European Organisation for the Safety of Air Navigation Central Route Charges Office (CRCO) Report on the Operation of the Route Charges System in 2016

Transcription

1 European Organisation for the Safety of Air Navigation Central Route Charges Office (CRCO) Report on the Operation of the Route Charges System in 2016 March 2017

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3 TABLE OF CONTENTS EUROCONTROL CHARGING ZONE MAJOR DEVELOPMENTS IN Contracting States of the EUROCONTROL Route Charges System Key indicators 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... 8 Changes in the actual costs of en route services TRAFFIC STATISTICS Total service units growth rate Total actual service units totals per charging zone Service units - exempted flights Distances OPERATIONAL STATISTICS Flights processed growth rate Total number of flight segments Recovery rates The CRCO s productivity 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 RULES AND PROCEDURES OF THE ROUTE CHARGES SYSTEM... 21

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5 - 1 - CONTROL CHARGING ZONE 2015

6 MAJOR DEVELOPMENTS IN Contracting States of the EUROCONTROL Route Charges System In 2016, 39 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 38 Latvia 9 Portugal 19 Slovenia 29 Moldova 39 Georgia 10 Austria 20 Czech Republic 30 Finland Table 1 States participating in the Route Charges System in 2016 In November 2016, at its 107th Session, the Enlarged Committee confirmed that Estonia will be technically integrated into the common Route Charges System as of 1 April Key indicators The CRCO key indicators are presented in the table below. Details can be found in the relevant sections of the report. Key indicators Flight messages processed in millions Flight message variation from previous year 1.9% 2.6% Total service units in millions National charges billed in EUR millions (excluding VAT) 7,974 7,912 National charges billed variation from previous year 7% -1% Administrative charges billed in EUR millions Total net amounts disbursed in EUR millions 7,927 7,928 Bank interest disbursed in EUR millions Interest on late payment disbursed in EUR millions Medium-term recovery rate (year n-1) 99.76% 99.73% Average long-term recovery rate for the last 5 years 99.69% 99.73% Table 2 Key Indicators 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 Network Manager Directorate (NMD). The CRCO bills aircraft operators on a monthly basis, collects charges, and disburses the amounts collected to the States every week.

7 - 3 - Billing Number of bills issued for en route 42,806 43,248 Number of different airspace users billed at least once a year 6,422 6,502 Table 3 Operations of the CRCO Billing During the 12 months of 2016, the CRCO counted 13,274 correctly claimed flights, which amounted to 0.15% of the total number of flights processed during this period(*). The average time processing a claim for which information was requested from Member States was 34 days. (*) These figures do not take into account the retroactive corrections to weight coefficients, which are required when fleet changes are not immediately reported by airspace users. Collection of charges The interest rate applicable on late payment was 10.06% per annum in 2016 (rate approved by the enlarged Commission on 9 December 2015 by Decision No 139). The medium-term recovery rate was 99.73% for the bills issued in The average long-term recovery rate for the period , measured on 30 January 2017, was also 99.73% (see 5.3) Update on services to stakeholders Adaptation to Single European Sky (SES) requirements The EUROCONTROL Principles as amended in 2013 are consistent with Commission Implementing Regulation (EU) No 391/2013 of 3 May 2013 laying down a common charging scheme for air navigation services. The renewed application software (see below) will provide the CRCO and the Contracting States with increased flexibility to accommodate Single European Sky requirements in the future. Implementation of the EU VAT package Implementation of VAT The adaption of the EUROCONTROL billing documents in accordance with the new VAT Directive (2010/45/EU) was completed in The CRCO provided assistance to Spain for the implementation of VAT (Spain Continental) and IGIC (Canarias). Enhancements of the CRCO s billing application (ABACUS) Three new software releases were deployed in the course of The purpose of these releases was to support new requests from States, ensuring regulatory compliance on VAT matters (see above) and allowing staff productivity improvements by enhancing the flight matching process, optimising the end-to-end management of claims, and further improving the billing processes. Enhancements were also made to reporting on billing with the restructuring of the basic files to facilitate data reconciliation at RCO level. In addition, at the request of both the Enlarged Committee and the Single Sky Committee, the CRCO carried out billing simulation exercises on the use of actual vs. planned routes for the calculation of route charges. ABACUS will continue to evolve in the coming years to increase the quality of billing and generate further efficiencies in sync with scheduled developments in the CRCO s information systems, in particular the modernisation of the financial system, the introduction of e-invoicing and the extension of the services provided to states and airspace users across the CRCO websites. Crisis management The CRCO Business Continuity Plan has been integrated into the Agency s Crisis Management Plan. CEFA (CRCO Extranet For Airspace Users) and DATALINK services The secured CRCO Extranet for airspace users continued to be a great success throughout the airspace user community. The electronic billing information issued by the CRCO increased from 85% to 94% of flights over

