Ten years as a private company

Transcription

1 Te years as a private compay

2

3 The future NATS has come a log way sice privatisatio ad is very well placed to address the challeges comig up i the ext 10 years ad beyod. We will cotiue to work closely with our customers to shape the future of Air Traffic Maagemet to deliver their eeds whilst maitaiig our focus o safety, service, performace, efficiecy ad eviromet. Key aims ad deliverables iclude: Actively supportig all of our customers icludig airlies, airports ad military 10% year o year reductio i weighted safety risk idex 10% reductio i ATM CO 2 emissios per flight by 2020 from a 2006 baselie ad the first ANSP to itroduce a fiacially icetivised evirometal metric Delay performace targets set to esure NATS performace is i the top quartile withi Europe Cotiued cost efficiecies eablig uderlyig operatig costs by 2015 to be aroud 5% lower tha 2010 i real terms, despite a estimated 15% icrease i traffic volumes over the same period Complete deploymet of ew ops room tools icludig EFD ad itec drivig operatioal efficiecies, ehacig safety ad deliverig airspace capacity ad fuel/ emissios savigs Fialisig preparatios for the 2012 Olympics ad deliverig the Operatioal Freedoms eabled via the South East Airports Taskforce (SEAT) Redesig of the Lodo ad Norther Termial Cotrol Areas startig with raisig the Trasitio Altitude i the UK Leadig the developmet of a joit idustry implemetatio pla for UK Future Airspace Strategy to eable maximum beefits to be delivered ad help to ifluece govermet policy ad regulatio Cotiuig to implemet the aims of the Sigle Europea Sky through alliaces ad parterships together with deploymet of SESAR ad commo stadards established through the SES Performace Scheme. We have developed our Performace Through Iovatio strategy to maitai our existig busiess, to idetify opportuities for growth ad to esure that we have the capabilities ad skills required for the future. NATS cotiues to strive to be a world class compay with a world class future ahead.

4 It s te years sice NATS became the first air avigatio service provider i Europe to be privatised. Today we are a very differet compay. Chagig times ad challegig times have called for iovative solutios, clear customer focus ad commitmet to the values that drive our idustry. Aviatio has chaged radically i the past te years. The ext te years are sure to brig eve more chage. The Sigle Europea Sky will be a reality we are already a log way towards it. The UK s Future Airspace Strategy will be i place. Ad I believe NATS will be recogised ad respected worldwide for our leadership as we develop our growth strategy to take our expertise ad capability ito ew markets. NATS 10 years as a private compay

5 So before we draw a lie below our first decade as a private compay I would like to mark just how far we ve come. Safety has improved to a poit where we have had o sigificat airprox for the last three years. NATS-attributable delay is dow from almost 2 miutes per flight i 2002 to just 7.1 secods (about 10 times less tha the Europea average). Icidetally, had we performed i lie with the Europea average, the additioal delay for airlie customers would have cost you aroud 60m. NATS was the first ATM compay i the world to calculate our CO 2 performace ad set stretchig targets to improve it our lead i evirometal iovatio is recogised worldwide. We have helped drive forward the cocept of a Sigle Europea Sky, co-foudig with Irelad the first Fuctioal Airspace Block with our customers helpig set its ageda; ad we have helped draw together the leadig members of Europe s ATM commuity to accelerate ext geeratio techologies through SESAR to improve service levels ad reduce costs. Operatioal ad Safety Partership Agreemets ow give our customers trasparecy ad put you at the heart of our decisio makig. Ad we have saved you moey; cosolidatig our operatio at two cetres ad reducig the uderlyig cotrollable cost base of our regulated busiess by almost 30% i real terms. Bottom lie, we have ivested more tha 1b i ew techology ad ifrastructure, ad tured a 106m loss ito a 71m profit. NATS 10 years as a private compay

