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Strategic and Socio-Economic Studies at EUROCONTROL Synthesis 2010

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Synthesis of Strategic and Socio-Economic Studies a t EUROCONTROL 2003-2010

December 2010 __________________________________________________________________________ The present paper summarises socio-economic and strategic studies in EUROCONTROL that since 2003 aimed to raise Air Transport Awareness for the medium- and long-term in view of better informed decisions and strategic orientation of research in EUROCONTROL. It includes in Annex a synthesis of the socio-economic studies performed in EUROCONTROL in the period 2003-2010. This synthesis aims to illustrate the extent of the study field and to highlight the main findings and how it is contributing to better understanding the context and challenges of air transport and its evolution.1 Thanks to Dave Young, Marc Bisiaux, Patricia Cauwenbergh for their contributions. __________________________________________________________________________

1 The document synthesises reports that can be found on the Air Transport Strategic and Socio-economic Studies web page: http://www.eurocontrol.int/eec/public/standard_page/proj_Strategic_soc_eco_studies.html.


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Socio-economic studies The EUROCONTROL socio-economic research followed an exploratory process, looking at air transport from the perspective of different categories of actors in society (customers, politicians, press, neighbours, even air traffic controllers and pilots). It has also explored the economic aspects from regulatory and business perspectives, looking at the economic impact of air transport, and at the integration of sustainability and governance issues in air transport. Each study has been subject to a study report that can be found in the 2003-2008 EEC reports list (sorted by year of publication):

EEC's technical/scientific reports A synthesis of those studies (letting aside the environmental research part) is proposed in the Annex of this document.

In addition, two events have been organised to raise awareness about the societal challenges in air transport:

� A workshop on sustainability of air transport in 2005, � A symposium organised with Sciences-Po Paris on sustainability of air transport in

2006. The socio-economic knowledge gathered also contributed to the SESAR Definition Phase, mainly to D1. The figure below results from this exploratory research phase and illustrates the initial view of the factors influencing air transport evolution as perceived in 2006:

Fig 1: Factors influencing air transport evolution – 2006 view


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The exploratory phase have shown that the perception of air transport in society in Europe has become progressively tainted with the rise of environmental preoccupations in society both at local (airports neighbourhood) and global (atmospheric emissions) levels, combined with the growing risk aversion in modern societies. Even if the willingness to travel doesn’t seem to change, the awareness that flying is maybe not only good but has drawbacks, is rendering the future of air transport demand less predictable that it has been in the past. In this tainted picture, ATM is still rather unknown to the public, which may bear risks in judicial and political contexts when arbitrations need to be made out of the ATM professional sphere. On the economic side, studies have confirmed and reinforced the positive impact of air transport on economy both at regional and national (GDP) and more local (catalytic impacts) levels. At the same time, the economy of air transport is increasingly affected by its environmental impacts, both by regulation (taxes, trading, restrictions, studies towards internalisation of external costs etc) and also by the actors’ necessity to adopt sustainability strategies that maintain their legitimacy to operate and the survivability of their business (energy, nuisance,…). In finding the right balance between its social, economic and environmental impacts, air transport should benefit in a more integrated and collaborative common approach in front of the increased public attention and regulatory pressure. In this evolutive economy, the European ATM is reforming its governance under the Single European Sky umbrella, towards better performance and cost effectiveness. Lessons can be learned from exploring strengths and weaknesses in comparison with other networked industries more advanced in the process: new services, actors, prices, congestion management, and liability.


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Strategic Studies In 2007, the socio-economic research evolved into the EUROCONTROL’s Strategic Studies, as part of the CND Strategy and Stakeholder Relationship unit, aiming to raise awareness on Air Transport evolution in the medium- and long-term. The Strategic Studies have exploited and further developed the knowledge gathered in the Society, Economy and Environment Unit (SEE) where they had been initiated, to analyse challenges for the long-term of air transport in view of strategic orientation of research in EUROCONTROL and in air transport in Europe in support of ACARE.

Society challenges in air transport

Investigative survey of the socio-political challenge of air transport included a survey of high level experts’ view on the long-term challenges in air transport that accompanied the EUROCONTROL Challenges of Growth 2008 study � : CG08: "Challenges in air transport 2030", also available for download on the

STATFOR web pages: www.eurocontrol.int/statfor

This was followed by the contribution of a Society section in the ACARE Background document analysing challenges in Air Transport and calling for a new Vision for air transport and Aeronautics at the horizon 2050: � Aeronautics and Air Transport: Beyond vision 2020 (towards 2050), also available on

the ACARE web site: http://www.acare4europe.com/docs/

Air transport Policy support through ACARE

Part of the support to ACARE has been a continuous contribution to monitoring research achievements against the ACARE Vision 2020 goals and to future orientation of research in Aeronautics and Air Transport, through the EC MEFISTO and AGAPE projects: � MEFISTO � AGAPE More recently, support is provided also to the co-modality initiative led by ACARE under the request of the EC.