8 - 4 - the last two years. This represents 99% of route charges. Nearly 300 new CEFA agreements were signed in ETNA (Extranet To National Administrations) The ETNA service is available to all Contracting States of the Multilateral Route Charges System and to non- Member States which have a bilateral agreement with EUROCONTROL/CRCO. More than 1,200 reports are published each month in 132 accounts (three accounts per State: CAA, RCO and ANSP). In the month of December 2016, 18,000 pages were recorded as consulted by ETNA users. Common Portal Since November 2013, the Common Portal has been the common vehicle and repository for the exchange and sharing of all necessary information between entities involved in the reporting exercise for en route charges and also (since 2015) for terminal charges. The Portal is based on the existing CRCO ETNA extranet already used by Member States. The Common Portal provides a common address and entry point for States to submit their data. The Member States have a single entry point to meet their regulatory obligations in an effective and efficient manner, generating economies of scale for all stakeholders. Fraud Several campaigns have been undertaken to counter fraudulent attempts to extort funds from airspace users using fake identities and fake billing documents for air navigation charges. The CRCO is assiduously monitoring this matter and doing its utmost to keep airspace users informed of current risks. By allowing airspace users to cross-check their billing documents against their financial situation on a secured Internet site, CEFA has proved to be a reliable media for preventing potential fraud. Facility for payments by credit card In 2016, some 610 users used the credit card facility in 6,077 approved transactions amounting to EUR 6.4 million. In 2015, there were 615 users with 5,883 transactions amounting to EUR 5.5 million Bilateral agreements with EUROCONTROL Member States Billing and collection of terminal charges In 2016, EUROCONTROL operated sixteen bilateral agreements relating to terminal charges with France (billing only), the Netherlands, Ireland, Denmark, Italy, Moldova, Hungary, Croatia, Slovenia, Lithuania, Sweden, Greece, Bulgaria, Spain, Malta and Albania. A seventeenth agreement was prepared with FYROM in 2016 and entered into force on 1 January Any EUROCONTROL Member State may avail of terminal charge billing and collection services. By using the same data and tools for en route and terminal charges, the CRCO can offer billing and collection services for terminal charges at a very low cost to States and air navigation service providers. Moreover, claims submitted by users in relation to both types of charge are processed in a single, coherent operation. Billing and collection of Shanwick communications charges EUROCONTROL bills and collects Shanwick communications charges in respect of flights carried out in the Shanwick Oceanic Region on behalf of the Irish Aviation Authority (IAA) Bilateral agreements relating to air navigation charges In 2016, EUROCONTROL operated four bilateral agreements relating to air navigation charges with fou non-member States, namely Belarus, Uzbekistan, Morocco and Egypt. Air navigation charges comprise route charges and, optionally, terminal charges. In 2016, terminal charges were billed on behalf of Belarus and Egypt. The States concerned fund all resources required to operate these bilateral agreements, without any financial contribution from EUROCONTROL s Member States.

9 - 5 - Bilateral agreements Terminal Communications Air navigation charges charges charges Number of bills issued 68,709 7,784 16,200 Number of different airspace users 5,327 1,741 2,110 Amounts billed EUR millions (including administrative charges for ANC) Number of flights 3,645, , ,517 (TNC) (ANC) Table 4 Bilateral Agreements

