ANNEX IISupplementary provisions
ANNEX II Suggestions for corrective measures A. Key performance area of capacity The following are suggestions for corrective measures in the key performance area of capacity at the level of an Area Control Centre (ACC) to address the underlying reasons for lack of capacity. BlueMed FAB Cyprus (ACC Nicosia) Reasons for lack of capacity: Inflexible use of staff, low sector capacities, lack of flexibility in sector configurations, lack of flexibility in opening scheme, failure to fully implement capacity enhancement measures planned in the capacity plan. Suggestions for corrective measures: 1. Expediting the implementation of a new air navigation services provider (ANSP) organisation; 2. Re-planning performance to provide the required capacity by considering: (a) implementation of re-sectorisation proposals; (b) sector capacities re-evaluations; 3. Implementation of: (a) flexible rostering allowing better alignment between traffic demand and sector opening times; (b) flexible configurations opening, according to the traffic flows; 4. Improved air traffic flow and capacity management (ATFCM) techniques. In its performance plan Cyprus indicated that improvements in overall performance would not occur until the institutional changes needed for the establishment of a new air navigation services provider ANSP organisation were in place and therefore it is suggested that Cyprus establishes these changes as quickly as possible. Greece (ACCs Athens and Makedonia) Reasons for lack of capacity: Lack of investments in air traffic control (ATC), lack of ATCO recruitment. Suggestion for corrective measures: 1. Implementing measures to improve performance by considering separation of the ANSP entity from the government; 2. Re-organisation of the ANSP to allow timely development and implementation of operational plans and staff recruitment; 3. Building a comprehensive restructuring plan to implement new techniques to improve flexibility, seasonal configuration changes and flexible rostering. FABEC Germany, Belgium, Luxembourg, the Netherlands (ACC Maastricht UAC) Reasons for lack of capacity: Lack of capacity at sector group level following unexpected changes in the traffic patterns in 2015, capacity gains deriving from FABEC airspace projects are unlikely to be delivered during the planning period. Suggestions for corrective measures: 1. Enhanced ATCO cross-training allowing better alignment between traffic demand and sector opening times at sector group level; 2. Development and implementation of re-sectorisation proposals; 3. Implementation of planned ATM system enhancements. France (ACC Bordeaux) Reasons for lack of capacity: Training and implementation of a new ATM system — ERATO. Suggestions for corrective measures: 1. Improved ATFCM techniques; 2. Flexible transition plan for the new ATM system, coordinated with Network Manager, to include appropriate mitigation measures to reduce disruption. France (ACC Brest) Reasons for lack of capacity: Training and implementation of a new ATM system — ERATO, sectorisation and sector opening schemes could be better adapted to traffic demand. Suggestions for corrective measures: 1. Implementation of re-sectorisation proposals; 2. Flexible rostering allowing better alignment between traffic demand and sector opening times; 3. Flexible configurations opening, according to the traffic flows; 4. Improved ATFCM techniques. France (ACC Marseille) Reasons for lack of capacity: Lack of capacity on weekends due to non-adapted sector opening schemes, training and implementation of a new ATM system — 4Flight (2017-2019). Suggestions for corrective measures: 1. Flexible rostering allowing better alignment between traffic demand and sector opening times, especially at weekends; 2. Flexible configurations opening, according to the traffic flows; 3. Improved ATFCM techniques; 4. Actions for route design and sectorisation, with focus at the interface with Barcelona ACC; 5. Flexible transition plan for the new ATM system, coordinated with Network Manager, to include appropriate mitigation measures. France (ACC Reims) Reasons for lack of capacity: Training and implementation of a new ATM system — 4Flight (2017-2019), traffic distribution with higher traffic demand on shortest routes, lack of predictability of traffic demand in certain sectors. Suggestions for corrective measures: 1. Actions for route design and sectorisation; 2. Flexible rostering allowing better alignment between traffic demand and sector opening times; 3. Flexible configurations opening, according to the traffic flows; 4. Improved ATFCM techniques; 5. Flexible transition plan for the new ATM system, coordinated with Network Manager, to include appropriate mitigation measures. The ATM system upgrades in France are