6 So what do the ext te years promise? Our focus will cotiue to be o efficiecy ad value, set withi our costat cotext of safety, service ad cotiued ivestmet. I particular, I am acutely aware of your cost ageda, ad your strog expectatio that NATS will reduce our e-route charges. The regulatory framework for CP3 sets the right climate for us to address this withi the Europea performace scheme, which starts this year. I am determied that we will improve our place i the Europea league table. Of course, UK airspace cotiues to be some of the most complex ad challegig i Europe ad we will cotiue to prioritise our techology work through SESAR to deliver the service improvemets you expect. We are the first ATM compay i the world to have a evirometal metric built ito our regulatory framework. We have developed the metric ourselves ad it is already attractig iterest from ANSPs all over the world. NATS today is kow for challegig the status quo ad for strog leadership i our idustry; for a uremittig focus o safety; a partership approach to deliverig high quality service ad to developmets i Europe; robust fiacig arragemets ad sustaied ivestmet i iovative techology; ad costructive idustrial relatios. That wo t chage. NATS cotiues to strive to be a world class compay with a world class future ahead. Richard Deaki CEO NATS NATS 10 years as a private compay 3

7 Progress sice privatisatio The facts NATS looks after 11% of Europe s airspace ad 25% of its traffic. Last year NATS hadled about 2.1 millio flights or about 6,000 flights per day. NATS maages some of the busiest ad most complex airspace i the world (i the Lodo termial area) from Europe s biggest ATC cetre at Swawick i Hampshire. NATS other cetre i Prestwick Ayrshire was ewly opeed i 2010 ad hadles traffic i Scotlad, Machester ad o the North Atlatic. NATS also maages the tower cotrol at 15 of the UK s major airports icludig the world s busiest sigle ad 2-ruway airports at Gatwick ad Heathrow. Service performace Safety Serious safety icidets (risk-bearig category A ad B airprox) attributable to NATS are ow extremely rare, with zero icidets i four of the past 10 years A 56% reductio i safety risk sice this method of assessmet was itroduced i 2007 to measure occurreces of safety sigificat evets achieved through iitiatives directed at key risk areas A ackowledged world leader i ATM safety maagemet systems A proactive approach to workig across the aviatio idustry to cotiuously improve ATM safety icludig a successful focus o level busts (deviatio from cleared level) ad developig a low cost GPS for geeral aviatio to help combat airspace ifrigemets. We have a very strog relatioship through our safety departmet with NATS safety departmet ad the Safety Partership Agreemet. NATS is the oly ATC authority through our etwork that we have that kid of relatioship with. Captai Rob Legg, Flight Stadards Captai, easyjet NATS 10 years as a private compay

8 Service delivery Delays are at a low with just 7.1 secods of average delay per flight attributable to NATS E-Route plc I 2010 exceeded targets agreed with customers uder the Operatioal Partership Agreemet to reduce early morig ad staffig delays Droppig dow Eurocotrol s league table of the most ATC delay geeratig ANSPs from 2d i 2003 to 12th at the ed of Mai areas of focus have icluded: Improved etwork maagemet to achieve a better balace of etwork demad / capacity cofiguratio to miimise delay Aually agreed Hotspot projects with customers to address priority service delivery issues Post operatioal aalysis applied to improve plaig of sector/airspace cofiguratio & staffig. NATS has delivered impressively i a uprecedeted ad challegig year (2010) for the aviatio idustry. It has exceeded o service targets ad sustaied a cosistet focus o iovative evirometal ad efficiecy workstreams whilst maitaiig costat dialogue with operators. Stu Meade, Programme Support Maager, Thomso NATS 10 years as a private compay 5