Airports network congestion

Strategic studies have also developed an understanding of the drivers and consequences of a possible future congestion at network level with the Mitigating Action against airport congestion report that accompanied and fed into the EUROCONTROL Challenges of Growth 2008 study � CG08, “Mitigating against the Challenges for Air Tr ansport 2030” , also available

on the STATFOR web pages: www.eurocontrol.int/statfor , and the Network Congestion study that followed with a macro-level assessment of the consequences of congestion in terms of performance coupled with a literature survey of network congestion management approaches in other network industries: � Network Congestion Strategic Recommendations final report, to be published


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Air Transport economics

Leading from the identified challenges in air transport, the impact of changes in costs to airlines (Oil prices, ETS, charges...) on air ticket prices and air traffic has been performed as part of a PhD research: � ACCOUNT

More recently, the consequences of a potential Peak of Oil on the air transport demand and supply, the ATM actors and EUROCONTROL have been explored through an extensive literature survey and a risk assessment exercise in the Peak Oil study. � Peak Oil : a litterature survey on the energy availability and price on the short to long

term and possible impacts for air transport and ATM.

“Institutional evolution in ATM”

A theme of continuing investigative studies has been the institutional evolution in ATM which provides a wider understanding of the different options for the future of EUROCONTROL: � Potential : a step towards analysing the Agency’s evolving stakeholders’

expectations, � Dynameat: an analysis of the evolution of the European ATM governance in light of

the Single Sky objectives.

Conclusion Starting with the recognition that air transport, whilst continuing to experience growing demand, faces new societal challenges since the turn of the century, research in EUROCONTROL for better understanding societal, economic, institutional and strategic challenges has brought a wealth of knowledge on the socio-economic factors that influence the future of air transport and ATM. This knowledge has influenced the evolution of strategies within the sector, in EUROCONTROL and through ACARE. EUROCONTROL, although not on the front-line of soci ety relationships, has been found an appropriate research platform for developi ng a holistic picture of the air transport actors’ strategies and perspectives throu gh research on transversal societal issues such as environment, energy, demand, congest ion, public opinion, for which each actor would have his own strategy but none wou ld have the capacity to develop a global research perspective. The following mind-map restitutes the understanding the Air Transport evolution challenges from Societal and Business perspectives in 2010, resulting from the Strategic Studies and the work with ACARE. It represents the strategic landscape for air transport research.


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Fig 2: The strategic landscape for air transport research - 2010


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ANNEX – 2003-2008 Socio- Economic studies synthesis

“The Air Transport industry, as with other sustainable mobility sectors, faces the challenge of building a constructive dialogue with stakeholders whose interests are not always compatible with the concept of sustainable development. In this context, Air Transport stakeholders, such as users, customers, citizens, decision makers, and sometimes ‘victims’, require Air Traffic Management (ATM) to show more organisational transparency. Therefore, ATM is questioning its work practices, business models and organisational culture. In European ATM, and in line with the European community policy, Eurocontrol had, over the past ten years, become progressively more active in taking account of environmental impact. Through the continued development of analytical tools, together with environmental studies and research, the Eurocontrol Experimental Centre (EEC) had become a focus of excellence in the modelling and assessment of environmental impact, from a local as well as a global perspective. In 2003, the search for strategic orientation had identified the need for enlarging research into the societal and economic aspects of Air Transport. The Society-Economy-Environment (SEE) Research Area of the EEC is in charge of looking at these societal, economic and environmental aspects. It aims to provide the Air Transport industry and policy makers with an increased understanding of these aspects and their evolution, in order to enable better informed decisions. “

General address of EUROCONTROL Society-Economics Research Workshop 2005

OUTLINE

1. SOCIETY STUDIES – SYNTHESIS......................................................................................................... 9

“PERCEPTION OF AIR TRANSPORT AND ATM” ................................................................................................. 10 1. Survey of the public's perception of ATM (2004-05) .................................................................. 10 2. Analysis of the Press' perception of ATM (2004-06).................................................................. 11 3. Analysis of Political personnel’s perception of ATM (2007) ...................................................... 12 4. Airports residents’ perception: knowledge and indicators (2007) ............................................ 13 5. Foresight of Passengers demand for air transport in 2025 (2007) .......................................... 14

