Annual Report Maastricht Upper Area Control Centre

Transcription

1 06 Annual Report Maastricht Upper Area Control Centre Results Customers Processes People Technology

2 Fast Facts Trend 2005/ 2006 Main Targets set for 2006 Safety indicators Category A infringements A limit of 1 occurrence for each 100,000 Category B infringements movements Financial indicators Total fixed-assets at year end (Net book value) ( M) % Capital expenditure at year end ( M) % Total costs ( M) % Staff % Operating % Depreciation % Interest % Cost-efficiency indicators Total economic cost/flight-hour( ) * % < 325 Financial cost/flight-hour ( ) ** % < 249 Cost/km controlled ( ) % Productivity (composite flight hour per air traffic controller-hour on duty) % Movements % Average delay/flight (minutes) % < 0.5 Service units % Number of employees (31 December) % * Total economic cost per flight-hour: key performance indicator used for ATM cost-effectiveness (ACE) benchmarking. It is the sum of ATM/CNS provision costs and ATFM delay costs per composite flight-hour. ** Financial cost per flight-hour: ATM/CNS service provision cost per composite flight-hour.

3 04 EUROCONTROL Maastricht UAC profile 08 MCG chairman s statement 09 Director General s statement 10 Director s statement 11 Management report highlights 14 Key results 21 Customers 22 Processes 23 People 25 Bringing ATM technology to new horizons 29 Business outlook 31 Financial accounts 35 Acronyms and abbreviations Contents 03 Eurocontrol Maastricht UAC Annual Report 2006

4 EUROCONTROL s Maastricht Upper Area Control Centre provides seamless air navigation services in the upper airspace (above 24,500 feet) of Belgium, North-West Germany (Hannover Upper Information Region), Luxembourg and the Netherlands as well as in parts of adjacent airspace of France, Germany and the United Kingdom. To ensure optimal civil and military cooperation, a Deutsche Flugsicherung (DFS) unit, controlling military air traffic over North-West Germany, is co-located with it. The Maastricht UAC is a multinational, crossborder air navigation service provider. It is operated, on behalf of the Four States, as a non-profit, intergovernmental organisation, by EUROCONTROL. As well as providing first-rate air traffic management services to its customers, it also supports innovative safety, capacity and efficiencyenhancing programmes by conducting preoperational validations of new concepts and technologies.

5 Eurocontrol Maastricht uac Profile Mission and vision The Maastricht UAC provides safe, customeroriented and cost-efficient air navigation services on an equal and fair basis to its customers in the upper airspace of Belgium, Germany, Luxembourg and the Netherlands. It also provides and validates innovative Air Traffic Management operational solutions. Its vision is to be the leading air navigation service provider in a large European airspace block. Corporate governance EUROCONTROL is an international organisation established under the EUROCONTROL Convention of 13 December 1960, subsequently amended on 12 February 1981 and revised on 27 June The Maastricht UAC is operated by EUROCON- TROL on behalf of Belgium, Germany, Luxembourg and the Netherlands on the basis of the Agreement relating to the Provision and Operation of Air Traffic Services and Facilities by EURO- CONTROL at the Maastricht Upper Area Control Centre (the Maastricht Agreement ), signed on 25 November All necessary operational and technical measures, including budgetary appropriations, are defined and implemented by the Organisation. Budget approval is requested by the EUROCONTROL Director General from the Permanent Commission. A Maastricht Co-ordination Group was established to facilitate decision-making by determining a common position for the Four States in all matters relating to the operation of Air Traffic Services at the Maastricht UAC. Day-to-day responsibility for operations has been delegated to the Director of the Maastricht UAC by EUROCONTROL s Director General. Each of the Four Member States retains its regulatory competence. Eurocontrol Permanent Commission Ministers of Transport and Defence Audit Board Provisional Council Directors General of Civil Aviation and their military counterparts Maastricht Co-ordination Group Senior Officials from the Four States Eurocontrol Agency Director General Maastricht Upper Area Control Centre Director MUAC 05 Eurocontrol Maastricht UAC Annual Report 2006

6 Management Director General of EUROCONTROL Víctor M. AGUADO Maastricht UAC Management Karl-Heinz KLOOS Director Klaas DE VRIES Head of Operations Peter NAETS Head of Engineering Onno REITSMA Head of Human Resources, Finance and General Services Edouard HAAS Head of Programme Management Unit From left to right : Peter Naets, K.-H. Kloos, K. De Vries, E. Haas, O. Reitsma

7 Maastricht Co-ordination Group (2006) Belgium Maurits DE CLIPPEL André VAN HOVE Jacques GERKENS Col. Patrick VANHEYSTE (until june 2006) Maj. Dirk DE SMEDT (from june 2006) Jan COTTYN Federal Public Service for Mobility and Transport Federal Public Service for Mobility and Transport Federal Public Service for Mobility and Transport Belgian Armed Forces, Defence Belgian Armed Forces, Defence Belgocontrol Germany Wolf LIEDHEGENER Col. Hans-Georg SCHMIDT Lt. Col. Osman SAAFAN Andreas ANGENENDT (until october 2006) Frank BRENNER (from october 2006) Federal Ministry for Transport, Building and Urban Development Federal Ministry of Defence Federal Ministry of Defence DFS Deutsche Flugsicherung GmbH DFS Deutsche Flugsicherung GmbH Luxembourg Henri KLEIN Ender ÜLCÜN Gilbert MEYER Ministry of Transport, Directorate of Civil Aviation Ministry of Transport, Directorate of Civil Aviation Chairman of the Maastricht Co-ordination Group in 2006 Luxembourg Airport Authority Netherlands Theo ZANDSTRA Lt. Col. John VAN BOMMEL Andries VERBURGT Ministry of Transport, Public Works and Water Management Royal Netherlands Air Force Luchtverkeersleiding Nederland 0 Eurocontrol Maastricht UAC Annual Report 2006

