APPENDIX B
Status of Air Navigation Service Providers
AEROTHAI—THAILAND
Until earlier this year, the Government of Thailand
held 90 per cent of the shares in Aerothai, with the remaining
shares being held by airline companies operating regular scheduled
international or domestic services in Thailand. The Thai Government
has now sold a further tranche of shares to the airlines—60
per cent of the shares in the company are now owned by a group
of 65 airlines, with the Government retaining the balance of 40
per cent of the shares. The company is run as a non-profit making
organisation with any over-recoveries being refunded to users.
Funding for investment is sourced from local institutions without
government guarantee. The company has an 11-member Board of Directors,
eight of whom are nominated by airlines.
AEROPUERTOS ESPANOL
NAVEGACION
AEREA (AENA)—SPAIN
AENA is established as a "Corporate Public
Entity". It operates autonomously but is wholly owned by
a government Ministry (the Ministerio de Fomento) which is responsible
for its political and strategic direction. Board members are selected
by the Ministry. The company is profit making, and profits are
used to create financial reserves for future investment and dividends.
AENA is involved in a range of commercial, consultancy and cultural
activities. Additionally, AENA runs CLASA, the company responsible
for the construction and management of air cargo centres in Spain,
as well as a foundation for the preservation and display of artwork
at Spain's airports.
AIR NAVIGATION
SERVICES OF
THE CZECH
REPUBLIC (ANS CR)
ANS CR is required to make a profit for its
owner (the state). At present, the Company relies exclusively
on its own financial sources for infrastructure development. In
1994 the government granted the organisation an interest free
loan which was repaid during 1996 and 1997. ANS CR currently has
no outstanding debts to the state budget, and does not draw state
subsidies. There are currently no plans for a move from the existing
state-owned enterprise status to a fully privatised company, but
proposals for transition to a joint-stock company, 100 per cent
state owned, are under consideration.
AIR TRAFFIC
& NAVIGATION SERVICES
(ATNS)—SOUTH AFRICA
The company is wholly owned by the South African
government and is required to achieve a level of profit agreed
with the shareholding Minister. Currently, the company is not
required to return a dividend to the shareholder and all profits
are re-invested. The company is run by a management team overseen
by a board of directors which reports to the Minister of Transport.
A "Regulating Committee" is appointed by the Minister
and is responsible for the economic performance of the company,
and for monitoring service standards. Safety regulation is carried
out by the SA CAA. ATNS offers a range of services on a commercial
basis, both locally and internationally.
AIRSERVICES AUSTRALIA
Airservices Australia is a Government-owned
authority, operating along commercial lines. Reporting and accountability
arrangements are set out in legislation. The Federal Government
is currently considering a range of options for the future of
the organisation. Airservices is required to make a profit, which
it uses for investment purposes and which may be topped up with
borrowings from private capital markets. The government no longer
provides guarantees against these loans. The government also receives
a dividend from Airservices.
AIRWAYS CORPORATION
OF NEW
ZEALAND
Airways Corporation is a State Owned Enterprise,
wholly owned by the NZ Government. It is managed by an independent
commercial Board of Directors. The company is legally bound to
operate to comparable private sector standards, including the
requirement to make a profit. There are no specific controls on
prices or the level of profit the corporation can earn: the objective
of the Board and Management is to set a price for services which
meets customer expectations, while at the same time achieving
a profit target and dividend stream which deliver shareholder
value.
The organisation is not bound by government
borrowing constraints, and is free to borrow money on the open
market. Airways is a stand-alone business and the government is
prevented by law from guaranteeing or underwriting Airways' obligations
in any form. Safety regulation is carried out by the NZ CAA. Airways
Corporation is actively involved in the commercial market, notably
in the consultancy field.
DEUTSCHE FLUGSICHERUNG
GMBH (DFS)—GERMANY
The Federal Minister of Transport is the only
shareholder. The company is overseen by a supervisory board which
consists of 12 members: six elected employee representatives and
six representatives of the owner. The Board appoints the Company's
Managing Directors and the Board of Managing Directors reports
to the supervisory board, which must also agree to any major investments
and approve the annual business plan.
DFS is financially autonomous, and infrastructure
investment is secured by using income from ANS charges. Within
the charges system, investment repayment takes place via depreciation
of equipment and interest charged. In addition, DFS has a rated
money and capital market programme allowing it to issue commercial
papers and bonds. The Government does not guarantee company loans.
DFS is required to make a profit and has made
an operating profit on which it pays tax since 1993. The Ministry
of Transport then decides how much of any remaining profit is
retained by the state or may be deposited into DFS' reserves.