“CHANGE IN ATM”............................................................................................................................................ 16 6. Liability and legal issues in ATM (2005-06)................................................................................. 16 7. Transparency in High Risk Organisations: the case of ATC (2007) ........................................ 17 8. Attitudes to Change in ATM (2005-07) ........................................................................................ 18

2. ECONOMIC STUDIES - SYNTHESIS................................................................................................... 20

“ECONOMICS OF AIR TRANSPORT” ................................................................................................................... 21 1. Air Transport and Environmental Economics (2003) ................................................................. 21 2. The Economic Catalytic Effects of Air Transport in Europe (2005) ......................................... 21 3. Pricing and internalisation of external costs ................................................................................ 22 4. Attitudes to Aircraft Annoyance Around Airports-5A (2003-05)................................................ 22

“SUSTAINABILITY IN AIR TRANSPORT” .............................................................................................................. 24 5. Defining Sustainability in air transport (2004) ............................................................................. 24 6. Indicators for management of Sustainable Growth in air transport (2004) ............................. 24 7. Energy Efficiency Strategies in Air Transport (2005-07) ........................................................... 25

“BUSINESS STRATEGIES IN AIR TRANSPORT” .................................................................................................. 27 8. Trade-off methods in Decision-making (2006)............................................................................ 27 9. Multipoint competition in air transport in Europe (2005-07) ...................................................... 27 10. Inter-modality at airports: MODAIR (2006) ............................................................................. 28

“GOVERNANCE EVOLUTION IN ATM” ............................................................................................................... 29 11. ATM market evolution due to deregulation (2005) ................................................................ 29 12. Institutional Evolution in ATM (2007) ....................................................................................... 30

3. EVENTS ON SUSTAINABILITY OF AIR TRANSPORT - SYNTHES IS ......................................... 31

EUROCONTROL SOCIETY-ECONOMICS RESEARCH WORKSHOP (2005) .................................................. 31 SCIENCESPO-EUROCONTROL SYMPOSIUM AIR TRANSPORT & SUSTAINABLE DEVELOPMENT (2006) .... 31


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1. Society Studies – Synthesis In a time of profound changes in ATM, both technical, operational and institutional which make it more visible on the socio-political scene, technical competency is no longer sufficient to assure ATM Organisations’ credibility but such competency needs to be recognised by its stakeholders, including society. In order to better understand the relationship between air transport, ATM and society, the research on Society followed in two threads that explored:

� Thread “Perception of air transport and ATM”: the perception of ATM in society from different perspectives,

� Thread “Change in ATM”: some aspects of the ATM organisations’s capacity to change.

WHAT HAVE WE LEARNED? The perception of air transport in society in Europe has become progressively tainted with the rise of environmental preoccupations in society both at local (airports neighbourhood) and global (atmospheric emissions) levels, combined with the growing risk aversion in modern societies. Even if the willingness to travel doesn’t seem to change, the awareness that flying is maybe not only good but has drawbacks, is rendering the future of air transport demand less predictable that it has been in the past. In this tainted picture, ATM is still rather unknown to the public, which may bear risks in particular in judicial and political contexts when arbitrations need to be made out of the professional sphere.


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Perception of air transport and ATM

In this context, what are the public expectations on air transport and ATM: professionalism, safety, accessibility, security, quality of service, cost efficiency, transparency, environmental improvements....? How is ATM perceived in the general public and even in air transport? Should challenges, decisions and changes in ATM be understood by society, and why? This thread has improved the understanding of public perception about air traffic management. It followed an exploratory approach of a wide range of society segments, in particular the media, political personnel, citizens and travellers, with dedicated analysis their views through their production or through interviews.

1. Survey of the public's perception of ATM (2004-0 5)

The public perception of air transport and ATM has been studied in two steps, first looking at public perception surveys performed by ATM organisations themselves, and then directly asking citizens through Focus Groups.

� First, in 2003, ICON Consulting looked for public perception surveys about air

transport and ATM carried out in the period 1998-2003 across 81 organisations ranging from institutions (national & European) to aviation bodies (ANSPs, airlines, airports) and from research establishments to pressure groups. Very few surveys were found, only three: from Transport Canada, from EUROCONTROL / Human Factors, and from the DFS. The synthesis shows that public awareness of ATM has rarely been addressed specifically other than for safety perception or recruitment purposes.

A Synthesis of ATM Public Perception Surveys

� Then in 2005, the University of Westminster explored views of European citizens regarding the growth of air transport through focus groups run in the United Kingdom, France, Spain and Romania - interviewing people who did not live near airports. Citizens’ expectations of, and reactions to, air transport growth were explored, examining the perceived benefits and disbenefits, with the following findings:

� Images associated with flying were mostly positive , although with several references to delays and waiting , and only passing references to terrorism; growth in air travel and airports was expected and largely welcomed. The UK group saw air travel in a rather mundane light, whilst the Romanian groups (in particular) saw it as a symbol of growth, development and aspiration.

