Air Traffic Management: Future Prospects and Strategies

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

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

3. sector provider 4 sector provider 3 sector provider 2 A Quelle: INCAS-Studie sector provider 1 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

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

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 decision Airlines (lobbying, incentives) EC, gov’t ATM 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. Interaction Market mechanisms require a new relationship between airlines and ATC Airlines European ATC 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

11. Differentiation in ATC services offered to airlines • 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 Service C C C „One for all“ ATC S S S S C C C „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) Clearing house ATC Airline Penalty System Airline Exchange System Airline

13. 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 Advantages of clearing house collaboration ATC Airlines

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 Aircraft at high altitude No pilots No controllers New navigation systems

18. Questions ?