Documents considered by the Committee on 4 September 2013 - European Scrutiny Committee Contents


12 Single European Sky: air traffic management

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COM(13) 503

Draft Council Regulation amending Regulation (EC) No. 219/2007 on the establishment of a Joint Undertaking to develop the new generation European air traffic management system (SESAR) as regards the extension of the Joint Undertaking until 2024

Legal baseArticle 187 TFEU; consultation; QMV
Document originated10 July 2013
Deposited in Parliament19 July 2013
DepartmentTransport
Basis of considerationEM of 24 July 2013
Previous Committee ReportNone
Discussion in CouncilPossibly 10 October 2013
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information requested

Background

12.1 The Single European Sky (SES) initiative was launched in response to the growing problem in air traffic management (ATM) delays in the late 1990s. The principal objective of the SES is to deliver a seamless, safe, sustainable, efficient and interoperable European ATM system capable of meeting future capacity needs and not artificially constrained by national borders. The Single European Sky Air Traffic Management Research (SESAR) programme is the technology pillar of the SES. The SESAR Joint Undertaking (the SJU) is a public private partnership established in 2007 and is responsible for the SESAR programme development phase as the 'guardian' and executor of the European Air Traffic Management Master Plan.

12.2 The SESAR programme aims to modernise the European Air Traffic Management system. Industry-led, it has gained the buy-in of aviation stakeholders and the Commission. Eurocontrol (the European Organisation for the Safety of Air Navigation) and the Commission are founding members of the SJU and were subsequently joined by 15 private industry partners (including the UK's NATS (National Air Traffic Services) and an airports consortium involving the then BAA).

12.3 The SJU was established under Council Regulation (EC) 219/2007 (the SJU Regulation), under which it will cease to exist on 31 December 2016, as EU funding for the SJU development phase is limited to the period covered by the 2007-2013 Multiannual Financial Framework.

The document

12.4 The SJU Regulation also provides for the Council to review the scope, governance, funding and duration of the SJU following the development phase. The Commisson suggests that it is necessary to continue research and innovation on air traffic management beyond 2016, particularly in the context of the SES and its associated Air Traffic Management Performance Scheme. So it proposes this draft Regulation to amend the SJU Regulation in order to extend the life of the SJU beyond 2016, that is until the end of 2024. The extension aligns to and is compatible with the new Multiannual Financial Framework, with the multiannual funding for the new activities highlighted in the European Air Traffic Management Master Plan from 2014 to 2020 as part of Horizon 2020.

12.5 Other key elements of the draft Regulation are that:

  • existing resources would be redeployed into exploratory research;
  • there would be more focus on "Large scale demonstration activities focussed on performance benefits, on conducting integrated and coordinated advance validation and on demonstration activities showing readiness for deployment and for operation and/or technological transition"; and
  • the SJU could award grants to help implementation of the Air Traffic Management Master Plan.

The Government's view

12.6 The Minister of State, Department for Transport (Mr Simon Burns) first says that:

  • successive Governments have supported the SES project and its technological pillar SESAR;
  • the present Government intends to continue this support and it is working to ensure that its objectives are met fully;
  • the SES initiative is already delivering operational efficiency benefits to airspace users and passengers, in the form of reduced air navigation charges, more direct flight routings and reduced fuel burn; and
  • SESAR, under the direction of the SJU, continues to make a key contribution to the progress of the SES initiative and the Government has been supportive of its developments.

12.7 On the draft Regulation itself the Minister says that:

  • the Government welcomes the intention of these proposals for the continuation of the SJU as an appropriate mechanism to direct both public and private funds into air traffic management research and development;
  • the legal framework underpinning SES is an important enabling requirement for delivering technological improvements in Europe's air traffic system but, by itself, it will not create a new air traffic system;
  • Member States and the Commission recognise that significant investment in new technology is required to deliver an improved air traffic system, capable of meeting the future needs of airspace users;
  • the SJU has a key role in bringing the EU aviation community together to deliver this;
  • as SESAR enters its Deployment Phase, 2014 to 2020 (with a potential second phase up to 2030), some of the work will pass from the SJU to industry to implement and integrate the technology; and
  • there remains, nevertheless, an ongoing requirement for air traffic management research and development and therefore there is a real need to allow the SJU to continue its work, in partnership with the key players and aligned with the EU funding mechanism under Horizon 2020.

12.8 The Minister continues by explaining some of the background, saying that:

  • SESAR is a regular item on the agenda of the Single Sky Committee, the comitology committee for the SES initiative, giving Member States clear oversight and influence over the development and progress of SESAR and its associated bodies;
  • although elements of the UK industry have chosen to contribute to the costs of the SJU, they have done so on the basis of commercial decisions;
  • there are no direct costs on industry and the development work of the SJU aims to ensure that new technology has a robust cost-benefit analysis;
  • mandating of any particular equipment deployment across the European air traffic management system would be subject to separate regulations and scrutiny processes; and
  • the greatest risk is, therefore, with not extending the SJU and the subsequent likelihood that air traffic management research and development would become more disparate.

12.9 Before discussing some aspects of the draft Regulation, which might be addrtessed as it is being negotiated, the Minister comments:

  • the proposal sets out an eight year extension to the SJU and the changes to the SJU Regulation are mainly a straightforward link to the new timescales and new Commission financial framework under Horizon 2020;
  • the Government supports an extension to the SJU as the best mechanism to direct both public and private funds into air traffic management research and development; and
  • the draft Regulation gives the opportunity, nevertheless, to look at working with other Member States to achieve some relatively minor changes to enable the SJU to be more effective and focused in its research and development.

12.10 The Minister says that the Government will consider the following during the Council working group discussions:

  • the draft Regulation suggests existing resources will be redeployed with more effort being put into exploratory research;
  • whilst acceptable, there may be additional benefits for the SJU work beyond the Air Traffic Management Master Plan, as set out in current Regulations, to be constantly assessed on a cost against benefit basis rather than the assumption that the same level of resource will be needed throughout the extension;
  • the Government will work to consider if improvement can be made to this element of the proposal;
  • it is good to see in the Commission's explanatory memorandum that the SJU's Air Traffic Management Master Plan work should become more focused on "Large scale demonstration activities focused on performance benefits, on conducting integrated and coordinated advance validation and on demonstration activities showing readiness for deployment and for operation and/or technological transition";
  • but it would be beneficial for this to be more specifically set out in the text of the proposed Regulation;
  • the draft Regulation specifies that the SJU may award grants to implement the Air Traffic Management Master Plan, considering the rules for participation laid down in Horizon 2020;
  • whilst logical, greater clarity is needed on how this grant awarding role sits with the Commission's responsibilities and the appointment of a SESAR Deployment Manager under other SES Regulations; and
  • the Government will seek greater clarity on this aspect to ensure that the governance of the SESAR Deployment Phase does not become confused with the ongoing research and development role of an extended SJU.

12.11 On possible financial implications the Minister says that:

  • the SJU is jointly funded by the Commission, Eurocontrol and industry;
  • the extension of the SJU does not result in any direct cost on the UK; but
  • industry partners who choose to be part of the SJU will be expected to contribute to the funding of the SJU, as is currently the case.

Conclusion

12.12 We recognise the utility of this proposal, as an important element in the continued development of the Single European Sky. But, before considering the matter again, we should like to hear about developments in working group discussions in addressing the three points the Minister mentions. Meanwhile the document remains under scrutiny.


 
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Prepared 23 September 2013