1. Session 1 Performance Scheme : are we on the right track ? Moderator : Peter Griffiths Chairman of the Performance Review Body

2. Session 1 Keynote speakers Paul Schwach, Deputy DGCA, France Kay Kratky, Lufthansa Board Member Round table panelists Matthew Baldwin, Director Aviation and International Transport Affairs, EC Frank Brenner, DFS, Member of the PRB John Hanlon, ELFAA Secretary General Jacek Krawczyk, Member of the European Economic and Social Committee Tom Regan, Irish CAA, NSA Coordination Platform Performance WB Chairman

3. Session 1 Overall Context Will the EU-wide targets for Reference Period 2012-2014 and the related national/FAB targets be challenging enough to change ATM? The target setting for the Reference Period 2015-2019 should make the system stronger. How far should it go? How to better link the performance scheme with other SES initiatives such as FABs and SESAR deployment? What about human factors? How could they be addressed?

4. Session 1 Summary of Discussion points Will the EU-wide targets for Reference Period 2012-2014 and the related national/FAB targets be challenging enough to change ATM? The target setting for the Reference Period 2015-2019 should make the system stronger. How far should it go? How to better link the performance scheme with other SES initiatives such as FABs and SESAR deployment? What about human factors? How could they be addressed?

5. Performance Context

6. Original Proposals from PRB Sept 2010 Safety During RP1, States to monitor and publish the following Safety KPIs: 1)Effectiveness of safety management; 2)Application of severity classification; 2.1)Separation minima infringements; 2.2)Runway incursions; 2.3)ATM special technical events; 3)Implementation of Just Culture. PRB to work closely with EASA in developing Safety KPIs and arrangements for the monitoring of safety.

7. Original Proposals from PRB Sept 2010

8. Proposed target vs. political objective

9. Key Note Speakers Paul Schwach Directeur du Transport Aérien Adjoint au Directeur général de l'aviation civile Kay Kratky Member of the Lufthansa German Airlines Board Frankfurt & Flight Operations

10. Direction générale de l’Aviation civile Limassol – October 11th, 2012 Single European Sky Conference Performance scheme Viewed from NSA France by Paul SCHWACH, Deputy director general of civil aviation Director for Air Transport

11. 11 Direction générale de l'Aviation civile Single European Sky Conference – Limassol October 11th, 2012 11 Where did we come from Until 2009 air navigation charges were set on a pure cost- recovery principle Criticized for not providing incentives for performance Featuring a corrective mechanism that was contra- cyclic No « quality » targets As early as end of 2009, in anticipation of EU regulation SES2, the Government adopted a decree which created a NSA for performance: DTA installed a performance scheme stopped the corrective mechanisms

12. 12 Direction générale de l'Aviation civile Single European Sky Conference – Limassol October 11th, 2012 12 Baisse significative du trafic depuis fin 2008 Steering air navigation performance DTA was already regulator for airport charges: the performance scheme for DSNA looked like the « Contrat de regulation Economique » for ADP DTA is not in charge of setting the targets, but to guarantee that performance is correctly planned and assessed, and that the consultation process is achieved Two more specific interventions: Setting the traffic forecast Finding a compromise on return of equity Coordinated performance plans on national and FABEC level A discussion on capacity at FABEC level

13. 13 Direction générale de l'Aviation civile Single European Sky Conference – Limassol October 11th, 2012 DGCA (BE) BFS (DE) DTA (FR) DGCA (LU) DGCA (NL) FOCA (CH) Belgocontrol (BE) DFS (DE) DSNA (FR) MUAC LVNL (NL) skyguide (CH) DSNA (FR) Regulation Accountability Joint Accountability Joint Regulation National Performance Plan 2012-2014: - En route target: - Cost-Efficiency - Terminal: - SAF, CAP, Cost-efficiency (DUR) - Additional Indicators (SAF, CAP) FABEC Performance Plan 2012-2014 : - En route targets: SAF, CAP, ENV Addit'l Indicators: CAP, ENV, Consolidated DUR, MME (Complementing) Performance at National and FABEC level

14. 14 Direction générale de l'Aviation civile Single European Sky Conference – Limassol October 11th, 2012 14 What should be achieved in RP1 (en-route) FABEC Performance plan Capacity : 0.5 minute / « en-route » flight delay in year 2014 Environment : Route extension down 5% (2014 / 2011) National Performance plan Safety: Additional quantified safety targets Cost Efficiency : En route unit costs : -7% (2014 / 2011) in real terms Capacity: Additional en-route indicators

15. 15 Direction générale de l'Aviation civile Single European Sky Conference – Limassol October 11th, 2012 15 Baisse significative du trafic depuis fin 2008 Some thoughts about cost-efficiency Cost efficiency measured by determined unit rates depends on costs and traffic: UR=COSTS/TRAFFIC When traffic is weak, cost-efficiency is difficult to improve because staff charges cannot react to traffic variations in the short term The public status of DSNA puts a lot on pressure on cost-efficiency when the State Budget is under tension The risk to cut investments Are the EU targets an aspirational goal or a collective commitment ?

16. 16 Direction générale de l'Aviation civile Single European Sky Conference – Limassol October 11th, 2012 16 Some suggestions for drawing the way forward A real assessment of RP1 before setting RP2 If EU targets are not just aspirational goals, but must become a collective commitment, make them realistic, based on achievable actions by ANSPs Take into account investment separately Rethink of incentives (bonus/malus) for some KPIs EU guidance on RoE Terminal charges could be a priority for delivering cost-efficiency in the short term, with airlines cooperation

17. 17 Direction générale de l'Aviation civile Single European Sky Conference – Limassol October 11th, 2012 17 Conclusion The SES2 regulation on performance has been implemented The ANSPs are under tension The performance needs a cooperation between ANSPs et Air carriers, but also with staff The current performance trend is achievable in a long term period, with also periods of highly increasing traffic A gap above this trend should be expected from FAB and SESAR

18. Direction générale de l’Aviation civile Thank you for your attention

19. Where are we today

20. Environment 3,86% 3,33% 4,08%

21. Examples - Flight Efficiency challenge Reduction in route length : City pair Brussels - Milano Malpensa New route in green (march 2012) Reduction in difference between flight planned route and best available route Difference between red and green or blue/green CP EBBR_LIMC Real planning (Sunday 8 th April 2012) IFPU2 Away Day

22. Capacity 0,68 0,7 0,6 0,5

24. Debate Panelists Matthew. Baldwin, Director Aviation and International Transport Affairs, EC Frank. Brenner, DFS, Member of the PRB John. Hanlon, ELFAA Secretary General Jacek. Krawczyk, Member of the European Economic and Social Committee Tom. Regan, Irish CAA, NSA Coordination Platform Performance WG Chairman

25. Debate