MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report 2010

Transcription

1 At the heart of a high performing cross-border airspace MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report 2010 EUROCONTROL

2 04 EUROCONTROL Maastricht profile 10 MCG Chairman s statement 12 Director General s statement Fast facts 14 Director s statement highlights Trend 2009/ 2010 Safety indicators Category A and B infringements (caused by MUAC) Financial indicators Total fixed-assets at year end ( 1 ) (Net book value) ( M) % Capital expenditure at year end ( M) % Total costs ( M) % Staff (remunerations) % Operating % Depreciation % Interest % Cost-efficiency indicators Total economic cost/flight-hour( ) ( 2 ) % Financial cost/flight-hour ( ) ( 3 ) % TABLE OF CONTENTS 18 Management report 19 Key results 28 Customers 32 People 36 Leading technology innovation 40 Business outlook 42 Financial accounts Cost/km controlled ( ) ( 4 ) % 46 Glossary of acronyms Productivity (composite flight-hour per air traffic controller-hour on duty) % Movements % Service units % Punctuality (% unimpeded flights) Average delay/flight (minutes) Number of employees (31 December) 98 % 96 % 97 % 99.7 % 99.7 % % ( 1 ) Total fixed assets including work in progress. ( 2 ) Total economic cost per flight-hour: key performance indicator used for ATM cost-effectiveness (ACE) benchmarking. It is the sum of ATM/CNS provision costs and ATFM delay costs per composite flight-hour. ( 3 ) Financial cost per flight-hour: ATM/CNS service provision cost per composite flight-hour. ( 4 ) Cost per km controlled: the ratio of the financial cost to the number of kilometres flown through the delegated airspace expressed in real terms (EUR 2005).

3 4 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report EUROCONTROL MAASTRICHT PROFILE Airspace consolidation across national borders Providing seamless air navigation services to the upper airspace (above 24,500 feet) of Belgium, North-West Germany, Luxembourg and the Netherlands, makes EUROCONTROL Maastricht (MUAC) a leader in air navigation service provision in the core area of Europe. MUAC continuously strives to deliver effective, cross-border air navigation services to a dynamic and rapidly changing air transport marketplace in the most efficient manner possible. The closest possible cooperation between civil and military air traffic has been facilitated by co-locating a Deutsche Flugsicherung (DFS) unit on its premises. This unit controls military operations over North-West Germany. In addition, although air navigation services for military aircraft flying in Belgium and the Netherlands are provided from the respective military control centres in both countries, there is an automatic exchange of flight plan and radar data between MUAC and the military partners at Belgium s Belga Radar Air Traffic Control Centre, Semmerzake and the Netherlands Military Air Traffic Control Centre, Nieuw Milligen. This helps to ensure that As a leading provider of air navigation services, EUROCONTROL Maastricht provides safe and cost-effective air traffic management to one of Europe s busiest airspace regions. It is Europe s first multinational, crossborder air navigation service provider. all parties have a clear and up-to-date picture of the air situation. The development and delivery of leading-edge infrastructure and technology solutions to ensure that its customers and stakeholders can benefit from the most advanced, efficient and sustainable capabilities is one of MUAC s flagship activities. MUAC has always been ahead of its time, and for almost 40 years has played a pivotal role in integrating European airspace on a functional basis, driven not by national boundaries, but by the operational requirements of international traffic flows. In doing so, it has built itself a reputation for excellent safety performance and traffic fluidity on top of outstanding economies of scale. MUAC is uniquely positioned to provide safe, efficient and sustainable air navigation services in a large airspace block, satisfying today s customer expectations and the growing demands for the future in a cost-effective manner. Mission and vision MUAC s mission is to provide safe, impartial, customeroriented and cost-effective air traffic services in the Four- State area. Its vision is to be the leading European air navigation service provider operating in a large Functional Airspace Block. Corporate governance EUROCONTROL is an international organisation established under the EUROCONTROL Convention of 13 December 1960, subsequently amended on 12 February MUAC is operated on behalf of Belgium, Germany, Luxembourg and the Netherlands by EUROCONTROL on the basis of the Agreement, relating to the Provision and Operation of Air Traffic Services and Facilities by EURO- CONTROL at the Maastricht Upper Area Control Centre (the Maastricht Agreement ), signed on 25 November The Maastricht Co-ordination Group was established to facilitate decision-making by determining a common position for the Four States in all matters relating to the operation of Air Traffic Services at MUAC. Day-to-day responsibility for operations has been delegated to the Director of MUAC by EUROCONTROL s Director General. Each of the Four Member States retains its own regulatory competence. Regulation In addition to the international regulatory regime, air navigation service provision at MUAC is subject to four national regulatory regimes, each specifically defining applicable rules and regulations. Over recent years the regulation and oversight of MUAC have been exercised in a coordinated manner by the Four States, supported by EUROCONTROL. Audit Board eurocontrol Permanent commission Ministers of Transport and Defence Provisional Council Directors General of Civil Aviation and their military counterparts Eurocontrol Agency Director General Maastricht Upper Area Control Centre Director MUAC Maastricht Co-ordination Group Senior Officials from the Four States

4 6 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report maastricht Co-ordination group Belgium Supervision and oversight Certificates Maurits DE CLIPPEL Maj. Dirk DE SMEDT Federal Public Service for Mobility and Transport Belgian Armed Forces Air Component Further to the adoption of the European Commission s Single European Sky framework regulation, each of the Four States has established National Supervisory Authorities (NSAs). In Belgium it is the Belgian Supervisory Authority for Air Navigation Services (BSA-ANS); in Germany, the Bundesaufsichtsamt für Flugsicherung (BAF); in Luxembourg, the Civil Aviation Authority (CAA Luxembourg) and in the Netherlands, the Transport and Water Management Inspectorate (IVW-CAA-NL) of the Ministry of Infrastructure and the Environment. The Four States NSAs have created two bodies to support the oversight of MUAC: the NSA Committee, representing all four NSAs and having a coordination and advisory role for the relevant national decision-making authorities on oversight issues; and the Common Supervisory Team, composed of staff from the cooperating NSAs, which has an executive role in performing document examinations, audits and inspections. In line with Single European Sky legislation, MUAC holds the certificate for the provision of air navigation services in the European Community. The certificate was granted in 2006 by the Netherlands Transport and Water Management Inspectorate and Directorate General for Civil Aviation and Freight Transport. MUAC also holds ISO 9001:2008 certification for the provision of air traffic services, the procurement and maintenance of technical systems and the provision of air traffic control training. Jan COTTYN Patrick VANHEYSTE Germany Dirk NITSCHKE Prof. Dr. Nikolaus HERRMANN Col. Hans-Dieter POTH Lt. Col. Ulrich GRIEWEL Frank BRENNER Luxembourg Claude LUJA Romain KOHL Belgocontrol Federal Public Service for Mobility and Transport Representing the Four-State NSA Committee Federal Ministry for Transport, Building and Urban Development Director of the National Supervisory Authority Federal Ministry of Defence Federal Ministry of Defence DFS Deutsche Flugsicherung Ministry of Transport, Directorate of Civil Aviation Chairman of the Maastricht Co-ordination Group during 2010 Ministry of Transport, Directorate of Civil Aviation Controller licensing Albert ZIGRAND Ender ULCUN Ministry of Transport, Directorate of Civil Aviation ANA Luxembourg The Belgian Civil Aviation Authority is since March 2010 the licence issuing authority for air traffic controllers and student air traffic controllers at MUAC. MUAC controllers hold a Belgian ATC licence to deliver services in Belgian, Dutch, German and Luxembourg airspace. The licences are issued in accordance with the Belgian Royal Decree, dated 9 May 2008, regulating air traffic controller licences. Netherlands Jacqueline PRINS Eric DE VRIES Lt. Col. John VAN BOMMEL Andries VERBURGT Ministry of Infrastructure and the Environment Ministry of Infrastructure and the Environment Royal Netherlands Air Force Luchtverkeersleiding Nederland, LVNL

5 8 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report Management Director General of EUROCONTROL David MCMILLAN MUAC Executive Management Karl-Heinz KLOOS Director Harald MATTHES Deputy Director, Operations Marc VANKEIRSBILCK Deputy Director, Engineering Herman BARET Head of ATM-CNS Strategy and Development Division Onno REITSMA Head of Strategic Development and Management Division

