EUROCONTROL

Central Route Charges Office

Report on the Operation of the Route Charges System in 2019

FOUNDING MEMBER NETWORK SUPPORTING EUROPEAN AVIATION MANAGER

2019 SYSTEM REPORT

TABLE OF CONTENTS

CRCO IN NUMBERS - HIGHLIGHTS IN 2019…………...…………………………………………………………….……..4

I. DEVELOPMENTS IN 2019 ...... 6

1. Contracting States participating in the EUROCONTROL Route Charges System...... 6

2. Key indicators ...... 6

3. Operations of the CRCO ...... 7

4. Bilateral agreements with EUROCONTROL Member States ...... 8

5. Bilateral agreements relating to air navigation charges ...... 8

II. UNIT RATES ...... 9

1. 2019 cost-bases and national unit rates ...... 9

2. Weighted national unit rate ...... 10

III. CHANGES IN ACTUAL COSTS OF EN ROUTE SERVICES ...... 11

IV. TRAFFIC STATISTICS ...... 12

1. Total service units – growth rate ...... 12

2. Total actual service units – totals per charging zone ...... 13

3. Total, exempted and chargeable service units ...... 14

V. AMOUNTS BILLED, COLLECTED AND DISBURSED ...... 15

1. Amounts billed in 2019 ...... 15

2. Amounts billed and disbursed ...... 16

3. VAT billed and disbursed to the States ...... 17

4. Recovery rates ...... 18

VI. THE COSTS OF THE ROUTE CHARGES SYSTEM ...... 18

VII. ORIGIN OF TRAFFIC AND RECEIPTS ...... 19

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CRCO in numbers Highlights in 2019

In 2019, 40 Member States participated in

the EUROCONTROL

Route Charges

System

• • •••••• 99.73% 167 million Long-term recovery rate Total Service Units + 2.8% on 2018

11 million €7.9 billion Flight Messages processed Route Charges billed + 1.9% on 2018 - 2.7% on 2018

4 Bilateral agreements We billed: In 2019, EUROCONTROL billed and collected under bilateral agreements:

• Terminal charges for , the , Ireland, , , , , , , €711 million , , , , , , Terminal Charges , and ; 17 Agreements

• Air navigation charges for three non-Member States namely Belarus, Uzbekistan and Egypt and for one State having a comprehensive agreement with €336 million EUROCONTROL, namely ; ANS Charges for non- Member States • Communication charges for Shanwick Oceanic Region. 4 Agreements

€22 million Communication Charges

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I. DEVELOPMENTS IN 2019

1. Contracting States participating in the EUROCONTROL Route Charges System In 2019, 40 States participated in the Route Charges System

1 15 29 Moldova 2 16 Hungary 30 3 17 31 Albania 4 France 18 Denmark 32 5 19 Slovenia 33 6 Netherlands 20 34 7 Ireland 21 Sweden 35 Lithuania 8 22 Italy 36 9 23 Slovak Republic 37 10 24 38 11 Spain 25 Croatia 39 12 Greece 26 Bulgaria 40 13 27 14 Malta 28 North Macedonia

Table 1 – States participating in the Route Charges System in 2019

2. Key indicators Table 2 presents the CRCO key indicators for 2018 and 2019.

Variation Key indicators 2018 2019 2019/2018

Flight messages processed in millions 10.9 11.1 1.9%

Total service units in millions 162.5 167.0 2.8%

Route charges billed in EUR millions 8,090 7,873 -2.7%

Total net amounts disbursed in EUR millions 8,074 7,904 -2.1%

Interest on late payment disbursed in EUR millions 2.4 2.6 9.69%

Average long-term recovery rate 99.82% 99.73% -0.1%

Table 2 – Key Indicators 2018-2019

The total route charges billed in 2019 amounted to EUR 7.9 billion, a decrease of 2.7% compared to 2018. This decrease is explained by the combined effect of an increase in the number of total service units, reflecting a higher traffic volume, and a decrease in the average unit rate of charge, reflecting the efforts undertaken by the Member States to contain their costs.