8 MCG chairman s statement During the past year the Maastricht UAC continued to fulfil the mission entrusted to it by the Four States and air navigation services were delivered in a safe, efficient and cost-effective manner, beyond the targets set for the year. The highlight of the last twelve months was the certification of the Maastricht UAC as compliant with Single European Sky legislation for the provision of air navigation services in the European Community, which was awarded on 8 November 2006 by the Netherlands Transport and Water Management Inspectorate and Directorate General for Civil Aviation and Freight Transport. and the military service providers. FAB Europe Central needs to improve air traffic management performance whilst achieving economies of scale resulting from improved synergies. It will address the challenges of an industry faced with continued growth, as well as concerns for the environment, by ensuring sustainability. The results of the feasibility study are expected in the summer of I would like to take this opportunity, on behalf of the Maastricht Co-ordination Group, of thanking the Maastricht UAC s management and staff for their work and professionalism throughout the year. This was an example of successful multinational cooperation at the regulatory level with the Dutch National Supervisory Authority coordinating the certification process in close collaboration with its Belgian, German and Luxembourg counterparts, resulting in the creation of the common supervisory team. Throughout the process, a very high level of collaboration between the four National Supervisory Authorities was required, a fact which should not be overlooked. This development paves the way for even closer team work between the different regulatory bodies in the future, and it confirms that the appropriate level of separation between regulation and service provision is in place with regards to the Maastricht UAC. The past year was also notable for the decision, by Belgium, France, Germany, Luxembourg, the Netherlands and Switzerland, to launch a detailed feasibility study into the creation of the Functional Airspace Block (FAB) Europe Central. The study, which has the support of EUROCONTROL s Director General, is a collaborative effort by the States civil aviation and military authorities, the area s seven air navigation service providers I would also like to acknowledge the efforts of the Maastricht Co-ordination Group itself and reiterate what a privilege it has been for me to work in a consensual and supportive environment. Ender Ülcün Chairman of the Maastricht Co-ordination Group

9 Director General s statement 2006 was a pivotal year for European air traffic management with key decisions taken, bringing the realisation of a safer, performance-oriented, sustainable and less-fragmented network, ever closer. The goal of developing a network able to cope with the 16 million flights per year expected by 2020 is becoming more achievable. Throughout 2006, the EUROCONTROL Maastricht UAC consistently provided first-class air navigation services. The UAC is a benchmark for European ATM integration and harmonisation, encapsulating key requirements for the future. Its results and reliable performance therefore demonstrate that this concept is the right one. Short-term initiatives need to be taken to build further on the air traffic management improvements achieved so far. It is with this in mind that EURO- CONTROL is forging ahead with the Dynamic Management of the European Airspace Network (DMEAN) programme. Between now and 2010, DMEAN will improve the current ATM network by making it more flexible. Airspace users will benefit from the resulting increased efficiencies. Once again, the dedication and professionalism of the Maastricht UAC management and staff in reaching the objectives set is duly recognised and greatly appreciated. Today s air travellers need to travel safely, at minimal cost, with no delays. It is vital that further improvements are achieved at the earliest possible opportunity. At the same time, protecting the environment is central and aviation emissions need to be drastically reduced. The Functional Airspace Block Europe Central (FAB EC) initiative started by six States during 2006 is promising and EUROCONTROL supports this project. The FAB EC aims to lay the groundwork for a more efficient, sustainable air transport industry by implementing pragmatic short-term improvements. The possibility of offering more efficient routes at optimum flight levels is being explored, together with the provision of a well-organised, seamless network with control centres working in harmony and with heightened military and civil cooperation. Economies of scale must be achieved for all of aviation s stakeholders. All the participating States are committed to proceeding with the project and to delivering short-term results. The Maastricht UAC s experience of managing cross-border airspace will, no doubt, be a driver in this work. Víctor M. Aguado Director General of EUROCONTROL 09 Eurocontrol Maastricht UAC Annual Report 2006

10 Director s statement The year 2006 was a successful one for EURO- CONTROL Maastricht. It was marked by strong growth in air traffic, good punctuality levels and improved cost-effectiveness. Safety standards were steadily enhanced, confirming that the deployment of safety measures has born fruit. Relations with customers were strengthened with several consultation initiatives aimed at fine-tuning service provision. As a result, improved ways of capturing the needs of aircraft operators were put in place as well as more productive two-way communication channels. The expertise available will not only safeguard day-to-day operations, but also support the UAC s ability to act as an impartial environment for the EUROCONTROL Agency to test and validate new technology, systems and operational concepts. In addition, the Functional Airspace Block Europe Central project will serve the European vision of a seamless air traffic management system and underpin the Maastricht UAC as a key player within the Single European Sky. A significant number of noteworthy technical developments were achieved. In particular, this included the implementation of advanced safetycritical as well as surveillance and communications functions. Just as in 2005, strenuous efforts were made by many of the staff, throughout 2006, with a view to achieving certification under European Community regulations before the end of the year. The work was undertaken with all partners in the Four States adopting a consensual approach. The certification itself was preceded by a series of comprehensive audits in various key areas. Looking forward In order to meet anticipated air traffic growth, efforts will be continued to ensure the highest safety levels, improve customer satisfaction and provide adequate capacity at agreed delay levels to meet demand in the most cost-effective and sustainable manner. To meet these core objectives, landmark air traffic management systems, concepts and expertise will be put in place. Acknowledgements The staff and management at the Maastricht Upper Airspace Control Centre would like to express their thanks to the Four States and the members of the Maastricht Co-ordination Group, whose continued support was pivotal in helping to ensure that 2006 was another successful year. For my part, I am keenly aware that it is the drive and unstinting hard work of the staff which makes this success possible, and for that I would like to offer my appreciation to everyone who helped to advance air navigation service provision in the core area of Europe. Karl-Heinz Kloos Director of the Maastricht UAC

