1. ____________________________________________________________________________________ MKmetric November 2005 The SEAPLANE Project 3. November 2005, Bergamo Dr Benedikt Mandel MKmetric Gesellschaft für Systemplanung mbH, Karlsruhe Network Activity Consultations by the EC Resolution by the SEAPLANE Partners info@mkm.de

2. ____________________________________________________________________________________ MKmetric November 2005 Consultations Commercial Slot Allocation Consultation process interrupted New study on secondary slot trading ongoing New consultation process foreseen Action by partners? State Aid Consultation process interrupted New suggestions for a regulation worked out by DG-TREN, ongoing New consultation process foreseen Action by partners? Airport Capacity, Efficiency and Safety Consultation process terminating 15.11.2005 Action by partners?

3. ____________________________________________________________________________________ MKmetric November 2005 Activities Contact to EC officers in charge Mr van Voorst Mrs Colucci Mrs Poralla Check of EC publication and web site http://europa.eu.int/comm/transport/air/rules/competition2/consultation_revision_95 http://www.europa.eu.int/comm/dgs/energy_transport/state_aid/transport_en.htm http://europa.eu.int/comm/transport/air/safety/consultation_en.htm Conference of Peripheral Maritime Regions (CPMR) Participation at the September meeting Development of a CPMR air transport programme

4. ____________________________________________________________________________________ MKmetric November 2005 State Aid Consultation

5. ____________________________________________________________________________________ MKmetric November 2005 State Aid I Legal framework specifying the conditions of granting public subsidies to air transport 1. Classification of airports Category A – more than 10 Mio passengers Category B – between 5 and 10 Mio passengers Category C – between 1 and 5 Mio passengers Category D – less than 1 Mio passengers The categories are incompatible between different EC institutions, e.g. TEN. 2. Financing of airport infrastructure and equipment or direct support. A and B – no subsidies at all allowed C – case by case evaluation, prior notification D - by exception, no prior notification

6. ____________________________________________________________________________________ MKmetric November 2005 State Aid Legal framework specifying the conditions of granting public subsidies to air transport 3. Aid for operation of airport infrastructure and airport services operation – only under exceptional circumstances services – D airports may ask for compensation for assistance in stopover 4. Start-up Aids A – no subsidies for service / operation B - only under exceptional circumstances C and D – eventually approved by EC, no objection for initial help for services between outermost regions and neighbouring countries

7. ____________________________________________________________________________________ MKmetric November 2005 Capacity, Efficiency and Safety Consultation

8. ____________________________________________________________________________________ MKmetric November 2005 Capacity, Efficiency, Safety I 1. Capacity Optimise the use of existing capacity Increase the efficiency in air traffic management 2. Airports relationship with other modes Substitute feeder flights with high quality rail services Promote integrated air-rail services, complementarities of modes No start-up aid for a new air route corresponding to a high speed train link Substitute short-haul connections (<600km or 3h journey time) Refuse air traffic rights to an airport when an efficient rail link exist Provision of a directive on airport charges concerning the substitution Amend public service obligation (Art. 4 PSO) if adequate rail service exists EU support on physical infrastructure to access airports by rail Benchmarking of airport ground access (no regulatory foreseen) Fostering a better modal split by proper signing, innovative pricing, information and comfort

9. ____________________________________________________________________________________ MKmetric November 2005 Capacity, Efficiency, Safety II 3. Consistency between ATFM and airport slots Mandate to Eurocontrol to develop rules for ATFM improvement including data exchange and communication flows on airport capacity declaration, initial airport slot allocation, commercial scheduling and strategic ATFM capacity planning Comprehensive capacity assessment exercise (rolling 5 year period, existing capacity, traffic forecast, constraints and potential capacity enhancements) 4. Environment and land-use management Further initiatives and regulations by EC on land-use planning and management Differentiation of airport charges according to environmental performance

10. ____________________________________________________________________________________ MKmetric November 2005 Capacity, Efficiency, Safety III 5. Sources of funding airport infrastructure Financing of large scale airport extension and refurbishment projects have to be born by user charges, pre-funding of airport projects (ICAO) Not self sufficient peripheral airports can be supported whereby cross- subsidization has to be made transparent Definition and implementation of principles for airport infrastructure pre-financing Directive on principles of airport charges 6. State Aid New regulation forthcoming As a general rule new airport capacity or significant increase of airport capacity has to be financed from airport charges and fees European regional development fund (ERDF) can support airport development at regions of objective 1 status (national guidelines respected, max 75%) For objective 2 regions no funding is allowed for airside facilities, certain non-aviation infrastructure at or around airports could receive limited support New member states, Greece, Spain and Portugal can be supported by the cohesion fund, rules very strict, have to correspond with the TEN priorities

