Extranet access

EUROCONTROL offers a wide range of online services to stakeholders through its "One Sky Online" extranet portal. Participate in our many working groups, get the latest data on European ATM, or access advanced operational applications all in one click. Register now!

Member Login

 
 CARE Innovative Action Home
 Workshop 2001
 Studies 2001
 Projects 2002-2003
IRCS
IRCS WP1
IRCS WP2
IRCS WP3
IRCS WP4
IRCS WP5
IRCS WP6
IRCS WP7
IRCS WP8
Dissemination Forum
Documentation
CREA!
Uncertainty Management
Cognitive Streaming
 CARE Innov 2
 CARE II Innovative Projects 2004
 Projects 2005-2006
 CARE INO III - Call for Proposal
 

WP8: Analysis of the Application of Different Incentive Paradigms to ATC Units

Aim and Scope of WP8

It explores new possibilities for determining route charges.

It is not supposed to provide proposals, nor recommendations.

Nevertheless, it devises some new ideas that seem to deserve further consideration.

The Present Rules for Determining Route Charges

Each single flight is charged according to:

  • the length of the portion of route flown over each state;
  • the unit rate of the over-flown states (different states have different unit rates);
  • the aircraft size , actually, the Maximum Take-Off Weight –(MTOW).
Unit rates for each state (except in UK) are determined in such a way that the total expected revenues cover the total expected costs for providing ATM services (Full Cost Recovery principle).

Why new route charge rules?

Because the present charging system, in most of European countries:

  • does not consider the quality of the provided service (good service and bad service are charged the same);
  • does not provide incentives to reduce costs nor to improve performance;
  • does not contemplate any form of benefit or cost sharing: if traffic decreases, unit rates must increase to guarantee the ANSPs the re-quired revenues, while airlines have to face higher costs.
Moreover, the IRCS analysis has shown that the present charging system:
  • may produce distortions, and thus inefficiencies:
    - routes can be longer than necessary to avoid “expensive” states,
    - aircraft can be under utilised (configurations with lower MTOW values are sometimes used);
  • an analytic accounting system is required, for both EUROCONTROL and the airlines;
  • route optimisation is heavy: it needs large amounts of data and computing power.

Main Findings

An innovative vision for route charges, which should
  • promote integration among all actors;
  • reduce perturbations in the system, as they produce additional costs;
  • provide incentives / penalties fostering performance improvement.
A review of ideas for new charging systems, with their expected impact on ANS provision and air transportation demand, such as:
  • introduce a common unit rate all over Europe
  • penalise who causes delays
  • support ACCs’ investments to improve performance
  • incentivate the renewal of technical equipment on aircrafts for a simpler and cheaper control and for higher safety levels
  • partial compensations
  • relate charges to passengers (charges proportional, e.g., to ticket price or to load factor)
  • introduce demand management measures

Final Report:

WP8 (Jan-04)
Castelli L., Omero M., Pesenti R., Ukovich W.
  Acrobat Directions for Innovative Route Charging Systems
 
  Last validation: 15/03/2007