11 Management report 11 Eurocontrol Maastricht UAC Annual Report 2006

12 2006 Highlights Traffic records broken. High levels of punctuality, productivity, cost-efficiency and improved technical systems April A new ATC sector becomes available in the Hannover Sector Group, offering greater flexibility to cope with increasing demand resulting from traffic between Northern Europe and the Mediterranean as well as growing traffic to and from central Europe. january february march april may june Highligh February A new fallback system becomes operational, providing controllers with a leadingedge back-up facility in the event of a failure of the main system. June Traffic hits record levels on 30 June 2006, with 4,806 flights processed in a single day, representing an increase of 7.2% on the previous year s high.

13 July June and July saw the strongest traffic growth of the year with more than 16,000 additional flights. The Football World Cup, which took place in Germany during these two months, was the main contributor to these peaks. The FAB Europe Central feasibility study is kicked off on 1 July 2006 by the Four States. A new ATC sector becomes available in the Delta/Coastal Sector Group, which covers most of the Netherlands as well as part of German airspace. The new sectorisation contributed to the notable capacity growth achieved in the summer. November At a ceremony held at the Maastricht UAC, on 17 November, Mrs Karla Peijs, Minister of Transport, Public Works and Water Management of the Netherlands, presents the certificate for the provision of air navigation services to Víctor M. Aguado and Karl-Heinz Kloos. The Maastricht UAC is formally certified as compliant with European Community requirements for the provision of air navigation services by the Transport and Water Management Inspectorate and Directorate General for Civil Aviation and Freight Transport of the Netherlands. Two new partner countries - France and Switzerland - join the FAB Europe Central feasibility study. FAB Europe Central aims to cover the upper and lower airspace of six countries representing some 80% of the core area of Europe. A new professional scale for operational staff is agreed, which better reflects the specific nature of an operational career. A flat-rate shift allowance is agreed. july august september october november december ts 2006 December September A new sector above flight level 335 becomes available in the Hannover Sector Group, further boosting capacity. The new Short-Term Conflict Alert tool is ready for implementation in the main ATC system. The tool was implemented in the back-up system in June 2006 and in the main system in January Close to 1.5 million flights are handled by the Maastricht UAC in Natural growth in the industry and the additional traffic resulting from special events, such as the Football World Cup in Germany, contribute significantly to the increase in air traffic. 13 Eurocontrol Maastricht UAC Annual Report 2006

14 Traffic trends Between 1990 and 2006, traffic more than doubled, representing an average annual growth of 4.7%. n 1991: First Gulf war n 1995: Division flight level raised to 245 (Belgium) n 2002: Aftermath of 11th September , , , , , , , ,252 1,058,091 1,110,248 1,184,739 1,197,512 1,182,601 1,243,794 1,296,979 1,386,085 1,465, Key Traffic and delay trends Since 2000, traffic in the area has grown by 24%, and delays have decreased by 76%. The increase in delays during 2006 can mainly be attributed to special events such as an airspace re-design, implemented in March 2006 in Germany, and high traffic peaks, due to the Football World Cup in June and July. Delay 2,500,000 Traffic 1,500,000 2,000,000 1,400,000 1,500,000 1,300,000 1,000,000 1,200,000 1,184,739 1,197, 512 1,182,601 1,243,794 1,296,979 1,386,085 1,465, ,000 1,100,

15 Key results Meeting air traffic demand 2006 was another record-breaking year for the Maastricht UAC. Traffic exceeded highest growth predictions, with 1,465,963 flights - a rise of 5.8% on The year s strongest growth was recorded during June/July 2006, during the Football World Cup in Germany, with more than 16,000 additional flights, some 6.6% up on Controllers at Maastricht hit daily air traffic control record levels on 30 June, with 4,806 flights processed safely. This represents an increase of 7.2% and improved manpower planning and deployment. The creation of additional sectors resulted in improved airspace management, thanks to higher sector configuration flexibility. Other technical upgrades were instrumental in meeting demand and punctuality targets. During 2006, the Maastricht UAC was again successful in matching capacity with air transport growth to a level which outperformed the targets fixed in the Local Convergence and Implementation Plan for and in line with the economic optimum for delays. results on the previous year s busiest day. The average traffic volume during the summer season (May- October) amounted to 4,353 flights per day. Total BRUssels UIR 25% With 98% of flights on time, punctuality levels remained good. The average air traffic flow management delay per flight was 0.3 minute, or 18 seconds. This compares favourably with the overall European picture, which saw traffic growth of 4.1% and an average air traffic flow management delay per flight of 1.9 minutes. Sector occupancy levels and flight data from the Central Flow Management Unit, along with continued consolidation of dynamic tactical flow and capacity management processes, contributed to this achievement. Efficient customerfocused service cemented sustained relationships with aircraft operators at the tactical level. Other capacity enablers at an operational level included increased sector opening times (an additional 8%), enhanced civil and military coordination processes Total AMSterdam FIR 30% Total Hannover UIR 45% Service units 2006 Breakdown of service units in the Amsterdam FIR, Brussels UIR and Hannover UIR respectively. During 2006, service units increased by 6.4% over 2005, to a grand total of 5,697, Eurocontrol Maastricht UAC Annual Report 2006