9 Eviromet Sice 2009 eabled fuel savigs of over 45,000 toes (c. 140,000 toes of CO 2 ) worth over 30m (at curret oil prices ad exchage rates). Achieved through improvig the efficiecy of our airspace ad route etwork by: A system of ight time fuel savig routes for flights betwee Europe ad North America & chages to UK airspace ad procedures to provide more fuel efficiet routes Airspace efficiecy groups set up at our ATC cetres, leadig eviromet workshops with our customers (uder the umbrella of the Sustaiable Aviatio coalitio) A airspace efficiecy database with over 250 potetial ear-term fuel bur ad CO 2 improvemets suggested by customers ad NATS people, with over 100 already delivered ito operatio. Service resiliece A o-goig log-term ivestmet programme (LTIP) to upgrade systems ifrastructure, improve service resiliece ad safeguard our facilities by providig cotigecy specifically: Highly reliable ad fault tolerat systems combied with robust cotigecy processes for rapid restoratio of ormal operatios 6 NATS 10 years as a private compay

10 Major performace upgrades to our most critical system the NAS cetral flight data processig system Itroductio of a major icidet commuicatios process (ATICCC) durig ay service disruptio (recogised as best practice durig the 2010/11 volcaic ash crisis) Creatio of ew cotigecy facilities to esure operatioal cotiuity i the evet of a major loss of ATC services at Swawick or Prestwick cetres together with the world s first remote cotigecy virtual cotrol tower at Heathrow. Operatig efficiecy Compared with 2001, hadlig a c. 10% icrease i aual traffic volumes with 25% fewer staff, ad with a reductio i ocotroller headcout of early 30%: Cosolidatio from 4 to 2 mai ATC Cetres with cosequet savigs i egieerig posts ad facilities maagemet costs Restructurig ad process improvemets for programmes, egieerig ad back-office fuctios Higher utilisatio ad productivity of frot-lie operatioal staff through chages to workig practices Efficiecies i ed-to-ed cotroller traiig with higher traiig output at lower uit cost Applicatio of cost optimisatio across all areas of the busiess. Drivig further cost efficiecies through commecemet of a programme of reducig our operatioal requiremet for cotrollers. Value Cosolidatio of our Machester ad Prestwick operatios i the ew Prestwick Cetre is savig almost 4.5m aually i costs, equivalet to aroud 5% Cosolidatio of our Lodo Termial Cotrol Cetre from West Drayto to NATS Swawick is savig aroud 11m aually Sice privatisatio we have reduced the uderlyig cotrollable cost of our e-route services by some 30% i real terms ad i 2010 completed a major cost savig programme which delivered a 45m (c. 15%) reductio o our previously plaed uderlyig cost base, equivalet to 180m over the ext 4 years Delay performace at 7.1 secods per flight i 2011 is about 10 times less tha the Europea 2011 average; although traffic levels have falle, they are at the same level as 2004 whe NATS delays per flight were 41 secods, this equates to delay savigs of circa 33m per aum versus 2004 performace I 2011/12 we eabled savigs of 25,200 toes of fuel worth over 16.5m (at curret oil prices ad exchage rates) from deliverig more efficiet route profiles, ad other joit iitiatives with airlies, equivalet to 80,000 toes of CO 2. NATS 10 years as a private compay 7

11 Major deliverables ATC cetre cosolidatio Full operatio of the ew Prestwick Cetre i Jauary 2010 completed NATS strategy to maage UK airspace from two Cetres providig ecoomies of scale ad platforms for ew techology: Lodo Area Cotrol West Drayto to Swawick (2002) Lodo Termial Cotrol ad Military Area Radar Services West Drayto to Swawick (2007/8) West Drayto closed (2008) May cogratulatios to everyoe o completig such a complex project so well ad without ay operatioal disruptio. The Prestwick Cetre trasitio was a ladmark for everyoe at NATS to be truly proud of ad to celebrate. Well doe. Ady Lord, Director Operatios, British Airways Four ATC Operatios ito the ew Prestwick Cetre (2009/10) Scottish, Machester, Scottish Military ad Oceaic ATC ahead of schedule, o budget ad with a totally seamless trasitio Machester Area Cotrol Cetre closed (2010) Easter Surise (cosolidatio of Lodo Military services oto Swawick Cetre systems) implemeted for MoD i Aug All operatioal trasitios were safely completed with miimal disruptio to civil or military aircraft operatios. Swawick ad Prestwick are amogst the largest, most efficiet ad most advaced ATC Cetres i Europe. 8 NATS 10 years as a private compay