6 3. Operations of the CRCO

The Central Route Charges Office (CRCO) of EUROCONTROL operates the Route Charges System on behalf of the Contracting States. Aircraft operators are charged a single amount per flight, irrespective of the number of States overflown. The CRCO calculates route charges using flight messages sent by the Contracting States’ Route Charges Offices (RCOs) and additional flight information made available via the EUROCONTROL Network Management Directorate (NMD). The CRCO bills aircraft operators on a monthly basis, collects charges and disburses the amounts collected to the States every week.

Billing 2018 2019

Number of bills issued for en route 43,794 43,437

Number of airspace users billed at least once during the year 6,664 6,654

Table 3 – Operations of the CRCO – Billing

During the 12 months of 2019, the CRCO counted 30,754 correctly claimed flights, which amounted to 0.28% of the total number of flights processed during this period. The total average claim processing time in 2019 was 42 days.

CEFA (CRCO Portal for airspace users)

By end of 2019, airspace users using the CRCO portal CEFA represented 99% of the charges billed. The CRCO simplified the access to the CEFA portal during the last quarter of 2019, which can now be done on-line. Airspace users avail of enhanced functionalities to declare and monitor their fleet on CEFA as well as to submit claims.

The CRCO is further improving the portal. The delivery of the new portal is planned for the first quarter of 2021. The portal will become the sole interface to consult billing documents on line, to update user data, to submit claims and to declare fleets.

ETNA (CRCO Portal for national administrations and ANSPs)

The ETNA portal is available to all Contracting States of the Multilateral Route Charges System and to non-Member States having a bilateral agreement with EUROCONTROL/CRCO. ETNA offers a protected access to billing and financial reports as well as copies of VAT invoices to States and their Air Navigation Service Providers.

Fraud

The CRCO continues to monitor and raise the awareness of airspace users of the current risks relating to fraud attempts against them. CEFA has proven to be a reliable tool for preventing potential fraud, allowing airspace users to cross-check their billing documents on a secured internet site. In addition, airspace users are invited to send the fraudulent email they have received to the EUROCONTROL Computer Emergency Response Team (CERT) for the purpose of analysis and investigation.

7 4. Bilateral agreements with EUROCONTROL Member States

Billing and collection of terminal charges

In 2019, EUROCONTROL operated seventeen bilateral agreements relating to terminal charges with France, the Netherlands, Ireland, Denmark, Italy, Moldova, Hungary, Croatia, Slovenia, Lithuania, Sweden, Greece, Bulgaria, Spain, Malta, Albania and North Macedonia.

Since July 2019, the services provided to France have been expanded to include the collection of terminal charges in addition to their billing.

Any EUROCONTROL Member State may avail of terminal charge billing and collection services. By using the same data and tools for en route and terminal charges, the CRCO can offer billing and collection services for terminal charges at very low costs to States and air navigation service providers.

Billing and collection of Shanwick communications charges

EUROCONTROL bills and collects Shanwick communications charges in respect of flights carried out in the Shanwick Oceanic Region on behalf of the Irish Aviation Authority (IAA).

5. Bilateral agreements relating to air navigation charges

In 2019, EUROCONTROL operated three bilateral agreements relating to air navigation charges with three non-Member States namely Belarus, Uzbekistan and Egypt and with one State having a comprehensive agreement with EUROCONTROL, Morocco.

Air navigation charges comprise route charges and, optionally, terminal charges. In 2019, Belarus and Egypt have entrusted EUROCONTROL with the billing of terminal charges.

Bilateral agreements Terminal charges (TNC) Communications charges Air navigation charges (ANC)

Number of bills issued 71,891 7,725 17,212

Number of airspace users billed at least once 5,511 1,658 2,139 during the year Amounts billed EUR millions 711 22 336

Number of flights 3,988,672 515,397 1,140,500

Table 4 – Bilateral Agreements with Members and non-Member States

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II. UNIT RATES 1. 2019 cost-bases and national unit rates Contracting States calculate their unit rates in accordance with the “Principles for establishing the cost-base for en route charges and the calculation of the unit rates”. Table 5 sets out the cost-bases and national unit rates for 2019.