16 Cost-efficient service An airline s ability to maintain healthy profit margins is directly affected by the efficiency of operations at all points in the value-chain. The Maastricht UAC is aware that it has a duty to add value to the aviation industry by relentlessly driving down the cost of its service provision. The key priority is, therefore, to continue to deliver first-class services at the lowest possible cost. The overall objective of keeping cost increases below the level of traffic growth was successfully met during the past year. The 5.8% increase in air traffic, which represented a 6.7% increase in flight hours controlled, was offset by an increase in costs of 3.9%. The strategy for containing air navigation service provision costs below the levels of traffic increase is directed at all aspects of the UAC s activities. Accordingly, they cover the reduction in support costs, the improvement of processes, integrated technical systems and increased automation. Support and maintenance contracts are regularly renegotiated and, where possible, the UAC seeks to collaborate with other air navigation service providers when it is developing its procurement plans. In addition, more competitive tendering processes have been implemented. This resulted in a total economic cost per flight hour controlled, in 2006, of 255, reconfirming the high cost-effectiveness ratio as identified in the European ATM Cost-Effectiveness Benchmarking Reports Total economic cost per flight-hour ( ) The total economic cost per flight-hour controlled is a standard key performance indicator used in the ATM Cost-Effectiveness (ACE) Benchmarking Reports, produced by the Performance Review Commission. It is the sum of ATM/CNS costs (or financial cost) and ATFM delay costs per composite flight-hour. n Cost for delay n Financial cost n Total economic cost

17 The total economic cost per flight-hour controlled has been on a downward trend since 2001, resulting in an average decrease of 15% per annum, and representing a decrease of 56% over five years. The year s 8.1% increase over 2005 was due to higher delay figures, which were, however, within acceptable levels, meaning that delay figures as well as the total economic cost per flight-hour remained well below long-term objectives. Capital costs increased by 9.7%. This increase was mainly accounted for by the implementation of International Accounting Standards and associated higher depreciation rates for computer hardware. Exceptional depreciations were accrued due to the early replacement of some ATC systems and equipment as part of a cost-effectiveness programme, contributing to the overall positive result in operating costs for maintenance and support. Following a 6% cut in 2004, and a further 7% cut in 2005, the financial cost per flight-hour decreased by 2.3%. The main driver for this continued positive trend was the cost-efficiency programme used to control budget requirements and expenses at all levels of the organisation. The foundations for realising these cost-efficiency gains have been set through the establishment of long-term financial targets, which are based on budgetary parameters, and include a 3% efficiency target. Total staff costs went up by 3.5%. The majority of this increase was accounted for by the retroactive payment of a salary adjustment for 2004 and the partial implementation of a flat-rate shift allowance. Over the period , new employees were recruited mainly in operational and technical areas, and efficiency improvement measures, including automation tools, were implemented to compensate for the increased workload in support activities. Air traffic controller productivity increased by 8.3% owing to more dynamic sectorisation and better use of available resources through optimised rosters and enhanced tactical capacity management (M ) Staff and operating % Depreciation and interest % Total % Cost-base trends The increase in operating costs was limited to 2.9%, while capital costs went up by 9.7%. This resulted in an overall cost increase of 3.9% compared to an increase of 6.7% in flight-hours controlled. 17 Eurocontrol Maastricht UAC Annual Report 2006

18 Traffic 1,386,085 1,465, % Delays (minutes) 174, , % Average delay/flight (minutes) % Service units 5,352,713 5,697, % Kilometres controlled 415,434, ,896, % Air traffic controller-hour productivity % Flight-hours controlled 509, , % Cost per kilometre controlled ( ) % Financial cost per flight-hour controlled ( ) % Total economic cost per flight-hour ( ) % Maastricht UAC equivalent unit rate ( ) % Key performance indicators Benchmarking Air Navigation Service Providers cost effectiveness The ATM Cost-Effectiveness Benchmarking Report for 2005 ranked the Maastricht UAC as a top performer among European air navigation service providers. The result for 2006 will reconfirm this position, thanks to continued high staff productivity, efficient air traffic and airspace management processes, the robustness of the infrastructure as well as rigorous cost containment objectives.

19 ATM safety Aircraft under the control of Maastricht UAC continued to enjoy high standards of safety during For the third consecutive year, no category A separation infringements (serious incident) were recorded. The number of category B separation infringements (major incident) caused by the UAC remained stable at eight, in spite of a 5.8% increase in traffic load. In spite of the commendable safety record resulting from past and present efforts, the UAC will continue to keep the spotlight on its primary responsibility and close any gap as soon as it is identified. Occurrence reporting ( ) Overview of separation infringements with Maastricht UAC contribution ( ) Severity classification A and B A Serious incident (the risk classification of an aircraft proximity in which serious risk of collision has existed). B Major incident (the risk classification of an aircraft proximity in which the safety of the aircraft may have been compromised). Overview of Category A and B separation infringements with Maastricht UAC contribution ( ) per 100,000 movements During three consecutive years, the safety performance target was met with category A and B separation infringements contained below the limit of 1 occurrence per 100,000 movements December 2003 March 2004 June 2004 September 2004 December 2004 March 2005 June 2005 September 2005 December 2005 March 2006 June 06 September 2006 December Eurocontrol Maastricht UAC Annual Report 2006

20 Safety management The safety management system, developed in compliance with EUROCONTROL Safety Regulatory Requirements, met Single European Sky safety standards in a milestone achievement in November The UAC will continue to develop the safety management system to meet current and future safety challenges in line with emerging regulatory requirements. Developing our safety culture Towards a Just Culture The development of a Just Culture is a key safety issue throughout the aviation industry. In an effort to further embed the concept at the Maastricht UAC, the Voluntary and Confidential Reporting of Safety Issues (INREP) programme was introduced. This programme is designed to encourage the open reporting of perceived safety issues by staff without leading to unfair recrimination. Over sixty reports were submitted by staff in the second semester of All staff completed an Introduction to Safety Management course, designed to raise awareness of everyone s roles and responsibilities with respect to safety. Detailed training, aimed at improving the effectiveness of safety management across the unit, was also delivered to targeted staff, once their specific needs had been assessed via a defined training programme.