10 UNIT RATES cost-bases and national unit rates The national unit rates were calculated in accordance with the common "Principles for establishing the costbase for en route charges and the calculation of the unit rates". Table 5 sets out the cost-bases and national unit rates for 2016 (average September 2015 exchange rates). Charging zones National Costs chargeable Service units National costs to users unit rates Belgium-Luxembourg 172,792, ,172,240 2,510, Germany 1,039,588,610 1,078,410,296 13,057, France 1,304,097,340 1,295,155,533 19,177, United Kingdom 937,953,930 1,038,253,714 10,435, Netherlands 184,639, ,322,168 2,825, Ireland 121,513, ,136,177 4,049, Switzerland 149,636, ,099,044 1,470, Portugal Lisboa 117,112, ,883,553 3,104, Austria 193,911, ,473,381 2,777, Spain-Continental 624,404, ,621,840 8,936, Spain-Canarias 98,985,082 89,174,080 1,528, Portugal Santa Maria 44,536,242 46,816,696 4,336, Greece 151,726, ,552,862 4,318, Turkey 411,446, ,029,789 14,846, Malta 19,082,057 16,016, , Italy 693,557, ,001,811 8,866, Cyprus 53,598,493 47,862,282 1,425, Hungary 93,067,885 82,166,232 2,364, Norway 110,993,442 97,076,556 2,367, Denmark 98,197,102 96,889,798 1,571, Slovenia 33,168,798 32,664, , Romania 159,456, ,502,825 4,117, Czech Republic 114,704, ,055,712 2,637, Sweden 210,171, ,716,491 3,303, Slovak Republic 61,942,217 59,162,449 1,126, Croatia 90,625,529 84,394,912 1,783, Bulgaria 88,382,641 60,232,951 2,667, FYROM 14,723,503 14,754, , Moldova (1) 4,177,279 4,336,640 77, Finland 45,935,000 45,658, , Albania (2) 22,399,988 22,237, , Bosnia and Herzegovina 38,496,092 38,499, , Serbia-Montenegro-KFOR 85,120,164 76,180,597 2,015, Lithuania 23,342,321 22,835, , Poland 163,863, ,755,939 4,544, Armenia 5,044,511 5,254, , Latvia 23,118,000 22,501, , Georgia 19,009,181 18,970, , Total 7,824,521,633 7,841,831, ,119, (1) The unit rate of Moldova was revised with effect from 1 April 2016 in accordance with enlarged Committee Decision No 141. The initial approved unit rate was EUR (2) The unit rate of Albania was revised with effect from 1 July 2016 in accordance with enlarged Committee Decision No 143. The initial approved unit rate was EUR Table 5 Cost-bases and national unit rates for 2016

11 Weighted national unit rate The weighted average national unit rate for the Contracting States is calculated by dividing the sum of the costs chargeable to users by the service units for the same year. The weighted average national unit rate, taking into account the mid-year revisions for 2016, was EUR Graph 1 gives the weighted average national unit rate in euros from 2012 to 2016, based on forecast costs and service units used to establish the national basic unit rates (with the September exchange rates of previous years). Graph 1 Weighted average national unit rate

12 ACTUAL COSTS Changes in the actual costs of en route services Table 6 shows the actual costs incurred by States in the provision of en route services in 2013, 2014 and The States actual costs were converted into euros using the annual average exchange rates and are set out in Table 6 below. The States shares of EUROCONTROL costs are included. Charging zones Variation Variation 2014/ /2014 Belgium-Luxembourg 162,308, ,716, ,753, % 3.2% Germany 988,712,469 1,015,641, ,129, % -1.7% France (1) 1,168,935,771 1,202,444,859 1,239,579, % 3.1% United Kingdom 853,728, ,928, ,229, % 8.9% Netherlands 171,943, ,584, ,440, % -1.2% Ireland 105,991, ,687, ,784, % 4.0% Switzerland (2) 123,282, ,929, ,370, % 16.6% Portugal Lisboa 109,368, ,875, ,975, % 3.8% Austria 180,251, ,083, ,768, % -0.2% Spain-Continental 624,628, ,753, ,240, % -2.7% Spain-Canarias 106,784, ,152,773 98,836, % -5.1% Portugal Santa Maria 42,140,619 39,884,994 40,360, % 1.2% Greece 150,313, ,365, ,050, % 0.5% Turkey 327,105, ,551, ,896, % 11.7% Malta 16,084,832 14,890,731 16,845, % 13.1% Italy 617,862, ,965, ,872, % -2.1% Cyprus 47,013,036 48,120,348 51,048, % 6.1% Hungary 85,417,198 81,376,478 86,459, % 6.2% Norway 124,579, ,273, ,302, % -4.4% Denmark 97,186,558 94,772,021 97,602, % 3.0% Slovenia 29,535,813 30,206,410 31,147, % 3.1% Romania 150,855, ,720, ,648, % -2.6% Czech Republic 105,692, ,569, ,035, % 1.4% Sweden 223,432, ,690, ,004, % 58.0% Slovak Republic 57,977,094 59,543,852 57,581, % -3.3% Croatia 72,863,635 78,228,263 84,694, % 8.3% Bulgaria 72,576,830 79,961,528 88,930, % 11.2% FYROM 10,886,779 13,633,220 13,701, % 0.5% Moldova 9,950,838 5,859,308 4,520, % -22.8% Finland 43,786,636 44,308,946 45,235, % 2.1% Albania 20,053,100 20,869,936 21,967, % 5.3% Bosnia and Herzegovina 30,738,360 34,982,135 33,984, % -2.9% Serbia/Montenegro/KFOR 70,629,655 80,423,663 81,718, % 1.6% Lithuania 22,597,786 22,268,867 23,121, % 3.8% Poland 138,375, ,706, ,715, % -6.9% Armenia 4,425,027 4,770,101 4,786, % 0.3% Latvia 20,390,745 20,956,756 21,182, % 1.1% Subtotal 7,188,405,280 7,254,698,382 7,508,523, % 3.5% Georgia 17,735,973 17,813, % Total 7,188,405,280 7,272,434,355 7,526,336, % 3.5% Source: 2015 actual figures WP CER Note: (1) Including Jersey and Geneva (2) Excluding Geneva (France) Table 6 En route services actual costs