The national unit rates in Table 5 do not include the administrative unit rate of EUR 0.14 reflecting the costs incurred in 2019 by the CRCO for billing and collecting route charges. The service units are the forecast service units of the States used in the calculation of the 2019 unit rates in November 2018. The costs chargeable to users are the national costs including the adjustments applied according to the Principles. For Contracting States outside the zone, the euro value of the national unit rate is calculated at the average exchange rate of September 2018.

National Costs Costs chargeable to users Service units Charging zones National unit rates (‘000) (‘000) (‘000) Belgium-Luxembourg 183,521 183,741 2,720 67.55 Germany 922,283 850,384 13,365 63.63 France 1,337,957 1,236,454 20,333 60.81 United Kingdom 753,786 637,082 10,940 58.23 Netherlands 198,069 174,688 3,077 56.77 Ireland 130,779 119,844 4,262 28.12 Switzerland 141,161 147,406 1,565 94.19 Portugal Lisboa 137,315 100,654 4,078 24.68 Austria 207,200 204,157 3,014 67.74 Spain-Continental 627,777 565,301 9,238 61.19 Spain-Canarias 98,327 76,867 1,543 49.82 Portugal Santa Maria 50,558 43,051 4,520 9.53 Greece 164,629 140,045 4,600 30.45 Turkey 368,044 358,828 18,854 19.03 Malta 22,752 22,151 990 22.37 Italy 707,017 771,612 9,898 77.96 Cyprus 59,361 48,467 1,522 31.84 Hungary 96,592 75,609 2,513 30.09 Norway 111,639 111,852 2,550 43.86 Denmark 100,593 92,819 1,628 57.01 Slovenia 35,029 32,520 546 59.51 Romania 185,227 158,184 5,222 30.29 Czech Republic 121,154 115,808 2,881 40.20 Sweden 187,856 174,263 3,425 50.88 Slovak Republic 67,599 65,194 1,312 49.69 Croatia 90,795 81,269 1,927 42.18 Bulgaria 119,035 117,151 3,745 31.28 North Macedonia 16,132 15,560 345 45.06 Moldova 5,191 5,324 91 58.83 Finland 46,468 42,950 861 49.88 Albania 24,866 24,713 512 48.28 Bosnia and Herzegovina 43,751 39,508 1,141 34.63 Serbia / Montenegro / KFOR (1) 91,668 77,754 2,650 29.34 Lithuania 25,749 23,918 560 42.75 Poland 185,042 185,741 4,560 40.73 Armenia 6,223 6,154 220 27.99 Latvia 25,534 24,045 890 27.02 Georgia 18,814 19,099 854 22.36 Estonia 28,183 25,836 886 29.17 Total 7,743,674 7,196,004 153,835 46.78

Table 5 – Cost-bases and national unit rates for 2019

Source: WP CER-111-2018

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2. Weighted national unit rate The weighted average national unit rate for the Contracting States is calculated by dividing the sum of the costs chargeable to users by the sum of the service units for the same year. The weighted average national unit rate for 2019 was EUR 46.78, see Table 5.

Graph 1 – Weighted average national unit rate

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III. CHANGES IN ACTUAL COSTS OF EN ROUTE SERVICES

Table 6 shows the actual costs incurred by the Contracting States, including their share of the EUROCONTROL costs, in the provision of en route services in 2016, 2017 and 2018. For States outside the euro zones, actual costs incurred in national currency have been converted into using average exchange rates.

