Infrastructure

• Worldwide, airlines and their passengers pay at least US$43.5 billion in charges and fees a year to airports and ANSPs or 11% of airline revenues.
• Since 2001 airlines have improved efficiency
  • 19% improvement in fuel efficiency
  • 64% increase in labour productivity
  • Non-fuel unit costs have been reduced 18%
• Consumers have benefited with a 24% drop in real term prices for air travel over the past 10 years (1997-2007)
• But most airports and ANSPs are not matching these efforts

IATA Infrastructure Cost Savings

• IATA generated total savings of US$3.7 billion in charges, fuel and taxation in 2007 of which USD 1.1 billion in real cost reductions.
• However the cost reductions of USD 1.1 billion, savings were overwhelmed by $2.9 billion in increases

Airport costs are on the rise

• World’s three most expensive airports (Jacobs Consultancy Airport Charges Index, 2007): Toronto, New Jersey-EWR, Athens
• 16 of the 25 most expensive airports in the world are in Europe

Air Navigation Service Providers (ANSPs)

• Improved infrastructure including air navigation and traffic management could reduce the industry fuel bill and emissions by 12%
  • Improved arrival, departure and approach procedures
  • Shortening routes
• IATA achieved 395 route improvements in 2007 saving US$831 million

Single European Sky (SES)

Delays in Europe due to congested airports and airspace

• 10.1 million flights controlled in 2007
  • Anticipated growth to 15.9 million flights by 2020
• 35 national air navigation service providers in Europe 
  • With a total 2007 bill of EUR 8 billion to users
  • At least EUR 2 billion of this is driven by inefficiencies and fragmentation
  • Urgent action required to unlock inefficiencies and consolidate providers
• Further cost of EUR 1.3 billion in 2007 from delays created by ATC system
  • 20% of flights expected to be delayed by 2020 
  • With a further 1.5 million unaccommodated if action is not taken
• Flight inefficiencies, from sub-optimal routing and procedures cost EUR 2.4 billion for 2007  
  • Flight inefficiencies alone impact fuel burn by 7% -11% 
• European air navigation is 60-70% less efficient than in North America  
• IATA is working with the Civil Air Navigation Services Organisation (CANSO) to improve ANSP efficiency through benchmarking and improved customer relations
• In Europe, the new SES Phase II proposals detail requirements for a strong and independent performance improvement body to address 
  • Safety, cost efficiency, capacity and flight efficiency improvement
• The new legislation must result in binding performance improvement targets  on States and ANSPs to enforce the Commission objectives to reduce unit costs by 50% before 2020 compared to 2004.