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). Over the past three years, the growth rate in the total number of service units was as follows: Year Service units Variation ,130, % ,688, % ,439, % Table 7 Total service units The total service units amounted to million in There was an increase of 4.2% between 2015 and Graph 2 Total service units

14 Total actual service units totals per charging zone Table 8 gives, for each charging zone, the total number of service units (chargeable and exempted) generated from 2012 to 2016, as well as the average annual variation observed during the same period. Charging zones Belgium-Luxembourg 2,231,537 2,277,014 2,362,038 2,454,178 2,499, % 2.9% Germany (1) 12,513,068 12,569,982 12,880,783 12,976,261 13,561, % 2.0% France 17,515,047 17,899,945 18,496,754 18,867,771 19,882, % 3.2% United Kingdom 9,607,736 9,754,933 9,979,403 10,153,907 10,874, % 3.1% Netherlands 2,587,398 2,701,735 2,767,312 2,892,654 3,099, % 4.6% Ireland 3,805,985 3,812,940 3,922,499 4,182,450 4,467, % 4.1% Switzerland 1,398,574 1,384,957 1,427,068 1,454,786 1,493, % 1.6% Portugal Lisboa 2,782,280 2,876,753 3,019,611 3,150,186 3,509, % 6.0% Austria 2,469,156 2,456,012 2,645,392 2,739,285 2,749, % 2.7% Spain-Continental 8,443,969 8,447,044 8,767,769 8,997,417 9,761, % 3.7% Spain-Canarias 1,599,207 1,515,812 1,491,781 1,402,349 1,484, % -1.8% Portugal Santa Maria 3,874,372 4,021,257 4,166,099 4,661,620 5,039, % 6.8% Greece 4,357,569 4,215,705 4,617,799 4,898,818 4,678, % 1.8% Turkey 9,812,755 10,636,744 12,808,849 14,181,607 14,374, % 10.0% Malta 641, , , , , % 9.0% Italy 8,139,130 8,117,393 8,313,546 8,171,509 8,301, % 0.5% Cyprus 1,303,262 1,326,579 1,454,224 1,547,646 1,540, % 4.3% Hungary 2,023,434 2,100,927 2,406,153 2,695,133 2,788, % 8.3% Norway 1,845,568 2,050,929 2,220,734 2,313,891 2,495, % 7.8% Denmark 1,428,735 1,523,724 1,532,003 1,583,445 1,621, % 3.2% Slovenia 425, , , , , % 4.2% Romania 3,575,195 3,751,523 4,181,845 4,570,684 4,442, % 5.6% Czech Republic 2,304,641 2,374,021 2,393,408 2,531,815 2,737, % 4.4% Sweden 3,126,197 3,208,684 3,284,841 3,354,938 3,401, % 2.1% Slovak Republic 921, ,989 1,044,343 1,071,382 1,138, % 5.4% Croatia 1,678,634 1,694,578 1,760,424 1,790,210 1,787, % 1.6% Bulgaria 2,020,149 2,057,979 2,743,606 3,222,750 3,412, % 14.0% FYROM 174, , , , , % 9.4% Moldova 205, , ,067 73,816 59, % -26.6% Finland 790, , , , , % -0.8% Albania 442, , , , , % 0.0% Bosnia and Herzegovina 680, , , , , % 6.2% Armenia 153, , , , , % -7.7% Serbia/Montenegro/KFOR 1,718,633 1,638,512 1,751,706 1,974,864 2,130, % 5.5% Poland 3,854,458 3,983,698 3,930,688 3,880,013 4,174, % 2.0% Lithuania 429, , , , , % 4.3% Latvia 707, , , , , % 2.8% Subtotal 121,588, ,162, ,378, ,883, ,648, % 4.1% Georgia 751, , , % Total 121,588, ,162, ,130, ,688, ,439, % 4.2% 2016 service units: situation at 15/03/17 (1) Includes 73,165 service units for flight segments performed in 2016 as Operational Air Traffic. (2) Average annual variation during the period Variation 2016/2015 Variation (2) Table 8 Total number of service units generated

