Report on the Operation of the Route Charges System in Central Route Charges Office (CRCO)

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1 European Organisation for the Safety of Air Navigation Central Route Charges Office (CRCO) Report on the Operation of the Route Charges System in 2010 March 2011

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3 - 3 - TABLE OF CONTENTS TABLE OF CONTENTS MAJOR DEVELOPMENTS IN CONTRACTING STATES OF THE EUROCONTROL ROUTE CHARGES SYSTEM KEY INDICATORS RULES AND PROCEDURES OF THE ROUTE CHARGES SYSTEM OPERATIONS OF THE CRCO UPDATE ON SERVICES TO STAKEHOLDERS BILATERAL AGREEMENTS WITH EUROCONTROL MEMBER STATES BILATERAL AGREEMENTS RELATING TO AIR NAVIGATION CHARGES UNIT RATES COST-BASES AND NATIONAL UNIT RATES WEIGHTED NATIONAL UNIT RATE ACTUAL COSTS CHANGES IN EN-ROUTE SERVICES ACTUAL COSTS UNIT COST PER KILOMETRE (LONG-TERM SERIES - DEFLATED COSTS) TRAFFIC STATISTICS TOTAL SERVICE UNITS GROWTH RATE TOTAL SERVICE UNITS TOTALS PER CHARGING ZONE SERVICE UNITS - EXEMPTED FLIGHTS DISTANCES - GROWTH RATE TOTAL DISTANCE PER CHARGING ZONE OPERATIONAL STATISTICS FLIGHTS PROCESSED GROWTH RATE TOTAL NUMBER OF FLIGHTS AND FLIGHT SEGMENTS RECOVERY RATES PRODUCTIVITY OF THE CENTRAL ROUTE CHARGES OFFICE FINANCIAL STATISTICS AMOUNTS BILLED FOR FLIGHTS PERFORMED IN AMOUNTS BILLED AND DISBURSED TO THE STATES VAT BILLED AND DISBURSED TO THE STATES ORIGIN OF TRAFFIC AND RECEIPTS... 26

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5 MAJOR DEVELOPMENTS IN Contracting States of the EUROCONTROL Route Charges System In 2010, 37 States participated in the Route Charges System. 1 Belgium 11 Spain 21 Sweden 31 Albania 2 Luxembourg 12 Greece 22 Italy 32 Bosnia and Herzegovina 3 Germany 13 Turkey 23 Slovak Republic 33 Serbia 4 France 14 Malta 24 Romania 34 Montenegro 5 United Kingdom 15 Cyprus 25 Croatia 35 Lithuania 6 Netherlands 16 Hungary 26 Bulgaria 36 Poland 7 Ireland 17 Norway 27 Monaco 37 Armenia 8 Switzerland 18 Denmark 28 FYROM 9 Portugal 19 Slovenia 29 Moldova 10 Austria 20 Czech Republic 30 Finland Table 1 - States participating in the Route Charges System in 2010 Latvia was technically integrated into the Route Charges System on 1 January 2011, and became the 38 th participating State 1.2. Key indicators Flights The CRCO processed 9.46 million messages relating to IFR flights operated from January to December 2010 in the airspace of the Contracting States, representing an increase of 0.9% over 2009 (see 5.1 and 5.2). Distances The number of kilometres recorded in the airspace of the Contracting States for the calculation of route charges was 8.71 billion kilometres in 2010, an increase of 2.9% over 2009 (see 4.4 and 4.5). Amounts billed The CRCO billed a total of EUR 6.57 billion in respect of route charges for flights operated from January to December 2010 in the airspace of the Participating States, an increase of 7.7% over 2009 (see 6.1 and 6.2). This amount excludes Value Added Tax (VAT) billed on behalf of VAT taxable Air Navigation Service Providers (ANSPs) of Contracting States (see 6.3). Amounts disbursed to the States The total amount disbursed to the Contracting States in 2010 (see 6.2) was EUR 6.42 billion plus EUR 0.4 million of bank interest, as well as EUR 1.65 million of interest on late payment. Medium and long-term recovery rates The medium-term recovery rate for 2009, measured on 31 December 2010, was 99.47%. The average long-term recovery rate for the period , measured on 22 February 2011, was 99.63% (see 5.3). Productivity of the EUROCONTROL CRCO The productivity of the CRCO, expressed as the number of flight messages processed per staff member, went up by 6.5% in 2010 (see 5.4).

6 Rules and procedures of the Route Charges System Principles for Establishing the Cost-Base and the Unit Rates The version of the Principles issued in October 2007, as amended in March 2010, remained applicable throughout 2010 (available on the CRCO web site). Guidance on the Rules and Procedures of the Route Charges System The version of the Guidance issued in November 2008, and amended in November 2010, remained applicable throughout 2010 (available on the CRCO web site). Conditions of Application of the Route Charges System and Conditions of Payment The version of the Conditions of application issued in October 2007 remained applicable throughout 2010 (available on the CRCO web site). Financial Regulations applicable to the Route Charges System The version of the Financial Regulations applicable to the Route Charges System that entered into force on 31 March 2009 remained applicable throughout Operations of the CRCO The CRCO operates the Route Charges System on behalf of the Contracting States. Aircraft operators are charged a single amount per flight, irrespective of the number of States overflown. Bills are established by the CRCO using flight messages sent by the Contracting States' Route Charges Offices (RCOs) and additional flight information made available via the EUROCONTROL Central Flow Management Unit (CFMU). The CRCO bills aircraft operators on a monthly basis, collects charges, and disburses the amounts collected to the States every week. Billing In 2010, the CRCO issued 40,514 bills (3,376 bills per month on average) to a total of 5,985 different airspace users. In 2009 these figures were 39,284, 3,274 and 5,866 respectively. In 2010, users filed 2,290 claims involving flights (2.292 and 43,421 in 2009 respectively). Correctly claimed flights amounted to 0.56% (0.33% in 2009) of the total flights processed. The average time for processing a claim was 39.9 days in 2009 (38.6 days in 2009). This figure refers to claims involving the CLA procedure only. Continuous efforts are made to maintain, and where possible to further accelerate the transmission and treatment of claims.

