403,696 79,562,935 26,019,224 330,913 761,947,407 ASSETS – TOTAL
Statement of non-current assets depreciation
Depreciations Accumulated depreciation Depreciation Depreciation Non-current assets Opening in the closing during the relating to balance balance year write-offs (col 9=6+7- 8) A 6 7 8 9 Intangible assets Set up and development - - - - costs Ot her intangible assets 68 ,914 ,462 3,377 ,596 106 ,458 72 ,185 ,600 Intangible assets for the exploitation and evaluation - - - - of mineral resources TOTAL 68 ,914 ,462 3,377 ,596 106 ,458 72 ,185 ,600 Tangible assets Land - - - - Buildings - 18 ,312 ,463 22 ,132 18,290 ,331 Technical equipment and - 27 ,336 ,357 39 ,666 27 ,296 ,691 machinery Other equipment and - 897,041 1,310 895,731 furniture Real estate investments - - - - Tangible assets for the exploitation and evaluation - - - - of mineral resources Productiv e biological assets - 4,244 - 4,244 TOTAL - 46 ,550 ,105 63 ,108 46 ,486 ,997 DEPRECIATION – TOTAL 68 ,914 ,462 49 ,927 ,701 169 ,566 118 ,672 ,597
Impairment adjustments statement
Impairment adjustment Closing Impairment Impairment balance Non-current assets Opening adjustments adjustments (col balance set during the charged to 13=10+11- year income 12) A 10 11 12 13 Intangible assets Set up and development - - - -
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Impairment adjustment Closing Impairment Impairment balance Non-current assets Opening adjustments adjustments (col balance set during the charged to 13=10+11- year income 12) costs Other intangible assets - - - - Intangible assets for the exploitation and evaluation - - - - of mineral resources TOTAL - - - - Tangible assets Land - - - - Buildings - - - - Technical equipment and - - - - machinery Other equipment and - - - - furniture Real estate investments - - - - Tangible assets for the exploitation and evaluation - - - - of mineral resources Productive biological assets - - - - Intangible assets in - 829,163 - 829,163 progress Real estate investments in - - - - progress TOTAL - 829 ,163 - 829 ,163 Financial assets 28 ,888 ,105 - - 28 ,888 ,105 TOTAL IMPAIRMEN T 28,888,105 829,163 - 29,717,268 ADJUSTMENTS – TOTAL
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GRAPHS
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GLOSSARY
AACR/RCAA Autoritatea Aeronautică Civilă Română Romanian Civil Aeronautical Authority
ACC Centrul de Control Regional Area Control Center
AFP Mesaj ATC de Propunere a Planului de Zbor ATC Flight Plan Proposal Message
AIHCB Aeroportul Internaţional Henri Coandă Bucureşti Bucharest Henri Coandă International Airport
AIS Servicii de Informare Aeronautică Aeronautical Information Services
AIP Publicaţie de Informare Aeronautică Aeronautical Information Publication
AIRAC Regularizarea şi Controlul Distribuirii Informaţiilor Aeronautice Aeronautical Information Regulation and Control
ANCOM Autoritatea Naţională pentru Administrare şi Reglementare în Comunicaţii National Authority for Management and Regulation in Communications
ANM Administraţia Naţională de Meteorologie National Meteorological Administration
ANSP Furnizori de servicii de trafic aerian Air Navigation Service Provider
ANS Servicii de Navigaţie Aeriană Air Navigation Services
AOC Centrul de Operaţiuni Aeriene Air Operation Center
APP Apropiere Approach
APV Procedură de Apropiere cu Ghidare Verticală Approach Procedure with Vertical Guidance
ARN Reţeaua Europeană de Rute ATS European ATS Route Network
ARTAS Sistem de Supraveghere şi Urmărire a Zborurilor într-o Zonă Geografică Definită ATM Surveillance Tracker and Server
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A-SMGCS Sistem de Control şi de Ghidare a Mişcărilor pe Suprafaţă Advance Surface Movement Guidance & Control System
ATM Organizarea Traficului Aerian Air Traffic Management
ATS Servicii de Trafic Aerian Air Traffic Services
ATIS Serviciul Automatizat de Informare la Terminal Automatic Terminal Information Service
ATSU Unitate de Servicii de Trafic Aerian Air Traffic Services Unit
BMA Birou Meteorologic de Aerodrom Aerodrome Meteorological Bureau
BULATSA Autoritatea Serviciilor de Trafic Aerian din Bulgaria Bulgarian Air Traffic Services Authority
CAL Identificator de Locaţie Code Allocation List
CANSO Organizaţia Internaţională a Serviciilor de Navigaţie Aeriană Civil Air Navigation Services Organisation
CBS Sectoare Transfrontaliere de Spaţiu Aerian Cross Border Sectors
CDM Luare de decizii prin colaborare Collaborative Decision Making
CDO Operaţiuni de Coborâre Continuă Continuous Descent Operations
CITA Controlor de Informare Trafic Aerian Air Traffic Information Controller
CNS Comunicaţie, Navigaţie, Supraveghere Communication, Navigation, Surveillance
CNPMNA Centrul Naţional de Protecţie Meteorologică a Navigaţiei Aeriene Aeronautical Meteorological Centre
CPDLC Comunicare Între Controlori de Trafic Aerian şi Pilot prin Data Link Controller–Pilot Data Link Communications
CPPZI Cerinţe Privind Proiectarea Procedurilor de Zbor Instrumental Instrument Flight Procedure Design Requirement
CS Servicii Centralizate
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Centralized Services
CTA/ATC Controlor de Trafic Aerian Air Traffic Controller
