1 ICAO WGN New Orleans Nov 2004

2 Programme Overview Incentives and a Mandate Issues Conclusion Contents

3 Programme Objectives The LINK Programme The LINK Programme The LINK Programme The LINK Programme Co-ordinating the implementation of en-route CPDLC (ACM, ACL, AMC, DLIC) over ATN/VDL2. Providing a migration path for legacy data link services from ACARS to ATN/VDL2. data link to supplement voice

4 Do we need CPDLC? YES Do we need CPDLC? YES Do we need CPDLC? YES Do we need CPDLC? YES 2010: +24% 2015: +50% Mode S: +5% L INK: +11% RNP RNAV: +?% CASCADE: +?%

5 Do We Have a Business Case? YES Do We Have a Business Case? YES Do We Have a Business Case? YES Do We Have a Business Case? YES LINK CBA - Recently Updated confirming previous conclusions Sensitivity Analysis: key uncertainties are clear. Risk Analysis: does not show any risk of loosing money for both ANSP and Airline All CBAs conducted for CPDLC implementation show a compelling case for both airlines and ANSPs All CBAs have been based on conservative assumptions, steadily refined with the use of more accurate input data CPDLC is a very cost effective capacity enabler

6 Ground implementation proceeds ACC Implementations ACC Implementations ACC Implementations ACC Implementations LINK area upper airspace: 2008 ENAV Maastricht UAC: –since June 2003 Karlsruhe UAC (DFS) –2007 Canarias ACC (Aena) –2006/2007 Reims ACC (DNA) –2006/2007 Roma ACC (ENAV) –2006/2007 Lisboa ACC (Nav Portugal) –2006/2007 Switzerland UAC (skyguide) –2006/2007 Shannon UAC (IAA) NEWLY JOINED

7 Airborne implementation has started Aircraft Equipage Aircraft Equipage Aircraft Equipage Aircraft Equipage –20 B737 NGnow –13 B767now –5 A ST 3 rd Q 04 –20 A3201 st Q 05 –19 B737 NG Certified –15+ A310 1 st Q 05 –20 B7371 st Q 05 –2 B7371 st Q 05 –20 A320 end 06 Lufthansa Generating more than 170,000 CPDLC flights/year Discussions with others ongoing

8 Pioneers Incentives Mandate A Three-step Approach A Three-step Approach A Three-step Approach A Three-step Approach Pioneers –Objective: 100+ aircraft equipped. Incentives –Objective: more than 25% of flights equipped by 2007 through route charge modulation in LINK airspace. Mandate –Objective: more than 75% of flights equipped at the end of the decade

9 ENPRMENPRM The Mandate The Mandate The Mandate The Mandate Mandatory Carriage –ENPRM in 2004 –SES Process (via ICB) –Upper Airspace of the LINK area –Mandate for ACCs and new aircraft: 2009 –Mandate for old aircraft: 2014 Exemptions –State Aircraft –FANS 1/A long haul –Usual exemptions Approved IATA/AEA

10 Incentives 25% 75% equipage Pioneers Mandate 2006/ Equipage=Benefits Reduced ANSP cost Better flight profiles Less misunderstandings Higher Productivity Less delay 22

11 innovationinnovation Incentives The principles –equipped aircraft less workload lower costs –cost savings returned to equipped aircraft –full cost recovery maintained Options –Route charge Reduction (e.g. 2%) for equipped compensated increase for non-equipped –Investment grant – innovation fund contributes to equipage costs – ultimately funded by route charges – cost may be deferred by borrowing –Differential route charges – equipped aircraft pay a lower unit rate – funded by ANSP cost savings – no reduction for non-equipped aircraft 22 Rejected IATA/AEA

12 In a Nutshell LINK Will Deliver LINK Will Deliver LINK Will Deliver LINK Will Deliver Current plans –2006: ~7% CPDLC equipped flights –2009: 25% CPDLC equipped flights –2014:75% CPDLC equipped flights Benefits –2006: awareness, experience, inventive use –2009: capacity benefits are evident –2014:full capacity benefits > Lower unit rates