7 - 7 - Collection of charges The interest rate applicable on late payment was 11.58% per annum in 2010 (rate approved by the Permanent Commission on 2 December 2009 by Decision N o 113). In 2010, on average, 90.62% of the route charges were collected on the latest date for payment and 98.86% were recovered 30 days after (situation at 22 February 2011). These two percentage figures were respectively 88.77% and 98.58% in The increase in recovery rates reflected a slightly more favourable economic environment than in As at 31 December 2010, 99.47% of charges relating to 2009 were collected Update on Services to Stakeholders Adaptation to Single European Sky (SES) Requirements The first SES package was put in place early 2009, including changes to charging zones. Its aim was to deliver results that would be compatible with Functional Airspace Block (FAB) developments. A second SES package allowing for a better integration of terminal charges and management of incentives has been specified and is currently under development. Implementation of the EU VAT Package Further to the entering into force of the VAT Package in January 2010, the CRCO has adapted its application software to the new legislative requirements and has obtained from the States/ANSPs the information required to correctly invoice VAT. Renewal of the Application Software of the CRCO A project has been launched with a view to renew the application software, which uses ageing technologies. An in-depth analysis has been made to identify the major changes required for a more costeffective system that would offer the necessary the versatility to cope with emerging requirements from States and ANSP. This project will take several years and requires close cooperation with the National Route Charges Offices. Crisis Management The CRCO has updated its Risks Plan and integrated its own Business Continuity Plan in the Agency s Crisis Management Plan. CEFA (CRCO Extranet For Airspace Users) and DATALINK services The secured CRCO Extranet for Airspace users continued to confirm its success throughout the airspace user community. In December 2010, 1,323 users had signed a contract to use the CEFA services (1,164 in December 2009). The CRCO dispatched billing information electronically for 86.4% of the flights and 92% of the route charges billed. ETNA (Extranet to National Administrations) The ETNA Service is available to all Contracting States of the Multilateral Route Charges System (37 States in total) and to non-member States with a Bilateral Agreement. More than 900 reports are published each month throughout 120 accounts (three accounts per State: CAA, RCO and ANSP). During the month of December 2010, 11,500 pages were recorded as consulted by ETNA users.

8 - 8 - FRAUD Several campaigns were undertaken to counter the fraudulent attempts aiming at extorting funds from airspace users with fake identity and fake billing documents for air navigation charges. The CRCO thoroughly followed this matter and undertook all possible actions inform airspace users about such attempts. By allowing airspace users to crosscheck their billing documents against their financial situation available on a secured Internet site, CEFA has proven to be a reliable media for thwarting all fraudulent attempts. Facility for payments by Credit Card This facility has been in operation since In 2010 some 625 users used the credit card facility in 6,929 transactions amounting to 4.94 million euros. In 2009 these figures were 631, 6,342 and EUR 4.18 million respectively Bilateral agreements with EUROCONTROL Member States Billing and collection of Terminal Charges EUROCONTROL operates bilateral agreements relating to terminal charges with France (billing only), the Netherlands, Ireland, Denmark, Italy, Moldova, Hungary, Croatia, Slovenia, Lithuania, Sweden, and Greece. Any EUROCONTROL Member State may avail of terminal charges billing and collection services. Costs for billing and collecting terminal charges at the same time as en-route charges are very low since the same data is used for both types of charge. Moreover, claims submitted by users in relation to both types of charge are processed in a single and coherent operation. The total amount of terminal charges billed in 2010 was EUR million (including France), corresponding to 2.6 million flights. Billing and collection of Shanwick Communications Charges EUROCONTROL bills and collects Shanwick communications charges in respect of flights performed in the Shanwick Oceanic Region on behalf of the Irish Aviation Authority (IAA). In 2009, the total amount of charges billed amounted to EUR 16.1 million corresponding to 383,705 flights Bilateral agreements relating to air navigation charges EUROCONTROL operates bilateral agreements relating to air navigation charges with five non-member States, namely Belarus, Latvia (until 31/12/2010), Uzbekistan, Morocco and Egypt, as well as with one EUROCONTROL Member State, namely Ukraine (until the technical integration into the Multilateral Route Charges System). Air navigation charges comprise route charges, and optionally, terminal charges. In 2010, terminal charges were billed on behalf of Ukraine, Belarus and Egypt. The States concerned fund all resources required for operating these bilateral agreements, without any financial contribution from the EUROCONTROL Member States. The total amount of air navigation charges billed in 2010 was EUR million, corresponding to 1.31 million flights.