15 Service units - exempted flights Table 9 details the number of service units generated in each charging zone in For any given charging zone, the number of chargeable service units (column 12) is the difference between the total service units (column 1) and the service units generated in respect of exempted flights (column 11). EXEMPTED FLIGHTS Charging zones Total Military Search State Training VFR <2T Circular Other Total Chargeable service units Non- & Rescue exemptions service units Member States Member States (2) to (10) (1) - (11) Belgium-Luxembourg 2,499,996 10,178 3,653 1, , ,161 2,482,836 Germany (1) 13,561,501 34,792 75,001 9, , ,391 13,428,110 France 19,882, ,670 45, ,489 2, ,386 6,857 3, ,015 19,693,644 United Kingdom 10,874,798 33, , , ,150 3, ,898 10,711,899 Netherlands 3,099,952 6,479 29,844 1, , ,360 3,060,592 Ireland 4,467,595 4,777 46, , ,743 4,414,852 Switzerland 1,493,182 1, , ,815 1,489,367 Portugal Lisboa 3,509,556 8,254 25, ,062 3,473,493 Austria 2,749,863 5,830 3, , , ,082 2,736,782 Spain-Continental 9,761,348 23,726 53, , ,098 1,627 3, ,914 9,673,434 Spain-Canarias 1,484,755 5,050 5, , ,651 1,472,103 Portugal Santa Maria 5,039,640 13,415 83, , ,604 4,939,036 Greece 4,678,399 41,867 53, , ,422 4,577,977 Turkey 14,374,452 22, , , , ,327 14,239,125 Malta 905,497 4,880 24, , ,032 Italy 8,301,990 71,974 63, , ,523 1,727 1, ,498 8,154,492 Cyprus 1,540,071 14,542 8, ,266 1,515,804 Hungary 2,788,496 8,234 24,854 1, ,601 2,752,895 Norway 2,495,164 9,349 6, , ,139 21,731 2,473,434 Denmark 1,621,145 5,243 3, ,098 1,610,047 Slovenia 501, , ,044 Romania 4,442,936 3,644 49, , ,260 4,386,676 Czech Republic 2,737,003 7,830 39,509 1, , ,515 2,686,488 Sweden 3,401,901 7,963 4, , ,801 1, ,220 3,384,681 Slovak Republic 1,138, , ,250 1,121,001 Croatia 1,787,992 1,317 1, ,398 1,783,595 Bulgaria 3,412,754 8,572 29, , ,330 3,372,424 FYROM 249, ,734 Moldova 59, ,787 Finland 763,829 1, , ,635 Albania 442, , , ,144 Bosnia and Herzegovina 866, ,322 Armenia 111, ,110 Serbia/Montenegro/KFOR 2,130, , ,035 2,128,622 Poland 4,174,735 14,866 6, , , ,561 4,148,175 Lithuania 507,472 1, , ,573 Latvia 789,087 1,596 3, , ,626 Georgia 791, , , ,443 TOTAL 143,439, , , ,910 4,922 5,603 52,584 23,393 11,215 1,597, ,842, service units: situation at 15/3/17 (1) Includes 73,165 service units for flight segments performed in 2016 as Operational Air Traffic. Table 9 Service units generated in respect of exempted flights