11. ____________________________________________________________________________________ MKmetric November 2005 Capacity, Efficiency, Safety IV 7. Benchmarking and dissemination of best practice Creation of a specific group / forum of airports in order to centralise data collection and facilitate the dissemination of best practice (observatory) 8. Relationship between airports Extension of the remit of the European Aviation Safety Agency (EASA) to cover the development and issuance of operational standards for the implementation and operation of tested tools (airport operation models, collaborative decision making, new instrument landing procedures) 9. ATM safety at airports Extension of European Aviation Safety Agency’s (EASA’s) mandate to the airport domain to develop and implement a more consistent approach to airport safety across all member states

12. ____________________________________________________________________________________ MKmetric November 2005 Capacity, Efficiency, Safety IV 10. Traffic distribution for capacity management within airport systems Development of rules by the EC on traffic distribution Encourage member states to form more airport systems (2or more airports serving a town / region) 11. Secondary airports New air service agreements with third countries to allow for more direct services Modulation of airport charges at congested airports Start-up aid to airlines departing from regional airports Increase attractiveness of secondary airports by e.g. improvement of surface transport or public financial support for investments

13. ____________________________________________________________________________________ MKmetric November 2005 The SEAPLANE Resolution

14. ____________________________________________________________________________________ MKmetric November 2005 Partnership 13 regions representing 21 airports Project topics Sustainable air transport Economic impact of the airport on the region Comparative analysis of airports Airport ownership Airport development opportunities Passenger market potential analysis (ex post & ex ante) Airport security Networking, e.g. SEAPLANE resolution on improved accessibility of regions Framework

15. ____________________________________________________________________________________ MKmetric November 2005 Accessibility - North Sea Region

16. ____________________________________________________________________________________ MKmetric November 2005 Findings in SEAPLANE Regional airports constitute an important element in regional economic development. Regional airports provide the crucial infrastructure necessary to secure the lifeline air services and to ensure a region’s accessibility to and from national and international economic centres. Linking airports of peripheral regions to national and international network airports with sufficient frequency to offer suitable interlining opportunities facilitates the EU policy objectives. The current process of slot allocation at congested EU national and international network airports hinders the retention and development of adequate air services to and from peripheral regions Measures to improve the situation...

17. ____________________________________________________________________________________ MKmetric November 2005 Suggested Measures Amend the existing slot allocation rules at network airports - application of new entrants rule, define peripheral, define vital for regional economic, define adequate service, objective management tool Revise and improve the rules for Public Service Obligations (PSO) - co-ordination across EU, simplify process, extension up to 5 years, allow for competition, first allocate slots for PSO, concentrate PSO on accessibility of regions, designate PSO to specific network airports Facilitate the provision of start-up aid (route development funds) - increase regional/national funds, allow for route start up help, concentrate on routes for business development Improve EU monitoring of adequate runway capacity - increase air traffic management efficiency, increase peak time capacity, ensure timely development of capacity at network airports

18. ____________________________________________________________________________________ MKmetric November 2005 Council Regulation (EEC) No 95/93 Article 9 - Regional services 1. A Member State may reserve certain slots at a fully coordinated airport for domestic scheduled services: (a) on a route to an airport serving a peripheral or development region in its territory, any such route being considered vital for the economic development of the region in which the airport is located, on condition that: (i) the slots concerned are being used on that route at the time of entry into force of this Regulation; (ii) only one air carrier is operating on the route; (iii) no other mode of transport can provide an adequate service; (iv) the reservation of slots shall end when a second air carrier has established a domestic scheduled service on the route with the same number of frequencies as the first air carrier and operated it for at least a season; (b) on routes where public service obligations (PSO) have been imposed under Community legislation.

19. ____________________________________________________________________________________ MKmetric November 2005 Council Regulation (EEC) No 95/93 Article 9 - Regional services 2. The procedures in Article 4 (1) (d) to 4 (1) (i) of Regulation (EEC) No 2408/92 shall be applied if another Community air carrier is interested in servicing the route and has not been able to obtain slots within one hour before or after the times requested of the coordinator. 3. The Member State shall communicate to the Commission a list of routes for which slots have been so reserved at a fully coordinated airport. This shall first be done at the entry into force of this Regulation. The Commission shall publish an overview of the routes concerned in the Official Journal of the European Communities not later than two months after the communication.