12 UK Airspace ad Fuctioal Airspace Blocks (FAB) Airspace desig ad the associated ATC sectors ad procedures have bee cotiuously improved i lie with traffic demad to esure sufficiet system capacity ad safety: major UK airspace developmet projects delivered sice 2001 UK-Irelad cross-border Fuctioal Airspace Block (FAB) created i 2008 The first FAB to be established, ad has airlies at the heart of the FAB, chairig the service provisio workig group ad sittig o the FAB maagemet board UK-Irelad FAB aim to optimise itegratio of North Atlatic ad domestic Europea traffic FAB delivers joit projects which drive operatioal efficiecy improvemets ad ehace safety agaist a 3-year rollig pla Delivered 20 distict projects to date estimated to deliver c. 150,000 toes of CO 2 savigs over 5 years, three times more tha targeted. Now embarked o the Lodo Airspace Maagemet Programme (LAMP), a uique opportuity to reew the airspace desig ad procedures i south-east Eglad to be compliat with SESAR cocepts ad to accommodate forecast growth i traffic demad ad ehace safety ad flight efficiecy. Airport air traffic services NATS provides commercial ATC services at 15 UK airports plus Gibraltar uder competitive cotract to the airport operator: Icludig the world s busiest sigle ad two-ruway airports at Gatwick ad Heathrow New UK ATC services cotracts sice privatisatio iclude Bristol, Lodo Luto ad Southampto First overseas ATC service cotract at Gibraltar airport Additioal ATC maiteace cotracts secured e.g. Belfast City, Oxford airport. Major developmets completed i cojuctio with airports iclude: Electroic flight progress strip systems ( ) to improve operatioal efficiecy ad flight data sharig at airports A world-first Virtual Cotrol Facility at Heathrow which eables a Tower ATC service to be provided from a remote locatio Iitial deploymet of our iovative Airport Collaborative Decisio-Makig (A-CDM) system to help improve overall airport efficiecy Maagig the trasitio associated with movig the 50m cotrol tower at Heathrow to its ew locatio ear Termial 3 with miimal disruptio Major egieerig projects to fit-out other ew cotrol towers at Farborough, Ediburgh, Newcastle, Jersey ad Isle of Ma NATS 10 years as a private compay 9

13 Trials of flight departure otificatio system to feed Europea etwork maagemet to streamlie service part of the SESAR iitiative A partership approach to optimisig busy airport operatios icludig Heathrow ad Gatwick A ew Multilateratio surveillace system itroduced for North Sea operatios. Operatioal mapower ad traiig We have made great progress i esurig we have the right staffig to operate our services safely, efficietly ad with high resiliece we have delivered: Streamlied recruitmet ad selectio with ew olie capability New ed-to-ed cotroller traiig processes icludig measures to icrease the successful validatio of traiees at operatioal uits Chages to workig practices ad productivity, icludig more flexible rosters to deploy operatioal staff Tighter mapower plaig agaist projected traffic demad Delivered a ladmark New Traiig Cetre at our Corporate ad Techical Cetre (CTC) ear Southampto. New techology We have developed ad itroduced complex systems ad ew techology ito operatioal service at Cetres over the past decade icludig: Shawick Oceaic Advaced Air Traffic System, Prestwick (2006) Lodo Termial Cotrol ad Military Area Radar Services, Swawick (2007/8) Arrival maagemet tools i Lodo Termial Cotrol (2009) Iitial paperless operatios (electroic flight data EFD) at Prestwick (2011). Delivery ow scheduled for 2012, later tha origially plaed ifacts i operatioal service i Swawick Area Cotrol (2011) the most sigificat techological chage that NATS has implemeted sice the opeig of Swawick Cetre. Although later tha origially plaed, ifacts beefits iclude ehacemets to safety, capacity, eviromet ad operatig efficiecy Ogoig programme to replace, refurbish or upgrade all e-route radars (through to 2013) Ogoig joit developmet with Spaish ad Germa ANSPs (AENA ad DFS) of the itec advaced Europea flight data processig (FDP) system. All this has bee made possible by a uplift i project maagemet capability over the same period that has bee recogised by a prestigious Project of the Year 2010 idustry award for the way NATS delivered the Prestwick Cetre from feasibility through to operatioal service. 10 NATS 10 years as a private compay

