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
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What started 50 years ago …
Single European Sky Conference, Limassol
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October 11, 2012
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… and is still going strong?
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Single European Sky Conference, Limassol
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October 11, 2012
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Single European Sky –
The idea also dates back to the 60s!
Single European Sky Conference, Limassol
Lufthansa German Airlines
October 11, 2012
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Are we on the right track?
Decades of initiatives for an integrated sky in Europe
1999
2004
2009
start of SES
process
SES I
regulatory
package
SES II
regulatory
package
COM (1999) 614
2013:
SES II+
?
2020+
1960
1999
2004
SESAR
Definition
Phase
(2005-2008)
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
2010
(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
2012
2014
SESAR
Development
Phase
(2008 – 2016+)
SESAR
Deployment
Phase
(2013/14 - 2020+)
(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
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October 11, 2012
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SES Performance
State of play
In 2011, in the EU
ATM inefficiencies resulted in:
 17.9 million minutes
of ATFM delays
CO2
 8.1 million tons
of wasted CO2
 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
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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
Source: ICAO revised data 2009-11. IATA estimates for regions in 2011. IATA forecasts for 2012 and 2013. September 2012
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Benchmarking of the European ATM performance.
US versus Europe: Significant room for improvement in Europe
Lack of efficiency of the
European ATM system
Airspace
10.4
11.5
15.9
9.5
1
38
Area control centers
20
63
Air traffic controllers
14.6
16.7
Flights per controller
1089
569
Share of departure delays > 15 min.
due to en route constraints
0.1%
5.7%
(millions of km2)
Flights
(IFR, in millions)
Air Navigation Service Providers
(en route)
Source: EUROCONTROL & FAA Study March 2012, figures 2010
Single European Sky Conference, Limassol
Lufthansa German Airlines
October 11, 2012
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ATM inefficiency
in Europe
primarily affects
European carriers
ATM performance has major impact on the airline cost structure.
Example Lufthansa
Share of external costs - European traffic
Fuel
Free Routing
Civil / Military cooperation
Flexible use of airspace
Arrival / Departure
Management
Significant
influence
in case of SES
implementation
40 %
5%
ATC
12 %
charges
Airport throughput
other
43 %
Departure delays
Optimised use of
infrastructure
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
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Are we on the right track? Interim assessment of performance
achievements from airline perspective
 Significant differences between the individual efforts made by Member
Performance
Scheme
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.
 Mandate assigned to EUROCONTROL.
 Significant contributions of Network Manager to SES target achievements
Network
Manager
expected.
 Efficiency impact to be proven.
 FABs will by no means optimise airspace, technical and human
Functional
Airspace
Blocks (FABs)
Single European Sky Conference, Limassol
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resources by end 2012.
 Member States must reinvent FAB governance.
 EU Commission must take the necessary action and enforce
compliance with legal FAB requirements.
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.
Single European Sky Conference, Limassol
Lufthansa German Airlines
October 11, 2012
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“Single European Sky: the time for action” Conference
We need:
SES II+
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.
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.
regulatory
framework
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October 11, 2012
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SES II + and Performance Scheme
Get on the right track.
NOW! FAST!
Thank you for your attention
Single European Sky Conference, Limassol
Lufthansa German Airlines
October 11, 2012
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