9 UNIT RATES Cost-bases and national unit rates The national unit rates were determined in accordance with the common "Principles for Establishing the Cost-Base for Route Facility Charges and the Calculation of the Unit Rates" and were approved by the Permanent Commission on 2 December 2009 by Decision N o 112. Table 2 sets out the cost-bases and national unit rates for 2010 (Average September 2009 exchange rates). The costs chargeable to users were derived from States' forecast costs (column 1), EUROCONTROL forecast costs (column 3), reductions for exempted flights (column 4) and States' under/over recoveries carried-over to 2010 (column 6). Table 2 - Cost-bases and national unit rates for 2010 National Income Eurocontrol Reductions for Reduced Balance Costs chargeable Chargeable National Charging areas Costs from other Costs exempted flights cost-base carried over to users service units unit rates EUR sources EUR EUR EUR EUR EUR EUR = = =7/8 Belgium-Luxembourg 147,456,404 13,494,917 2,599, ,351,900-7,937, ,289,487 2,174, Germany (1) 730,816, ,121, ,938,212 27,943, ,994,449 12,184, France 1,082,422,108 3,150,000 84,339,074 19,252,541 1,144,358,641 50,680,810 1,093,677,830 16,833, United Kingdom (2) 695,390,665 10,100, Netherlands 147,903,760 1,567,000 16,142,000 2,289, ,189, , ,020,651 2,452, Ireland 100,441,000 8,215,580 2,320, ,336,456 2,194, ,141,738 3,394, Sw itzerland 111,932,832 10,554,384 2,315, ,171,926 14,737, ,434,114 1,407, Portugal Lisboa 110,321,101 9,761,947 2,009, ,073,676-8,709, ,782,720 2,584, Austria 155,269,000 11,600,000 2,575, ,293,064-3,190, ,483,841 2,430, Spain Continental 726,199,086 75,689,411 52,574,690 14,701, ,382, ,382,705 8,196, Spain Canarias 108,223,891 15,406,811 10,768,310 1,387, ,197, ,197,844 1,499, Portugal Santa Maria 44,522,070 2,440,487 1,634,571 45,327,986 1,178,541 44,149,445 3,609, Greece 153,780,000 12,562,000 4,780, ,561,648-5,555, ,117,487 4,293, Turkey 227,434,360 17,205,000 8,584, ,055,339-4,209, ,264,433 8,108, Malta 10,773, , ,353 10,988, ,106 10,240, , Italy 560,174,568 34,523,869 51,572,753 16,781, ,442,252 1,796, ,646,231 8,154, Cyprus 40,569,000 2,426, ,484 42,470,737 3,521,510 38,949,227 1,294, Hungary 73,279,014 4,867,995 1,597,165 76,549,844 2,959,001 73,590,843 2,013, Norw ay 92,509,073 8,509, , ,018,891 4,911,883 95,107,008 1,495, Denmark 97,615,578 8,092,231 2,422, ,284,992-2,305,943 88,409,651 1,376, Slovenia 25,023, ,000 1,544, ,767 26,175,626 26,175, , Romania 137,478,507 7,592,750 9,220,070 4,223, ,881,998-10,812, ,694,035 3,137, Czech Republic 89,769,414 6,812,619 3,918,379 92,663, ,988 91,681,667 1,933, Sw eden 159,045, ,887 13,227, , ,333, , ,225,907 2,952, Slovak Republic 47,032,000 2,915,863 97,158 49,850,705 6,722,467 43,128, , Croatia 55,131,580 3,577, ,575 58,375, ,057 58,589,719 1,400, Bulgaria 76,542,370 4,699, ,933 80,645,497 5,350,541 75,294,957 1,759, FYROM 9,756, ,762 31,481 10,357, ,092 11,175, , Moldova 5,182, ,087 11,946 5,511,227-2,116 5,513, , Finland 28,842, ,335 3,868, ,416 31,316,987 2,029,019 29,287, , Albania 16,287, , ,499 17,021,213 80,800 16,940, , Bosnia and Herzegovina 23,149,469 1,084,935 53,945 24,180,458-1,767,171 25,947, , Serbia - Montenegro 64,629,952 4,319,896 69,804 68,880, ,425 68,010,619 1,734, Lithuania 16,906, ,572 1,287,120 72,776 17,856,573 1,100,595 16,755, , Poland 114,022,914 8,719,446 1,367, ,375, , ,662,716 3,021, Armenia 3,226, ,602 3,867 3,511,948 3,511, , Total 5,593,670, ,679, ,371,403 99,430,350 5,879,931,528 82,274,253 6,475,866, ,656, (1) Includes service units for flight segments performed as Operational Air Traffic Estimated number in Germany is per year. (2) The chargeable costs figure for the United Kingdom has been obtained by multiplying the unit rate by the forecast service units as agreed by the UK DOT/CAA Source: WP CER /FIN dated 24/11/2009

10 Weighted national unit rate The average weighted national unit rate for the Contracting States is calculated by dividing the sum of the costs chargeable to users by the sum of the chargeable service units in respect of the same year. The average weighted national unit rate for 2010 was EUR (see Table 2). Graph 1 gives the average weighted national unit rate in euros from 2006 to 2010, based on forecast costs and service units used to establish the national basic unit rates (with the exchange rates of September previous years). Graph 1 - Average weighted national unit rate EUR % -0.2% 1.6% 0.1%

