1. 17 November 2005Industry Meeting1 Fees & Charges Regulation Ralf Erckmann Certification Manager

2. European Aviation Safety Agency 17 November 2005 Industry Meeting 2 Last Industry Meeting (18/11/04) Need for Fees & Charges Regulation Fees Revenue must cover full costs of services delivered (Basic Regulation) Responsibilities & Parties Involved EASA, NAAs, MB, Industry, EASA Committee Challenges First common charging system, complexity, workload estimates, basic EU rules Later adjustments necessary

3. European Aviation Safety Agency 17 November 2005 Industry Meeting 3 Objectives Fair and transparent charging system System allowing to keep track of the resources devoted to different activities Generate Income to cover all certification costs (direct and indirect) EASA staff Operational costs (missions etc.) NAAs (transition period) Infrastructure (support for transition period) Other service provider, if necessary

4. European Aviation Safety Agency 17 November 2005 Industry Meeting 4 Assumptions 300 people necessary to run a single certification system in Europe 230 Experts (PCM/Specialists) 70 Manager, Assistants, Secretaries Some new working methods Total costs: 45 M This assumption is directly linked to the level of involvement depth of investigation degree of surveillance

5. European Aviation Safety Agency 17 November 2005 Industry Meeting 5 State of Play Regulation adopted in March 2005 Implemented since 1 June 2005 Procedures in place Staff recruited and trained Service contracts with 14 NAAs Processing of 5000 applications with some shortcuts in place No disruptions for Industry More than 10 M invoiced

6. European Aviation Safety Agency 17 November 2005 Industry Meeting 6 Lessons Learned Very complex and heavy system Burdensome administrative processes Available database & software tools not adequate Complex contract management Regular contract meetings with 14 NAAs Harmonisation of working methods ongoing Income less than expected Early income simulations partly wrong/and or too optimistic (number of applications, workload assumptions, hourly rate, etc.)

7. European Aviation Safety Agency 17 November 2005 Industry Meeting 7 Counter-Measures EASA Budget WG to analyse the situation Participation of Management Board, the EASA Advisory Board and the Commission Two dedicated meetings (08/08/05 & 01/09/05) Solutions for 2005 budget Action EASA to draft revision of F&C Regulation Creation of EASA Fees & Charges WG Participation of Member States, Industry and the Commission

8. European Aviation Safety Agency 17 November 2005 Industry Meeting 8 Fees & Charges WG Objectives Propose Improvements (simplifications, corrections) Revise tariffs to generate sufficient income for 2006 Time Frame Proposals by end of November Discussion next MB meeting in December EASA Committee January Earliest Implementation March/April

9. European Aviation Safety Agency 17 November 2005 Industry Meeting 9 Fees & Charges WG Achievements so far Common understanding on some fundamental improvements (payment modalities, quotation, instalments) Challenges Availability of real data to verify workload assumptions Time Frame

10. European Aviation Safety Agency 17 November 2005 Industry Meeting 10 Questions? Thank you for your attention

11. European Aviation Safety Agency 17 November 2005 Industry Meeting 11 Additional Slide

12. European Aviation Safety Agency 17 November 2005 Industry Meeting 12 Efficiency Considerations Cost of previous JAA/NAA system difficult to estimate More than 700 certification experts are known Workload & functioning partially unknown Government subsidies to NAAs Cross subsidies between branches, activities, etc. Efficiency of the EASA certification system Future: 230 certification experts Total costs transparent