21 Customers Service of quality Each constituent part of the aviation industry must perform as efficiently as possible. The quality of service provision needs to be improved each year and its costs reduced. Challenges facing the airlines, in the form of rising fuel prices and strengthening competition, mean that there is now, more than ever before, an urgent requirement for air navigation service providers to be able to provide optimum flight profiles and routes. More direct and efficient routes not only help to enhance the profitability along all of the industry s value chain, they also result in reduced fuel burn, a reduction in noise levels and a decrease in harmful aircraft emissions. the capacity plan for 2006 and beyond; customer relations management; efficiency programmes as well as plans for the construction of a Functional Airspace Block. Airline representatives expressed their appreciation of the direct and regular communication channels established with the UAC, particularly when addressing specific tactical flow management issues. They also indicated that the plenary consultation was an effective platform for enhancing a mutual understanding, due to its open and transparent nature. During the consultation session, several airlines formally expressed their satisfaction with the service and performance, and a number of encouraging comments were made. Customers Customer relationship management Developing customer relationships is a primary task, as it brings with it a clearer understanding of airline requirements and expectations. Therefore, during 2006, the UAC continued to develop the vital areas of key customer account management, customer satisfaction and complaints management. Efforts were taken to develop a number of key accounts with the main airline associations as well as the airlines, which use the Maastricht UAC airspace most frequently. In addition, both plenary and bilateral consultation initiatives were undertaken during 2006, to communicate with customers and to cement relationships. A plenary customer consultation meeting was convened in May 2006, which covered the topics of safety and operational performance; An independent customer satisfaction survey will be undertaken in 2008 to monitor the trends identified during the 2005 survey and identify service improvements. Perceptions on service provision, effectiveness and developing customer requirements are key tools supporting the future strategies. Promoting mutual understanding Building on the formal consultative framework, operational experts paid visits to, or hosted visits from, airline customers with a view to understanding their needs more precisely; promoting understanding on ATC issues and establishing useful points of contact. According to the airlines themselves, this initiative has proven to be extremely beneficial and has been instrumental in promoting the concept 21 Eurocontrol Maastricht UAC Annual Report 2006

22 of Collaborative Decision Making for tactical operations, as well as providing customer focused operational information. It has also given the airline representatives a greater understanding of the dynamic traffic management techniques employed at Maastricht UAC to maintain an efficient and delay-free operation. Finally, a far reaching consultation process was put in place as part of the FAB Europe Central feasibility study. A user expectation workshop was held, in January 2007, to seek the airlines views at an early stage, on a number of topics, which will have an impact on the operational issues being considered as part of the study. Processes The Maastricht UAC s process-driven management system is operated in line with ISO 9001 standards, and defines how services are provided to meet customer and stakeholder requirements. All objectives, processes and capabilities are harmonised so that they can be applied across organisational boundaries. Throughout 2006, effective process management continued to guarantee the best use of resources and capabilities for the efficient delivery of services and helped to ensure that budgetary targets were met. Environmental sustainability The need to reduce aviation s contribution to global warming has become vital. Flight efficiency is a crucial parameter, which has a non-negligible impact on the sustainability of aviation. Key performance indicators for flight efficiency and emission savings are therefore being developed to assist in the management of this important aspect. Furthermore, since every minute saved in flying time equates to important reductions in gas emissions as well as non-negligible fuel savings for the airlines, direct routes are being offered whenever possible. In addition, alternative routes are regularly proposed to the airline operators, allowing them to bypass congested areas and maintain punctuality. In the future, significant additional environmental benefits are expected from studies, which are being carried out on the optimisation of a future operational concept, incorporating shorter routes and optimum flight profiles. Risk management Risk is a constant concern for those who provide air navigation services and risk management is a continuous, dynamic process, which enables an organisation to respond to changing external and internal conditions. Potential risk scenarios and impacts are regularly evaluated with a view to putting in place the necessary risk mitigation actions. The introduction of every change, in both the technical and operational domains, is preceded by a thorough and systematic risk assessment. The risk management policy in force at Maastricht UAC is part of the corporate Agency Policy on Risk Management, adopted in September Corporate risk management processes are regularly reviewed by the Agency s internal and external auditors, inter alia, on the basis of a detailed Agency-wide risk register. Processes

23 People For a dynamic organisation to be able to operate at optimum levels of performance, it has to select the best available people and develop and maintain their capabilities at the highest possible standards. Staff commitment and motivation therefore remain the cornerstones of Maastricht UAC s success in meeting stakeholder expectations. Building on talent Improved competences and skills are a pillar for the enhancement of safety and performance standards; because of this, all fully qualified controllers underwent several training courses in specialised areas over the course of the year. Furthermore, since the breakdown of teamwork can be a contributing factor to the cause of incidents, the team resource management training programme was put in place for all controllers. It ensured, in particular, that all members of a team develop positive and constructive attitudes and behaviours towards teamwork skills and human performance. On the managerial front, a dedicated training programme for all supervisory staff ensured that the essential technical, managerial and human factors competencies were established within this group. During the year, the overall training process was brought in line with the European Directive for a Community air traffic controller licence, which is part of the Single European Sky legislative package. The focus, in 2006, was also on strengthening middle-management leadership and team coaching skills. Accordingly, a middlemanagement training programme was set up in which most middle managers participated. The programme will be continued in 2007 and Also, as team spirit is recognised as a success factor in achieving objectives, various team building schemes were put in place also saw the implementation of a people development programme focusing on common development needs and tailored to the environment of the Maastricht UAC. Courses on communication, managerial and interpersonal skills were offered to staff at all levels. These courses are designed to promote a common language and practice across the different departments. In addition, staff members were People offered optional personal coaching to support learning processes. In all, the total time spent on training programmes was, on average, 3.5 training days per staff member (excluding student air traffic controller training). Participating in society s needs The Maastricht UAC places great importance on maintaining good relationships with universities and other educational institutions, and therefore runs an internship programme for secondary school students as well as for students in higher education and those studying at university. In 2006, the vocational training scheme welcomed several students who were trained in different areas of the organisation, acquiring valuable work experience in a high technology multinational environment. 23 Eurocontrol Maastricht UAC Annual Report 2006

