1. 09/12/20091/41 Rome, SWIM-SUIT User Forum Cost-Benefit Analysis of the European SWIM Infrastructure Miguel Vilaplana - BR&T Europe

2. 09/12/2009 Rome, SWIM-SUIT User Forum 2/41 Overview –Objectives and scope –Definition of proposed CBA methodology for SWIM –Initial results: costs and benefits identification and assessment

3. 09/12/2009 Rome, SWIM-SUIT User Forum 3/41 Objectives –Understand and analyse the economic and financial implications of implementing an European SWIM infrastructure using Cost-Benefit Analysis (CBA) techniques CBA is an important tool to support investment decisions in the ATM context, as it helps evaluate whether investments are economically viable for the different stakeholders The CBA approach adopted is based on the EMOSIA (European MOdel for Strategic Investment Analysis) methodology (same as SESAR) –Identify and assess SWIM costs and benefits considering SWIM-SUIT project results –Define economic models and obtain estimates of economic and financial indicators for each stakeholder (Net Present Value, Benefit/Cost Ratio, etc) based on costs and benefits

4. 09/12/2009 Rome, SWIM-SUIT User Forum 4/41 Scope

5. 09/12/2009 Rome, SWIM-SUIT User Forum 5/41 CBA Process

6. 09/12/2009 Rome, SWIM-SUIT User Forum 6/41 Expected Results –Economic and financial indicators per stakeholder over a certain evaluation period, : Net Present Value (NPV), Benefit to Cost Ratio (B/C) Breakeven point Payback Period –Sensitivity analysis identifying the most critical variables to the economic success of SWIM –Risk analysis showing the likelihood of SWIM delivering a certain Net Present Value –Recommendations for investments including focus areas for further research

7. 09/12/2009 Rome, SWIM-SUIT User Forum 7/41 Key Features of the Methodology –Identification and assessment of costs and benefits tailored to the SWIM problem: Considering outputs from SWIM-SUIT project Taking into account SESAR and FAA SWIM costs and benefits assessment work –Economic models of stakeholders based on EMOSIA models

8. 09/12/2009 Rome, SWIM-SUIT User Forum 8/41 Initial Assesment of Costs –Cost identification and categorization: Investment costs –Development –HW/SW Operating costs –Licensing/service fees –Maintenance –Data sources: Workshops with users/stakeholders SWIM costs identified in SESAR Costs associated to adaptation of legacy systems to SWIM (from SWIM-SUIT project)

9. 09/12/2009 Rome, SWIM-SUIT User Forum 9/41 Example: ANSPs’ GG/AG SWIM Costs (in M€) Implementatio n Package R&D costs Implementatio n Expenditure Total Investments Deployment Staff Costs Annual Operating Costs IP1 10.96456.99467.959.1493.90 IP2 42.36634.63676.9912.69123.64 IP3 9.15144.01153.162.8829.49 TOTAL62.471,235.631,298.1024.71247.03

10. 09/12/2009 Rome, SWIM-SUIT User Forum 10/41 Initial Assesment of Benefits –Benefits mechanisms and categorisation Investment expense savings –Infrastructure (simultaneous support to multiple applications) –Interfaces between applications (development and maintenance) Harmonization –SW re-use, easier to implement new applications Additional revenue –Enabler of more efficient operations and increased capacity –Data sources: Workshops with users/stakeholders SWIM-SUIT validation results Trace SWIM impact on SESAR operational improvements and translate to monetary value

11. 09/12/2009 Rome, SWIM-SUIT User Forum 11/41 SWIM related SESAR benefits qualitative assessment Based on SESAR definition phase docs. BENEFIT PLANNINGBENEFIT PLANNING T3.4.4/D5 DLT-0710-344- 00-07 TRADE-OFF ANALYSIS AND SELECTION OF TRANSITION SCENARIOSTRADE-OFF ANALYSIS AND SELECTION OF TRANSITION SCENARIOS T3.3.3 Milestone 4 DLT-0706-333-00-05 COST BENEFIT MODELLINGCOST BENEFIT MODELLING WP1.4.1/D1, DLT-0507-141-00-10

12. 09/12/2009 Rome, SWIM-SUIT User Forum 12/41 Methodology of qualitative assessment –STEP 1: Definition of Lines of Change (LoCs) and Operational Improvements (OIs) in which SWIM acts as an enabler –STEP 2: Definition of roles of SWIM in particular OIs –STEP 3: Assignment of particular OIs to correspondent KPAs

13. 09/12/2009 Rome, SWIM-SUIT User Forum 13/41 Example KPA Efficiency Fuel efficiency Factor name: Ground Queuing (Departure or arrival) Qualitative assessment: Medium OI Step ID OI Step description Benefit MechanismQualitative assessmentRole of SWIMDetails TS-0202 Departure Management Synchronised with Pre- departure Sequencing DMAN allow to optimise Gnd Queueing and wait at stand -> saving some fuel but not saving time MediumInstitutional Enabler LEG-01 EU Legislation - SWIM Interoperability Implementing Rule

14. 09/12/2009 Rome, SWIM-SUIT User Forum 14/41 Conclusions –Ongoing work on: Economic models for each stakeholder Gathering data for model inputs: –Costs and benefits –Users and other stakeholders invited to provide their views and inputs

15. 09/12/2009 Rome, SWIM-SUIT User Forum 15/41 Questions and Feedback