WORLD-WIDE CNS/ATM SYSTEMS IMPLEMENTATION CONFERENCE Agenda Item : Financial Matters Agenda Item : Financial Matters 3:
Objective Generates + Return
Economic Assessment à WP/19 - Impact of civil aviation on States’ economies à WP/20 - Costs and benefits for providers and users à WP/21 - Comparison of implementation options - Overview Action paper WP/7 Support documents:
Cost Recovery and Financing à WP/23 - International cost recovery policy à WP/24 - Basic aspects of financial control and management à WP/25 - Sources of funds and financing mechanisms Action paper WP/8 Supported by:
Financial Matters à WP/26 - ECAC, 36 Contracting States à WP/35 - IATA à WP/49 - Czech Republic à WP/51 - Ethiopia à WPs 52 & 54 *53 African Contracting States à WP/69, Bolivia & Pakistan Other Action papers:
50 Years of Air Traffic Passengers carried (millions) 22.4% 10% 9.4% 6.1% 5%
Global Industry Today billion 25 million Tn 4.300
Direct Economic Contribution World, 1996 *Including affiliated industries
Total Economic Impact à Value 3 to 4 times direct à Employment, approximately 6 times direct à Varies by regions of the world
Why CNS/ATM? Simplified View of CNS/ATM Impact Improved precision of navigation and surveillance Reduced separations & increased capacity More direct flight paths Flight efficiencies for air carriers Phasing out of ground aids Cost savings for ATC providers CNS/ATM Implementation
World Aircraft Movement Forecast Scheduled Services Aircraft km Departures ActualForecast 2005
CNS/ATM All Studies Indicate
Purchase of Satellite Services Replacement Investment Equipment Investment Training $ 0 Cost Profile 2020
$ 0 Aircraft Efficiency Benefits
Net Benefits and Cumulative Net Benefits of CNS/ATM Net benefits Cumulative net benefits
Benefits to Airlines More direct routing Preferred Flight profile Fuel reduction Reduction in delays
Benefits to Providers à Avoided replacement costs à Reduce congestion à Improved aircraft position data
Overall Benefits à Lower fares and rates à Stimulation of air traffic & related industries à Productivity improvements à Transfer of high-tech skills à Improved safety à Passenger time savings à Environmental benefits
Varig, BA, TWA, JAL, KLM etc
Varig,
Doc 7300 Chicago Convention (Article 15) Doc 9082 Statements by the Council to Contracting States on Charges for Airports and Air Navigation Services Statement of ICAO Policy on CNS/ATM Systems Implementation and Operation
Availability of Financial Data RevenuesCosts
Leasing Govern- ments Debt Financing Profits Share Capital Creative Financing Bonds
Major Conclusions Major Conclusions