Fact Sheet: Single European Sky (SES)

Background

• In 1999 the European Commission (EC) proposed the creation of a Single European Sky (SES) for air traffic management (ATM)
• The SES project was formally launched in 2004 to rationalize the fragmented European airspace into nine Functional Airspace Blocks (FABs)
• The high-level goals of SES  are by 2020 to:
• Enable a three-fold increase in capacity which will also reduce delays, both on the ground and in the air
• Improve the safety performance by a factor of 10
• Enable a 10% reduction in the effects flights have on the environment and
• Provide ATM services to the airspace users at a cost of at least 50% less
• The first package of proposals in 2004 provided limited progress and benefits
• Following strong lobbying by IATA and other associations, the EC adopted a second package of measures in July 2008
• SES Package II was adopted by the Council in March 2009 and came into effect in November 2009
• Ten years of debate has established a so-called framework of regulation and performance, but little actual benefit in much needed efficiency improvement and defragmentation of the European ATM system

Cost of ATM Inefficiency in EU

• In 2011, the failure to implement SES resulted in: 
• 17.9 million minutes of ATFM  delays costing an estimated €1.45 billion; 
• 8.1 million tonnes of wasted CO2
• €3.73 billion in costs from flight inefficiencies 
• A total economic cost of €13.49 billion (made up of costs, delays, etc)

(Source: Eurocontrol)

Comparison with US ATM

• European air navigation is 70% less efficient than in North America
• US controls 10.4 million km2 of airspace with one air navigation service provider (ANSP) and 20 en-route centers
• Europe controls 11.5 million km2 of airspace with 38 ANSPs and 63 en-route centers
• In 2009, US ATM costs were 49% less than in the EU:
• European control costs €573 per flight hour
• US control costs €294 per flight hour

(Source: Eurocontrol)

Status

• Despite the developments of the SES II regulatory package, progress to achieve the SES high-level goals is not on track  
• The current Performance Scheme for 2012-14 is not delivering the expected performance improvements: 
• Currently, states have failed to meet the already watered-down cost efficiency target they set for themselves. This is costing airlines some €189 million
• States are also deviating from their capacity targets for the same period
• The revised Performance Scheme framework for 2015-2019 lacks much needed enforceability, provides for “uncontrollable costs” to be added to the agreed charges, allows for congestion charging and defers again the inclusion of terminal charge target setting  
• Progress on Functional Airspace Blocks is recognized to have not met the 4 December 2012 deadline as stipulated by EU law. The European Commission is now expected to progress infringement proceeding against member states 
• The first package of technologies to be deployed under the SESAR program is being finalized. While the overall cost-benefit analysis is expected to be positive, there are aspects that will be net present value negative and the payback timeframes typically in the range of seven to ten years. Harmonization with NextGen also remains a topic for resolution. Notably, the performance improvements promised during the definition phase of SESAR, will now be much reduced and much delayed    
• In order to progress SES and influence further regulatory reforms, IATA, the Association for European Airlines and the European Regions Airlines Association developed an airline “Blueprint” for SES. The Blueprint calls for further regulatory reform and identifies three key needs:
  
  1. A Binding performance scheme through the establishment of an independent European regulator for air navigation charges. The independent economic regulator should establish milestone EU targets to be achieved by each State or FAB, control the conformity of the performance plans with these targets and require appropriate corrective measures when necessary.
  
  2. The rationalization of ATM structures through opening up services to competition and a reduction in the number of air traffic control centers across Europe to not more than 40, and cutting the ratio of back-office staff to ATCOs from 2.4 to 1.6.
  3. Improving the efficiency of the network through the modernization of the ATM system 
• Acknowledging the lack of progress and in response to the extensive advocacy by IATA and other associations, the EC has agreed to progress a further package of regulatory reforms, termed “SESII+” anticipated for release in mid-2013 
• It is essential that the EC sets an ambitious SESII+ package to realize the high-level goals for safety, cost-effectiveness, capacity and environment

Future Considerations

• Whilst the European Parliament recognizes the need for change and the European Commission has the mandate to facilitate change, resistance from states, ANSPs and stakeholders must be overcome using the SESII+ package to make real progress in the next few years
• IATA will continue to work at the structural and operational level for delivery of real improvements

Updated: June 2013