Charging zones 2016 2017 2018 Variation Variation (‘000) (‘000) (‘000) 2017/2016 2018/2017 Belgium-Luxembourg 166,388 178,362 183,525 7.2% 2.9% Germany 961,087 864,811 905,909 -10.0% 4.8% France (1) 1,256,601 1,287,147 1,336,282 2.4% 3.8% United Kingdom 813,673 754,181 784,902 -7.3% 4.1% Netherlands 187,950 190,516 203,540 1.4% 6.8% Ireland 108,671 113,911 117,894 4.8% 3.5% Switzerland (2) 138,175 162,659 151,033 17.7% -7.1% Portugal Lisboa 112,679 124,562 141,181 10.5% 13.3% Austria 186,680 188,772 211,481 1.1% 12.0% Spain-Continental 591,361 588,329 582,455 -0.5% -1.0% Spain-Canarias 95,857 92,383 94,698 -3.6% 2.5% Portugal Santa Maria 39,261 44,001 46,249 12.1% 5.1% Greece 141,132 119,732 136,313 -15.2% 13.8% Turkey 416,752 397,600 384,095 -4.6% -3.4% Malta 18,130 20,443 22,321 12.8% 9.2% Italy 637,728 629,971 622,648 -1.2% -1.2% Cyprus 49,920 47,510 52,087 -4.8% 9.6% Hungary 88,831 95,445 95,249 7.4% -0.2% Norway 100,395 114,799 102,871 14.3% -10.4% Denmark 94,651 93,412 93,366 -1.3% 0.0% Slovenia 32,468 31,829 32,950 -2.0% 3.5% Romania 162,270 170,090 173,141 4.8% 1.8% Czech Republic 114,534 124,903 129,881 9.1% 4.0% Sweden 222,220 237,313 211,533 6.8% -10.9% Slovak Republic 59,229 61,406 64,265 3.7% 4.7% Croatia 85,651 87,660 90,527 2.3% 3.3% Bulgaria 91,522 99,601 107,648 8.8% 8.1% North Macedonia 13,763 13,748 14,793 -0.1% 7.6% Moldova 3,382 3,838 4,651 13.5% 21.2% Finland 45,686 42,506 42,367 -7.0% -0.3% Albania 22,276 23,531 25,399 5.6% 7.9% Bosnia and Herzegovina 36,908 40,102 43,285 8.7% 7.9% Serbia / Montenegro / KFOR 77,058 83,062 82,586 7.8% -0.6% Lithuania 22,775 23,809 22,555 4.5% -5.3% Poland 150,036 185,643 195,089 23.7% 5.1% Armenia 4,753 5,159 5,906 8.5% 14.5% Latvia 21,047 21,282 22,667 1.1% 6.5% Georgia 18,802 19,059 18,630 1.4% -2.3% Estonia 21,999 24,199 27,253 10% 12.6%

Total 7,412,304 7,407,286 7,583,227 -0.1% 2.4%

Table 6 – En route services – actual costs

Source: 2018 actual figures WP CER-113-2019

Note: (1) Including Jersey and Geneva (2) Excluding Geneva (France)

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IV. TRAFFIC STATISTICS 1. Total service units – growth rate

For a given flight and a given charging zone, the route charge is equal to the number of service units multiplied by the unit rate. The number of service units is equal to the weight factor (i.e. the square root of the MTOW divided by 50) multiplied by the distance factor (i.e. the number of kilometres in the great circle distance between the entry and exit points at which the route indicated in the last filed flight plan crosses the charging zone boundary divided by one hundred).

Over the past three years, the growth rate in the total number of service units (chargeable and exempted) was as follows:

Year Service units Variation

2017 153,007,694 6.7%

2018 162,511,953 6.2%

2019 167,039,969 2.8%

Table 7 – Total service units

The total service units amounted to 167.04 million in 2019. The 2019 figure corresponds to the total number of services units recorded for the 12 monthly billings (previously, the yearly figure corresponded to the final number of service units recorded in respect of the flights performed during the calendar year. The 2019 figure calculated as it was done previously would be 167,000,194, representing a difference of -0.02%).

Graph 2 – Total service units 2015-2019

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2. Total actual service units – totals per charging zone Table 8 gives, for each charging zone, the total number of service units (chargeable and exempted) generated from 2015 to 2019, as well as the average annual variation observed during the same period.

