Fees & Charges Regulation

17 November 2005 Industry Meeting 1

Fees & ChargesRegulation

Ralf ErckmannCertification Manager


European Aviation Safety Agency

Last Industry Meeting (18/11/04)

Need for Fees & Charges RegulationFees Revenue must cover full costsof services delivered (Basic Regulation)

Responsibilities & Parties InvolvedEASA, NAAs, MB, Industry, EASA Committee

ChallengesFirst common charging system, complexity, workload estimates, basic EU rules

Later adjustments necessary



Objectives

Fair and transparent charging systemSystem allowing to keep track of the resources devoted to different activitiesGenerate Income to cover all certification costs (direct and indirect)

EASA staffOperational costs (missions etc.)NAAs (transition period)Infrastructure (support for transition period)Other service provider, if necessary



Assumptions

300 people necessary to run a single certification system in Europe

230 Experts (PCM/Specialists)70 Manager, Assistants, SecretariesSome “new“ working methods

Total costs: 45 M€

This assumption is directly linked to the level of involvement

depth of investigation

degree of surveillance



State of Play

Regulation adopted in March 2005Implemented since 1 June 2005

Procedures in placeStaff recruited and trainedService contracts with 14 NAAs

Processing of 5000 applications with some shortcuts in placeNo disruptions for IndustryMore than 10 M€ invoiced



Lessons Learned

Very complex and heavy systemBurdensome administrative processesAvailable database & software tools not adequate

Complex contract managementRegular contract meetings with 14 NAAsHarmonisation of working methods ongoing

Income less than expectedEarly income simulations partly wrong/and or too optimistic (number of applications, workload assumptions, hourly rate, etc.)



Counter-Measures

EASA Budget WG to analyse the situationParticipation of Management Board, the EASA Advisory Board and the CommissionTwo dedicated meetings (08/08/05 & 01/09/05)

Solutions for 2005 budgetAction EASA to draft revision of F&C Regulation

Creation of EASA Fees & Charges WGParticipation of Member States, Industry and the Commission



Fees & Charges WG

ObjectivesPropose Improvements (simplifications, corrections)Revise tariffs to generate sufficient income for 2006

Time FrameProposals by end of NovemberDiscussion next MB meeting in DecemberEASA Committee JanuaryEarliest Implementation March/April



Fees & Charges WG

Achievements so farCommon understanding on some fundamental improvements (payment modalities, quotation, instalments)

ChallengesAvailability of real data to verify workload assumptionsTime Frame



Questions?

Thank you for your attention



Additional Slide



Efficiency Considerations

Cost of previous JAA/NAA system difficult to estimate

More than 700 certification experts are knownWorkload & functioning partially unknownGovernment subsidies to NAAsCross subsidies between branches, activities, etc.

Efficiency of the EASA certification systemFuture: 230 certification expertsTotal costs transparent

Fees & Charges Regulation

Documents

Transcript of Fees & Charges Regulation