1. The European Organisation for the Safety of Air Navigation Ian Middleton, Deputy Director EUROCONTROL - Directorate Single Sky Amsterdam, 27 April 2012 SINGLE EUROPEAN SKY versus NEXTGEN (US) FROM A REGULATORY PERSPECTIVE

2. Agenda The challenges driving R&D Airports and the Network Meeting the challenges - R&D within a Regulatory Framework –NEXTGEN versus SESAR Conclusion

3. General Presentation 3 EUROCONTROL but not EU EUROCONTROL & EU EUROCONTROL 39 Member States UAC Maastricht Central Flow Management Unit Central Route Charges Office Institute of Air Navigation Services Experimental Centre Headquarters – SES Support Network Manager

4. The European Organisation for the Safety of Air Navigation Challenges Driving R&D

5. Long-Term Average Growth Long-Term Trend Traffic in Europe Annual Growth Forecast Trafic Actual Traffic IFR traffic in Europe 1960-2010 historical figures 2011-2030 forecast

6. USA Traffic Growth US air traffic will increase by the equivalent of two major hub airports each year through 2020.

7. How Robust is the Growth? Traffic 1974197919841989199419992004 Time Gulf War 1991 Kosovo Crisis 1999 9/11 2001 SARS 2002 IRAQ War 2003 Oil Price Rises 2005+ Oil Crisis 1980 Economic Boom 1987-88 IT Boom 1997-98 2009 Global Recession 2008 2012

8. .. 1.5 million flights will go un-accommodated if extra capacity is not provided 2000 8.0 Million Flights 16.0 Million Flights Traffic tripled over last 25 years Traffic will double over next 20 years Capacity. 2033

9. Delays Airlines Airports En-Route Misc Security Weather Primary Delay Distribution for 2011 27.7 million minutes of delays (2010) costing €2.0 Bn. 20% of flights will be delayed by 2020 if system is not modernised

10. Environment Top of political agenda Aviation must continue to make significant effort to reduce its impact on environment

11. Airports and the Network

12. Runway and Airport capacity limitations can block growth Need to make more efficient use of existing capacity –Efficient surface management –Connectivity with ATM Network Airports are a key component of ATM Network Must integrate airports into the Network

13. Airport constraints Flights in Europe - 2030 In most-likely scenario (C), 2 million flights not accommodated

14. Airports are a small but persistent source of primary delay Source: www.eurocontrol.int/coda

15. The European Organisation for the Safety of Air Navigation Meeting the Challenges R&D within a Framework

16. The European Organisation for the Safety of Air Navigation SESAR

17. Single European Sky (SES) Framework To address defragmentation Legislation adopted by EU Council and Parliament –20 April 2004, amended November 2009. 4 SES Regulations Framework Service Provision Airspace Interoperability Performance-driven

18. Single European Sky ATM Research (SESAR) SESAR Technical/operational change, supported by Single European Sky legislation Public Private Partnership Direct involvement of aviation industry in all phases Address European needs and Global interoperability SESAR Technical/operational change, supported by Single European Sky legislation Public Private Partnership Direct involvement of aviation industry in all phases Address European needs and Global interoperability Needs : Turn off fragmented approach Accelerate evolution in response to challenges Synchronise plans and actions – from research to operations Needs : Turn off fragmented approach Accelerate evolution in response to challenges Synchronise plans and actions – from research to operations A new ATM System is required

19. 19 Public-private partnership to manage the SESAR Development Phase –Execute the European ATM Master Plan –One single ATM R&D programme in Europe Innovation from private sector Public financial stability & enforcement power 2 founding members: 15 industry members: SJU Budget: ~2.1 B€, till 31 Dec 2016 SESAR Joint Undertaking

20. The European Organisation for the Safety of Air Navigation NEXTGEN

21. NEXTGEN ARRANGEMENTS Strong regulatory basis – FAA is Regulator and manages NextGen programme Funding –Lacks a permanent spending bill –FAA Reauthorisation and Reform Act of 2011 passed in the U.S. House of Representatives on April 1, 2011 included a critical amendment authorising a public-private partnership (PPP) FAA governance supported by the NextGen Advisory Committee (NAC) –FAA can solicit a consensus-based set of recommendations –Forum to obtain a commitment of resources and/or synchronised planning between government and industry –Identify opportunities for industry participation in NextGen implementation.

22. SESAR/NEXTGEN COOPERATION European and US authorities agreement on the cooperation of SESAR and NextGen. –Agreement is technical annex to European Commission and US Federal Aviation Administration memorandum of co-operation for civil aviation research and development. –Contributes to essential standardisation of ATM systems, to be pursued through the International Civil Aviation Organisation. –Interoperability essential for airspace users operating in US and EU airspaces.

23. Regulatory Impact of SESAR and NextGen on Airports Through SESAR and Next Gen, EC and FAA will define areas in which Airports need to focus their investments The SESAR and NextGen Standardisation and Regulatory Roadmaps will provide the basis for a more global approach EC and FAA will work with ICAO in attempt to establish a global Regulatory Roadmap – On ANC12 Agenda –Airports will be consulted through normal EASA/EC Rulemaking processes Total estimated cost for SESAR deployment in Europe is 30 Billion Euro –Covers aircraft, ATM Airport and military equipage costs

24. SESAR versus NEXTGEN (1) Both benefit from established regulatory frameworks Europe more fragmented but USA and FAA face same issues of buy-in and governance complications Programmes share similar aims SESAR –stable funding –EUROCONTROL’s expertise at its core NEXTGEN –unstable funding to date –PPP?

25. SESAR versus NEXTGEN (2) SESAR –stable funding –time limited – what happens post-2016? –EUROCONTROL’s expertise at its core NEXTGEN –unstable funding to date –greater longevity

26. Conclusions Capacity requires ATM network-wide actions Airports can impede traffic growth SESAR and NEXTGEN will facilitate the definition of global and regional regulatory requirements for airports –regulatory roadmaps Airports to be integrated in the overall network Europe and FAA both pro-active in achieving a common set of equipment and procedures