2015 2016 2017 2018 2019 (4) Variation Variation (2) Charging zones (‘000) (‘000) (‘000) (‘000) (‘000) 2019/2018 2015-2019 Belgium-Luxembourg 2,454 2,500 2,594 2,644 2,621 -0.9% 1.7% Germany (1) 12,976 13,562 14,374 14,989 15,190 1.3% 4.0% France 18,868 19,883 20,862 21,450 21,786 1.6% 3.7% United Kingdom 10,154 10,875 11,768 12,194 12,596 3.3% 5.5% Netherlands 2,893 3,100 3,223 3,392 3,382 -0.3% 4.0% Ireland 4,182 4,468 4,465 4,550 4,642 2.0% 2.6% Switzerland 1,455 1,493 1,604 1,741 1,769 1.6% 5.0% Portugal Lisboa 3,150 3,510 3,777 3,856 4,061 5.3% 6.6% Austria 2,739 2,750 2,974 3,198 3,340 4.4% 5.1% Spain-Continental 8,997 9,761 10,441 11,059 11,490 3.9% 6.3% Spain-Canarias 1,402 1,485 1,602 1,788 1,952 9.1% 8.6% Portugal Santa Maria 4,662 5,040 5,309 5,504 5,518 0.3% 4.3% Greece 4,899 4,678 5,158 5,600 6,006 7.2% 5.2% Turkey 14,182 14,374 15,889 17,460 17,918 2.6% 6.0% Malta 823 905 916 935 1,020 9.1% 5.5% Italy 8,172 8,302 8,632 9,434 10,047 6.5% 5.3% Cyprus 1,548 1,540 1,728 1,897 2,068 9.0% 7.5% Hungary 2,695 2,788 2,973 3,236 3,162 -2.3% 4.1% Norway 2,314 2,495 2,527 2,522 2,437 -3.4% 1.3% Denmark 1,583 1,621 1,666 1,709 1,781 4.2% 3.0% Slovenia 466 502 525 572 628 9.7% 7.7% Romania 4,571 4,443 4,757 5,101 5,118 0.3% 2.9% Czech Republic 2,532 2,737 2,824 3,041 2,937 -3.4% 3.8% Sweden 3,355 3,402 3,615 3,813 3,821 0.2% 3.3% Slovak Republic 1,071 1,138 1,189 1,296 1,292 -0.3% 4.8% Croatia 1,790 1,788 1,799 1,994 2,194 10.0% 5.2% Bulgaria 3,223 3,413 3,513 3,938 4,032 2.4% 5.8% North Macedonia 264 250 301 336 395 17.4% 10.6% Moldova 74 60 69 83 87 4.6% 4.1% Finland 760 764 848 940 1,011 7.5% 7.4% Albania 484 442 454 481 508 5.6% 1.2% Bosnia and Herzegovina 870 866 1,020 1,083 1,228 13.4% 9.0% Armenia 126 111 178 224 206 -7.8% 13.2% Serbia / Montenegro/ KFOR 1,975 2,131 2,241 2,518 2,676 6.3% 7.9% Poland 3,880 4,175 4,291 4,666 4,972 6.6% 6.4% Lithuania 492 507 541 603 619 2.7% 5.9% Latvia 802 789 877 938 958 2.1% 4.5% Georgia 805 791 807 806 674 -16.4% -4.4% Subtotal 137,689 143,439 152,329 161,592 166,139 2.8% 4.8% Estonia (3) 679 920 901 -2.0% Total 137,689 143,439 153,008 162,512 167,040 2.8% 4.9%

Table 8 – Total number of service units generated

(1) Includes 57,446 service units for flight segments performed in 2019 as Operational Air Traffic (2) Average annual variation during the period 2015-2019 (3) No comparison between figures recorded for 2019 and 2015, Estonia integrated as of 1 April 2017 (4) As of 2019, figures are based on billing period instead of flight month.

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3. Total, exempted and chargeable service units Table 9 details the number of service units generated in each charging zone in 2019. For any given charging zone, the number of chargeable service units (column 8) is the difference between the total service units (column 1) and the service units generated in respect of exempted flights (column 7). Total exemptions represent 0.8% of total service units, out of which 0.7% for military flights and 0.1% for all the other categories of flight.