11 ACTUAL COSTS 3.1. Changes in en-route services actual costs Table 3 shows the actual costs incurred by States to provide en route services in 2007, 2008 and States actual costs were converted into euros using the yearly average exchange rates and are set out in Table 3 below. States shares of EUROCONTROL costs are included. Table 3 - En-route services actual costs Growth Growth Charging areas (actual figures) (actual figures) (actual figures) rate rate EUR EUR EUR 2008/ /2008 Belgium-Luxembourg 161,008, ,194, ,650, % 2.1% Germany 807,855, ,715, ,464, % 5.3% France (1) 1,063,252,700 1,085,066,288 1,117,581, % 3.0% United Kingdom (2) 851,725, ,241, ,118, % -10.2% Netherlands 132,310, ,752, ,626, % 4.0% Ireland 102,173, ,642, ,199, % -3.2% Switzerland (3) 118,432, ,812, ,677, % -4.0% Portugal Lisboa 126,467, ,412, ,220, % -9.0% Aus tria 153,828, ,093, ,658, % -3.9% Spain-Continental 760,606, ,079, ,446, % -1.1% Spain-Canarias 117,889, ,669, ,326, % 0.5% Portugal Santa Maria 51,168,908 49,252,185 47,136, % -4.3% Greece 171,957, ,202, ,113, % -0.6% Turkey 196,198, ,239, ,390, % 3.8% Malta 11,716,122 11,146,086 11,335, % 1.7% Italy 585,420, ,010, ,560, % -1.1% Cyprus 37,489,111 40,077,000 43,799, % 9.3% Hungary 68,602,228 60,842,311 65,320, % 7.4% Norway 102,759,985 90,210,254 93,530, % 3.7% Denmark 90,227,528 98,147, ,866, % 4.8% Slovenia 19,161,435 23,020,031 23,808, % 3.4% Romania 133,021, ,962, ,177, % 5.7% Czech Republic 84,833,420 91,248,597 91,274, % 0.0% Sweden 151,481, ,907, ,608, % 7.0% Slovak Republic 33,884,552 39,953,264 43,454, % 8.8% Croatia 53,100,309 54,705,721 58,315, % 6.6% Bulgaria 68,963,582 78,663,771 78,183, % -0.6% FYROM 9,805,843 10,218,767 10,633, % 4.1% Moldova 4,025,476 5,260,835 6,143, % 16.8% Finland 28,605,635 29,668,241 30,022, % 1.2% Albania 13,951,008 13,439,598 15,487, % 15.2% Bosnia and Herzegovina 17,517,311 17,344,781 19,914, % 14.8% Sub-total 6,329,441,046 6,569,199,008 6,578,048, % 0.1% Serbia - Montenegro 61,316,354 70,235, % Lithuania 17,608,812 16,992, % Poland 112,857, ,349, % Armenia 3,466,447 Total 6,329,441,046 6,760,981,428 6,775,091, % 0.2% Note: (1) Jersey and Geneva included (2) Corresponds to the amount billed in respect of national charges (3) Excluding Geneva (France) Source: WP CE/R/10/91/3330 dated 06/12/2010

12 Unit cost per kilometre (long-term series - deflated costs) Evolution of real (en-route) Air Navigation Services Unit Cost (over ) The graph below shows for each year between 1982 and 2011, the unit cost per kilometre of the en-route services made available to users in the airspace of the 1982 Contracting States, i.e. Belgium, Luxembourg, Germany, France, United Kingdom, Netherlands, Ireland, Switzerland, Portugal (Lisboa and Santa Maria), Austria, Spain (Continental and Canaries). These eleven States represented 66% of the EUROCONTROL route charges in Costs are actual between 1982 and 2009 and forecast for 2010 and 2011 (forecasts presented to the November 2010 session of the enlarged Committee). They are deflated by the EUROSTAT GDP deflator available for the period and recommended for use by the statistical office of the European Communities. For these 11 States the unit cost per kilometre was EUR 0.91 in 2009 (actual costs as shown in Table 3 divided by the number of kilometres flown as shown in Table 8). Graph 2 - Unit cost per kilometre Evolution of real (en-route) ANS Unit Cost for the CRCO 88 Area over Index 100 in E2011F For the last 20+ years, the series has shown a cyclical evolution in the unit cost per kilometre, with peaks recorded in 1983 (+26% above 2011 level) and 1994 (+31% above 2011 level). The plateau reached in is significantly lower than the previous peaks, thus reflecting relatively lower unit costs since 2001 as compared with previous cycles. The real unit costs of these 11 States decreased until 2008 (lowest level over the period ) and have been increasing again since then.

13 TRAFFIC STATISTICS 4.1. Total service units growth rate For a given flight and a given charging zone, the route charge is equal to the number of service units multiplied by the unit rate. The number of service units is equal to the weight factor (i.e. the square root of the MTOW divided by 50) multiplied by the distance factor (i.e. the great circle distance between the entry and exit points at which the route indicated in the last filed flight plan crosses the charging zone boundary). During the past three years, the growth rate of the total number of service units was as follows: Table 4 Total Service units Year Service units Growth rate ,047, % ,865, % ,838, % ,759, % The growth rate of 3.5% between 2009 and 2010, about half of the growth rates of the years 2007 and 2008, was analysed by STATFOR in the Service Unit Forecast released on 28 February Service units in 2010 started at volumes similar to The ash cloud crisis in April and May however resulted in a significant loss of SUs in 2010 (around , representing 0.6% of the TSUs over 2010). The summer, however, saw strong growth, with July passing the 2008 peak, on the back of strong growth in the number of flights. This ended with a peak of growth at 7.1% observed in October The rest of the year showed lower growth figures with a minimum of 2.3% observed in December 2010 compared to December 2009 levels. This lower growth in TSUs is also partly driven by slower flight growth from the start of the winter timetable, as well as by the December poor weather around Europe that resulted in many flight cancellations. Graph 3 Growth rate of total service units (Millions) % 6.1% -5.1% 3.5%