24 Staff satisfaction survey The third staff satisfaction survey was conducted in November Some 270 employees participated, which represented 44% of the staff and was 5% higher than the number of employees who took part in the previous survey in Overall staff satisfaction was rated at 54%, a 10% decline in comparison with the previous survey. The survey highlighted a number of areas where improvements need to be made. These are most notably, to do with working conditions and to a lesser extent responsibility and job challenge as well as advancement and personal growth. The survey recorded minor improvements in the areas of communication, directorate and Agency management and organisational clarity. It also highlighted perceived differences between staff from different departments. A review of previous improvement plans is ongoing in order to accommodate the new trends identified by the latest survey. High productivity Recent European benchmarking reports reconfirmed that the Maastricht UAC continues to record the highest throughput per air traffic controller among all the air navigation service providers surveyed. Once again, air traffic controllers, working to rigorous safety levels with highly reliable and effective technical systems, managed to increase traffic volumes. This resulted in an average output per controller, during 2006, of 2,123 flight hours controlled, which was an increase of 8.3% on Social dialogue The highlight of the year was the agreement on a new professional scale for operational staff, which will reflect better the specific nature of an operational career. A flat-rate shift allowance for staff was also agreed with the social partners. The demand for air traffic controllers to handle more traffic, with increased complexity, within an environment of flexible working hours, called for new plans to balance service requirements more appropriately with health and safety considerations. Enhanced working conditions were, therefore, examined, and preliminary results are expected with the introduction of new rosters and shift patterns by the summer of T , 31 December Breakdown of staff in the different core business units Directorate Operational staff Air traffic controllers Engineering Programme management 8 7 Human resources, finance and general services Breakdown of air traffic controllers per sector group Recruitment and retirements Total Delta/Coastal Hannover Brussels Total Retirements Resignations 2 5 Transferts to other Eurocontrol units 2 2 Recruitments (except air traffic controllers) Newly qualified air traffic controllers 12 9 Student air traffic controllers 24 14

25 Bringing ATM technology to new horizons The high density and great complexity of air traffic in the area covered by the Maastricht UAC means that controllers must work with state-of-the-art technology. The improvements in current safety and capacity levels to accommodate a possible doubling of traffic by 2020 can only be achieved by introducing a new generation of air traffic control systems. Leading-edge technologies and tools are being continuously phased in to give controllers the ability to handle more aircraft than previously with even higher levels of safety. The ATM system is being continuously upgraded via more effective airspace management and occurring until April A conditional route was implemented, in November, through military training areas (French and Belgian military activity permitting), helping to establish better arrival channels for Amsterdam airport for traffic from France. Tactical routeing was introduced for traffic destined for Paris airports from the Netherlands outside Belgium military activity also in November Finally, new ATC sectors were introduced offering greater flexibility for the management of the increasing demand resulting from traffic between echnology improved cooperation methods between civil and military service providers. Optimising the airspace Efficient airspace design and management are crucial factors for successful air traffic management. They guarantee efficiency, economies of scale and reduced emissions in the atmosphere. Under the aegis of the European ATS Route Network (ARN) version 5 implementation programme, structural improvements to the route network were implemented. A redesign of German airspace to improve traffic handling and reduce complexity of traffic flows to/from Frankfurt and Düsseldorf airports was carried out in March This reorganisation temporarily impacted on Maastricht UAC s operations with transitional delay Northern Europe and the Mediterranean as well as growing traffic to and from central Europe. Two new sectors became available in the Hannover and Delta/Coastal Sector Groups, in April and July 2006 respectively, alleviating bottlenecks which had been gradually building up. An additional sector above flight level 335 became available in September in the Hannover Sector Group. Stronger civil/military cooperation improves results The ability to offer airlines the most direct routes requires an intense level of cooperation between the civil and military air traffic management authorities. The Maastricht UAC has reaped the benefits of the Flexible Use of Airspace programme, which was launched by EUROCONTROL and its military partners ten years 25 Eurocontrol Maastricht UAC Annual Report 2006

