WORLD-WIDE CNS/ATM SYSTEMS IMPLEMENTATION CONFERENCE 3: Agenda Item : Financial Matters

can recover user charges Objective CNS/ATM Financial Institutions Providers Generates + Return can recover user charges

Economic Assessment Action paper WP/7 Support documents: WP/19 - Impact of civil aviation on States’ economies WP/20 - Costs and benefits for providers and users WP/21 - Comparison of implementation options - Overview

Cost Recovery and Financing Action paper WP/8 Supported by: WP/23 - International cost recovery policy WP/24 - Basic aspects of financial control and management WP/25 - Sources of funds and financing mechanisms

Financial Matters Other Action papers: WP/26 - ECAC, 36 Contracting States WP/35 - IATA WP/49 - Czech Republic WP/51 - Ethiopia WPs 52 & 54 53 African Contracting States WP/69, Bolivia & Pakistan

Traffic Development

50 Years of Air Traffic Passengers carried (millions) 22.4% 10% 9.4% 6.1% 5%

Global Industry Today 1500 23.600 1.5 billion 25 million Tn 4.300

Induced Direct Economic Impact Indirect

Direct Economic Contribution World, 1996 *Including affiliated industries

Total Economic Impact Value 3 to 4 times direct Employment, approximately 6 times direct Varies by regions of the world

Why CNS/ATM? Simplified View of CNS/ATM Impact CNS/ATM Implementation Improved precision of navigation and surveillance Phasing out of ground aids Reduced separations & increased capacity More direct flight paths Flight efficiencies for air carriers Cost savings for ATC providers

World Aircraft Movement Forecast Scheduled Services Departures Aircraft km Actual Forecast 2005

CNS/ATM All Studies Indicate Benefits Costs

Cost Profile Purchase of Satellite Services Equipment Investment Replacement Investment $ Training 2000 2005 2010 2015 2020

Aircraft Efficiency Benefits 1995 2000 2005 2010 2015 $

Net Benefits and Cumulative Net Benefits of CNS/ATM

Benefits to Airlines More direct routing Preferred Flight profile Fuel reduction Reduction in delays

Benefits to Providers Avoided replacement costs Reduce congestion Improved aircraft position data

Overall Benefits Lower fares and rates Stimulation of air traffic & related industries Productivity improvements Transfer of high-tech skills Improved safety Passenger time savings Environmental benefits

CNS/ATM Varig, BA, TWA, JAL, KLM etc Revenues Costs Costs Revenues

CNS/ATM Varig, BA, TWA, JAL, KLM etc Revenues Costs Costs Revenues

Statement of ICAO Policy Doc 7300 Doc 9082 Statements by the Council to Contracting States on Charges for Airports and Air Navigation Services Chicago Convention (Article 15) Statement of ICAO Policy on CNS/ATM Systems Implementation and Operation

Availability of Financial Data Revenues Costs

Creative Financing Govern- ments Leasing Debt Financing Share Capital Profits Bonds

Action Action Action Recommendations for Action WPs 7 & 8 Major Conclusions