6 10 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report MCG CHAIRMAN S STATEMENT It is once again with pleasure that the Maastricht Coordination Group (MCG) is able to acknowledge MUAC as one of the market-leading air navigation service providers in Europe. Without doubt, its performance during 2010 bears witness to its customer-focused service provision. Thanks to the consistent use of strong business bestpractices throughout all its areas of activity, MUAC was able to maintain its excellent safety record, alongside an outstanding operational performance in particular with regards to punctuality as well as further consolidate key technological and operational initiatives. In spite of the enduring challenges and marginal traffic growth brought on by the economic crisis from which the world is gradually emerging, and a raft of other disruptive events such as the Icelandic volcano eruption in April, adverse weather conditions and repeated industrial action across Europe, MUAC managed to maintain the lowest en-route costs in the core area of Europe. However, these unfavourable market conditions meant that the increase in costs was higher than the increase in traffic. This resulted in a 1% increase in the total economic cost per flighthour. That said, annual route charges generated in 2010 amounted to 402 million against an overall yearly cost of 139 million. The entry into force of the Single European Sky s second legislative package calls more than ever before for increased cooperation among air navigation service providers if the required performance targets identified at European level are to be achieved. With the signature of the Functional Airspace Block Europe Central (FABEC) Treaty by Belgium, France, Germany, Luxembourg, the Netherlands and Switzerland, the end of the year 2010 was marked by an important milestone which will contribute to the development of higher levels of cooperation and interoperability between civil and military air navigation service providers in the area, and pave the way for the Single European Sky performance scheme. Following the signature of the Treaty, the FABEC States have since launched the requisite national ratification process. Consequently, the deadline of 4 December 2012, fixed by the European Commission to establish FABEC, will therefore be met. In 2010, the FABEC National Supervisory Authorities (NSAs) prepared the groundwork for the signature of a Memorandum of Cooperation which took place in early This document lays the foundations for effective oversight of the FABEC air navigation service providers, and will, in particular, facilitate the implementation of cross-border airspace projects, the common FABEC safety case, auditing of services, licensing issues and the performance management system. As such, it underpins the essential principles of the Single European Sky. Building further on the principles of the Single European Sky, most notably its multinational, cross-border concept and constantly evolving technology, MUAC will not only be able to sustain the benchmark performance levels consistently achieved over the past years, it will also remain well placed to play a leading role at the heart of a highperforming, cross-border European airspace. The MCG therefore looks forward with optimism and well-founded confidence to continued growth and high performance in the course of this year and the years ahead. On behalf of the entire Maastricht Co-ordination Group, I would like to thank the MUAC staff, the executive management team and the Director General of EUROCON- TROL for this good set of results achieved over the past year in what can only be described as a very challenging economic and operating environment. Claude Luja Chairman of the Maastricht Co-ordination Group 2010

7 12 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report director general S STATEMENT European aviation faced some serious issues in 2010 and MUAC, like all the aviation actors in Europe, was negatively affected by the difficulties that prevailed across the continent. The volcanic ash cloud crisis not only caused major problems for millions of passengers, it also caused a significant loss of revenue, which impacted the overall cost-efficiency of MUAC and its partners in the Four States. Moreover, the spate of industrial action and the severe weather conditions also contributed to making 2010 a very challenging year. Due to several external - as well as some structural - factors, delays across the European network exceeded the target levels set for We are acutely aware that, with the return to higher air traffic growth rates, delays in Europe are likely to remain an issue in the near-future. That said, I am pleased to note MUAC s excellent performance over the reporting period. This performance is particularly relevant as we approach the beginning of the first reporting period of the Single European Sky performance scheme. This will impose tough targets for all of the Functional Airspace Block Europe Central (FABEC) s air navigation service providers. MUAC is prepared for this and I am confident that we will play our part in improving the performance, not just of FABEC, but of the entire network. Indeed, I believe that European performance targets are vital for driving much-needed air traffic management improvements. In order to meet these ambitious objectives, FABEC, as an essential constituent of the Single European Sky, is expected to deliver a consolidated approach to air traffic management. Shortening flight route extension remains a major concern in European airspace. Accordingly, the launch of the Free Route Airspace Maastricht, which complements several of its FABEC sister projects, is a major stride forward. We look forward to the next phases of the programme so that we can all reap the full benefits of direct routes and move closer to user-preferred trajectories. With firm plans in place for its participation in the validation of initial four-dimensional (i4d) trajectory management, MUAC will make an essential contribution to the deployment of the new technologies and procedures being developed under the aegis of the SESAR Joint Undertaking. I am proud to acknowledge the provision of MUAC s technology to assist with the validation - under real operational conditions - of new approaches to air traffic management. This vital contribution will ensure that the deployment of these innovations, across the entire network, will be undertaken on the basis of robust operational facts. I therefore look forward to more of this fruitful cooperation in the future. Once again it gives me pleasure to acknowledge that with its good performance, its cross-border multinational nature and the different strategic programmes that it has deployed and is in the process of deploying, MUAC is well placed to play a vital role in the development of the future interoperable network across Europe and beyond. Against a backdrop of sometimes unforeseen and often severe setbacks the staff and management at MUAC have continued to produce good results over a challenging period. I would like to take this opportunity to thank them all for their hard work, dedication, professionalism and perseverance. David McMillan Director General of EUROCONTROL

8 14 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report director STATEMENT In spite of challenging macro-economic conditions and a complex operating environment, which gave rise to marginal traffic growth, MUAC s overall results for the 2010 business cycle were encouraging. Safety trends were stable, with two incidents recorded over the reporting period. The continuous enhancement of these high levels of safety remains our top priority, especially with air traffic growth expected to strengthen in the coming years. I have every confidence that this will be possible. A robust safety culture is deeply embedded among our employees. Moreover, the cutting-edge technology employed on the daily operations together with a dynamic safety management system, which incorporates lessons learned from a number of human factors projects, will also contribute to achieving this goal. Service quality was maintained with delays at unprecedented low levels. However, adverse economic and operating conditions meant that traffic volumes were unable to offset the trend in cost increases. For 2010, the cost of services went up by 3.1% on 2009 while the increase in traffic was limited to a mere 1.3% over the same 12 months. This resulted in a 1.5% increase in the financial cost per flight-hour. In order to cope with the lower traffic and mitigate the increase in costs, more aggressive costeffectiveness initiatives were launched. Recruitment and investment plans were reviewed and updated and new initiatives were assessed for their potential cost-benefit ratios. Operating costs were further scrutinised in an attempt to reduce the overall financial burden over the reporting period. Also, as part of the cost-containment programme, we embarked on a co-operation agreement with Austro Control for the secondment of qualified controllers. This cost containment programme ultimately resulted in total savings of 10.2 million. At the close of the reporting period, it turned out that optimal punctuality and the outcome of the cost-containment initiatives eventually helped to hold back the increase in our primary business indicator - the total economic cost per composite flighthour - to 1.1% on the previous year, equating to 264. I am proud to say that these results place us, once again, in a market-leading position in the core European area. Over the reporting period, we continued to make substantial headway in our environmental and efficiency objectives, notably as a consequence of a number of airspace re-design initiatives undertaken as part of the Functional Airspace Block Europe Central (FABEC) and our Free Route Airspace Maastricht programme. We also made significant progress on civil and military cooperation initiatives which are expected to support greater synergies and hence better performance for both civil and military service providers. In addition, various technical upgrades in our infrastructure contributed or will contribute to the maintenance of high levels of safety, environmental performance, capacity and cost-effectiveness. These developments will play an integral part in our contribution to the Single European Sky performance scheme and the FABEC performance plan for the first reporting period, which is due to start in In March 2010, following an agreement between the Directors General of Civil Aviation in the Four States, the Belgian Civil Aviation Authority became the issuing authority for licences for air traffic controllers and student air traffic controllers at MUAC. In line with European legislation, our controllers now hold Belgian ATC licences for the delivery of services in the airspace of Belgium, Germany, Luxembourg and the Netherlands. This development, piloted by the Four States, was another key milestone in the harmonisation of licensing requirements in the spirit of the Single European Sky, and yet another example of effective multi-state cooperation in the region. It further strengthens our position as a precursor of European air traffic management integration and an experienced partner in FABEC. Throughout the year, a healthy and productive working relationship with staff representatives continued to deliver positive results. Notably, we progressed further with the implementation of new working conditions for operational staff, meeting both health and sustainable business performance objectives. From an organisational perspective, we concentrated on a range of internal restructuring initiatives which have helped us map our activities more closely to evolving business developments. The imminent Single European Sky performance scheme will inevitably shape our processes and business model over the next few operating periods. However, as in past years, the ongoing focus for MUAC employees will remain on delivering the highest possible levels of performance at the optimum value for money. I would like to thank everybody involved in achieving these encouraging results for their unfailing commitment. I am in no doubt that the hard work and dedication of the MUAC staff went a long way towards minimising the effects of the economic downturn on our customers and stakeholders, and played a significant part in the industry s recovery. Karl-Heinz Kloos Director, MUAC

