1. WORLD-WIDE CNS/ATM SYSTEMS IMPLEMENTATION CONFERENCE3:
Agenda Item :
Financial Matters

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

3. 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

4. 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

5. 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

6. Traffic Development

7. 50 Years of Air Traffic Passengers carried (millions)
22.4%
10%
9.4%
6.1% 5%

8. Global Industry Today
1500
23.600
1.5 billion
25 million Tn
4.300

9. Induced
Direct
Economic Impact
Indirect

10. Direct Economic Contribution World, 1996
*Including affiliated
industries

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

12. 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

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

14. CNS/ATM All Studies Indicate
Benefits
Costs

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

16. Aircraft Efficiency Benefits
1995
2000
2005
2010
2015 $

17. Net Benefits and Cumulative Net Benefits of CNS/ATM

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

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

20. 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

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

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

23. 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

24. Availability of Financial Data
Revenues Costs

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

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