26 ago. This programme highlights the high degree of collaboration which exists between the two arms of aviation in Europe and is a backbone of the work being undertaken to increase the capacity in the airspace network. In 2006, the Maastricht UAC participated in the development of Airspace Management/Air Traffic Flow and Capacity Management (ASM/ATFCM) trial scenarios and procedures to assess potential ways of improving the civil-military coordination. The work took place within the framework of the DMEAN short-term implementation programme. The Maastricht UAC also cooperated in a Four States civil-military Cross-Border Area (CBA) Working Group to further develop the CBA Sea Area 1 (Netherlands-Germany) as well as a CBA over land areas to help prepare for establishment of the Functional Airspace Block Europe Central. Enhanced safety through technology In 2006, significant technical upgrades were carried out to support the controllers in their daily task of providing the safest and most-efficient service possible to the customers. New fallback facility A new fallback system was implemented in February 2006, which provides controllers with leading-edge radar fallback facilities to cope with high traffic in the event of failure of the primary air traffic control system. The upgrade of the former fallback system was necessary to alleviate technical restrictions in anticipation of the introduction of new safety- and capacityenhancing developments. Enhanced safety net In June 2006, a re-engineered Short-Term Conflict Alert (STCA), a vital safety net designed to maintain high safety standards in the face of rising traffic, was successfully implemented in the fallback system. The new tool was introduced in the primary environment in January It predicts potential conflicts in the near future (120 seconds) and warns the controller by means of a visual alert. Featuring shorter reaction times, the new STCA helps to reduce the number of nuisance alerts and contains also a number of new features, particularly useful to support air traffic controllers in their day-to-day work. Modernising the surveillance data processing architecture A milestone in the completion of the new surveillance data processing architecture was reached, in June 2006, with the introduction of a multi-purpose gateway providing interface functions between the ATM Surveillance Tracker and Server System (ARTAS) and the rest of the data processing system. This was the first step in the final phase of moving from the former surveillance system, dating from the early 1990s, to the ARTAS surveillance system, and laid the foundation for the integration of data stemming from the next generation of surveillance sensors like Mode S and Automatic Dependent Surveillance (ADS-B). Radio communications enhanced In October 2006, ATC radio communications saw a significant improvement when the 120m-high telecommunications tower at Ittervoort (NL) went into operational use. The tower provides ATC radio communication services using both VHF and UHF antennas and receivers and is currently being used for the main voice communications system. Due to good operational and technical results, it will also be used for the back-up voice communications system. Elementary Mode S operational Implementation of Mode S Elementary and Enhanced Surveillance will lead to increased capacity and higher quality tracks on air traffic controller displays. This will enhance safety, capacity and efficiency as it will lead to a reduction

27 of correlation ambiguities and voice congestion as well as the removal of secondary radar limitations. During 2006, work was carried out to prepare for the integration of Mode S Elementary Surveillance radar data into the primary and fallback environments. Following the activation of the Dutch Schiphol and the Belgian Bertem Mode S radars in September and December 2006, Elementary Mode S was implemented in the primary ATC system. The first German Mode S radar was activated in March 2007, resulting in a full-time use of these three initial Mode S radars during the same month. Next-generation flight data processing A backbone to the air traffic control infrastructure, the new Flight Data Processing System (FDPS), due to be commissioned at the end of 2007, will contain several key features, which will assist air traffic controllers in coping with future airspace density and complexity. The new system s technical adaptability will deliver several new layers of functionality by providing controllers with highly accurate trajectory predictions thereby enhancing safety and traffic fluidity as well as reducing aircraft fuel-burn and therefore, greenhouse gas emissions. It will also facilitate more flexible sectorisation, provide medium-term conflict detection functionalities and enable workload monitoring functions for a quantitative- and complexity-rating of the traffic load. A fundamental technological leap, the new FDPS, will furthermore support the validation of future operational concepts expected to emerge, in particular, as part of the Single European Sky ATM Research (SESAR) programme. Validating new ATM concepts and technologies For many years, the Maastricht UAC has played a pivotal role in the support of a number of live technology validation projects aimed at putting in place safety, capacity and efficiency-enhancing programmes across the European network. In 2006, most activities concentrated on data link developments as resources were predominantly occupied with the development of the new flight data processing system. That said, however, validation activities are set to increase as major ATM projects like the Dynamic Management of the European Airspace Network (DMEAN) and the Single European Sky begin to intensify. In particular work to validate landmark concepts, technology and processes will be required within the Single European Sky ATM Research programme (SESAR). Expansion of Controller- Pilot Data Link Communications For over a decade, Controller-Pilot Data Link Communications (CPDLC) has been used daily by the air traffic controllers at the Maastricht UAC to communicate with aircraft. The main benefits of data link communications are the reduction of voice congestion and increased controller and crew efficiency. The UAC s objective is to continue to support CPDLC deployment in Europe by acting as a catalyst in line with the current Link programme. CPDLC will increase system capacity by 11% once 75% of aircraft are equipped with the necessary systems. In 2006, the new FDPS remained on schedule, to specification and within budget. It underwent factory acceptance testing in October of the same year. A comprehensive e-learning package for operational staff was completed in anticipation of the start of the training programme in March Close to 60 aircraft from 35 different airlines exchanged CPDLC messages with the UAC every day, representing a growth of CPDLC usage of 153% over Altogether, it has been estimated that close to 100 hours of voice communication time was saved thanks to CPDLC usage during Eurocontrol Maastricht UAC Annual Report 2006

28 At the end of the year, EUROCONTROL and Deutsche Flugsicherung GmbH (DFS) contracted the Sofreavia/Sita consortium to supply a new data link front-end processor system, which will be introduced into the respective operational environments to support data link communications. This collaborative procurement brings economies of scale, improved interoperability and is in line with the UAC s commitment to provide the most cost-efficient service possible to the airspace users. MANTAS Moving to a new ATC methodology The Maastricht ATC New Tools and Systems (MANTAS) programme lays the groundwork for a new operational concept, based on a fundamentally different ATC methodology, supported by capacity-driven ATM processes. It is designed to derive maximum safety and capacity benefits by promoting a shift from a reactive/ tactical methodology to an effective and efficient flow and capacity management without introducing an increase in controller workload. Results of the basic operational concept validation became available at the beginning of They included recommendations covering validation, implementation, integration and concept development strategies. In the course of the year, several enhancements to the Maastricht UAC s operations were implemented on the basis of the MANTAS findings, most notably, enhanced tactical capacity management and a new airspace design methodology. Subsequent validation activities covering air traffic flow and capacity management, as well as airspace design and management, will be undertaken in the course of The fundamental principles of the MANTAS concept are consistent with DMEAN and have been taken on-board by the SESAR programme. Furthermore, they are included in the Functional Airspace Block Europe Central operational concept.