9 16 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report highlights emerging from the global crisis January At the request of the Dutch military authorities, air traffic services to military traffic transiting the Amsterdam FIR above FL245 are provided by MUAC during nights and weekends. March The AMRUFRA airspace re-design project is implemented in collaboration with Dutch and German civil and military FABEC partners. AMRUFRA significantly contributed to increased network performance and capacity for flights to and from Amsterdam and Frankfurt airports by separating existing routes and offering new ones. The Belgian National Supervisory Authority takes over the responsibility for MUAC controller licensing. MUAC and the Institute of Air Navigation Services in Luxembourg are approved by the Belgian authorities as training organisations for Unit and Initial training. April The Icelandic volcano eruption creates unprecedented disruptions in European and global air transport. As a result of the traffic restrictions put in place, MUAC loses 1.5% of its annual traffic, equating to 21,000 flights. A new data link front-end processor is successfully implemented. It is the result of a common procurement by MUAC and DFS, achieving economies of scale in ATM equipment procurement. June For the seventh consecutive year, the ATM Cost-Effectiveness (ACE) Benchmarking Report confirms MUAC as one of the best-performing of Europe s 36 air navigation service providers, with the highest controller productivity. The basic training cooperation agreement is signed by the FABEC partners. It covers content and quality and includes a common basic course that supports the flexible allocation of trainees across the region. July The Mode S warning toolset is further enhanced to alert controllers whenever a pilot selects an inappropriate flight level. This capability aims to detect potential infringements at an earlier stage. The new flight efficiency analysis framework is developed, involving regular monitoring of route efficiency ratios in the MUAC airspace. The indicators allow aircraft operators to gain a better overview of the efficiency of their flights on different routes. September Published traffic monitoring values are increased by 10% on average. By freeing latent capacity, this brings about a significant capacity increase for the pre-tactical planning process and supports a more effective management of the network. October MUAC is nominated as a validation site providing its Industry-Based-Platform for operational shadow-mode and live trials in the context of SESAR - Europe s air traffic management modernisation programme. 11 MUAC air traffic controllers are temporarily seconded to Austro Control in Vienna. This measure aims to alleviate a temporary workforce surplus at MUAC, facilitate Austro Control s transition to a new ATC system by providing expertise and to provide additional resources to cope with one of Europe s ATM bottlenecks, the South-East axis. November The plenary customer consultation meeting welcomes representatives from the major customer airlines and airline associations. They acknowledge and support the scope of the cost-containment programme. The FABEC Night Route Network delivers tangible results, with 115 new direct night routes implemented across the entire FABEC area. December Safety trends are stable with 2 incidents recorded over the reporting period. The year 2010 is characterised by outstanding punctuality % of flights in the MUAC airspace are unimpeded. The cost-containment programme, launched as a followup to the cost-efficiency measures introduced during the previous two reporting periods, results in total savings of 10.2 million for the 2010 business cycle. The FABEC Treaty is signed in Brussels by high-level civil and military officials of Belgium, France, Germany, Luxembourg, the Netherlands and Switzerland.

10 18 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report Traffic trends After a slow start and the effects of the Icelandic volcano eruption, recovery in demand became particularly apparent during the key summer months (May-October), with an average growth of close to 5% above 2009 rates. However these exceptional circumstances, combined with severe weather conditions in the winter and a spate of industrial action in several countries over the year, ultimately resulted in a slight recovery in yearly traffic rates of +1.3%, in advance of the more robust growth levels of management report Cost-efficiency Yes 264 < 289 Total economic cost/flight-hour Key results vs. performance targets at a glance Target met 2010 result 2010 target ( Business Plan) Safety Number of Category A and B infringements Yes 2 Yearly ceiling: 5 Remark: Our absolute commitment to safety is to eliminate all separation infringements throughout the entire period. The ceiling for the yearly number of Category A and B infringements was 5. Whilst we are clearly dealing with a very small number of risk-bearing incidents, all reasonable steps are taken to bring about further positive improvements at the earliest opportunity. Environment Not applicable Not applicable No target identified in 2010 Capacity/punctuality Average delay/flight Yes 0.05 min 0.2 min Key Results Returning to growth After steady traffic growth for several consecutive years, the extraordinary downturn brought on by the economic crisis of 2008/09 pulled our yearly traffic numbers slightly below 2006 levels, to 1,447,872 flights. The daily peak was recorded on 2 July with 4,842 flights, and the average traffic volume, during the summer season, reached 4,500 flights per day. Over the year, the Brussels UIR recorded an upturn of 1.9%. Similarly, the Amsterdam FIR enjoyed a 1.9% increase while the Hannover UIR saw stable traffic. As the last remnants of the global recession started to fade into the distance, traffic growth resumed. However, 2010 was a turbulent year beset with challenges. Despite that, service quality was maintained and delays were constrained almost to their limits with 99.7% of flights unimpeded. Punctuality Notwithstanding the turbulent events of 2010, delay was reduced to groundbreaking levels and we remained bestin-class in terms of performance. The year was characterised by an unsurpassed punctuality rate of 99.7% of unimpeded flights. Furthermore, an average delay per flight of 0.05 minutes was also achieved. Air traffic controller productivity In spite of a dynamic response (for example through reduced sector opening times or the temporary secondment of controllers to Vienna ACC) to the marginal overstaffing of control staff compared to lower-than-anticipated air traffic growth, controller productivity decreased slightly (from 1.82 composite flight-hour per air traffic controllerhour on duty in 2009 to 1.79 in 2010). Nevertheless, MUAC controller productivity remains best in class, when compared with the European average.

11 20 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report Minutes Delay Movements 2,500,000 1,500,000 2,000,000 1,500,000 2,490, , , , , , , ,107 74,211 73,136 1,400,000 1,300,000 Striving for peak performance 1,000,000 1,200,000 Challenging macro-economic conditions 500,000 1,197, 512 1,182,601 1,243,794 1,296,979 1,386,085 1,465,963 1,540,708 1,534,825 1,429,271 1,447, ,100,000 Delivering first-class services to our customers at the lowest possible cost remains one of our key business objectives. That is why we have selected the total economic cost per flight-hour controlled as the primary indicator of our overall performance, as it includes both the cost of delay and the financial cost of ATM/CNS service provision. Traffic and delay trends saw a return to growth with an increase of 1.3% in yearly traffic. Since 2001, overall traffic has grown by more than 20%, whilst delays remained minimal with 99.7% of flights unimpeded. Service units 2010 Brussels UIR 25.% Amsterdam FIR 29.5% hannover UIR 45% Breakdown of service units in the Amsterdam FIR, Brussels UIR and Hannover UIR respectively. Service units increased by 1.4 % over Macro-economic conditions called for more aggressive measures to contain the overall costs of air navigation service provision. While costs increased by 4.2 million (+3.1%) in 2010, we managed to provide high quality services at low levels of delay for the second consecutive year. This resulted in a total economic cost per flight-hour of a 1.1% increase on the previous year. Despite the disruptive effect of external factors on traffic demand, MUAC was operated at a total economic cost per flight-hour of up by 1.1% compared to It should be noted however that without these external factors, this indicator would have actually gone down. To cope with the fact that traffic growth stayed below planned levels and the increase in costs of 6.7 million due to unforeseen statutory salary adjustment mechanisms, further cost-effectiveness initiatives were launched. Recruitment and investment plans were reviewed and updated and new initiatives were assessed on their potential cost-benefit ratios. Operating costs were further scrutinised in an attempt to reduce the overall financial burden over the reporting period. As part of the costcontainment programme, we embarked on a co-operation agreement with Austro Control for the secondment of qualified controllers. This alone is expected to generate revenues totalling some 4.9 million over the period The scope of the cost effectiveness initiatives during 2010 are assessed at 10.2 million. The success of these measures resulted in an actual cost for service provision of million against a planned million an increase of 3.1% on 2009 while the increase in traffic was limited to 1.3% over the 12 months. This resulted in a 1.5% increase in the financial cost per flight-hour. However, with delays at unprecedented low levels of 0.05 minutes per flight, we were able to contain the increase in the economic cost per flight-hour. From 2003 to the end of 2008, we successfully met the EU- ROCONTROL Provisional Council s long-term notional target of a 3% annual reduction on average in the real cost per kilometre controlled. Due to macro-economic conditions beyond our control, this target could not be met in 2009 and Although comprehensive mitigating strategies through cost efficiency initiatives were implemented across the board, our ability to counter the effects of the dramatic fall in traffic demand was constrained by fixed expenses.

12 22 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report n Cost for delay n Financial cost n Total economic cost Total economic cost per flight-hour ( ) Trend From 2001 to 2010, the total economic cost per flight-hour controlled went down by 54%, while traffic increased by more than 20% and delays went down by 97%. The total economic cost per flight-hour controlled is a standard key performance indicator used in the ATM Cost-Effectiveness (ACE) benchmarking reports, produced by the Performance Review Commission. It is the sum of ATM/CNS costs (or financial cost) and ATFM delay costs per composite flight-hour Trend 2009/2010 Total costs ( M) % Staff (remunerations) % Operating % Depreciation % Interest % 0, Gat cost-base (M ) Staff costs increased by 5.7% in 2010, mainly driven by statutory salary adjustments (1) European average n Cost/KM European average n Cost/KM(EUR2005) n PC Target 12 % ACE report reconfirms our status as a top performer, with controller productivity once again the highest in Europe and support costs among the lowest For the seventh consecutive year, the ATM Cost-Effectiveness (ACE) 2008 benchmarking report, confirmed our ranking among the top performing air navigation service providers in Europe. Our high levels of performance are predominantly driven by high air traffic controller productivity which is supported by the most advanced technology available. Moreover, the ACE 2008 report, published in June 2010, confirms that our support costs per flighthour are among the lowest in Europe. This cost-effective performance and ranking will be reconfirmed in the ACE 2009 benchmarking report and the final results for 2010, listed previously Cost per kilometre controlled ( ) Trend (eur 2005) With the sharp drop in traffic in 2009 and the marginal growth of 2010, the long-term target, set by the EUROCONTROL Provisional Council, could not be met in The cost of service provision in 2010, however, is still 12% below that of (1) The figure relating to the 2010 European average will be available in june 2010.