14 Europe NATS has emerged as a key ifluecer i Europe. I particular, we are a major participat i the Sigle Europea Sky ATM Research (SESAR) collaborative programme: A member of the SESAR Joit Udertakig i its developmet phase, leadig project work o termial airspace cocepts reflectig its strategic importace to the UK operatio Istrumetal i drawig together the 6 biggest ATC providers i Europe (A6 group) to coverge activities i the mai areas that will accelerate deploymet of SESAR Implemetig five low cost projects that are triallig SESAR cocepts (kow as the SESAR eablig projects ). We are also drivig further developmet outside the FAB structure: Key role i the creatio of a alliace of 9 Norther Europea Air Traffic parters to improve operatioal efficiecies. NATS 10 years as a private compay 11

15 Customer focus We have established a mature relatioship with our customers over the period sice privatisatio icludig: A comprehesive commuicatios framework icludig strategic ad operatioal cosultatio with Airlies, Airports, MoD, Busiess Aviatio ad Geeral Aviatio A aual set of priorities ad hotspot projects agreed collaboratively by the Operatioal Partership Agreemet (OPA) Creatio of a cross idustry group focused o deliverig the CAA Future Airspace Strategy Egagemet o evirometal policy with airlies ad idustry through the Sustaiable Aviatio Framework Safety goals set by the Safety Partership Agreemet to focus work by the whole aviatio commuity to joitly implemet safety improvemets A customer awareess programme to improve NATS staff uderstadig of our customers ad their operatios, ad to ifluece their thikig ad behaviour Secodmets of NATS staff to airlies to give us (amogst other thigs) direct feedback o our performace ad customer issues. The OPA has allowed the airlies to work with NATS to look at particular areas of the busiess ad focus o issues ad work together. It s a excellet example of partership betwee airlies ad ANSP. Mark Deaco, Navigatioal Services Admiistrator, Moarch Airlies 12 NATS 10 years as a private compay

16 Key Data NATS performace sice privatisatio Fiacial year eded 31 March Traffic volumes (flights) 2,000,708 2,029,997 2,099,980 2,200,665 2,330,589 2,405,573 2,480,004 2,371,624 2,172,025 2,116,150 NATS attributable delay per flight (secods) Safety (airprox) where NATS is providig a service NATS attributable Risk bearig (A/B) Profit/(loss) (79.9)m (29.1)m 1.8m 68.9m 80.3m 94.4m 66.7m 135.5m 78.3m 106.1m NERL gearig 112% 86% 82% 71% 63% 55% 59% 60% 55% 57%

17 Compariso versus other ANSPs

18 Prited o Revive 50:50 Silk, a recycled paper cotaiig 50% recycled waste ad 50% virgi fibre ad maufactured at a mill certified with ISO evirometal maagemet stadard. The pulp used i this product is bleached usig a Elemetal Chlorie Free process. All paper is certified by the Forest Stewardship Coucil, which promotes evirometally appropriate, socially beeficial ad ecoomically viable maagemet of the world s forests. NATS Corporate & Techical Cetre, 4000 Parkway, Whiteley, Hampshire PO15 7FL. April 2012