Brian Humphries CBE President EBAA Sopwell House 6 th March 2012

1. Curtailing Illegal Flights Creating a WIN – WIN – WIN Environment Brian Humphries CBE President EBAA Sopwell House 6th March 2012

2. PASSENGERS INDUSTRY GOVERNMENTS WIN WIN WIN

3. The Scope of Business Aviation in Europe • 570 operators(source AMSTAT) • 4,266 business aircraft in 2011 (source BART) • 2,936 Jets • 1,279 Turboprops • 51 BBJs

4. The Scope of Business Aviation in Europe • 654,514movements in 2011* • Representing 7.2% of all movements in EU 27* • 45% Commercial and 36% Non-Commercial** • 9% of these flights in 2009 were by “N-registered” aircraft** • Operations concentrated in Europe’s economic heart * Source Eurocontrol 2011 ** Source Eurocontrol 2010

5. The Scope of Business Aviation in Europe Flying Europe’s Return to Economic Growth • Business Aviation sector contributed a total of €19.7bn in annual gross value added (GVA) to the European economy in 2007, accounting for approximately 0.2% of the combined GDP of the European Union (EU), Norway and Switzerland. (PwC study)

6. The Issue • What is an illegal flight or operator? • EU Operators • Non-commercial EU operators performing public transportation within EU territory without a valid AOC • Non-EU Operators • Non-EU operators performing public transportation within EU territory without traffic rights or /and without a valid AOC

7. Why You Should Care • Number of occurrences reported • It is difficult to estimate the number of illegal flights occurring in Europe. • According to latest reports, the number of illegal flights ranges from 6% - 8% of all business aviation traffic in Europe • i.e. more than 45,000 movements/year • More worrying, this number is on the rise! • The prisoner's dilemma • If illegal flights flourish in total impunity, forcing costs down by reneging on safety and other critical standards, other operators may leave the market or echo the misconduct

8. The Impact ON PASSENGERS • Safety • Depending on the country of aircraft registration, the illegal flight may be: • less safe • operated to less demanding standards • Consequently, the requirement for “a high and uniform level of protection of the European citizen that should at all times be ensured by civil aviation” (R216/2008) is unmet; • Accountability • Aren’t all citizens supposed to know the law?

9. The Impact ON INDUSTRY • Unfair competition • By following less demanding standards, escaping the costs of an AOC, illegal operators can operate less expensively. • Operating under a Non-Commercial flight plan allows illegal operators to operate to/from airports, but under less stringent ruling (cf. runway capacity for instance). • Non-Commercial operators can operate to shorter runways than their Commercial counterparts • Reducing safety margins • Resulting in an unfair competitive advantage

10. The Impact ON GOVERNMENTS • Governments foot the bill • In case of an incident or accident, the passenger insurance coverage (including life insurance) may be withdrawn or invalidated; • If third-parties are impacted, the State may eventually be held liable for repairing or compensating the damage as no insurance covers the flight; • No VAT is perceived on the transaction, which represents a direct loss of income for States

11. The Solution • Enforcing the existing regulation • Directive 2004/36/CE (SAFA Regulation) • All Commercial aircraft • All Non-Commercial aircraft with MOTW > 5,700 KG • All Helicopters • Commission Regulation 768/2006 • On collection/exchange requirements Tasks for MS and EASA • Commission Directive 2008/49 • Amending Annex II of the SAFA Directive Core elements of ramp inspection procedures Guidance material • Commission Regulation 351/2008 • Prioritisation of ramp inspections

12. Our Proposal • Demand / Prevention • Inform passengers and operators of the risks • EBAA campaign on illegal flights • Media/ Communications • Work with service providers (airports, brokers) to help identify illegal operators at point of booking. • Provide passengers & brokers with means for self assessment • The EU White List

13. Our Proposal • Supply / Repression • Inform the potential illegal operator • Shine a spotlight each time an illegal operator has been caught! • Targeted ramp-check inspections • SAFA/SACA inspections targeted to unknown/suspicious operators • A clear definition of the population at risk, and a particular focus on this population • SAFA inspections targeting major events where business aviation brings many people to a specific location/area • Improve the exchange of information between authorities

14. Our Proposal • Regulatory solution • Adapt the existing regulation to help identify potential illegal operators • We propose amending Commission Regulation 351/2008 to reflect targeting needs • Provide inspectors with means to identify illegal operators • Develop a toolkit to help inspectors identify all potential illegal operators

15. WIN – WIN – WIN • A complete reshuffle of current practices by MS and authorities is not needed. EBAA believes that: • Better Communication between authorities • The recognition of the importance of the issue – not only for BusAv, but for safety in general • A greater focus on the population at risk, and • The establishment of a toolkit/procedure applied uniformly throughout Europe • Determination by the NAAs to enforce the law … would help tremendously!

16. Outcome of Recent Briefing to Member States • EBAA made a presentation on illegal flights during the 15th European SAFA Steering Group (ESSG) at the Commission to national inspectors. • The presentation was welcomed by the audience. • EASA and the commission expressed a genuine interest in working hand in hand with the industry against this issue. • MS declared themselves ready to renew their efforts, but • Admitted the complexity of the issue and need for help from the Associations.

17. THANK YOU Are we all Committed to the task?