13 24 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report Safety - our top priority During 2010, not a single serious incident took place in our airspace. Furthermore, the number of major incidents was held at two for another year. With air traffic growth predicted to strengthen in 2011, the continuous enhancement of safety standards is our unrelenting commitment. Occurrence reporting Having brought down the number of major incidents reported in our airspace to two in 2009, we managed to keep the number of infringements down at this low level for Our objective however is to work even harder to bring this figure down further. Therefore, we continue to look for ways to eliminate infringements by developing and implementing a comprehensive safety work programme designed to further improve safety trends, in line with our safety key performance target n A + B n Ceiling Separation infringements (severity A and B) attributable to Muac ( ) Severity A and B incidents refer to serious and major incidents respectively. Severity A (serious) refers to an incident where an aircraft proximity occurred in which there was a serious risk of collision. Severity B (major) denotes the occurrence of an aircraft proximity in which the safety of the aircraft may have been compromised. Embedding safety into system modernisation In 2010, the safety implications of three major changes to our air traffic management system (the introduction of the Central Night Supervisory Suite and the replacement of the front-end processors for both the air-ground and surveillance data) were developed in line with our internal safety assessment methodology. All associated safety deliverables accompanying these projects were delivered to and accepted by the National Supervisory Authorities representing the Four States. In addition, a restructuring of the airspace and traffic streams to accommodate future traffic needs between Amsterdam, Ruhr and Frankfurt (AMRUFRA) was introduced in full cooperation with our FABEC partners and overseen by the six States National Supervisory Authorities. New technology and programmes for improved safety During the reporting period we instigated and piloted a methodology - the EURocontrol Operational Safety Survey (EUROSS) in order to enhance the monitoring of operational best practices. This process enables us to measure and identify the controller behaviours which support safety. During 2010, we continued to roll out the scheme as an addition to our safety management system to help us to identify more clearly where improvements can be made. A self-perpetuating safety culture Safety management training courses were delivered throughout 2010 as part of our continued strategy to embed a dynamic safety culture at all levels of the organisation. In addition to this training, and as a follow up to the independent survey of our safety culture, which was undertaken in 2009, an action plan to help us achieve a self-perpetuating safety culture was drawn up. We are now implementing those necessary activities which will further strengthen our safety culture.

14 26 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report objective of the trial is to improve overall operational efficiency, in terms of fuel savings, lower emissions and controller workload. The trial will exploit the added-value of a pre-sequenced arrival stream starting in the upper airspace to allow for more continuous descent approaches from the top of the descent. Environment Striving for sustainable infrastructure The political objective of stabilising carbon emissions and gradually moving away from fossil fuel has translated, in many countries, into initiatives to incentivise emissions cuts through practical economic measures. In addition, aircraft manufacturers and operators have been deploying considerable efforts to improve engine efficiency and the use of bio fuels. For our part, we aim to manage our response to climate change by considering both business needs and sustainability objectives. Consequently, significant developments in air traffic and infrastructure management contributed to the containment of our contribution to the industry s carbon footprint during Flight efficiency presses ahead As a consequence of the aviation industry joining the EU Emissions Trading Scheme in 2012, air traffic management is now moving forward at a faster pace with a range of flight efficiency programmes. A number of key projects within FABEC (in particular the Night Route Network, City Pairs and AMRUFRA) together with the recently launched Free Route Airspace Maastricht have already delivered measurable benefits. These initiatives have, for example, resulted in better flight planning and route extension reductions (as reported in the Customers chapter). At the same time, the direct routeing practice, which has already been employed by MUAC controllers for several decades, is an important source of flight efficiency gains during the en-route phase of flight. Flight efficiency analysis framework The need for an accurate measurement of flight efficiency gains in MUAC airspace has led to the development of a new flight efficiency analysis framework; one which targets the measurement of flight efficiency across one specific airspace, and can serve as a key performance indicator for an ATC service provider. This framework comprises a set of two route efficiency ratios (the route efficiency in approaching destination, RE- DES, and the route efficiency in straightness of trajectory, RESTR) calculated for each flight through MUAC airspace and its corresponding flight plan. The first ratio measures the overall efficiency of an aircraft s approach to its point of destination, while the second is restricted to measuring the straightness of a flight track or its particular segment. The advantages of using this set of ratios are twofold. First, they provide an accurate indication of the horizontal flight efficiency achieved in a specific airspace and the gains achieved by the air traffic controllers. Secondly, they make it possible to identify any inefficiencies such as problem zones where efficiency losses often occur - and hence to identify the causes, relating, for example, to States and FAB cross-border issues, TMAs, closed airspace, as well as extreme weather conditions or natural disasters. Furthermore, the simplicity of this twin indicator approach is coupled with its consistency and robustness as it allows for automated processing of large flight data sets. Starting from July 2010, the route efficiency ratios have been routinely monitored. These indicators have also provided a valuable source of information for our customer reports, allowing airlines to gain a better overview on the efficiency of their flights on different routes, and so to progress with the improvement of their flight planning and realisation of their targets in fuel saving and emissions reduction. AIRE II project AIRE (Atlantic Interoperability Initiative to Reduce Emissions) is an environmental initiative, which brings together the main aviation players from both sides of the Atlantic. The objective is to enhance operational procedures to reduce emissions. Under the aegis of the SESAR Joint Undertaking, and as part of the AIRE II Project, LVNL, with the support of KLM and NLR and in cooperation with MUAC, has undertaken to demonstrate a system innovation during night-time operations to enable inbound traffic to fly a continuous descent approach into Schiphol Airport. The For several years we have been taking a close look at steps we could take throughout the organisation to operate more efficiently, waste less and reduce our environmental footprint - not only in our own businesses, but throughout our supply chain as well. In accordance with environmental legislation in force in the Netherlands, the local authorities are provided with a yearly evaluation of our energy consumption, which also enables us to closely monitor trends in this area. Over the past year, we estimated that, as a minimum, a reduction of close to 15,000 m3 of natural gas, 18,000 litres of diesel and 74 tonnes of CO2 emissions could be achieved, mainly via the replacement of old boilers and the installation of five modern diesel generators. Additional energy savings were generated by adding/replacing insulation on the roof. Moreover, the installation of cooling alleys in the equipment rooms is currently ongoing. Upon completion this activity is expected to generate savings in the order of 600 MWh of electricity and 900 tons of CO2 per year when compared to a more conventional equipment room. Promoting teleworking and teleconferencing In parallel to infrastructure improvements, we have put in place a business travel management policy where we take a critical look at non-essential travel. To support this objective, a modern teleconferencing system is available for our staff to avoid travelling when issues can easily be dealt with via a teleconference. Finally, some 10% of our employees whose tasks allow it, are regularly teleworking from home. When all these initiatives are added up they also contribute substantially to reducing our carbon footprint. Raising awareness In March 2010, as part of our environmental awareness policy, our employees were invited to participate in the WWF-sponsored Earth Hour against climate change. By simply turning out all non-essential lighting for one hour in our facilities, we joined hundreds of millions of concerned citizens and corporations across the world in calling for action against global warming. By promoting this event among our employees and in the local community we undertook to encourage individual responsibility towards greater global sustainability.