Total service Heads of Total Chargeable exemptions service units units (2) Military state <2 T Circular Other Charging zones (2) to (6) (1) - (7) 1 2 3 4 5 6 7 8 Belgium-Luxembourg 2,620,510 11,635 1,757 1,198 350 143 15,084 2,605,426 Germany (1) 15,189,868 89,278 9,248 14,303 160 840 113,829 15,076,039 France 21,785,954 137,456 7,451 14,914 9,859 5,809 175,489 21,610,465 United Kingdom 12,596,406 129,166 2,550 3,277 3,548 857 139,398 12,457,008 Netherlands 3,381,760 30,179 961 1,499 716 92 33,447 3,348,313 Ireland 4,641,920 39,310 815 140 668 216 41,148 4,600,772 Switzerland 1,769,423 936 1,064 1,302 3 272 3,578 1,765,846 Portugal Lisboa 4,060,916 27,360 836 345 1,278 361 30,181 4,030,735 Austria 3,339,516 6,848 2,355 2,205 34 291 11,733 3,327,783 Spain-Continental 11,489,754 69,813 3,740 3,105 5,619 2,056 84,334 11,405,420 Spain-Canarias 1,951,536 11,597 876 111 176 601 13,360 1,938,176 Portugal Santa Maria 5,518,207 75,783 1,481 65 106 346 77,781 5,440,425 Greece 6,006,090 79,343 3,564 701 656 329 84,593 5,921,497 Turkey 17,917,743 92,823 9,542 74 1,681 1,070 105,191 17,812,552 Malta 1,019,867 29,464 690 115 15 707 30,991 988,876 Italy 10,046,606 122,722 6,667 2,603 1,928 1,467 135,387 9,911,219 Cyprus 2,068,297 21,716 936 228 85 5 22,970 2,045,328 Hungary 3,162,204 25,678 2,293 348 590 44 28,953 3,133,250 Norway 2,437,256 15,523 583 173 1,134 2,306 19,719 2,417,536 Denmark 1,781,031 7,725 612 1,154 907 102 10,499 1,770,531 Slovenia 627,503 961 237 527 26 43 1,794 625,709 Romania 5,118,142 38,647 3,210 218 995 91 43,161 5,074,981 Czech Republic 2,936,832 35,209 1,868 1,710 60 119 38,966 2,897,866 Sweden 3,820,880 10,233 1,865 2,138 2,275 240 16,751 3,804,129 Slovak Republic 1,291,783 11,514 1,143 321 4 12 12,994 1,278,789 Croatia 2,193,805 2,568 863 748 287 142 4,608 2,189,198 Bulgaria 4,032,210 30,238 1,957 52 373 87 32,707 3,999,503 North Macedonia 395,148 0 131 18 108 0 257 394,891 Moldova 86,769 26 60 21 46 9 162 86,606 Finland 1,010,729 991 567 997 515 339 3,409 1,007,320 Albania 507,588 2,382 206 34 67 10 2,699 504,890 Bosnia and Herzegovina 1,228,276 527 393 102 153 23 1,199 1,227,077 Armenia 206,231 0 164 9 0 8 181 206,050 Serbia / Montenegro/KFOR 2,675,856 502 1,110 166 392 125 2,295 2,673,561 Poland 4,972,146 27,650 3,773 1,804 4 190 33,421 4,938,725 Lithuania 618,866 3,393 272 120 23 0 3,809 615,057 Latvia 957,638 5,732 315 88 28 11 6,174 951,464 Georgia 673,764 8,164 768 14 0 7 8,953 664,811 Estonia 900,941 879 414 151 3 13 1,460 899,481 Total 167,039,969 1,203,973 77,336 57,101 34,871 19,384 1,392,665 165,647,304

Table 9 – Service units generated in respect of exempted flights

(1) Includes 57,446 service units for flight segments performed in 2019 as Operational Air Traffic. (2) As of 2019, figures are based on billing period instead of flight month.

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V. AMOUNTS BILLED, COLLECTED AND DISBURSED

1. Amounts billed in 2019 The amounts billed to airspace users between January and December 2019 totalled about EUR 7.9 billion (see Tables 10 and 11). This represents a decrease of 2.7 % over 2018. Amounts billed exclude value added tax (VAT), amounting to EUR 24.7 million, billed on behalf of twenty-three VAT-taxable air navigation service providers in the Contracting States (see table 12).

