1. Lorenzo Castelli DEEI - University of Trieste Via Valerio 10 34127 Trieste - Italy Phone:+39 - 040 - 676 7134 Fax:+39 - 040 - 676 3460 email:castelli@univ.trieste.it 1 L. Castelli – Univ. Trieste, G. Manzon – AirDolomiti R. Pesenti – Univ. Palermo, W. Ukovich – Univ. Trieste Compensation schemes due to ATC delays CARE Innovative ATM Research Workshop EUROCONTROL Brussels 14 th & 15 th March 2001

2. Lorenzo Castelli 2 Basic idea Proposal of new en-route charges definition schemes; ATC unit is represented as a service provider; It has to attain some given levels of service; The airline perspectives are considered.

3. Lorenzo Castelli 3 Airlines Airlines may be interested in defining new ways to interact with the ATC centers. Punctuality is a major concern. Only a small percentage of the delays caused by an ATC center are eliminated by: –Ready calling –Re-routing

4. Lorenzo Castelli 4 ATC center It may be considered as a service provider; When congestion occurs, a slot is allocated to their customers, i.e., to airlines; The quality of the service provided could be measured as a function of the possible delays imposed.

5. Lorenzo Castelli 5 Airlines vs ATC New possible formal agreements between ATC centers (or ATC national authorities) and each single airline may be envisaged; The airline pays the ATC unit for the services received, but compensation schemes may be also considered.

6. Lorenzo Castelli 6 Pricing & Compensation Schemes Charge ATC Delay ATC Delay Charge

7. Lorenzo Castelli 7 Cost of the delay Flight characteristics –peak or peak-off hour, –point-to-point or connection flight –long-haul, short-haul flight The size of the airline International, national or regional carrier The number and type of boarded passengers

8. Lorenzo Castelli 8 Benefits Competition among ATC centers arises; An inefficient ATC center would produce losses instead of revenues; Reduction of airline complaints; Increase of airline (technical) efficiency, i.e., better knowledge of internal process is required.

9. Lorenzo Castelli 9 Open issues The structure of the competion: the degree of market regulation. The determination of the cost of delay per unit of time is not often formally computed by the airlines: only rough estimates are available. Equity and fairness issues arise.

10. Lorenzo Castelli 10 How to proceed Development of a (mathematical programming or simulation) model able to compare different scenarios taking into account airline characteristics; A possible outcome of the research activity could be the creation of suitable pricing schemes automatically generated.