15 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report customers Interoperability and close collaboration with our civil and military partners, specifically in airspace design, management and use, are key assets in securing the capacity needed for the sustained safe and efficient accommodation of higher traffic volumes. Regular co-ordination initiatives are undertaken with our partners within and outside FABEC - in order to constantly optimise the handling of traffic. Reducing fuel burn by optimising airspace usage Functional Airspace Block Europe Central - FABEC Significant focus has been put on initiatives to improve airspace design, network management and to reduce flight-route extension. In 2010, airspace redesign and organisational work within the different FABEC task forces delivered improvements to network performance. One of the most significant developments in the core area of Europe is the introduction of a Night Route Network in the FABEC area - the busiest of Europe s nine functional airspace blocks. By the end of 2010, some 115 new routes were implemented as part of the programme, shortening total flight distance by 1.5 million km per year and resulting in savings of 4,800 tonnes of kerosene and 16,000 tonnes of CO2. Some 40 new cross-border direct night routes were implemented in our airspace as part of the FABEC Night Route Network and the EUROCONTROL Flight Efficiency Plan. This development was complemented, in early 2011, with the first phase of the Free Route Airspace Maastricht programme. Moreover, during the year, we contributed to the development of improved routeings for the fifty most penalised city-pairs within FABEC. We also helped to identify enhancements in the context of the FABEC Project West, aimed at rationalising the airspace between the FABEC area and the south east of the UK (Dover area) which is one of the most congested air traffic areas in Europe. In addition, we participated in the required definition of the ATS route modifications as part of the CBA Land Project - a new cross-border military area to be located in Germany and the Netherlands. The AMRUFRA project (AMsterdam-RUhr-FRAnkfurt), implemented in March 2010 in collaboration with our Dutch and German civil and military FABEC partners, significantly contributed to increased network performance and capacity for flights to and from Amsterdam and Frankfurt airports by separating existing routes and offering new ones. Free Route Airspace Maastricht (FRAM) FRAM complements the FABEC Night Route Network and provides an initial operational validation for conceptual elements of the SESAR (Single European Sky ATM Research) programme s Target Concept. FRAM is, therefore, a first step towards the implementation of the aircraft operators preferred business trajectories, which will enable pilots to choose their entry and exit points in a given airspace in order to fly their preferred routes. Most of the work undertaken in 2010 concentrated on the implementation of the first phase of the programme, which took place in March This successfully introduced 142 new direct routes, on top of the 40 that had already been deployed in MUAC airspace as part of the FABEC Night Route Network. The use of direct routes in the first phase of the FRAM deployment (during the night and at weekends) is expected to reduce flight distance by 1.16 million km a year, resulting in reductions of some 3,700 tonnes of fuel, 12,000 tonnes of CO2 and 37 tonnes of NOX when compared with the fixed route network. In order for the programme to achieve its maximum benefits, the implementation of FRAM has been closely coordinated with similar initiatives in the area. Furthermore, DFS Karlsruhe UAC (Germany), NATS (UK), Naviair (Denmark) and LFV (Sweden) are expected to link their initiatives with the MUAC FRAM programme in the near future.

16 30 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report More efficient airspace beyond FABEC borders Under the aegis of the Route Network Development Sub-Group (RNDSG), we participated in the North Sea Regional Focus Group meetings with DFS (Germany), LVNL (the Netherlands) and NATS (UK) alongside the relevant aircraft operators to address specific issues aimed at improving traffic handling in the North Sea area. One of the major improvements resulting from this activity was the introduction - in May of a new bi-directional and shorter route between DHE VOR (Helgoland) in the Hannover UIR and CUTEL in the Scottish UIR, through the Amsterdam FIR and the Copenhagen UIR. Civil and military cooperation At the request of the French Direction des services de la navigation aérienne (DSNA) and Direction de la circulation aérienne militaire (DIRCAM), we participated in the trial of a new Temporary Segregated Area, LF-TSA-200, to replace the existing LF-TSA-20. This investigation is anticipated to be finished in the second quarter of 2011 and lead to the eventual replacement of the LF-TSA-20 with the new LF- TSA-200. Tactical level 3 coordination between MUAC controllers and French military centres is facilitated through the Civil- Military ATM Co-ordination Tool (CIMACT). In the course of 2010, we collaborated with French military units with a view to replacing obsolescent hard- and software elements, which will take place in the second quarter of Also, in cooperation with the DFS Bremen Area Control Centre (ACC) and the local DFS CCUM, a contingency agreement which will allow Bremen ACC to use MUAC as an aiding unit in the event of a catastrophic failure is in the process of being finalised. A reciprocal arrangement, whereby Bremen would provide partial contingency for MUAC, is currently under discussion. Considerable efforts are being invested by the military authorities in the Four States to develop and validate more flexible airspace planning and allocation procedures as well as tools to enhance the application of the Flexible Use of Airspace concept. During 2010, we continued to participate in tests of the LARA Tool, which supports a centralised repository of airspace management (ASM) data. One of our key objectives is to provide our partners with adequate system support for the integration of dynamic airspace status information. Consequently, the installation of the LARA Tool at Belgocontrol, MUAC and LVNL as well as at Belgian, Dutch and French military sites is under consideration. Finally, since January 2010, and at the request of the Dutch military authorities, air traffic services to military traffic transiting the Amsterdam FIR above FL245 are now provided by MUAC during nights and weekends (when no military-specific missions are conducted). Accordingly, coordination procedures for transferring flights to/from the UK and Germany were established with the relevant military partners. In 2011, air traffic services for this traffic below FL245 are planned to be provided by LVNL. This will require the establishment of the necessary coordination procedures with the LVNL Amsterdam Area Control Centre and the adjacent military partners. Assessing the availability of airspace for civil and military use Enhanced levels of cooperation and coordination between civil and military aviation partners are important both to ensure safe and efficient air travel and to support military mission effectiveness. Therefore, the development of viable solutions is needed to support military Air Traffic Management/Communication, Navigation and Surveillance (ATM/CNS) performance and civil-military systems interoperability. Cooperation between our services and PRISMIL, the Pan-European Repository of Information Supporting Military Key Performance Indicators, in developing and implementing a performance measurement system was launched in The benefits of this closer relationship are numerous and are expected to result in increased flight efficiency and effectiveness, reduced environmental impact, increased flight predictability, improved overall MUAC performance and better traffic prediction and sector workload. A set of Civil Use of Released and Available Special Use Airspace (CURA) key performance indicators is being developed to assess the performance of the ATM system in terms of satisfying military requirements. It will also assess the efficiency of the combined use of civil and military airspace by both civil and military users. The aim of the CURA civil-military key performance indicators is to establish a methodology for quantitative measurement of the use of airspace structures for both civil and military activities. Airspace should no longer be designated as either military or civil but should be considered as a single continuum to be used flexibly on a day-to-day basis. Consequently, airspace design, planning and management become common civil and military activities. Transparent assessment of airspace use is an important way of increasing confidence between civil and military service providers and users. It is essential for improving airspace design and airspace management. Improving the pre-tactical planning process A vital MUAC objective is to support the EUROCONTROL Directorate Network Management (DNM) s continuous efforts to improve capacity management at the network level by reinforcing the pre-tactical planning process. This work is a joint effort between DNM, national and MUAC Flow Management Positions as well as aircraft operators. Among other activities, it is supported by daily teleconferences involving all the key players. Flight profile adherence trials In the autumn, we participated in the pan-european trial on flight profile adherence during which airlines were required to fly at the Requested Flight Level as reflected in the filed flight plan. Deviations from the flight plan can lead to substantial inefficiencies such as sub-optimal air traffic flow and capacity management, sector overloads, reduced network capacity and lower flight efficiency. The two pan-european flight level adherence days were developed following the conclusions of similar trials conducted in 2009 in the MUAC and Karlsruhe airspaces. Aimed at improving flight efficiency and optimising the utilisation of the available capacity by increasing the predictability of the entire network, this initiative demonstrates the possible benefits in capacity that can be achieved. We continue to give our support to this task force. Putting the customer first We constantly strive to maintain first-class relationships with our customers. Our close links help us to identify areas where we can improve the quality of our service on an ongoing and continuous basis. This also enables us to involve our customers at the very beginning of any service enhancement project or initiative. The plenary customer consultation meeting was held in November 2010, with representatives of Air Berlin, Air France, Brussels Airlines, Germanwings, KLM, Lufthansa CityLine, the Thomas Cook Group, the Wizz Air Group and IATA. The topics covered at the meeting ranged from the summer s operational performance, the implementation of the Free Route Airspace Maastricht, cost-effectiveness, our future work programme and FABEC developments. In anticipation of the imminent Emissions Trading Scheme, airline representatives have consistently called for a more accurate measurement of the impact of re-routeings. We fully understand the importance of this as any additional mile flown has a significant impact, not only on flight efficiency, but also in terms of emission costs. Our new flight efficiency analysis framework supports this requirement. Throughout the year, we held dedicated customer reporting meetings with a selection of our top 20 airline customers, where detailed customer analysis reports containing comprehensive analysis of delays and flight efficiency as well as suggestions for improvement were provided. We also participated in bilateral consultations, together with DFS and Lufthansa, on the potential for implementing improved approach profiles in line with the nominal top-of-descent procedures. In autumn 2010, our published traffic monitoring values were increased by 10% on average. This represented a significant capacity increase for the pre-tactical planning process both for aircraft operators and for the Directorate Network Management s network planning. The formal increase in traffic monitoring values presents clear benefits for the entire European network as more accurate traffic predictions will free latent capacity, reduce the probability of pre-tactical regulations and ultimately support more effective air traffic management across the entire network. Furthermore, with more capacity being made available for flight planning, airlines are becoming increasingly able to access more preferred flight profiles and routes and in doing so increase the potential for generating fuel and emissions savings. This increase was possible due to the experience and expertise acquired from the use of occupancy counts. Finally, in an effort to cope with the effects of the various industrial actions which took place over the past year we were able to allow several city pairs into the upper airspace, thus circumnavigating the areas affected by the strikes. This move was made possible thanks to the flexibility of our flight data processing system and tactical capacity management techniques.