16 Distances Table 10 sets out the number of kilometres recorded in the airspace of the Contracting States from 2012 to 2016 for the calculation of route charges (great circle distance after deduction of 20 km for departing and arriving flights) as well as the average annual variation observed during the same period. Charging zones Variation Variation (1) (in '000 km) (in '000 km) (in '000 km) (in '000 km) (in '000 km) 2016/ Belgium-Luxembourg 168, , , , , % 2.1% Germany 984, , , ,499 1,029, % 1.1% France 1,441,017 1,452,113 1,489,471 1,513,661 1,593, % 2.5% United Kingdom 691, , , , , % 2.7% Netherlands 190, , , , , % 4.4% Ireland 192, , , , , % 3.8% Switzerland 121, , , , , % 0.6% Portugal Lisboa 194, , , , , % 6.7% Austria 196, , , , , % 0.9% Spain-Continental 691, , , , , % 3.1% Spain-Canarias 103,982 99, ,444 97, , % 0.4% Portugal Santa Maria 181, , , , , % 6.7% Greece 317, , , , , % 0.8% Turkey 622, , , , , % 8.2% Malta 36,933 41,458 41,248 45,847 49, % 7.4% Italy 670, , , , , % 0.0% Cyprus 90,900 95, , , , % 4.7% Hungary 138, , , , , % 6.6% Norway 151, , , , , % 4.5% Denmark 115, , , , , % 1.9% Slovenia 34,614 33,447 36,537 36,889 38, % 2.9% Romania 218, , , , , % 4.2% Czech Republic 161, , , , , % 4.0% Sweden 250, , , , , % 1.0% Slovak Republic 64,472 68,441 71,859 72,076 75, % 4.2% Croatia 126, , , , , % 0.9% Bulgaria 138, , , , , % 10.4% FYROM 13,961 14,239 19,227 20,307 19, % 8.3% Moldova 12,188 14,160 9,446 6,284 5, % -18.8% Finland 61,041 57,687 57,957 55,233 54, % -2.8% Albania 32,191 32,999 33,271 34,211 31, % -0.8% Bosnia and Herzegovina 51,575 50,036 58,806 64,478 63, % 5.3% Armenia 9,411 9,097 8,596 7,226 6, % -8.7% Serbia/Montenegro/KFOR 131, , , , , % 4.8% Poland 279, , , , , % 2.3% Lithuania 32,900 33,967 35,640 35,424 36, % 2.4% Latvia 50,985 51,920 53,691 55,016 54, % 1.5% Subtotal 8,970,371 9,060,715 9,476,009 9,763,518 10,112, % 3.0% Georgia ,512 41,049 40, % Total 8,970,371 9,060,715 9,515,522 9,804,567 10,153, % 3.1% 2016 distances: situation at 15/3/17 (1) Average annual growth during the period Table 10 Total distance per charging zone

17 OPERATIONAL STATISTICS 5.1. Flights processed growth rate The number of flight messages processed corresponds to the number of flights (whether chargeable or exempted) recorded for charging purposes in the airspace of the Contracting States. Over the past three years, the annual variation in the number of flights was as follows: Year Flights processed Variation ,648, % ,834, % ,086, % Table 11 Number of flights processed Graph 3 Flight messages processed

18 Total number of flight segments The total number of flight segments per charging zone, as recorded in the airspace of the Contracting States from 2012 to 2016, is shown in Table 12 below. Charging zones 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (1) Variation Variation (2) 2016/ Belgium-Luxembourg 1,104,770 1,121,442 1,153,758 1,185,259 1,210, % 2.3% Germany 3,109,946 3,079,435 3,120,260 3,176,783 3,250, % 1.1% France 2,901,772 2,879,381 2,931,631 2,972,867 3,105, % 1.7% United Kingdom 2,187,265 2,198,839 2,241,077 2,302,757 2,433, % 2.7% Netherlands 1,100,846 1,119,527 1,140,612 1,190,787 1,256, % 3.4% Ireland 525, , , , , % 3.7% Switzerland 1,095,706 1,065,163 1,080,738 1,096,015 1,106, % 0.2% Portugal Lisboa 437, , , , , % 6.3% Austria 1,161,545 1,139,809 1,176,107 1,191,081 1,196, % 0.7% Spain-Continental 1,564,851 1,534,712 1,589,254 1,650,041 1,776, % 3.2% Spain-Canarias 275, , , , , % 3.0% Portugal Santa Maria 122, , , , , % 5.6% Greece 624, , , , , % 2.6% Turkey 1,078,864 1,155,082 1,284,150 1,370,796 1,344, % 5.7% Malta 95, , , , , % 3.0% Italy 1,772,668 1,682,989 1,700,232 1,731,027 1,769, % 0.0% Cyprus 266, , , , , % 4.5% Hungary 592, , , , , % 7.5% Norway 545, , , , , % 0.5% Denmark 608, , , , , % 1.5% Slovenia 343, , , , , % 0.5% Romania 484, , , , , % 6.1% Czech Republic 691, , , , , % 4.0% Sweden 719, , , , , % 2.8% Slovak Republic 405, , , , , % 5.1% Croatia 501, , , , , % 2.1% Bulgaria 537, , , , , % 8.9% FYROM 117, , , , , % 7.1% Moldova 63,653 73,838 55,636 45,139 40, % -10.5% Finland 259, , , , , % -1.7% Albania 194, , , , , % -1.2% Bosnia and Herzegovina 255, , , , , % 5.6% Armenia 55,427 52,347 50,231 42,086 38, % -8.5% Serbia/Montenegro/KFOR 532, , , , , % 3.6% Poland 675, , , , , % 2.7% Lithuania 203, , , , , % 2.9% Latvia 231, , , , , % 1.4% Subtotal 27,445,332 27,459,492 28,560,583 29,480,706 30,389, % 2.6% Georgia 114, , , % Total flight segments 27,445,332 27,459,492 28,674,681 29,602,625 30,514, % 2.7% 2016 flight segments situation at 15/3/17 (1) Excluding VFR flight segments, representing 0.2% of the total flight segments processed The impact of VFR flights on total distances, service units and charges is negligible. 70,350 VFR flights processed in 2016, of which 20,922 were performed in Italian airspace and 17,575 in Norwegian airspace. (2) Average annual growth during the period Table 12 Flight segments