D-ATIS Serviciu de Informare Automată în Format Digital pentru Zona de Terminal Digital Automatic Terminal Information Service
DLS Servicii Data Link Data Link Services
DME Echipament pentru Măsurare la Distanţă Distance measuring equipment
DTM Direcţia Topografică Militară Military Topographic Department
DVOR Radiofar omnidirectional VHF Doppler Doppler VHF Omnidirectional Range
EAD Baza de Date AIS Europeană European AIS Database
EASA Agenţia Europeană pentru Siguranţa Aviaţiei European Aviation Safety Agency
EGNOS Sistem de Radionavigaţie prin Satelit European Geostationary Navigation Overlay Service
ESA Agenţia Spaţială Europeană European Space Agency
ESSIP Implementare Cer Unic European European Single Sky Implementation
EUROCONTROL Organizaţia Europeană pentru Siguranţa Navigaţiei Aeriene European Organization for the Safety of Air Navigation
FAT Teste de Acceptare la Producator Functional Acceptance Test
FAB Bloc Funcţional de Spaţiu Aerian Functional Airspace Block
FDPS Sistem de Procesare a Datelor de Zbor Flight Data Processing System
FEAST Test Pentru Selecţie CTA The First European Air Traffic Controller Selection
FIR Regiunea de Informare a Zborurilor Flight Information Region
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FPL Plan de Zbor Flight plan
FRA Flexibilitatea Rutelor de Spaţiu Aerian Free Route Airspace
FSA Mesaj de Activare a Zborului First System Activation
GAT Trafic Aerian General General Air Traffic
IATA Asociaţia Internaţională a Transportatorilor Aerieni International Air Transport Association
ICAO Organizaţia Internaţională a Aviaţiei Civile Internaţional Civil Aviation Organization
ILS Sistem de Aterizare După Instrumente Instrument Landing System
LARA Managementul Spaţiului Aerian Local şi Sub-Regional Local and sub-Regional Airspace Management
LoA Scrisoare de Înţelegere Letter of Agreement
LSSIP Implementarea Locală a Cerului Unic Local Single Sky Implementation
LVO Operaţiuni în Condiţii de Vizibilitate Redusă Low Visibility Operations
LVTO Decolare la Vizibilitate Redusă Low Visibility Take - Off
MBI Teme de Briefieng Obligatorii Mandatory Briefing Items
MRT Timp Mediu de Răspuns Mean Response Time
MSA/ASM Managementul Spaţiului Aerian Airspace Management
NATS Autoritatea Serviciilor de Trafic Aerian din Anglia National Air Traffic Services
NDB Semnalizare Luminoasă Non-direcţională Non-directional Beacon
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NEST Instrument de Planificare Strategică la Nivel de Reţea Network Strategic Tool
N-FRA Flexibilitatea Rutelor de Spaţiu Aerian pe Timp de Noapte Night Free Route Airspace
NIDS Sistem Operativ de Afişare Informaţii şi Date New Information Display System
NMOC Centru Operaţional de Management al Reţelei Network Manager Operations Centre
NOTAM Notice to Airmen Avize către Navigatori
NSA Autoritatea Naţională de Supervizare National Supervisory Authority
OAT Trafic Aerian Operaţional Operational Air Traffic
OMM/WMO Organizaţia Meteorologică Mondială World Meteorlogical Organization
PAN-AM Academia Internaţională de Aviaţie International Flight Academy
PANS-ATM Procedura Serviciilor de Navigaţie Aeriană-Managementul Traficului Aerian Procedure for Air Navigation Services-Air Traffic Management
PNP Plan Naţional de Performanţă Performnace National Plan
PPP Paritatea Puterii de Cumpărare Purchasing Power Parity
PRNAV Zonă de Navigaţie de Precizie Precision Area Navigation
QMS Sistemul de Management al Calităţii Quality Management System
RACR Reglementări Aeronautice Civile Române Romanian Civil Aeronautical Regulation
RACMR Reglementarea Aeronautică Civilă Militară Română Romanian Civil Military Aeronautical Regulation
ROMAWOS Sistem de Observare în Timp Real a Vremii Real-Time Operated and Managed Weather Observation System
RTS Simulare în Timp Real
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Real Time Simulation
RVT Turn Virtual de Control la Distanţă Remote and Virtual Tower
SAR Căutare şi Salvare Search and Rescue
SAP Plan Strategic de Acţiune Strategy & Action Plan
SAT Teste de Acceptare la Beneficiar Site acceptance test
SES Cer Unic European Single European Sky
SESAR Program de dezvoltare ATM în cadrul CUE Single European Sky ATM Research
SID Decolare După Instrumente Standard Standard Instrument Departure
SMFA Statul Major al Forţelor Aeriene Romanian Air Force
SMG Statul Major General Air Force Staff
SSR Secondary Surveillance Radar Radar de Supraveghere Secundar
STAR Rută de Aterizare Standard Standard Terminal Arrival Route
STS Servicii de Comunicaţii pe Suport Special Telecommunication Service
SUR Supraveghere Surveillance
TEN-T Reţeaua Transeuropeană de Transport The Trans-European Transport Network in Europe
TMA Zona de Control de Terminal Terminal Control Area
TWR Turn de control Tower
UFSA/FUA Utilizarea Flexibilă a Spaţiului Aerian
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Flexible Use of Airspace
VCS Sistem de Comunicare Vocală Voice Communication System
VFR Reguli de Zbor la Vedere Visual Flight Rules
WAM Tehnologie de Supraveghere în Vederea Asigurării Eşalonării Aeronavelor Wide Area Multilateration
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