17 32 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report People The economic crisis has had a significant effect on recruitment, particularly with the intake planning for controllers. We have therefore implemented a number of targeted strategies in an effort to address temporary marginal overstaffing whilst keeping sufficient flexibility to react swiftly to traffic growth. Meanwhile, training synergies within FABEC gained greater momentum. FABEC Training for the future Building on the advances achieved in 2009, the Functional Airspace Block Europe Central (FABEC) partners agreed to cooperate on basic controller training. The common FABEC training network including all current FABEC training entities (Belgocontrol, DFS, ENAC, LVNL and skyguide) - will provide joint controller basic training to meet their own and FABEC partners needs, making use of the available training capacities within FABEC to better match the demand. The basic training cooperation agreement, signed in June 2010, covers content and quality and includes a common basic course that will enable flexible allocation of trainees within the region. For us, this development brings about a sustainable solution for the basic training that is provided within the community of FABEC training organisations. As part of the cooperation agreement the first course for MUAC student controllers was run at skyguide in November Additional courses are planned in 2011 with Belgocontrol and DFS. In addition, FABEC is collaborating with MUAC experts on a common basic course with common training material and maintenance. The project has progressed well and we anticipate the delivery of the first course by In the area of selection, a joint group composed of experts from ANA, Belgocontrol, the Belgian Air Force, EU- ROCONTROL, LVNL and the Royal Netherlands Air Force started work on a common selection system combining best practices in the Benelux region. Implementation is expected in late 2011 or early We also contributed to the development of a business case for seven FABEC training initiatives. This work forms the basis of the training cost-benefit analysis and should influence later decisions at executive level. Controller planning The economic crisis has had a significant effect on the intake planning for controllers. Planned intakes were reduced by more than 60% in order to react to the changing levels of air traffic volumes and to respond to the need to reduce costs. However, the effects of reduced intakes have a delayed impact, because it is roughly four years between selection starting and the training finishing. Unfortunately, we have recently experienced a higher than average failure rate in our controller training. In 2010, we started a project to improve the training process in order to turn this trend around. One of the first major outputs is a completely revised Rating Training course in Luxembourg. The number of simulation events was increased by about 35%. We expect the learning curve to be less steep, enabling more students to achieve the desired result. Several other changes to the process, from selection to on-the-job-training, are going to be implemented in the course of Controller licensing In March 2010, the Belgian National Supervisory Authority took over responsibility for the licensing of our controllers. MUAC and the Institute of Air Navigation Services in Luxembourg were approved by the Belgian authorities as training organisations for unit and initial training. All of our controllers now have an ATC licence provided by the appropriate Belgian authorities. This is the first time in Europe that a country has issued licences to air traffic controllers who provide air traffic services in the airspace of other nations. Supporting the European ATM Network In order to alleviate our temporary workforce surplus and with a view to addressing one of the bottlenecks in European ATM - the South-East axis - we decided to temporarily second 11 controllers to Austro Control in Vienna. MUAC staff members were used to free Austro Control s own resources for training purposes to facilitate that centre s transition to a new ATC system.

18 34 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report Managing daily operations more effectively In an effort to improve the way we address the upcoming challenges related to the introduction of the Single European Sky performance scheme, and to ensure that our services remain market-leading, we have launched a number of projects aimed at enhancing and optimising the way we manage daily operations. Central Supervisory Section Project The Central Supervisory Section Project was initiated to ensure that operations are undertaken in the safest, most efficient and flexible way possible whilst keeping an eye on the future. The Single European Sky s second legislative package and the FABEC programme now place us into a performance framework with defined criteria. Environment, capacity and cost-efficiency targets will have to be met. This means that performance standards will change and further evolve in the future from a capacity and delay management perspective to a business approach has seen intense development of the Central Supervisory Section concept and the definition of the prerequisites for the functions of Room Supervisor. At the beginning of 2011, the next big milestone the physical collocation of the supervisory section was realised. The rest of 2011 will focus on gaining greater experience and expertise as well as transferring staff to the new structures. Operational staff planning review Within the scope of the operational staff planning review project, new staff management and sector opening planning procedures were developed. The implementation of the Planning and Support Office, in the course of 2011, will be an important milestone in the way we organise our day-to-day operations alongside improved pre-tactical planning and post-operational analysis. As a result, the complete roster and position planning - for a sliding timeframe of three months prior to the day of operations will be performed in an integrated way inside the Planning and Support Office. This process ensures that key functions are brought together to deliver a daily plan to the control room, which contains all essential information for the next day of operations. Rationalising administrative resources across the EUROCONTROL Agency In January 2010, the decision to consolidate all support services across the entire EUROCONTROL Agency materialised into a substantial reorganisation, with the transfer of reporting lines of several MUAC staff, occupying various administrative and managerial functions in the area of human resources, finance and general services, to the Directorate of Resources. The objective of this reorganisation was to deliver greater synergies and efficiencies as well as economies of scale across the board. Adapting to a changing business environment Additional internal structural changes were implemented at the beginning of 2010, with the reorganisation of the former Programme Management Unit into the ATM-CNS Strategy Development Division. This business segment focuses on three main areas: the management of ATM-CNS projects, pre-operational validations and the strategy for ATM-CNS investments. A new business unit, the Strategic Development and Management Division, was subsequently created to integrate several key management processes as well as to provide an interface with new Business Partners in the Directorate of Resources. This Division will also concentrate on the introduction of the Single European Sky performance scheme. In particular, this will be facilitated through the performance management function which has been mandated to formalise performance management activities in full synergy with all key business areas. Social Dialogue 2010 saw continued dialogue between the MUAC management and the Staff Committees on a variety of issues. The regular coordination meetings between management and staff representatives were used to discuss a range of topics, including FABEC, the phased introduction of new shift working conditions for operational staff, the impact of the new controller licensing scheme and a variety of different policies and guidelines. In June 2010, new Staff Committees were elected. At Agency level, regular meetings between the EURO- CONTROL management and the trade unions covered a wide spectrum of themes. Notably, they included a revised missions guide and the Early Termination of Service scheme. The introduction of the revised provisions, which came into operation following the end of the transitional measures that were put in place after the introduction of the Administrative Reform in 2008, were also covered in the consultations. Further implementation of the new working conditions for operational staff The phased introduction of the new working conditions for air traffic controllers, as duly approved by our Member States, continued during The reduction in working time continued at the agreed levels while further measures to flexibly plan staffing in accordance with traffic demand continued. These arrangements contributed significantly to the MUAC s excellent delay performance. Female 19% Male 81% Gender distribution (31 December 2010) 31 December Breakdown of staff in the different core business units Directorate * Operational staff Air traffic controllers Engineering ATM/CNS Strategy and Development Directorate of Resources/MUAC Strategic Development and Management 5 Total * Additional employees result from the transfer of security staff from the former Human Resources, Finance and General Services department following the re-organisation of January Air traffic controllers per sector group Delta/Coastal Hannover Brussels Total Newly qualified air traffic controllers Staff in- and outflow Retirements Other outflow* Recruitment (except air traffic controllers) Student air traffic controllers (ab initio and conversion) * Other outflow refers to student air traffic controller dismissals, resignations, early terminations of service, transfers to other EUROCONTROL units, unpaid leave, invalidity, end of contract, contract terminations or death in service.

19 36 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report Leading technology innovation The prosperity of the aviation industry is inextricably linked to the effectiveness of the ATM sector, which must continue to demonstrate high and increasing levels of performance, sustainability and innovation. Over the last four decades, we have worked with our customers to develop the most advanced and technologically innovative solutions to meet their demands. Together, we have been able to deploy this technology beyond fixed national boundaries even before the Single European Sky concept was launched. In the course of the reporting period, several key functional and technical upgrades were made to the system to consolidate our position as a pioneer of leading-edge ATM technology and our sustained performance. Enhancing Mode S Surveillance for higher safety In early July 2010, our Mode S warning toolset was further enhanced to alert controllers whenever a pilot selects a flight level in the MUAC airspace for a flight not normally expected to enter it. Such flights are now clearly flagged on the ATC screens. This is a prime example of the development and implementation of another capability in our daily operations aimed at detecting potential infringements at an earlier stage. The Enhanced Mode S radar coverage for our multi-radar tracking system was extended by the addition of seven new Enhanced Mode S (EHS) sensors, bringing the total number to 9 EHS sensors out of 17 Mode S sensors and ensuring full double and close to triple EHS coverage in our area of responsibility. In addition, an agreement was signed with the UK s NATS air navigation service provider for the delivery of data from the Cromer radar, which will enable us to ensure triple Elementary Mode S (ELS) coverage in the full area of responsibility as from mid New surveillance data front-end processor Today s surveillance technology handles ever greater volumes of data to ensure the accuracy of surveillance parameters. Consequently, demands on bandwidth have continued to surge in terms of throughput and security. In order to cope with this issue as well as to improve performance we have installed a new surveillance data front-end processor - a communication engine for the exchange of ASTERIX data. Supplied by Comsoft, the new system serves as a universal communication front end for all incoming and outgoing surveillance information. Enhanced security is achieved through the incorporation of a firewall with configuration options to prevent unauthorised access. Traffic management system In the area of controller workload prediction and traffic management, one of the most promising technical developments is the imminent implementation of a Traffic Management System (TMS), which is currently scheduled for initial operational use in Based on data from the Central Flow Management Unit (CFMU) and trajectory predictions available from our flight data processing system, the TMS will anticipate the traffic situation, not only in terms of occupancy and entry rates, but also in terms of controller workload. In addition, the tool will include a sector optimiser to identify the optimum sectorisation and to examine alternative options. In order to enhance traffic situation awareness, this information is complemented with a geographic display of the expected traffic flows. The first step in the introduction of the TMS took place in July 2010, with the implementation, for evaluation purposes, of the TMS Air Situation Prediction in the control room. The Air Situation Prediction shows the estimated position of expected traffic along with flight details up to 10 hours in advance. This information is based on Enhanced Tactical Flow Management System (ETFMS) flight data messages received from the CFMU. By varying the look-ahead time, the predicted evolution of traffic can be precisely visualised. After successful evaluation and further enhancements to the display, MUAC flow managers will start using the system operationally as from mid 2011, as a complement to the CFMU human-machine interface application. This new tool is expected to produce very accurate traffic predictions which will ultimately lead to greater efficiency. Optimising the manpower planning process Timezone, a tool designed to dynamically support the traffic and manpower planning process, was implemented in our operational environment in March The system works by integrating various parameters, like

