A performance oriented approach Ralph RIEDLE Chairman of Performance Review Commission EUROCONTROL 13 September 2016
The stakes are high! ANS generates. Value.. Safety Efficient flow of air traffic Costs. Total economic cost 10 B (SES area) Direct ANS provision costs (user charges) Indirect service quality related costs (delays, non-optimum flight profiles) Airborne equipment costs to be added All costs paid by users in Europe Environmental impact High penalties to economy if disrupted E.g. 1.5 B daily penalty to economy due to Icelandic volcano eruption in 2010 Indirect costs (Service Quality) 2.5 B Direct Cost 7.3 B ANS costs SES area (2014) Airborne equipment Flight efficiency ANS delays ATCO costs Support costs CAPEX Other costs Total cost (ground) ~ 10 B ANS Performance Review 2
Managing ANS Performance You can t manage what you don t measure! 3
European approach within global approach ICAO high-level expectations of the ATM community Security Safety Access & Equity Participation Safety management Interoperability Costeffectiveness Cost management European focus areas for target setting Capacity management Capacity Flexibility Environmental sustainability Predictability Environment Efficiency Focus on 4 of 11 Key performance areas (KPAs) defined in ICAO Global Air Traffic Management Operational Concept KPIs in line with ICAO recommended indicators (GANP Doc 9750, Doc 9161) wherever possible, additional performance indicators 4
Annual Performance Review Reports (PRR) Number of serious incidents 60 50 40 30 20 10 0 Serious incidents (ANS-related and with ANS contribution) in Commercial Air Transport (fixed-wing, weight> 2,250kg) 43 2006 50 2007 28 2008 32 2009 48 2010 39 2011 29 2012 24 2013 28 2014 21 2015 ANS-related serious incidents Serious incidents with ANS contribution Source: EASA SAFETY: Review of safety incident evolution in order to identify trends (RI, SMI, etc.) COST-EFFICIENCY: Analysis of ANS unit costs und underlying drivers ENVIRONMENT: Monitoring of flight efficiency en route and in terminal areas; CAPACITY: Evaluation of ANS related en route and airport delays and constraining factors; Verified facts and performance indicators, Independent critical analysis Using ICAO framework wherever possible Recommendations to decisions makers ANS Performance Review 5
Benchmarking, PRC publications Safety Environment Costefficiency European IFR traffic Capacity Benchmarking dimensions Within region Over Time Across regions Different dimensions of performance benchmarking enable to: Understand and position own performance Identify performance gaps and scope for improvement set ambitious but realistic targets Share best practice PRC publications on ANS performance in Europe: Annual Performance Review Report (system view, all KPAs) ATM Cost Effectiveness Benchmarking (ACE) reports (Economics) Ad hoc reports (US/ Europe comparisons, etc.) 6
From observing to driving ANS Performance Policy objectives Regulatory & measurement Framework (KPI, PI) Targets Corrective actions Operational Implementation Verified data Reporting, monitoring & analysis 7
Performance-oriented approach in ANS in Europe Delay crisis Delay crisis 1990 1997 1998 2004 2009 2010 2012 2015 ECAC Common ATM Performance strategy PRC SES ECAC institutional strategy (1997) Common ATM Performance strategy Focus on outcome, not means (e.g. technology) Independent Performance Review Commission (PRC) (1998) Independent Performance review Light-handed regulation: objective information, recommendations Single European Sky (SES II: 2009) SES Performance scheme Enforceable performance targets (EU, national/fab levels), incentives SES II PRB Start RP1 Start RP2 8
Maturity levels in ANS performance benchmarking Optimisation Regulation Data (collection and validation of data) Review (what is the level of performance?) Gap analysis (How far from state of art and why?) (Target setting) Learn from each other to improve performance Requires a common set of performance indicators Identify best practices, improvement opportunities Inform policy making and ANS governance Provide validated approach to apply ICAO policies on ANS performance EUROCONTROL's contributions to International ANS performance benchmarking 9
Long term trend of traffic, unit costs and en-route ATFM delay 1,1 6,0 2009 per kilometre 1,0 0,9 0,8 0,7 0,6 All States in Route Charges system En-route delay Traffic index En-route unit costs ( 2009/km) Traffic in km (index: 1990=1) En-route delay (summer) 5,0 4,0 3,0 2,0 1,0 Minutes of en-route ATFM delay per flight and traffic index 0,5 Delay crisis 1990 1991 1992 1993 1994 1995 1996 1997 Delay crisis 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0,0 1990 1997 1998 2004 2009 2010 2012 2015 ECAC Common ATM Performance strategy PRC SES Reactive policy in the 90 s: delays go up while costs go down, and vice versa As of 1998, performance-oriented approach and improved capacity management contributed to reduction of both delays and unit costs Enforceable SES performance targets apply from 2012 onwards SES II PRB Start RP1 Start RP2 10
Conclusions Performance is key to ANS success Impact on some 10B p.a. in EU, while ensuring safety European Performance-driven strategy delivers, but margins for significant further improvements Independent Performance review since 1998 (PRC) Strong regulation under SES II Enforceable targets, corrective measures, incentives, etc EUROCONTROL supports both the PRC (EUROCONTROL) and PRB (EU) Using and feeding into ICAO performance frameworks GANP (Doc 9750), Manual on ANS economics (Doc 9161) Reports available at http://www.eurocontrol.int/prc/publications Online performance data: www.ansperformance.eu 11