DFS markets a range of commercial services through its consulting
division.
FIJI
During 1999, Strategic Air Services Limited
became the first private company in the world to be awarded a
contract for air traffic management services. The contract was
awarded by the Sovereign Republic of the Fiji Islands. The contract
covers local (aerodrome and approach), area (outstation towers,
flight information services and area control) and oceanic (above
FL245 within Nadi FIR) over an area of 7.5 million km2. Employees
are offered shares in the company.
IRISH AVIATION
AUTHORITY—IAA
The IAA is a fully commercial, state-owned limited
company, in which all equity is owned by the Irish Government.
The Board is appointed by the Minister for Public Enterprise.
The IAA is required to make a profit. In 1999,
for the first time, the profit was returned to the shareholder
in the form of a dividend. To date, the IAA has not needed to
secure funding for major infrastructure development, but any further
reinvestment proposals would be funded by commercial private finance.
LATVIJAS GAISA
SATIKSME (LGS)—LATVIA
LGS is a state-owned joint-stock company. LGS
is an operational unit of Latvian Civil Aviation and answers directly
to the Ministry of Transport. All profits are retained for investment;
the Government does not receive a dividend. So far, no commercial
loans have been required, with all investment funded from ANS
revenue. However, the steady income stream via Eurocontrol is
deemed to be a sufficiently reliable guarantee should a commercial
loan be required.
LUCHTVERKEERSLEIDING
NEDERLAND (LVNL)—THE
NETHERLANDS
LVNL was separated from the Dutch Civil Aviation
Administration in 1993 and established as a corporate entity.
The company is fully owned by the state and supervised by a Board
appointed jointly by the Minister of Transport and the Minister
of Defence. There are no shareholders and LVNL is not permitted
to make a profit. Investments are financed by bank loans, which
are not guaranteed by the Government.
NAVCANADA
NavCanada is set up as a fully private, non-share
capital corporation. NavCanada, rather than the Canadian government,
is responsible for co-ordinating the safe and efficient movement
of aircraft in Canadian domestic airspace and in international
airspace assigned to Canadian control.
The company is governed by a 15 member Board
of Directors, 10 of whom are nominated by stakeholders representing
aviation users, bargaining agents and the Canadian government.
There are also four independent directors plus the President/CEO.
NavCanada also has an Advisory Committee that is elected by the
company's Associate Members and which is empowered to analyse
and make recommendations to the Board of Directors on any matter
affecting air navigation services. Revenue from user charges is
used by the company to cover its costs, invest in the business,
or address its reasonable financial needs. Any surplus has to
be returned to customers in the form of reduced user fees.
NAVEGACAO AEREA
DE PORTUGAL
(NAV EP)
NAV EP is a state corporation in which the Portuguese
States owns 100 per cent of the shares. The company is managed
by a 5-member Board which is appointed by the government. The
organisation is not required to make a profit, but is required
to be economically self-sufficient and to pay taxes to the government.
If a profit is made, it is partly shared with the government.
ROMANIAN AIR
TRAFFIC SERVICES
ADMINISTRATION (ROMATSA)
ROMATSA is a state-owned, self-financing corporation
reporting to the Ministry of Transport. Overall responsibility
for the regulation of air traffic services remains with the Ministry
of Transport as the state authority. ROMATSA owns its own assets
and the Ministry of Transport is responsible for appointing an
administration board and the director general.
SWISS AIR
NAVIGATION SERVICES
(SWISSCONTROL)
Switzerland claims the oldest corporatised model
in the world having delegated responsibility for the provision
of air navigation services in 1921 to a limited company-Radio-Suisse
Ltd. Swisscontrol itself was founded in 1987 as a corporatised
joint stock company under Swiss private law. The Government originally
held 71 per cent of the shares though the proportion has since
risen to over 99 per cent. The balance is owned by Swiss airports,
aircraft operators, aviation-related organisations and staff associations.
Swisscontrol is not required to make a profit
for shareholders and any profits are returned to users. The company's
investment policy is under-written by a long-term loan granted
by the Swiss government and negotiated at preferential rates of
interest. Safety regulation is carried out by the Federal Office
for Civil Aviation.
UKRAINIAN STATE
AIR TRAFFIC
SERVICE ENTERPRISE
(UKSATSE)
UkSATSE is a state-owned, self-financing organisation.
UkSATSE is reponsible for safety regulation at an operational
level. The organisation is not a stock company and has no shareholders.
After-tax income remains at the disposal of the organisation.
When additional funding is required for infrastructure development,
commercial loans are available through public or private financing.
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