SES Performance targets and achievements Xavier FRON Head - PowerPoint PPT Presentation

SES Performance targets and achievements Xavier FRON Head Performance Review Unit 12 February 2013

Topics  SES Performance Scheme  Targets for RP1 (2012-14)  Performance achieved in 2012  Looking ahead SES Performance targets and achievements 2

SES Performance Scheme Regulation (EU) N°691/2010 (being updated) Performance targets  set for Reference periods  RP1: 2012-2014, RP2: 2015-2019, etc  on specified Key Performance Indicators (KPI)  For safety, environment, capacity & cost-efficiency  EU-wide targets adopted by EC  Binding National/FAB Performance Plans adopted by States  Including targets and incentives  Process to ensure consistency between EU and local targets Ensuring targets are met  Monitoring of performance  Corrective actions at national/FAB and EC initiative Independent Performance Review Body (PRB) assists the EC SES Performance targets and achievements 3

SES Performance scheme schedule 1 st Reference period (RP1) 1 st Reference period (RP1) RP2 RP2 Targets set Targets set 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 Nat./FAB Nat./FAB National/FAB National/FAB performance performance performance performance plans RP2 plans RP2 plans RP1 plans RP1 (States) (States) (States) (States) European European European European targets targets targets targets Consistency Consistency RP1 RP1 RP2 RP2 Consistency Consistency with with (EC/PRB) (EC/PRB) (EC/PRB) (EC/PRB) with European with European European European targets targets targets targets (EC/PRB) (EC/PRB) (EC/PRB) (EC/PRB) Monitoring SES Performance targets and achievements 4

Performance monitoring  Safety reporting through EASA  Data compiled from several sources  Network manager, States, ANSPs, airlines and airports (CODA), etc  On-line SES Performance dashboard  European view  Performance plan views (FAB/national)  Airport views  Annual reports  From States  From PRB  All available on PRB web site at www.eurocontrol.int SES Performance targets and achievements 5

Traffic Currently, high economic and air traffic volatility SES Performance targets and achievements 6

Environmental target for RP1  KPI: Horizontal route extension (Flight plan vs. great circle in %)  SES environmental target: -0.75% in 5 years  Environmental benefits  1.2 million tons CO 2 saved over RP1 vs. 2009 baseline  Carbon-neutral growth of aviation as far as ANS is concerned  Economic benefits  € 500M saved over RP1 vs. 2009 baseline (Flight time and fuel burn)  Network Manager has accountability for reaching the EU target % of horizontal en route extension Performance indices (100 in 2009) 5,0% 120 4,5% 115 110 4,0% -0.75% points 105 vs. 3,5% SU index 2009 100 Emissions index 95 3,0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 90 SU: Service units 85 Actual baseline EU-wide target 80 Current enhancement plans (-0.6% points vs. 2009) 2009 2010 2011 2012 2013 2014 SES Performance targets and achievements 7

Environment – Actual performance 2012 vs. target  Airspace design progressing broadly in line with target  Issues in airspace use (e.g. shortest available route not selected) being identified and addressed by Network manager SES Performance targets and achievements 8

Capacity – Actual performance 2012 vs. target  KPI: En-route ATFM delay per flight (lack of capacity)  Targets more challenging than ever achieved  Indicative target for 2012 met (in context of lower traffic) SES Performance targets and achievements 9

Cost-Efficiency target for RP1  EU target for RP1 Performance indices (100 in 2009)  53.92 € /SU in 2014 (15% below 2009 baseline) 120 115  Caps costs at nearly constant level for planned traffic 110  Performance plans slightly above EU target 105 SU index 100 DUR index  € 2.4 B savings over RP1 vs. 2009 baseline Cost index 95  Charging regime caps the revenue 90 85  No more cost recovery! 80 2009 2010 2011 2012 2013 2014 SES Performance targets and achievements 10

Risk sharing mechanism  Cost risk borne by the State Revenue vs traffic  Target sets a revenue cap  Incentive to reduce costs 6%  Margin retained by State/ANSP 4% Revenue vs plan 2%  Traffic risk shared 30/70 beyond dead band ( ± 2%), 0% within alert threshold ( ± 10%) -2%  Maximum exposure: ± 4.4% -4%  Not necessarily a loss -6% -10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10%  Lower traffic than planned in 2012 Traffic vs plan  RP1 starts with a stress test! SES Performance targets and achievements 11

Savings over RP1 (vs. 2009 baseline) Environment   1.2 million tons of CO 2  400.000 tons of fuel  € 500 M in flight time & fuel savings  Capacity  € 600 M in delay cost Cost-efficiency   € 2.4B in route charges Total savings over RP1 ~ 3.5 billion euro SES Performance targets and achievements 12

Looking ahead  Revision of Performance regulation  Safety targets  Extension to gate-to-gate (Local targets)  Adoption of revised regulation in progress  Target setting for RP2 (2015-19) has started  PRB proposals due by Sept. 2013  High ambitions from EC  RP2 coincides with start of SESAR deployment  Very challenging work  Impact on some € 70 B SES Performance targets and achievements 13

Interdependencies and trade-offs Estimated ANS-related economic costs to airspace users (gate-to-gate) 18 IFR flights (M) 9.8 10.1 9.5 16 Community 9.4 SAFETY ECONOMY ENVIRONMENT perspective 14 ATFM delays 1.9 1.5 1.2 2.2 ANS quality of 12 service related Flight inefficiencies User Service Quality Billion [€2010] costs Airspace User 3.9 3.7 3.5 10 3.7 (taxi-out, en-route, terminal) charges (time, fuel) perspective 8 Safety 1.5 1.4 1.5 1.5 ANS-related Terminal charges Air Navigation ANS Cost - 6 operational Service provider ANS-provision efficiency performance Perspective costs 4 6.8 6.9 6.9 6.7 En-route charges 2 Capacity 0 2008 2009 2010 2011 (P) * Note that terminal ANS provision En-route & airport ATFM delays (Capacity) costs only refer to 21 States ANS-related inefficiencies gate-to-gate (Environment) Terminal ANS provision costs* Source: PRC analysis En-route ANS provision costs  Safety standards prescribed by EASA  Military requirements  Total economic cost borne by airspace users: some € 14B p.a.  Trade-offs, e.g. delay vs. charges, delay vs. flight efficiency SES Performance targets and achievements 14

Conclusions  Performance is the SES success criterion  Major change under SES II  Enforceable performance targets, incentives  Significant performance improvements in first step (RP1)  Much remains to be done towards outstanding performance SES Performance targets and achievements 15