20. ____________________________________________________________________________________ MKmetric November 2005 Council Regulation (EEC) No 95/93 Article 10 - Slot pool 1. At an airport where slot allocation takes place, a pool shall be set up for each coordinated period and shall contain newly created slots, unused slots and slots which have been given up by a carrier during, or by the end of, the season or which otherwise become available. 2. Any slot not utilized shall be withdrawn and placed in the appropriate slot pool unless the non-utilization can be justified by reason of the grounds of the grounding of an aircraft type, or the closure of an airport or airspace or other similarly exceptional case. 3. Slots which are allocated to an air carrier for the operation of a scheduled service or a programmed non-scheduled service on a particular moment of a day and for the same day of the week over a recognizable period up to one scheduling period shall not entitle that air carrier to the same series of slots in the next equivalent period, unless the air carrier can demonstrate to the satisfaction of the coordinator that they have been operated, as cleared by the coordinator, by that air carrier for at least 80 % of the time during the period for which they have been allocated.

21. ____________________________________________________________________________________ MKmetric November 2005 Council Regulation (EEC) No 95/93 Article 10 - Slot pool 4. Slots allocated to an air carrier before 31 January for the following summer season, or before 31 August for the following winter season, but which are returned to the coordinator for reallocation before those dates shall not be taken into account for the purposes of the usage calculation. 5. If the 80 % usage of the series of slots cannot be demonstrated, all the slots constituting that series shall be placed in the slot pool, unless the non-utilization can be justified on the basis of any of the following reasons: (a) unforeseeable and irresistible cases outside the air carrier's control leading to, for example: - grounding of the aircraft type generally used for the service in question, or - closure of an airport or airspace; (b) problems relating to the starting up of a new scheduled passenger service with aircraft of no more than eighty seats on a route between a regional airport and the coordinated airport and where the capacity does not exceed 30 000 seats per year, or

22. ____________________________________________________________________________________ MKmetric November 2005 Council Regulation (EEC) No 95/93 Article 10 - Slot pool (c) serious financial damage for a Community air carrier concerned, with, as a result, the granting of a temporary licence by the licensing authorities pending financial reorganization of the air carrier in accordance with Article 5 (5) of Regulation (EEC) No 2407/92; (d) an interruption of a series of non-scheduled services due to cancellations by tour operators, in particular outside the usual peak period, provided that overall slot usage does not fall below 70 %; (e) an interruption of a series of services due to action intended to affect these services, which makes it practically and/or technically impossible for the air carrier to carry out operations as planned. 6. If serious problems continue to exist for new entrants, the Member State shall ensure that a meeting of the airport coordination committee is convened. The purpose of the meeting shall be to examine possibilities for remedying the situation. The Commission shall be invited to such a meeting.

23. ____________________________________________________________________________________ MKmetric November 2005 Council Regulation (EEC) No 95/93 Article 10 - Slot pool 7. Without prejudice to Article 8 (1) of Regulation (EEC) No 2408/92, slots placed in the pools shall be distributed among applicant carriers. 50 % of these slots shall be allocated to new entrants unless requests by new entrants are less than 50 %. 8. A new entrant which has been offered slots within two hours before or after the time requested but has not accepted this offer shall not retain the new entrant status.

24. ____________________________________________________________________________________ MKmetric November 2005 Dissemination of the Resolution Resolution 13 regional authorities EC DG TREN, Direction F, Airport Policy DG Regio EU Aviation Associations EU Political Transport Institutions EU Political Institutions MEP EU Parliament CPMR CoR NSC AEAACIERA April 04 Nov 04

25. ____________________________________________________________________________________ MKmetric November 2005 Further Actions Endorsement of the resolution by: the 15 SEAPLANE partners, North Sea Commission (NSC) and Conference of Peripheral Maritime Regions (CPMR). Presentation of the resolution to the representatives of DG TREN, DG REGIO, airport associations and the public in Brussels. Participation of the partners in the EC consultation process on the commercial slot allocation mechanism.

26. ____________________________________________________________________________________ MKmetric November 2005 Status Consultation Process Review of comments and replies Summary for policy decision makers Publication of the results and comments pending Decision by DG TREN about the way forward Development of a new discussion paper pending Reasons: commercial & legal aspects of airports & airlines; comments of regions reflecting cohesion policy. New topic: Secondary trading. New consultation process after the dissemination of the secondary slot trading process.

27. ____________________________________________________________________________________ MKmetric November 2005 Next Steps ? Is there any interest to continue pushing the resolution on EU level? Who will participate in the next round of the EC consultation on slot regulation to extend the slot allocation process towards the benefit of the regions accessibility? Is there any interest in the other two ongoing consultations ‘state aid’ and ‘capacity’? Who will co-ordinate the related activities respectively the networking?

28. ____________________________________________________________________________________ MKmetric November 2005 Thank you!