1. Air Traffic Management: Future Prospects and Strategies Yasmine El Alj Stephan Wilde Markus Witte Nuria Margarit Dorthe Windeck Angela Won Julia Griese Margarita Marinova Alexander Zock

2. Agenda Introduction Infrastructure/ Regulations Market Mechanisms Operations/ Technology

3. What is Air Traffic Management (ATM) ATM provides for safe, orderly and expeditious flow of air traffic both in the air and on the ground* Division of airspace Vertical (upper/lower airspace, approach) and horizontal (regional/national) Defined flight routes and beacons for navigation Controllers optimize trajectories * Source: Recherche ENAC sector provider 1 sector provider 2 sector provider 3 sector provider 4 A Quelle: INCAS-Studie

4. Lufthansa’s Motivation for Change Growth Strategy Stay Cost Competitive Drive innovation Current European ATM situation Large military airspace Low ATC productivity No growth potential Full skies Constraints in Capacity Unilateral Cost Burden Non-negotiable ATC charges Risk-free ATC

5. Infrastructure/Regulation

6. Potential ATM development Today Organization Monolithic structure Infrastructure Procedures, technology 47 ATC-organizations 22 operating systems 30 programming languages Tomorrow Organization Multiple authorities (infrastructure, service, pricing) Infrastructure Procedures, technology Standardization 1 ATC-organization 1 operating system European Commission (EC) ATC Airlines technology

7. ATM data sharing via “ATM portal” Share all data – real time Airlines and ATM supply all data Create ATM portal to process data and supply it in a meaningful format Advantages Standardized interface and information (e.g. via web) Airline can anticipate congestion Can adapt routing real time with adaptive decision making Provision of digital data automatically (static & dynamic) Obstacles ATM labor force Security Airlines (lobbying, incentives) ATM EC, gov’t ATM portal decision

8. Dynamic and flexible airspace utilization Optimize special use airspace (SUA) utilization dynamically in a collaborative fashion Differentiate SUA (core, temporary) Optimal use of temporal SUA windows Integrated civil & military ATM Supply of real time digital data Advantages More useable airspace (increases capacity) Starting strategic cooperation between airlines and military Obstacles Ability to incorporate this data for flight planning Security Establish collaboration with military Incentives (airline  military) Technology

9. Market Mechanisms

10. European ATC Airlines New compensation scheme for controllers Differentiation in ATC services offered to airlines Airport/Route congestion pricing Airlines/ATC performance monitoring and penalty system Slot/Holding time Exchange System Interaction Market mechanisms require a new relationship between airlines and ATC

11. Possibilities for service differentiation Airline given priority in the airspace/airport system in exchange for a higher ATC charges Airlines pooling resources together to pay ATC for extra service during peak hours Leasing of „exclusive“ airways (e.g. Star Alliance North Atlantic Route“) Advantages better punctuality for airlines willing to pay extra cost new sources of revenue for ATC ATC SSSS CCC Service C C C Differentiation in ATC services offered to airlines „One for all“ „One for each“

12. Airline ATC clearing house collaboration concept Prerequisite: Agreement and negotiation on standard gate-to-gate performance benchmarks and penalities Clearing house Penalty System: entity responsible for the system disruption penalized through bonus/malus system airline should depart at scheduled time ATC should provide agreed-upon service performance Exchange System between airlines: can exchange slots and holding time priorities Database containing all data tracked and bonus points will be accessible to all stakeholders (ATC/ Airlines) ATCAirline Clearing house Penalty System Exchange System

13. Advantages of clearing house collaboration Requirements for on-time performance will be met Real-time trade-off between punctuality and cost through exchange program Stable scheduling process => reduction in delay costs; better aircraft utilization Reduced crew costs Better planification for lower airspace/ landing approach Bonus for performing at agreed-upon service levels Transparency allows ATC not to be blamed ATC is under no obligation to meet standard Gate-to-gate time if airline not departing on-time New revenue source for ATC Airlines ATC

14. Operations and Technology

15. Better utilization of existing system Solutions to overloading of airspace at peak times Expand schedule: Low price tickets at low peak times Premium price tickets at high peak times Use secondary airports and enhance intermodality Advantages: Create additional capacity Add value to different customer segments Obstacles: Regulation of night flying (curfews) Limited public transportation at night Labor issues

16. Unification of flight segments Reduction of ATC complexity by: Standardizing of existing ATM procedures and technologies Assigning one controller per flight from departure to landing Advantages: Seamless ATC experience Increased staffing flexibility Less controllers in low traffic segments Obstacles: Regulation issues New training concepts Redefinition of controllers

17. ATC of the future No controller s New navigation systems No pilots Aircraft at high altitude

18. Questions