14 Total service units totals per charging zone Table 5 gives, for each charging zone, the total number of service units (chargeable and exempted), generated from 2006 to 2010, as well as the average annual growth observed during the same period. Table 5 - Total number of service units generated Growth Average Charging areas rate annual growth 2010/ Belgium-Luxembourg 2,079,843 2,183,554 2,220,106 2,078,793 2,114, % 0.4% Germany 11,712,378 12,418,542 12,749,260 11,912,989 12,294, % 1.2% France 16,756,129 17,994,526 18,034,193 16,779,861 16,636, % -0.2% United Kingdom 10,425,611 10,895,789 11,043,630 9,914,403 9,480, % -2.3% Netherlands 2,517,718 2,639,028 2,621,275 2,425,841 2,476, % -0.4% Ireland 3,596,687 3,821,993 3,823,471 3,560,633 3,615, % 0.1% Switzerland 1,367,726 1,451,709 1,471,851 1,396,243 1,409, % 0.8% Portugal Lisboa 2,516,398 2,631,041 2,676,891 2,501,219 2,624, % 1.1% Aus tria 2,341,828 2,508,677 2,565,596 2,423,824 2,448, % 1.1% Spain-continental 8,517,801 9,244,448 9,128,844 8,358,173 8,641, % 0.4% Spain-Canarias 1,589,020 1,691,398 1,713,085 1,492,498 1,539, % -0.8% Portugal Santa Maria 3,187,641 3,304,362 3,483,618 3,478,747 3,696, % 3.8% Greece 3,753,956 4,049,184 4,258,001 4,138,832 4,454, % 4.4% Turkey 6,628,787 7,167,653 7,628,625 8,086,183 8,923, % 7.7% Malta 326, , , , , % 10.5% Italy 8,048,679 8,619,663 8,660,349 8,144,736 8,621, % 1.7% Cyprus 1,057,376 1,177,974 1,310,890 1,273,476 1,351, % 6.3% Hungary 2,062,800 2,104,422 2,092,142 2,038,443 2,091, % 0.3% Norway 1,342,212 1,419,826 1,537,052 1,494,584 1,582, % 4.2% Denmark 1,395,322 1,479,900 1,474,287 1,358,804 1,410, % 0.3% Slovenia 268, , , , , % 8.0% Romania 3,300,170 3,236,389 3,240,107 3,132,895 3,414, % 0.9% Czech Republic 1,895,700 1,940,179 2,019,121 2,022,528 2,190, % 3.7% Sweden 2,930,251 3,094,323 3,271,474 2,906,484 2,950, % 0.2% Slovak Republic 734, , , , , % 3.9% Croatia 1,028,323 1,203,751 1,270,788 1,298,237 1,450, % 9.0% Bulgaria 1,453,417 1,624,400 1,746,648 1,798,292 1,839, % 6.1% FYROM 173, , , , , % 1.4% Moldova 70,441 93, , , , % 26.7% Finland 737, , , , , % 0.1% Albania 263, , , , , % 11.2% Bosnia and Herzegovina 382, , , , , % 13.6% Sub-total 104,463, ,128, ,504, ,510, ,110, % 1.6% Serbia - Montenegro (1) 919,574 1,747,513 1,782,884 1,819, % Lithuania 383, , , % Poland 3,229,758 3,092,271 3,312, % Armenia (2) 111, , % Total 104,463, ,047, ,865, ,838, ,759, % 2.8% 2010 service units: situation at 28/01/2011 (1) 2007 service units - Serbia-Montenegro period 1/07/ /12/2007 (2) 2009 service units - Armenia period 1/03/ /12/2009

15 Service units - exempted flights Table 6 details the number of service units generated in each charging zone in For any given charging zone, the number of chargeable service units, (column 11), is the difference between the total service units (column 1) and the service units generated in respect of exempted flights (column 10). Table 6 - Service units generated in respect of exempted flights E X E M P T E D F L I G H T S Total Military Search State VFR Total Chargeable STATES Service (Member (non-member & Aircraft Training & Circular Other* (2) to (9) service units units States) States) Rescue < 2T (1) - (10) Belgium - Luxembourg 2,114,555 9,307 17, , , ,675 2,084,879 Germany 12,294,212 32,933 91, , , ,102 12,150,110 France 16,636,697 95,332 52, ,677 3,575 15,547 3,367 3, ,622 16,454,074 United Kingdom 9,480,262 29, , , ,745 1, ,671 9,317,591 Netherlands 2,476,273 4,942 22, , ,792 2,445,480 Ireland 3,615,036 4,325 62, ,255 3,546,781 Switzerland 1,409,298 1, , ,056 1,405,243 Portugal Lisboa 2,624,149 9,503 39, , ,375 2,572,775 Aus tria 2,448,711 2, , , ,838 2,441,873 Spain-Continental 8,641,861 26,126 78, ,941 1,181 3,626 5, ,550 8,521,311 Spain-Canarias 1,539,855 4,044 8, ,340 1,525,515 Portugal Santa Maria 3,696,385 12, , , , ,872 3,556,513 Greece 4,454,155 52,240 56, , ,369 4,339,786 Turkey 8,923,420 31, , , ,303 8,646,117 Malta 486,800 1,485 14, , ,853 Italy 8,621, ,194 93, , ,706 2,086 1, ,760 8,403,497 Cyprus 1,351,886 11,163 3, , ,577 1,335,310 Hungary 2,091,322 7,797 35, , ,455 2,045,867 Norway 1,582,742 7,701 5, ,093 2,935 18,821 1,563,921 Denmark 1,410,791 4,593 2, ,580 1,401,212 Slovenia 365, , ,364 Romania 3,414,282 2, , , ,540 3,303,742 Czech Republic 2,190,096 11,286 57, , , ,054 2,118,042 Sweden 2,950,007 6,137 1, , , ,897 2,938,110 Slovak Republic 855, , ,414 Croatia 1,450,834 1,727 1, ,377 1,446,457 Bulgaria 1,839,757 5,073 12, , ,797 1,820,961 FYROM 183, ,921 Moldova 181, ,346 Finland 739,502 3, , , ,520 Albania 403,785 1, , ,443 Bosnia and Herzegovin 637, ,298 Serbia - Montenegro 1,819, , ,577 1,817,638 Poland 3,312,823 10,914 1, , , ,543 3,296,279 Lithuania 370, , ,444 Armenia** 146, ,844 TOTAL 116,759, ,360 1,252, ,057 6,537 57,613 18,731 11,630 1,920, ,838,531 *: Other exempted flights are flights for checking navaids, humanitarian flights, police and custom flights as w ell as specific flights credited. **: Armenia: period 01/03/ /12/ service units: situation at 28/01/2011 (Source: EUROCONTROL / CRCO)