19 Recovery rates Medium- and long-term recovery rates The medium-term recovery rate, i.e. the 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 2015 was 99.73%. The long-term recovery rate reflects the trend performance of the CRCO. The graph below also shows the annual recovery rates for the period measured on 30 January The average long-term recovery rate for the period was 99.73%. Graph 4 Medium- and long-term recovery rates Quarterly recovery rates at latest date for payment and after 30 days The annual average recovery rate on the latest date for payment amounted to 94% in 2016, compared with 92.8% in The annual average recovery rate 30 days after the latest date for payment was 98.9% in 2016 (the same rate as in 2015). Graph 5 Recovery rates on latest date for payment and after 30 days

20 The CRCO s productivity Evolution of key figures The productivity of the CRCO is clearly demonstrated in the graph below. It shows the evolution of certain key figures compared with the average numbers of staff. Graph 6 CRCO productivity CRCO s actual costs compared with service units/amounts billed The table and graphs below show the ratios between the CRCO s actual net costs (route charge collection costs under the Multilateral System net of receipts from bilateral agreements) and service units/amounts billed. Year CRCO costs Service units Cost per Amounts billed Ratio (EUR millions) (millions) service unit (EUR millions) % =2/3 5 6=2/ , % , % , % , % , % Source of information for CRCO costs: Route Charges System financial statements 24/2/17 - still subject to audit 2016 service units and amounts billed: situation at 15/3/17 Table 13 Ratios between the CRCO s actual net costs and service units/amounts billed

21 FINANCIAL STATISTICS 6.1. Amounts billed for flights performed in 2016 The amounts billed to airspace users for flights performed between January and December 2016 totalled EUR 7.9 billion. This represents a decrease of 0.8 % over Amounts billed exclude value added tax (VAT), amounting to EUR 16.9 million, billed on behalf of twenty-one VAT-taxable ANSPs in the Contracting States (see Tables 15 and 16). Year Amounts billed (EUR) Variation rate ,495,466, % ,988,748, % ,924,384, % Table 14 Amounts billed for flights performed in (excluding VAT) Graph 7 Amounts billed for flights carried out in (excluding VAT)

22 Amounts billed and disbursed to the States Table 15 shows the total amounts billed in euros for flights performed in 2016 and the amounts disbursed in euros to the Contracting States in 2016, excluding VAT. Charging zones Amount billed Net amount disbursed Belgium-Luxembourg 162,625, ,103,527 Germany 1,110,237,365 1,117,449,032 France 1,331,882,826 1,324,500,632 United Kingdom 966,662, ,977,392 Netherlands 205,335, ,004,759 Ireland 131,385, ,294,171 Switzerland 155,416, ,615,478 Portugal Lisboa 138,905, ,207,800 Austria 201,756, ,169,951 Spain-Continental 694,359, ,779,678 Spain-Canarias 86,044,525 84,948,659 Portugal Santa Maria 53,786,088 52,705,824 Greece 165,310, ,257,121 Turkey 356,184, ,164,140 Malta 22,645,866 21,617,685 Italy 653,746, ,674,534 Cyprus 51,022,026 51,188,784 Hungary 96,377,798 95,306,653 Norway 101,488, ,959,377 Denmark 99,625,606 99,618,572 Slovenia 32,737,964 32,684,105 Romania 159,429, ,317,541 Czech Republic 115,682, ,871,539 Sweden 208,392, ,468,983 Slovak Republic 58,998,391 58,399,059 Croatia 85,260,342 85,050,032 Bulgaria 76,486,455 79,275,733 FYROM 13,100,390 13,214,628 Moldova 3,380,049 3,209,260 Finland 42,895,352 41,923,268 Albania 22,230,039 22,199,798 Bosnia and Herzegovina 36,290,953 35,835,057 Serbia/Montenengro/KFOR 78,717,805 78,905,467 Poland 139,117, ,569,643 Lithuania 22,700,791 22,719,982 Armenia 4,420,494 4,329,317 Latvia 21,471,375 21,329,529 Georgia 18,272,827 17,874,422 Total 7,924,384,821 7,927,721,134 National charges (all States) 7,911,619,135 Administrative charges (all States) 12,765, amounts billed: situation at 15/3/ amounts disbursed: balance sheet and administrative (operating results) accounts financial year 2016 Table 15 Amounts billed and disbursed to the States in 2016