20 38 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report traffic predictions, during the pre-tactical and the tactical phase with other human resource elements. For example, it balances the number of sectors and staff required with anticipated sector opening times alongside controller licences and mandatory duty/break times. The system is designed to cope effectively with last-minute contingencies and consequently provides an efficient platform for dynamic resource management. Entirely developed by our engineers, Timezone can be easily and costeffectively maintained and upgraded to meet future needs, and is fully expected to make a significant contribution to enhancing performance and cost-efficiency further. SESAR - initial four-dimensional (i4d) validations on track Our ATC system s cutting-edge features offer a unique capability of supporting the pre-operational validation of future concepts in support of the SESAR (Single European Sky ATM Research) development phase in a real operational environment. Over the past year, we focused on three areas where our participation delivers added-value. This covered ground-ground interoperability, air-ground interoperability, complexity management as well as network-related projects like demand-capacity balancing, user-preferred routeing and advanced Flexible Use of Airspace. Over the reporting period we have been planning the next development phase for the LINK programme in the online system. As a consequence, in 2011, we will be adding speed instructions to the existing set of controller-pilot data link communications (CPDLC) messages - climb, descend, direct clearances, headings and frequency changes. We will also add a two-dimensional (2D) route which can be evaluated by the pilot. Once accepted, this flight plan can be auto-loaded into the flight management system (FMS), thus replacing a voice exchange with a simpler, more accurate digital message. Taking this further within the SESAR framework we plan to assign a vertical trajectory as well as a time constraint to create a four-dimensional (4D) flight profile by the end of Known as Initial 4D, the procedure will use the next-generation ATN data link standard which is currently under development and the subject of a joint EUROCAE/ RTCA standards committee study. A team, comprising operational partners Airbus, MUAC and NORACON, will fly a test aircraft from Toulouse, via the MUAC airspace and Copenhagen, to Stockholm using a 4D flight profile in December The first Initial 4D flight trial is part of a work programme run by the SESAR Joint Undertaking. During this flight, the trajectory will be uplinked to the cockpit, allowing the FMS to fly an optimised route based on constraints provided by ATC, airframe and airline operations. This route will be downlinked via ADS-C to the ground system to ensure synchronisation of the trajectories. It is planned to simulate the flight in November 2011, in cooperation with an Airbus cockpit simulator in Toulouse, using the technical infrastructure, the ATN network and data link/ads-c messages. More flight trials are planned for the end of 2012 and, if necessary, during Joining forces in ATC equipment procurement MUAC and DFS joint procurement: data link frontend processor In April 2010, we implemented a new system in support of data link services, the data link front-end processor (DLFEP), which was jointly procured with DFS. Common development costs were borne equally by both parties, generating substantial savings due to the resultant economies of scale. The DLFEP complies with the Single European Sky regulation on the interoperability of the European ATM network (EC) No. 552/2004 and the data link services Implementing Rule (EC) No. 29/2009. Consequently, all MUAC ground systems fulfil the technical and safety requirements to support CPDLC. Today, more than 40 airlines enjoy CPDLC services, exchanging an average of 220 messages with our controllers every day. The first initial 4D trials, which will use the next-generation ATN data link standard, are planned to start by the end of 2011, as explained above. MUAC and DSNA joint procurement: voice communications system In an effort to achieve greater synergies in ATC equipment procurement within the Functional Airspace Block Europe Central (FABEC), we launched with the French Direction des services de la navigation aérienne (DSNA) a joint procurement of a new-generation voice communications system which will be deployed across the different centres. The system is based on common FABEC specifications and the contract, which has been awarded to Frequentis, is expected to be signed in May 2011.

21 40 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report Business outlook Our ability to contribute high levels of performance along with a proven track record for technical and procedural innovation will be invaluable assets for achieving the required performance levels in the European ATM network. Long-term investment, therefore, remains essential for maintaining a healthy outlook for the industry and ensuring sustainable mobility for society s further socio-economic growth, in line with the European Commission s Transport 2050 vision. Clear macro-economic signs, which first surfaced in the last quarter of 2010, indicate an undeniable return to a healthier state for Europe s economy. Real GDP in the EU 27 area is forecast to grow by some 1.7% during 2011 and by 2% in gradually reaching pre-recession levels. Several carriers have recorded growth in their passenger business, but soaring kerosene prices are putting additional strain on airlines operating costs, by restricting the rate of growth in the recently regained profitability and passenger loads. A need to protect revenue may lead to reduced schedules. In addition, the impending EU Emissions Trading Scheme will also impact airlines operating profiles. The first four months of 2011 have witnessed soaring traffic levels of more than 12% in our airspace. However, a significant part of this growth can be attributed to the bounce back of the traffic lost during the volcanic ash crisis. The baseline medium-term forecast for 2011 is for a yearly growth of approximately 5% in 2011, and 2.5% per year for the period In the long term, EUROCONTROL forecasts indicate that European air traffic will grow to nearly 17 million flights in times more than in But the industry s recovery is inextricably linked to the effectiveness of the ATM segment, which must continue to demonstrate consistently robust levels of performance. The Single European Sky performance scheme will lead to the definition, for the first reference period ( ), of FABEC-wide targets in the domains of environment and capacity, while cost-effectiveness will provisionally be addressed at national levels. The SES performance scheme will, therefore, drive our work programme and strategies in the coming months and years and be a major influence on our business processes. Special focus on cost containment and efficiency will continue. The priority, over the next five years and beyond, will be to further intensify efficiency efforts as part of the business transformation process. This is despite the fact that we are already the most competitive air navigation service provider in the core area of Europe and have, by far, the highest controller productivity. Furthermore, we recognise that long-term investment remains essential to ensure a healthy future for the industry. As a consequence, we will continue to plan well-balanced and appropriately timed development initiatives. Proactive capacity planning and management will receive special attention as we recognise that a capacity shortfall could be experienced as growth returns. The improved design and management of FABEC airspace will bring about better performance, particularly through projects aimed at reducing flight distance. In this regard, the Free Route Maastricht (FRAM) programme complements the efforts under way at the FABEC level. FRAM will be one of our flagship projects for several years to come as significant savings in flight-planned mileage, fuel carriage, emissions and network predictability are expected. The need to accelerate technological innovation and ensure continued and sustainable mobility to achieve further socio-economic development in Europe is clear. For our part, we will facilitate this through the use of the next-generation ATM infrastructure. Indeed, our technology not only makes it possible to maintain the highest levels of performance, but also enables us to support the early deployment, across the continent, of new Single European Sky ATM Research (SESAR) concepts through preoperational validation activities under real operational conditions. Our technological and conceptual expertise provides genuine win-win conditions, not only for the Organisation, its customers and stakeholders, but also for the entire European ATM network. We can, and will, make a significant contribution to achieving greater efficiency, cutting emissions and reducing the industry s dependence on fossil fuels. Reinforcing links with the military air navigation service providers from the Four States is another of our key strategic initiatives for improving regional performance and contributing to the efficiency of the overall European ATM network. The provision of data services to key military partners is a strategically vital development which will ultimately contribute to reducing civil and military ATC costs, and improving overall performance. Fundamental changes to the business are now on their way. But to achieve real improvements in safety, flight efficiency, cost-effectiveness and sustainability across the entire network, a global cross-border solution, focusing on a purely performance-based methodology, should be implemented. Building on 40 years experience of crossborder ATM expertise, we are determined, together with our FABEC partners, to achieve a rationalisation of the airspace serving the major international hubs of Amsterdam, Frankfurt, London and Paris as well as other key airports. The MUAC Executive Management Team

