Performance Scheme – are we on the right track?

Single European Sky and Performance Scheme from an European airline's point of view

Kay Kratky

Member of the Lufthansa German Airlines Board Frankfurt & Flight Operations Lufthansa German Airlines Single European Sky Conference, Limassol Lufthansa German Airlines October 11, 2012 Page 0

What started 50 years ago …

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… and is still going strong?

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Single European Sky – The idea also dates back to the 60s!

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Are we on the right track?

Decades of initiatives for an integrated sky in Europe 1999 start of SES process COM (1999) 614 2004 SES I regulatory package 2009 SES II regulatory package 2013: SES II+ ?

1960

13 December 1960

EUROCONTROL International Convention relating to Cooperation for the Safety of Air Navigation is signed by the 6 founding States.

„The original aim of EUROCONTROL was to achieve the complete integration of air traffic services in Europe.” Source : Eurocontrol webpage 1999 2020+ 2004 2010 2012 2014 SESAR Definition Phase (2005-2008) SESAR Development Phase (2008 – 2016+) SESAR Deployment Phase (2013/14 - 2020+)

(EC) No 549/2004

Framework Regulation

for the creation of the single European Sky (EC) No 550/2004

Service provision Regulation

(EC) No 219/2007 establishing

SESAR Joint Undertaking

for private public partnership (EC) No 691/2010

Performance scheme Regulation

(EC)No 1794/2009

Charging scheme Regulation

(EC) No 176/2011

FAB information Regulation

(EC) No 1070/2009 amending (EC) 549/2004

SES II

Examples; not all applicable SES regulation shown. Complete list “Report on the SES Legislation Implementation, Ch. 1.3, EUROCONTROL June 2012 Single European Sky Conference, Limassol Lufthansa German Airlines October 11, 2012 Page 11

SES Performance State of play I n 2011, in the EU ATM inefficiencies resulted in:

 17.9 million minutes of ATFM delays

CO 2

 8.1 million tons of wasted CO 2  Approx. € 4 billion costs p.a. borne by airlines due to suboptimal cost-efficiency and fragmentation Source: IATA, Eurocontrol data Single European Sky Conference, Limassol Lufthansa German Airlines October 11, 2012 Page 12

Consumers and airlines pay the bill:



Delayed flights



Longer flight time



Higher fares

Net profits of European airlines are under pressure Europe North America Asia Pacific

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Source: ICAO revised data 2009-11. IATA estimates for regions in 2011. IATA forecasts for 2012 and 2013. September 2012

Benchmarking of the European ATM performance. US versus Europe: Significant room for improvement in Europe

Lack of efficiency of the European ATM system

Airspace

(millions of km2)

Flights

(IFR, in millions)

Air Navigation Service Providers

(en route)

Area control centers Air traffic controllers Flights per controller

Share of

departure delays

> 15 min. due to

en route constraints 10.4

15.9

1 20 14.6

1089 0.1% 11.5

9.5

38 63 16.7

569 5.7%

Source: EUROCONTROL & FAA Study March 2012, figures 2010 Single European Sky Conference, Limassol Lufthansa German Airlines October 11, 2012 Page 14

ATM inefficiency in Europe primarily affects European carriers

ATM performance has major impact on the airline cost structure. Example Lufthansa Significant influence in case of SES implementation

Free Routing Civil / Military cooperation Flexible use of airspace Arrival / Departure Management

Share of external costs - European traffic Fuel 40 % ATC charges 12 % 5% other

Airport throughput Departure delays Optimised use of infrastructure

43 % Airport charges

Impact estimation. Source costs:: Externally driven total costs Lufthansa Passage Kont traffic, Sep 2011 – Aug 2012.

About 50% of total costs externally driven, about 50 % internally driven (staff, aircraft finance, maintenance, catering, sales & distribution etc). Single European Sky Conference, Limassol Lufthansa German Airlines October 11, 2012 Page 15

Are we on the right track? Interim assessment of performance achievements from airline perspective Performance Scheme

   

Significant differences

between the

individual efforts

made by Member States in RP1 - poor performance in RP1 to be considered for RP2.

ATC charges

in Europe

remain very high

despite Performance Scheme.

Ambitious targets for RP2

required.

High level goals of SES must be maintained by all means.

  

Few quick wins

so far – encouraging singular projects but

massive delay

.

SJU dominated by manufacturers and ANSPs.

Governance

and

funding

for

SESAR Deployment not clarified

yet

.

Network Manager Functional Airspace Blocks (FABs)

   Mandate assigned to EUROCONTROL.

Significant contributions of Network Manager to SES target achievements expected.

Efficiency impact to be proven.

  

FABs will by no means optimise

airspace, technical and human resources by end 2012.

Member States must

reinvent FAB governance

.

EU Commission

must take the necessary action and

enforce compliance

with legal FAB requirements.

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SES has not delivered yet SES is most important for improving competitiveness of European carriers and economy.

Airlines cannot transmit benefit of SES to European consumers and environment so far.

European airlines are willing to contribute to the success of SES.

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“Single European Sky: the time for action” Conference We need: 1 Streamline and consolidate ATM operations Europe wide.

More competition and liberalisation of the market.

2 Rethinking SES governance.

Strong political guidance and more top-down approach. SES II+ regulatory framework 3 Accelarate SESAR Deployment.

Timely synchronised deployment air and ground. 4 Greater influence for the airspace users.

5 Enforceable goals for the Performance Scheme (RP1 + RP2) and FABs, Network Manager, SESAR Deployment. Appropriate sanction mechanism.

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SES II + and Performance Scheme Get on the right track.

NOW! FAST!

Thank you for your attention

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