16 Distances - growth rate During the past three years, the growth rate of the number of kilometres recorded in the airspace of the Contracting States for the calculation of route charges (therefore, great circle distance after deduction of 20 km for departing and arriving flights) was as follows: Table 7 Total Distances for all charges zones Year Distances flown (km) Growth rate ,017,738, % ,467,732, % ,713,158, % Graph 4 Growth rate of distances (Billions of kms) % 5.5% -6.1% 2.9%

17 Total distance per charging zone Table 8 sets out the distances (see 4.4) in each charging zone from 2006 to 2010, as well as the average annual growth observed during the same period. Table 8 - Total distance per charging zone Growth Average Charging areas rate growth (1) (kilometres) (kilometres) (kilometres) (kilometres) (kilometres) 2009/ Belgium-Luxembourg 164,054, ,909, ,475, ,180, ,019, % -0.6% Germany 970,326,802 1,020,802,843 1,041,109, ,242, ,541, % 0.2% France 1,411,216,328 1,508,286,206 1,505,070,656 1,391,431,314 1,378,852, % -0.6% United Kingdom 776,333, ,758, ,201, ,145, ,387, % -3.1% Netherlands 190,599, ,062, ,679, ,992, ,330, % -1.0% Ireland 187,487, ,930, ,295, ,040, ,220, % -0.3% Switzerland 123,534, ,705, ,994, ,514, ,082, % -0.1% Portugal Lisboa 175,761, ,600, ,377, ,131, ,601, % 1.1% Austria 193,366, ,641, ,673, ,720, ,707, % 0.4% Spain-Continental 722,438, ,762, ,993, ,869, ,442, % -0.1% Spain-Canarias 105,772, ,431, ,901,790 96,388,187 99,651, % -1.5% Portugal Santa Maria 152,029, ,979, ,836, ,526, ,574, % 3.7% Greece 278,422, ,887, ,984, ,381, ,829, % 4.4% Turkey 404,260, ,986, ,180, ,166, ,701, % 8.7% Malta 19,507,279 22,327,858 25,034,762 25,427,754 29,064, % 10.5% Italy 679,178, ,592, ,381, ,098, ,945, % 1.1% Cyprus 71,464,414 79,590,623 89,321,814 87,994,772 93,898, % 7.1% Hungary 141,028, ,748, ,853, ,570, ,328, % 0.6% Norway 122,412, ,070, ,072, ,396, ,920, % 2.3% Denmark 117,802, ,256, ,583, ,281, ,961, % -0.4% Slovenia 23,609,951 27,517,584 29,348,418 28,161,945 30,773, % 6.8% Romania 196,657, ,262, ,293, ,677, ,750, % 1.6% Czech Republic 138,893, ,150, ,427, ,242, ,029, % 3.1% Sweden 242,035, ,899, ,506, ,561, ,998, % -0.3% Slovak Republic 53,843,234 53,082,653 56,436,208 55,594,966 61,102, % 3.2% Croatia 82,187,212 95,366,856 99,209, ,179, ,977, % 8.0% Bulgaria 101,682, ,018, ,841, ,028, ,918, % 6.1% FYROM 13,894,016 14,714,873 14,985,819 14,764,258 14,924, % 1.8% Moldova 4,716,174 5,992,524 7,444,089 8,280,599 10,572, % 22.4% Finland 60,881,762 60,463,174 62,283,329 58,346,496 58,740, % -0.9% Albania 19,418,246 23,199,748 24,147,968 26,247,965 29,864, % 11.4% Bosnia and Herzegovina 30,578,423 38,071,572 41,080,774 45,095,471 49,608, % 12.9% Sub-total 7,975,394,154 8,480,070,564 8,610,028,312 8,072,681,930 8,295,321, % 1.0% Serbia - Montenegro 70,914, ,191, ,778, ,530, % Poland 242,431, ,595, ,152, % Lithuania 31,087,285 26,498,502 28,881, % Armenia* 6,177,435 8,272, % Total 7,975,394,154 8,550,984,620 9,017,738,778 8,467,732,360 8,713,158, % 2010 distances: situation at 28/02/2011 (1) Average annual grow th during the period *: Armenia: period 01/03/ /12/2009

18 OPERATIONAL STATISTICS 5.1. Flights processed growth rate The number of flight messages processed corresponds to the number of flights, whether they are chargeable or exempted, recorded for charging purposes in the airspace of the Contracting States. During the past three years, the growth rate of the number of flight messages processed was as follows: Table 9 - Number of flight messages processed Year Flights processed Growth rate ,992, % ,375, % ,456, % Graph 5 Growth rate of flight messages processed (Millions) % 1.3% -6.2% 0.9%