23 VAT billed and disbursed to the States Table 16 shows the total amounts of VAT billed in euros for flights performed in 2016 and the amounts disbursed in euros in 2016 to the 21 VAT-taxable ANSPs of the Contracting States which apply VAT to route charges. Charging zones VAT billed VAT disbursed Germany 1,722,377 1,729,196 United Kingdom 4,189,549 4,345,338 Ireland 252, ,885 Switzerland 39,714 41,200 Austria 333, ,975 Continantal Spain 1,026, ,069 Spain - Canaries 27,505 0 Norway 7,856,469 7,996,914 Denmark 123,185 96,868 Slovenia 47,585 44,978 Romania 245, ,995 Czech Republic 147, ,315 Sweden (1) Slovak Republic 120, ,979 Croatia 156, ,586 Bulgaria 90,905 72,699 Moldova Finland 93,725 85,587 Poland 374, ,261 Lithuania 43,605 43,895 Latvia 28,213 25,896 Georgia 2,220 2,173 Total 16,922,773 16,799, amounts billed: situation at 15/3/ amounts disbursed: balance sheet and administrative (operating results) accounts financial year 2016 (1) VAT not billed as from 1/4/09 Table 16 VAT billed and disbursed to the Contracting States in 2016

24 ORIGIN OF TRAFFIC AND RECEIPTS Table 17 shows the percentage of chargeable service units and route charges recorded for all the Contracting States in 2016, by user state of registration. Contracting States national users accounted for 73% of the total number of chargeable service units and for 77% of the total route charges billed. User state of registration Chargeable service units Route charges billed Belgium 1.5% 1.7% Luxembourg 0.6% 0.6% Germany 10.4% 11.8% France 5.1% 5.4% United Kingdom 12.8% 14.8% Netherlands 3.5% 3.8% Ireland 8.2% 10.0% Switzerland 2.1% 2.4% Portugal Lisboa 1.6% 1.5% Austria 1.2% 1.2% Spain 4.6% 4.9% Greece 0.9% 0.7% Turkey 8.2% 5.5% Malta 0.3% 0.4% Italy 2.0% 2.4% Cyprus 0.0% 0.0% Hungary 1.6% 1.6% Norway 1.3% 1.3% Denmark 0.7% 0.8% Slovenia 0.1% 0.2% Romania 0.6% 0.5% Czech Republic 0.6% 0.6% Sweden 2.3% 2.5% Slovak Republic 0.0% 0.0% Croatia 0.1% 0.2% Bulgaria 0.2% 0.2% FYROM 0.0% 0.0% Moldova 0.1% 0.1% Finland 0.8% 0.8% Albania 0.0% 0.0% Bosnia and Herzegovina 0.0% 0.0% Armenia 0.0% 0.0% Serbia 0.2% 0.2% Montenegro 0.0% 0.0% Poland 0.8% 0.7% Lithuania 0.1% 0.1% Latvia 0.3% 0.3% Georgia 0.0% 0.0% Total Participating States 73.0% 77.0% USA 4.0% 4.0% Others 23.0% 19.0% Total all nationalities 100.0% 100.0% Total European Union 61.0% 67.4% Table 17 Total percentage of chargeable service units and route charges billed in 2016 by user state of registration

25 RULES AND PROCEDURES OF THE ROUTE CHARGES SYSTEM Principles for establishing the cost-base and the calculation of the unit rates The Principles for establishing the cost-base and the calculation of the unit rates were amended by Decision No 122 of the enlarged Commission dated 1 October 2013, and a new version entered into force in November The EUROCONTROL Principles offer two options for calculating en route costs and unit rates: the determined cost and the full cost recovery. The EUROCONTROL Principles are consistent with the EU charging Regulation. Regulation (EU) No 391/2013 laying down a common charging scheme for air navigation services (replacing Commission Regulation (EC) No 1794/2006). Conditions of Application of the Route Charges System and Conditions of Payment The Conditions of Application of the Route Charges System and Conditions of Payment describe in detail the formula used for the calculation of route charges, the categories of flights exempt from payment of route charges, and the procedures for payment of route charges. The latest version entered into force in May 2011.