Year Amounts billed (EUR) Variation rate

2017 8,014,714,394 1.1%

2018 8,111,213,017 1.2%

2019 7,896,243,666 -2.7%

Table 10 – Amounts billed in 2017-2019

The 2019 figure corresponds to the amounts billed recorded for the 12 monthly billings (previously, the yearly figure corresponded to the amounts billed recorded in respect of the flights performed during the calendar year. The 2019 figure calculated as it was done previously would be EUR 7,894,308,587, representing a difference of -0.02%).

Graph 3 – Amounts billed for flights carried out in 2015-2019

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2. Amounts billed and disbursed Table 11 shows the total amounts billed and disbursed in euros in 2019.

Charging zones Amounts billed (1) Net amount disbursed (2) Belgium-Luxembourg 176,361,266 175,913,766 Germany 961,430,349 963,783,212 France 1,317,167,742 1,326,620,305 United Kingdom 736,586,331 747,614,847 Netherlands 190,554,543 191,642,652 Ireland 130,017,607 128,933,108 Switzerland 168,697,494 168,901,054 Portugal Lisboa 100,054,984 106,255,203 Austria 225,893,954 224,088,419 Spain-Continental 699,507,157 712,121,725 Spain-Canarias 96,833,980 98,941,247 Portugal Santa Maria 52,608,540 51,489,567 Greece 181,139,688 178,119,378 Turkey 397,311,482 379,385,402 Malta 22,259,678 20,541,921 Italy 774,067,572 770,536,520 Cyprus 65,409,681 64,490,446 Hungary 94,778,295 94,356,872 Norway 104,060,182 104,695,905 Denmark 101,094,740 101,028,563 Slovenia 37,323,848 37,081,494 Romania 151,495,588 151,312,676 Czech Republic 116,537,608 117,030,466 Sweden 191,544,047 195,161,040 Slovak Republic 63,722,297 63,752,637 Croatia 92,869,869 91,911,933 Bulgaria 125,673,883 121,626,234 North Macedonia 17,886,029 17,538,290 Moldova 5,081,857 5,000,765 Finland 50,386,439 50,698,258 Albania 25,207,431 24,928,439 Bosnia and Herzegovina 42,621,462 42,259,547 Serbia / Montenegro / KFOR 79,096,582 76,671,544 Poland 201,857,165 200,341,368 Lithuania 26,379,834 26,340,736 Armenia 6,060,819 5,984,117 Latvia 25,841,780 25,937,691 Georgia 14,458,110 14,649,039 Estonia 26,363,754 26,583,545 Total 7,896,243,666 (3) 7,904,269,930

Table 11 – Amounts billed and disbursed in 2019

(1) As of 2019, figures are based on billing period instead of flight month. (2) Source: Financial statements for the year ended 31 December 2019 (3) Out of which EUR 7,873,054,192 for route charges (all States) and EUR 23,189,474 for administrative charges (all States).

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3. VAT billed and disbursed to the States Table 12 shows the total amounts of VAT billed and disbursed in euros in 2019 to the 23 VAT-taxable air navigation service providers of the Contracting States, which apply VAT to route charges.

Charging zones VAT billed (1) VAT disbursed (2) Germany 1,368,755 1,338,035 United Kingdom 10,548,619 10,666,368 Ireland 203,051 197,271 Switzerland 35,629 36,410 Austria 339,147 234,548 Spain-Continental 1,778,874 1,809,703 Spain - Canaries 401,130 345,726 Norway 8,031,587 8,133,162 Denmark 354,668 268,104 Slovenia 68,897 68,344 Romania 312,265 248,632 Czech Republic 129,244 120,209 Slovak Republic 96,419 87,301 Croatia 125,889 124,593 Bulgaria 234,174 178,469 Moldova 19 7 Finland 86,630 58,351 Armenia 563 0 Poland 396,019 344,634 Lithuania 16,349 15,262 Latvia 71,276 75,513 Georgia 5,331 4,985 Estonia 78,387 76,519

Total 24,682,921 24,432,147

Table 12 – VAT billed and disbursed to the Contracting States in 2019

(1) As of 2019, figures are based on billing period instead of flight month. (2) Source: Financial statements for the year ended 31 December 2019

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4. Recovery rates The long-term recovery rate reflects the performance trend of the CRCO. The graph below also shows the annual recovery rates for the period 2015-2019.