required for long-term improvements and it is therefore suggested that France improves performance by better planning of phased implementation of the new system. B. Key performance area of cost-efficiency The following are suggestions for corrective measures in the key performance area of cost-efficiency that can be implemented in the short run, taking into account the interdependencies with the remaining key performance areas as well as essential system level investment capabilities. The suggestions are focused on three improvement considerations, namely the traffic forecast, rate of return on equity and interest rate on debt. France Suggestions for corrective measures: 1. Traffic: In July 2015, compared to the information provided in the initial performance plan, France already revised upwards the traffic planned over RP2 (by + 2,9 % on average), bringing the planned traffic forecast in line with the low-case Statfor February 2015 scenario. However, based on the actual 2015 traffic and the latest February 2016 forecast provided by Statfor, it is suggested that the planned traffic be further revised upwards to reflect the latest available information. 2. Interest rate on debt: France assumed an interest rate on debts of 2,7 % for its ANSP (DSNA) over RP2. However, the monetary conditions have significantly evolved. Currently, long-term ‘risk-free’ government bond interest rates for France are historically low and based on the European Central Bank data, the harmonised long-term rate is below 1 %. Moreover, DSNA is not a corporatised entity and its debt (and associated risk premium) can be more closely assimilated to the long-term government benchmark rate. It is therefore suggested that France uses a lower interest rate to compute DSNA cost of capital. Adjusting the planned traffic for 2018 and 2019 and capping the interest rate on debt, for example, at 1,5 % for the years 2018 and 2019 would result in an en route determined unit cost trend over the second reference period of – 2,2 % per year which is closer to the Union-wide trend (– 3,3 % per year) and an en route determined unit cost trend over the combined period of the first and the second reference period of – 1,1 % per year which is closer to the Union-wide target (– 1,7 % per year). Germany Suggestions for corrective measures: Traffic: In July 2015, compared to the information provided in the initial performance plan, Germany already revised upwards the traffic planned over RP2 (by + 2,7 % on average) bringing the planned traffic forecast in line with the low Statfor February 2015 scenario. However, based on actual 2015 traffic and the latest forecast provided by Statfor (February 2016), it is suggested that the planned traffic be further revised upwards to reflect the latest available information. Apart from this short-term measure, it is recognised that Germany has significantly reinvested in its ANSP for the second reference period. However, there is a risk of significant cost increases at the end of the second reference period and it is therefore suggested that Germany considers long-term measures to address the underlying cost base issues that would result, for example, in an en route determined unit cost trend over the combined period of the first and the second reference period of – 1,5 % per year which is closer to the Union-wide target (– 1,7 % per year). The Netherlands Suggestions for corrective measures: 1. Traffic: In July 2015, compared to the information provided in the initial performance plan, the Netherlands did not revise the traffic growth planned over RP2, which was based on the Statfor February 2015 low scenario. Based on the actual 2015 traffic and the latest forecast provided by Statfor (February 2016), it is suggested that the planned traffic be revised upwards to reflect the latest available information. 2. Interest rate on debt: The Netherlands assumed an interest rate on debts of 3,2 % for 2019 for its ANSP (LVNL). However, the monetary conditions have significantly evolved. Currently, long term interest rates for the Netherlands are historically low and, based on the European Central Bank data, the harmonised long-term rate is well below 1 %. It is therefore suggested that the Netherlands use a marginally lower interest rate to compute LVNL cost of capital. Adjusting the planned traffic for 2018 and 2019 and capping the interest rate on debt, for example, at 3,0 % for the year 2019 would result in an en route determined unit cost trend over the second reference period of – 2,5 % per year which is closer to the Union-wide trend (– 3,3 % per year) and an en route determined unit cost trend over the combined period of the first and the second reference period of – 1,5 % per year which is closer to the Union-wide target (– 1,7 % per year).