1. www.askhelios.com Management and technology consultants A project funded by the European Union AAI Performance Framework Project Presentation to the ATC Guild Seminar 2014 October 2014

2. 2 Introduction to Helios and the EU project What is performance management and why it is important?. Overview of the AAI project: Scope Our approach/methodology KPAs/KPIs Next steps Summary and next steps Note: The results are not included in the presentation Overview

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4. 4 Helios is part of the Egis group Helios is the specialist aviation consultancy for the Egis Group We are global leader in consultancy, design and operations Our services cover transportation infrastructure (airports, roads, tunnels, ports, rail etc.), buildings, energy, environment and water A worldwide operator of airports and other infrastructure A turnover of circa $1 billion 2008 to 2013

5. 5 We operate in over 100 countries, including India

6. 6 Policy and regulatory support Management, technical and engineering consultancy Engineering services, programme management and support, including ORAT Construction design, management and supervision, including turnkey Airport operations We have a broad aviation offering

7. 7 … for a range of customers Operators Airport operators Air Navigation Service Providers Airlines Regulators CAAs International organisations National administrations Financial organisations Banks International Financial Institutions Development Funds Institutions Public organisations Industry associations Industry Aircraft manufacturers Systems/equipment manufacturers Communication service providers Construction and civil works companies Design firms Training providers Aviation academies Training schools

8. 8 The EU India project EU-India Civil Aviation Cooperation Project Strengthen institutional capacity of the Civil Aviation Regulator Good governance Implementation international civil aviation standards Help ensure a safe and secure aviation environment Harmonisation EU standards and cooperation Policy support Helios support to AAI - framework for performance measurement

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10. 10 India is obliged by its commitments under the Chicago Convention to facilitate and expedite safe air navigation in its airspace. These services are provided by AAI. ICAO encourages its Member States (including India) to adopt a “performance-based” approach to the provision of Air Navigation Services (ANS), as documented in their ‘Manual on Global Performance of the Air Navigation System (ICAO Doc 9883). The performance-based approach should focus on desired results, defined objectives, and decision making which is informed by facts and data. It also helps determine existing performance and identify those areas where specific attention is required. Defining a performance-based approach

11. 11 A key element is the definition of a framework for measuring and reviewing performance. ICAO recommends focussing on the following performance Key Performance Areas (KPAs): Safety Security Environmental impact Cost effectiveness Capacity Flight efficiency Flexibility Predictability Access and equity Participation and collaboration Interoperability Performance objectives

12. 12 By monitoring and evaluating performance in the target KPAs, ANSPs can better understand how it is doing, be able to set goals and measure progress. The results and analysis of the performance data also has a role in: Traffic forecasting Investment planning Financial planning Human resources planning Charging This enables ANSPs to improve its strategic decisions, measure and improve performance, align and integrate its processes and remain competitive. They can also benchmark against other ANSPs Why measure performance?

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14. 14 To develop an initial performance framework based on AAI’s priorities, available data and international best practice. To produce a trial performance report using the agreed framework and available data for FY10/11 Undertake a performance assessment and identify priority areas for improvement Review processes, data availability, quality etc. and make recommendations Benchmarking against other providers Update performance report to reflect new processes and data for FY12/13 Scope

15. 15 AAI is already recognised globally as a leading ANSP but continues to strive to be the foremost ANSP in the region As such, it recognises the need to: Examine its own performance to identify areas where it needs to improve, or has particular excellence, and work on problem areas to improve its performance and hence customer satisfaction Benchmark its performance against other ANSPs Whist this project is confined to reporting performance, AAI is looking to set targets in the future as it moves towards becoming a performance-based organisation. AAI’s objectives

16. 16 AAI initially focused on a smaller number of KPAs: Safety Security Environmental impact Cost effectiveness Capacity Flight efficiency Flexibility Predictability Access and equity Participation and collaboration Interoperability Performance objectives