The recovery rate for 2019 is the recovery rates of amounts billed in 2019 as measured on 01/03/2020.

Graph 4 –Long-term recovery rate

The current average long-term recovery rate for the period 2015-2019 is 99.73%. For the previous period (2014-2018) the current calculated average long term recovery rate is 99.82%.

In case of non-payment of route charges, the interest rate applicable on late payment was 9.68% per annum in 2019.

VI. THE COSTS OF THE ROUTE CHARGES SYSTEM

The table below shows the ratios between the CRCO’s actual net costs (route charge collection costs under the Multilateral System net of receipts from bilateral agreements and excluding carry overs) and service units/amounts billed. The increase of the 2018 costs is due to the Agency Cost Allocation Method (CAM) shifting costs from Part I of the Agency Budget to Part II CRCO (maintenance, building, security, Finance, HR and DG services,...) and including the impact of the tax compensation for pensions and the ancillary benefits of staff previously assigned to the CRCO.

CRCO costs Service units Cost per service Amounts billed Ratio % Year (EUR millions) (millions) unit (2) / (3) (EUR millions) (2)/ (5)

1 2 3 3 5 6

2015 14.4 137.69 0.10 7,989 0.18% 2016 15.2 143.44 0.11 7,924 0.19% 2017 16.8 153.01 0.11 8,015 0.21% 2018 19.3 162.51 0.12 8,111 0.24% 2019 21.3 167.04 0.13 7.896 0.27%

Table 13 – Ratios between the CRCO’s actual net costs and service units/amounts billed

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VII. ORIGIN OF TRAFFIC AND RECEIPTS

Table 14 shows the percentage of chargeable service units and route charges recorded for all the Contracting States in 2019, by user state of registration. Contracting States’ national users accounted for 72% of the total number of chargeable service units and for 76% of the total route charges billed.

User state of registration Chargeable service units Route charges billed Belgium 1.4% 1.6% Luxembourg 0.5% 0.6% Germany 8.6% 9.7% France 4.5% 4.9% United Kingdom 11.3% 12.3% Netherlands 3.3% 3.5% Ireland 8.9% 10.7% Switzerland 2.0% 2.3% Portugal 1.8% 1.7% Austria 2.8% 3.3% Spain 4.9% 5.0% Greece 0.9% 0.8% Turkey 8.1% 5.8% Malta 0.5% 0.6% Italy 1.8% 2.3% Cyprus 0.0% 0.0% Hungary 2.0% 2.0% Norway 1.3% 1.3% Denmark 0.6% 0.6% Slovenia 0.1% 0.1% Romania 0.5% 0.5% Czech Republic 0.5% 0.5% Sweden 1.9% 2.1% Slovak Republic 0.0% 0.0% Croatia 0.1% 0.1% Bulgaria 0.3% 0.2% North Macedonia 0.0% 0.0% Moldova 0.1% 0.1% Finland 0.9% 0.9% Albania 0.0% 0.0% Bosnia and Herzegovina 0.0% 0.0% Armenia 0.0% 0.0% Serbia 0.2% 0.2% Montenegro 0.0% 0.0% Poland 1.2% 1.1% Lithuania 0.1% 0.0% Latvia 0.3% 0.3% Georgia 0.1% 0.0% Estonia 0.0% 0.0% Total Participating States 71.5% 75.5% Others 28.5% 24.5% Total all nationalities 100.0% 100.0%

Total 59.7% 65.6%

Table 14 – Total percentage of chargeable service units and route charges billed in 2019 by user state of registration

19 SUPPORTING EUROPEAN AVIATION EUROCONTROL SUPPORTING EUROPEAN AVIATION EUROCONTROL

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