22 42 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report Financial accounts Annual accounts EUROCONTROL produces annual accounts which provide a consolidated view of the Agency s financial performance. In line with the applicable financial regulations, the specific performance of MUAC is identified in Part III of the Agency s accounts. This report includes an excerpt of the data available in the Agency s Annual Accounts in order to present a reference Balance Sheet and Statement of Financial Performance for MUAC. The Agency s Annual Accounts are produced in accordance with the principle of a true and fair view. The Agency s accounts, including Part III, which relates to MUAC, are audited by the Audit Board with the assistance of external consultant auditors. The Annual Accounts, including the auditor s opinion, are subsequently submitted to the Commission via the Provisional Council. The Commission gives a final ruling on the Accounts and decides on the discharge to be given to the Director General in respect of his financial and accounting management. The figures presented in this report are therefore subject to the approval of the Audit Board and the Provisional Council, which is expected in the summer of Accounting principles and general notes on accounting matters The main accounting principles, underlying the present financial statements, are set out below. The financial statements with regard to expenditure and receipts are on a modified cash basis, and based on the provisions of the Financial Regulations of the Agency and their Rules of Application. The Agency s policy regarding fixed assets is based on the revised Director General Decision XI/7(2004), dated 28/6/2004. Fixed assets are entered at their historic value and amortised over their useful lifetimes, in accordance with amortisation rates, which apply equally to the calculation of the investment costs to be recovered from the airspace users through the EUROCONTROL part of the cost-base (based on ICAO rules adopted by the Permanent Commission). As at the end of 2005, intangible assets covered programmes or activities to improve safety, capacity, efficiency and environment aspects of air navigation. This expenditure was considered to represent future economic benefits for the air navigation community and was therefore capitalised in the Agency s accounts, in accordance with Article 6 of its Financial Regulations. Following a decision by the Provisional Council in November 2004, the Agency applies IAS 38 and, as of 1 January 2006, capitalises only intangible assets that comply fully with this standard. Following this principle, only computer software for which EUROCONTROL owns intellectual property rights are capitalised. Concerning operating expenditure, contributions from the Four Member States participating in MUAC are calculated on the basis of an agreed cost-sharing formula. At year end, the over/under payment of contributions is calculated by comparing the level of expenditure to the level of contributions paid. In accordance with Article 23 of the Financial Regulations, any over/under payments of contributions are deducted from/added to contributions for the subsequent year. Concerning investments, a mechanism for pre-financing investments by the Agency is in place, ensuring that investments are fully financed with bank loans. Therefore, in the Balance Sheet, the residual value of fixed assets is fully compensated by an equivalent amount of loans. In the Statement of Financial Performance, the forecast amortisation charge for the year is balanced by contributions from the Four States. The difference between the forecast amortisation and the actual amortisation will be added/ deducted in the budgeted contributions for the year N+2. With Measure Nr. 06/118 (April 2006), the Commission amended the Agency s Financial Regulations and Rules of Application to take into account the implementation of International Accounting Standards (IAS) as of the 2008 budget exercise. In accordance with Article 29 of the Financial Regulations, and, as approved by the Permanent Commission, the Annual Accounts incorporate both the Budgetary and the Financial Accounts. The 2010 Budgetary Accounts, which determine the amount of contributions due from the Member States in 2010, are, as in previous years, based on the modified cash basis principle. Similarly, the 2010 EUROCONTROL cost-base, which has been charged to the users through the route charges recovery cost mechanism, also continues to be based on the modified cash basis principle. Therefore, the principles employed for calculating the budget, contributions due and the cost-base have remained unaffected by the introduction of the International Financial Reporting Standards (IFRS). However, since 2008 the Financial Accounts are based on International Financial Reporting Standards. Consequently, in order to meet the specific request of the Member States to keep the cost-base unaffected by the introduction of IFRS, the 2010 Financial Accounts and the 2010 cost-base have been prepared on the basis of different principles, namely IFRS and a modified cash basis respectively. The main differences are in the areas of accruals/deferrals, fixed assets (depreciations) and provisions. The Balance Sheet and the Statement of Financial Performance, as presented in this report, are prepared according to the modified cash basis.

23 44 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report Statement of financial performance Income GAT OAT Total GAT OAT Total Member State contributions Member State contributions PBO 111,945, ,127, , , Internal Tax 27,858, ,113, Total income 140,074, ,514, Balance sheet Assets Fixed Assets Buildings & installations 15,678, ,483, Equipment 63,600, ,118, Vehicles 85, , Work in progress 3,008, ,412, Total Fixed assets 82,372, ,077, current Assets Contributions to be received 21,825, ,065, Intercompany receivables 10,029, ,918, Other debtors 753, ,003, Costs Remunerations -104,376, ,396, ,773, ,075, ,805, ,881, Staff-related costs: training and travel costs Receipts related to remunerations -2,263, , ,337, ,839, , ,902, , , , , , , Staff costs -105,935, ,447, ,382, ,079, ,840, ,919, Pensions PBO -263, , , , , , External assistance -4,081, , ,213, ,267, , ,379, Accommodation -2,852, , ,945, ,375, , ,456, Communications -1,378, , ,423, ,615, , ,670, Data processing -3,586, , ,703, ,045,778,10-104, ,150, liabilities current liabilities Total Current assets 32,609, ,986, Overall Total 114,981, ,064, Contributions to be reimbursed to Member States 2,866, ,391, Deferred income 29,742, ,594, Total current liabilities 32,609, ,986, General administration -229, , , , , , Finance & Insurance -465, , , , , , Unrecoverable VAT -4, , , , Sale of goods 194, , , , , , Miscellaneous receipts 1, , , , , Other liabilities Loans > 1 year 82,372, ,077, Operating costs -12,401, , ,791, ,930, , ,264, Financial position Total other liabilities 82,372, ,077, Total Financial position Overall Total 114,981, ,064, Depreciation costs -14,252, ,444, ,697, ,465, ,475, ,940, Interest Paid -1,754, , ,932, ,019, , ,117, TOTAL COSTS -134,608, ,466, ,074, ,762, ,752, ,514,945.73

24 46 MAASTRICHT UPPER AREA CONTROL CENTRE Annual Report E M EHS ELS ENAC EU EUR EUROCAE /RTCA EUROSS wenhanced Mode S Elementary Mode S Ecole Nationale de l Aviation Civile European Union Euro European Organisation for Civil Aviation Equipment/Radio Technical Commission for Aeronautics EURocontrol Operational Safety Survey M MCG MUAC MWh N NATS NLR Million Maastricht Co-ordination Group EUROCONTROL Maastricht Upper Area Control Centre Megawatt hour National Air Traffic Services, UK Nationaal Lucht- en Ruimtevaartlaboratorium F NORACON NORth European and Austrian CONsortium Glossary of acronyms FAB FABEC FIR FL FMS FRAM Functional Airspace Block Functional Airspace Block Europe Central Flight Information Region Flight Level Flight Management System Free Route Airspace Maastricht NOX NSA O OAT OLDI Nitrogen oxide National Supervisory Authority Operational Air Traffic Online Data Interchange G P GAT General Air Traffic PBO Projected Benefit Obligations A ACC ACE AIRE AMRUFRA ANA ADS ASM ASTERIX ATC ATFCM/ASM ATFM ATN ATM ATM/CNS ATS Area Control Centre ATM Cost-Effectiveness Atlantic Interoperability Initiative to Reduce Emissions AMsterdam-RUhr-FRAnkfurt Administration de la navigation aérienne (Luxembourg) Automatic Dependent Surveillance Airspace Management All-purpose Structured EUROCONTROL Surveillance Information Exchange Air Traffic Control Air Traffic Flow and Capacity Management/Airspace Management Air Traffic Flow Management Aeronautical Telecommunications Network Air Traffic Management Air Traffic Management/Communications, Navigation and Surveillance Air Traffic Services C CBA CFMU CIMACT CO 2 CPDLC CURA D DFS DFS CCUM DHE VOR DIRCAM DLFEP DNM DSNA Cross-Border Area Central Flow Management Unit Civil-Military ATM Coordination Tool Carbon dioxide Controller-Pilot Data Link Communications Civil Use of Released and Available Special Use Airspace Deutsche Flugsicherung Deutsche Flugsicherung Control Centre Upper Maastricht Helgoland VOR Direction de la circulation aérienne militaire Data Link Front-End Processor Directorate Network Management Direction des services de la navigation aérienne GDP I IAS IACA IATA ICAO IFRS ISO I4D K KDC KLM L LARA LFV LVNL Gross Domestic Product International Accounting Standard International Air Carriers Association International Air Transport Association International Civil Aviation Organisation International Financial Reporting Standards International Standards Organisation Initial Four-Dimensional Knowledge & Development Centre Mainport Schiphol Royal Dutch Airlines Local And Regional Airspace Luftfartsverket, Sweden Luchtverkeersleiding Nederland S SARA SES SESAR T TMA TMS TSA U UAC UIR UK V VAT VOR W WWF Speed And Route Advisor Single European Sky Single European Sky ATM Research Terminal Manoeuvring Area Traffic Management System Temporary Segregated Area Upper Area Control Centre Upper Information Region United Kingdom Value Added Tax Very High Frequency Omni-directional Radio Range World Wildlife Fund