17. 17 The project reviewed the current KPIs, assessed performance with other global ANSPs and made recommendations for further development AAI currently measures: Separation infringements: AAI has an MoU with the DGCA that attributable separation infringements should be kept at a level below 1 in 100,000 movements. Runway incursions: Also the subject of an MoU. In the future, AAI will build on this to develop lower-level KPIs to better understand and focus on the causes of incidents It will also develop leading indicators that help assess the safety maturity of the organisation. Safety performance

18. 18 Cost-effectiveness is becoming increasingly important. There are many ways of measuring cost-effectiveness, AAI has initially focused on 2 KPIs decomposed into a number of ratios: Cost-effectiveness

19. 19 Cost-effectiveness The availability and quality of data is key, especially when measuring cost-effectiveness AAI has significant data, but it is spread throughout the organisation and is often collected for different reasons (e.g. billing). As such, there were a number of areas where we had to agree a specific approach: Allocation of AAI costs between ANS and airports Attributing costs between Continental and Oceanic Assessing the total number of flight-hours controlled Determining ATCO productivity Employment costs per ATCO-hour Assessing support costs We have made a number of recommendations to refine the data collection and sharing

20. 20 Capacity and delay Balancing capacity and delay is essential. As traffic increases, the ‘system’ finds it more and more difficult to provide the service with the required quality of service. Below certain traffic levels, delays are rare. As traffic rises, the levels of delay observed increase There is a trade-off between the cost of these delays and the cost of providing additional capacity.

21. 21 Capacity and delay To better understand the trade-off between capacity and delay, the AAI performance scheme measures the ANS ‘system’ contribution to: En-route delay: This is currently difficult to measure in India, but the capacity/delay KPIs used elsewhere which could be adopted by India are: Average en-route ATFM delay per controlled flight, expressed in minutes per flight (the EU indicator for 2014 is 0.50 minutes per flight); The percentage of controlled flights with an ATFM delay of 15 minutes or more. A delay of more than 15 minutes is recognised as having a disruptive impact on airlines’ operations particularly those with hubs. The percentage of controlled flights with any en-route ATFM delay; the intention is to monitor this to check that it does not increase over time. The introduction of ATFM in India will enable these measures to be introduced.

22. 22 Capacity and delay performance Airborne ‘approach’ delay In addition to the en-route delay, airborne delay may also consist of delay in the approach sector. Typical measures are: Additional time in the Sequencing and Merging Area (ASMA), used by EUROCONTROL and ; Terminal Arrival Efficiency (TAE) adopted by the FAA. Neither method can be employed here because of lack of suitable data. For the purposes of this project we developed a similar methodology by calculating ‘standard’ (unimpeded) fly-in times from fixes and then assessing actual performance in different hours

23. 23 Capacity and delay Airport delay The performance scheme also measures the different components of airport delay, including: Delay in off-blocks time: This delay field can be further divided into the following types of delay: Start-up delay Push-back delay Delay in taxi time to the holding point Delay at the holding point Delay on the runway: Runway delay is defined as the excess time spent on the runway in a stand-still mode after the aircraft could have been technically cleared for take-off Delay in taxi time to the stand The performance scheme and trial performance report focused three airports, Delhi, Mumbai and Chennai. This will be extended in the future

24. 24 Flight-efficiency and environmental performance Flight efficiency is essential to understanding environmental impact and is generally classified into: Horizontal flight-efficiency – the closeness of the route taken from the economically optimal route; and Vertical flight-efficiency – the closeness of the vertical profile of the flight to the one in which the least fuel is burnt. Insufficient data was available to accurately measure horizontal flight efficiency; however, calculations were made looking for inefficiencies against the GCD.

25. 25 Summary and next steps AAI is one of the first in the region to start implementing performance- based measures The AAI performance scheme currently focuses on 4 KPAs, enabling it to better understand and target improvements in: Safety Environmental impact Cost effectiveness Capacity The project included developing an initial framework and then undertaking a trial performance report based on FY10/11 Improvement actions were identified and the performance report was updated using FY12/13 data AAI will use the project output and results to implement a full performance management scheme and continue to target improvements

26. www.askhelios.com For regular updates follow us on Management and technology consultants Sudhir Rajeshirke Business Head - Aviation, Egis India