29 Business outlook Continued growth For the fourth consecutive year, air traffic continues to grow. Following European traffic forecasts, traffic in the airspace controlled by the Maastricht UAC is expected to grow between 19 and 25% in the next five years. Experience dictates that the higher value will be closer to reality than the lower one. The expected strong growth in traffic will continue to drive the expansion of the air traffic control capacity and the optimum use of the airspace. The strategy, therefore, is to seek continuous performance improvement through the adoption of technical improvements will be instrumental in achieving this objective. Contributing to advances in European air traffic management To maintain its leading contribution to technological developments in Europe and share its expertise with the aviation community, Maastricht UAC will continue to play an active role in validating and implementing leadingedge ATM systems. The UAC will build on the Business a series of priorities, which guarantee customers a safe and cost-efficient service with minimum delays, optimum flight efficiency, and maximum flexibility together with transparent operational information. landmark technical infrastructure already in place and develop new operational capabilities as new equipment becomes available. SESAR Protecting the environment Increased focus is being placed on the environment and a monitoring tool is currently being developed to precisely quantify the Maastricht UAC s contribution to reducing gas emissions by promoting an appropriate airspace structure, coupled with shorter routes and optimum flight profiles. Increased efficiency The drive for cost-efficiency will continue, whilst ensuring first-class air navigation services to customers. Staff, effective procedures and The UAC will participate in the Single European Sky ATM Research (SESAR) programme and contribute the experience it has already gained in the course of carrying out its core business activities. Functional Airspace Block The Functional Airspace Block (FAB) Europe Central feasibility study will represent a major milestone for the consolidation of ATM in the upper and lower airspace of the core European area. Maastricht UAC and its civil and military partners in Belgium, France, Germany, 29 Eurocontrol Maastricht UAC Annual Report 2006

30 Luxembourg, the Netherlands and Switzerland will draft a roadmap for the creation of a flexible, harmonised and seamless network, including short-term improvements. In parallel with this work neighbouring States will be consulted to ensure that all possible means of creating a seamless transition into a FAB network have been explored. The results of the study, subject to the States decisions, are expected to become available in the summer of 2008, and may lead to a FAB master plan to prepare for its implementation. The FAB Europe Central will be a cornerstone of a Single European Sky and its impact in terms of safety, capacity, efficiency, cost-effectiveness and environmental sustainability is expected to be considerable. Maastricht UAC will therefore continue to actively support the FAB Europe Central project.

31 Financial Accounts Annual accounts EUROCONTROL produces annual accounts which provide a consolidated view of the Agency s financial performance. In line with the applicable financial regulations, the specific performance of Maastricht UAC is identified in Part III of the Agency s accounts. This report includes an excerpt of the data available in the Agency s Annual Accounts in order to present a reference Balance Sheet and Statement of Financial Performance for Maastricht UAC. The Agency s Accounting principles and general notes on accounting matters The main accounting principles, underlying the present Financial Statements, are set out below. The Financial statements with regard to expenditure and receipts are on a modified cash basis, and based on the provisions of the Financial Regulations of the Agency and their Rules of Application. Financial annual accounts are produced in accordance with the principle of a true and fair view. The Agency s accounts, including Part III, which relates to the Maastricht UAC, are audited by the Audit Board with the assistance of external consultant auditors. The Annual Accounts, including the auditor s opinion, are subsequently submitted to the Commission via the Provisional Council. The Commission gives a final ruling on the Accounts and decides on the discharge to be given to the Director General in respect of his financial and accounting management. The figures presented in this report are therefore subject to the approval of the Audit Board and the Provisional Council, which is expected in the summer of The Agency s policy regarding fixed assets is based on the revised Director General Decision XI/7(2004), dated 28/6/2004. Fixed assets are entered at their historic value and amortised over their useful lifetimes, in accordance with amortisation rates, which apply equally to the calculation of the investment costs to be recovered from the airspace users through the EUROCONTROL part of the cost-base (based on ICAO rules adopted by the Permanent Commission). As at the end of 2005, intangible assets related to programmes or activities to improve safety, capacity, efficiency and environment aspects of air navigation. This expenditure was considered to represent future economic benefits for the air navigation community and was therefore capitalised in the Agency s accounts, in accordance with Article 6 of its Financial Regulations. 31 Eurocontrol Maastricht UAC Annual Report 2006

32 Following a decision of the Provisional Council in November 2004, the Agency applies IAS 38 and, as of 1 January 2006, capitalises only intangible assets that comply fully with this standard. Following this principle, only computer software for which EUROCONTROL owns intellectual property rights are capitalised. Concerning operating expenditure, contributions from the Four Member States participating in the Maastricht UAC are calculated on the basis of an agreed cost-sharing formula. At year end, the over/under payment of contributions is calculated by comparing the level of expenditure to the level of contributions paid. In accordance with Article 23 of the Financial Regulations, any over/under payments of contributions are deducted from/ added to contributions for the subsequent year. ensuring that investments are fully financed with bank loans. Therefore, in the Balance Sheet, the residual value of fixed assets is fully compensated by an equivalent amount of loans. In the Statement of Financial Performance, the forecast amortisation charge for the year is balanced by contributions from the Four States. The difference between the forecast amortisation and the actual amortisation will be added/deducted in the budgeted contributions for the year N+2. With Measure Nr. 06/118 (April 2006), the Commission amended the Agency s Financial Regulations and Rules of Application to take into account the implementation of International Accounting Standards (IAS) as of the 2007 budget exercise. Concerning investments, a mechanism for prefinancing investments by the Agency is in place,