19 Total number of flights and flight segments The total numbers of flight segments, given per charging zone, as well as the total number of flights recorded in the airspace of the Contracting States from 2006 to 2010, are shown in Table 10 below. Table 10 - Flight segments / Flights Growth Average Charging areas 2006 (1) 2007 (1) 2008 (1) 2009 (1) 2010 (1) rate growth (2) 2010/ Belgium-Luxembourg 1,064,835 1,112,966 1,119,647 1,032,732 1,047, % -0.4% Germany 3,049,712 3,192,615 3,240,459 3,012,059 3,065, % 0.1% France 2,850,634 3,021,004 3,010,360 2,790,107 2,784, % -0.6% United Kingdom 2,433,477 2,518,124 2,483,384 2,250,408 2,150, % -3.0% Netherlands 1,082,768 1,127,800 1,114,204 1,029,479 1,044, % -0.9% Ireland 564, , , , , % -2.3% Switzerland 1,098,086 1,160,161 1,162,109 1,080,737 1,085, % -0.3% Portugal Lisboa 398, , , , , % 1.7% Austria 1,125,759 1,212,614 1,235,837 1,138,117 1,163, % 0.8% Spain-Continental 1,644,359 1,784,336 1,750,388 1,584,184 1,614, % -0.5% Spain-Canarias 304, , , , , % -2.4% Portugal Santa Maria 113, , , , , % 2.0% Greece 550, , , , , % 4.2% Turkey 709, , , , , % 8.5% Malta 76,313 81,588 84,896 85,317 95, % 5.7% Italy 1,703,200 1,849,129 1,819,867 1,688,132 1,748, % 0.7% Cyprus 212, , , , , % 7.1% Hungary 603, , , , , % 0.7% Norway 463, , , , , % 1.1% Denmark 614, , , , , % -0.6% Slovenia 266, , , , , % 5.2% Romania 412, , , , , % 3.1% Czech Republic 631, , , , , % 1.8% Sweden 660, , , , , % -0.4% Slovak Republic 350, , , , , % 3.0% Croatia 342, , , , , % 7.6% Bulgaria 398, , , , , % 5.8% FYROM 117, , , , , % 1.8% Moldova 27,370 34,454 40,984 43,619 53, % 18.5% Finland 250, , , , , % -0.4% Albania 118, , , , , % 11.2% Bosnia and Herz. 166, , , , , % 10.3% Sub-total 24,408,183 25,875,366 26,207,049 24,521,176 25,083, % 0.7% Serbia - Montenegro 259, , , , % Poland 606, , , % Lithuania 184, , , % Armenia 40,727 52, % Total flight segments 24,408,183 26,134,880 27,491,975 25,787,694 26,437, % Total flights 9,337,456 9,868,409 9,992,864 9,375,943 9,456, % (1): Excluding VFR flights representing 1% of the total flight processed Impact of VFR flights on total distances, service units and charges is negligible VFR flights processed in 2010, of w hich w ere performed in Italian airspace. (2): Average annual grow th during the period flight segments and number of flights: situation at 19/01/2011

20 Recovery rates Medium and long-term recovery rates The medium-term recovery rate, or recovery rate after one year, is published annually by the CRCO. It is the recovery rate, at 31 December of year N, for amounts billed in respect of year N-1. The recovery rate for 2009, measured on 31 December 2010, was 99.47%. The long-term recovery rate reflects the trend performance of the CRCO. The graph below also shows the yearly recovery rates for the period measured on 22 February The average long-term recovery rate for this period is 99.63%. Graph 6 Medium and long-term recovery rates 100.0% 99.77% 99.81% 99.84% 99.5% 99.71% 99.76% 99.82% 99.17% 99.53% 99.47% 99.0% 99.07% 98.5% after 1 year 22/02/ % Quarterly recovery rates at latest date for payment and after 30 days The annual average recovery rate on the latest date for payment increased from 88.77% in 2009 to 90.62% in The after 30 days recovery rate increased from 98.58% in 2009 to 98.86% in Graph 7 - Recovery rates on latest date for payment and after 30 days 100.0% 98.2% 99.0% 98.7% 98.4% 99.1% 99.0% 99.0% 98.3% 95.0% 90.0% 87.4% 89.2% 89.2% 89.3% 89.7% 91.8% 90.7% 90.3% 85.0% 80.0% 75.0% On latest date for payment After 30 days 70.0%

21 Productivity of the CRCO Number of flight messages processed per staff The productivity of the CRCO, expressed as the number of flight messages processed per staff member, increased by 6.5%. Graph 8 - CRCO Productivity 100,000 95,283 99,197 99,216 94, ,007 90,000 80,000 70,000 60,000 50,000 40, % 0% -4.4% 6.5% 30,000 20,000 10, CRCO s actual costs compared to service units / amounts billed The table and graphs below show the ratios between the CRCO s actual net costs (route charges collection costs, Multilateral System net of receipts from bilateral agreements) and service units / amounts billed. The two ratios increased in Table 11 - Ratios between the CRCO s actual net costs and service units / amounts billed Year CRCO Costs Service units Cost per Amounts billed Ratio MEUR (millions) service unit MEUR % =2/ , % , % , % , % , %

22 Graph 9 - CRCO s actual net costs / service units In EUR per service unit Graph 10 - CRCO s actual net costs / amounts billed 0.4% 0.3% 0.32% 0.29% 0.28% 0.31% 0.27% 0.2% 0.1% 0.0%

