1. WORLD-WIDE CNS/ATM SYSTEMS IMPLEMENTATION CONFERENCE Agenda Item : Financial Matters Agenda Item : Financial Matters 3:

2. Objective Generates + Return

3. 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:

4. 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:

5. 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:

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

8. Global Industry Today 150023.600 1.5 billion 25 million Tn 4.300

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

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

12. 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

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

14. CNS/ATM All Studies Indicate

15. Purchase of Satellite Services Replacement Investment Equipment Investment Training 2000200520102015 $ 0 Cost Profile 2020

16. 19952000200520102015 $ 0 Aircraft Efficiency Benefits

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

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

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

20. 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

21. Varig, BA, TWA, JAL, KLM etc

22. Varig,

23. 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

24. Availability of Financial Data RevenuesCosts

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

27. Major Conclusions Major Conclusions