23 FINANCIAL STATISTICS 6.1. Amounts billed for flights performed in 2010 The amounts billed to airspace users for flights operated from January to December 2010 totalled EUR 6.57 billion. This represents a increase of 7.7%. It excludes Value Added Tax (VAT) amounting to EUR 16.7 million billed on behalf of 16 VAT- taxable ANSPs of the respective Contracting States (see Table 14). Table 12 - Amounts billed for flights performed in (excluding VAT) Year Amounts billed (EUR) Growth rate ,438,196, % ,094,243, % ,565,365, % Graph 11 - Amounts billed for flights performed in (excluding VAT) (Billions of EUR) % 3.3% -5.3% 7.7%

24 Amounts billed and disbursed to the States Table 13 shows the total amounts billed for flights performed in 2010 and the amounts disbursed to the Contracting States during 2010, excluding VAT. Table 13 - Amounts billed and disbursed to the States in 2010 Amount billed Net amount disbursed States (excluding VAT) (excluding VAT) EUR EUR Belgium-Luxembourg 159,681, ,193, Germany 838,236, ,237, France 1,071,160, ,052,147, United Kingdom 668,468, ,442, Netherlands 160,912, ,970, Ireland 109,276, ,658, Switzerland 114,600, ,528, Portugal Lisboa 126,529, ,612, Austria 168,586, ,342, Spain-Continental 716,727, ,353, Spain-Canarias 104,146, ,561, Portugal Santa Maria 43,958, ,751, Greece 169,512, ,795, Turkey 257,308, ,735, Malta 12,176, ,843, Italy 576,816, ,322, Cyprus 40,366, ,482, Hungary 73,948, ,260, Norway 106,646, ,453, Denmark 90,161, ,086, Slovenia 27,746, ,952, Romania 146,835, ,336, Czech Republic 100,796, ,995, Sweden 180,752, ,362, Slovak Republic 46,061, ,423, Croatia 60,998, ,680, Bulgaria 78,172, ,073, FYROM 10,399, ,107, Moldova 7,286, ,844, Finland 29,604, ,827, Albania 17,335, ,480, Bosnia and Herzegovina 25,122, ,849, Serbia - Montenegro 65,128, ,515, Poland 137,006, ,940, Lithuania 18,386, ,811, Armenia 4,507, ,119, Total 6,565,365, ,416,101, National charges (all States) 6,550,435, Administrative charges (all States) 14,929, amounts billed: situation at 17/01/ amounts disbursed: Balance Sheet and Administrative (Operating Results) Accounts Financial Year 2010

25 VAT billed and disbursed to the States Table 14 shows the total amounts of VAT billed for flights performed in 2010 and the amounts disbursed during 2010 to the sixteen VAT- taxable ANSPs of the respective Contracting States applying VAT to route charges. Table 14 - VAT billed and disbursed to the Contracting States in 2010 VAT VAT States billed disbursed EUR EUR Germany 2,484, ,642, United Kingdom 431, , Ireland 298, , Switzerland 30, , Austria 497, , Norway 10,351, ,208, Denmark* 214, , Slovenia 50, , Romania 565, , Czech Republic 184, , Sweden** , Slovak Republic 366, , Croatia 128, , Moldova Finland 622, , Poland 442, , Lithuania 65, , Total 16,734, ,722, National charges (all States) 16,699, Administrative charges (all States) 35, amounts billed: situation at 17/01/ amounts disbursed: Balance Sheet and Administrative (Operating Results) Accounts Financial Year 2010 * VAT invoiced as from 01/03/2010 ** VAT not invoiced as from 01/04/2009

26 ORIGIN OF TRAFFIC AND RECEIPTS Table 15 shows the percentage of chargeable service units and route charges recorded for all the Contracting States in 2010, by user nationality. Contracting States' national users accounted for 74.9% of the total number of chargeable service units and for 80.6% of the total route charges billed. In 2010, 68.9% of the route charges were billed to the fifty main users of the airspace of the Contracting States. Table 15 - Total percentage of chargeable service units and route charges billed in 2010, by user nationality User nationality Chargeable service units Route charges billed Belgium 1.5% 1.7% Luxembourg 0.5% 0.5% Germany 11.7% 14.6% France 6.3% 6.7% United Kingdom 13.8% 15.8% Netherlands 3.7% 4.3% Ireland 6.0% 7.1% Switzerland 2.2% 2.4% Portugal 1.8% 1.5% Austria 1.6% 1.7% Spain 5.2% 5.0% Greece 0.9% 0.6% Turkey 5.6% 4.3% Malta 0.3% 0.3% Cyprus 0.4% 0.3% Hungary 1.2% 1.1% Norway 1.2% 1.5% Denmark 1.0% 1.0% Slovenia 0.2% 0.2% Czech Republic 0.9% 0.9% Sweden 2.5% 3.1% Italy 3.4% 3.4% Slovak Republic 0.1% 0.1% Romania 0.6% 0.4% Croatia 0.2% 0.2% Bulgaria 0.3% 0.3% Monaco 0.0% 0.0% FYROM 0.0% 0.0% Moldova 0.1% 0.0% Finland 1.0% 1.0% Albania 0.1% 0.0% Bosnia and Herzegovina 0.0% 0.0% Serbia - Montenegro 0.1% 0.1% Poland 0.6% 0.6% Lithuania 0.1% 0.1% Armenia 0.1% 0.0% Total Participating States 74.9% 80.6% USA 5.6% 4.8% Others 19.5% 14.6% Total all nationalities 100.0% 100.0% Total European Union 65.4% 72.1%

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