� All groups mentioned the disbenefits of noise for those living near airports, whereas only the UK groups expressed concern for air quality in the early stages of the discussion: UK respondents felt that people would expect wider social discourse with airlines in the future , and that carriers would adopt greater responsibility for the control of noise and air pollution.

Environmental awareness levels were rather high in France, Spain and (especially) the UK, and lowest in Romania (where other aspects of living standards were of more direct concern). Quantitative understanding of the contribution to GHG in comparison to other modes of transport was very low. Regarding their opinion on the need to restrict air transport growth , whilst various objections were raised to such restrictions, from arguments pertaining to individual freedom, to a focus on alternative strategies to protect the environment,


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other respondents were (throughout) in favour of restrictions, for reasons of environmental protection for some, and more for safety and security (as air transport still plays a very special rôle in the European mindset, above and beyond that of its more utilitarian function as a means of transportation. )

“Citizens” Study - Results of European Focus Groups Examining Public Perceptions of Air Transport.Growth and ATM..

2. Analysis of the Press' perception of ATM (2004-0 6)

At a time when European ATM is in profound changes leading it to be exposed in the political arena, it is important to understand the opinion of the European written press about ATM through an analysis of messages and representations. The image of ATM in the press has been approached in two steps:

� An initial press review analysis performed in 2004 by Fondamentum , limited to 7 national written newspapers in 4 countries, revealed a very limited interest for ATM/ATC, and highlighted the following findings:

i. a far more national coverage than European coverage of ATM/ATC matters

ii. although ATC rarely appears as a separate topic, an apparent correlation between an accurate portrayal of controllers job, and objectivity of opinion, on specific events such as Lake Constance

iii. regular report in the newspapers on environment problems caused by air traffic never call ATC in account.

This first exploratory work showed that there are only few initiatives to improve the image of ATM/ATC and the need for a better account of society in the ATM community.What Image of ATM? An Analysis of 2002-2003 European Press

� A wider and more complete analysis of the European press performed in 2005 by Res Novae focused on the safety of air transport through the analysis of accidents involving ATM the media coverage of events questioning the air traffic safety in newspapers from 5 European countries in the period 2000-2004: the Linate accident (2001) in Italy, the Uberlingen accident (2002) in Germany and Switzerland, the Roissy accident (2000) in France and the technical incidents affecting NATS (2002) in the UK. A complementary study has been performed in 2006 to analyse the press coverage by the French press of the Mont Sainte-Odile accident trial. In total, almost 30 newspapers have been analysed – daily press, regional press and magazines- representing a potential audience of more than 50 million readers. This study raised the risk of increasing legal prosecution of individuals in air transport/ATM accidents in Europe and the necessity for ATC service providers to communicate with the press over time. Main findings include:

i. The low profile image of ATM in Europe. The image of air traffic control and of safety is globally imprecise (no complete vision of technical, organisational and human aspects of its national ATM). It is also not attractive: accidents highlight the difficulties of the air traffic control jobs, and descriptions of controllers able to create vocations are extremely rare. Finally, this image is not really European: the national perspective mainly prevails in press coverage.

ii. The attitude of newspapers in covering accidents and in setting responsibilities largely depends on their editorial and ideological line. If systemic explanation of accidents, in use in the professional world of


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ATM, generally prevails –a cascade of human and technical failures in an ultra-safe system that render air transport the safest transport mode-, it should be noted that more conservative press tends to point out individual responsibilities in accidents (pilots or controllers) and to question ATM organisations, looking for bureaucratic failures.

iii. The question whether conclusions such as the judges’ in the case of the Linate accident (in 2004 and in 2005) are likely to flourish elsewhere in Europe. The debates revealed, in contradiction with current conceptions of air safety, conceptions of air accident responsibilities where:

� technical complexity is not an attenuating factor anymore, and � The non-respect of safety rules, directly or indirectly, is now

attributed to individual faults rather than being a systemic collective responsibility.

� The collective dimension still exists through conclusions affecting all levels in the ATM organisation.

Finally, it should be noted that the lexical way the press speaks about the accident –dramatic (catastrophe, tragedy, drama) or more from a distance (accident, collision)- prefigures judges’ conclusions. This would constitute an interesting way forward in ATM: its safety conceptions could be refined and influenced with involvement of communication with media actors.

Reports with restricted access: Safety of Air Traffic as seen by the press – Edition 2007: EEC_SEE_2005_007_EN; EEC_SEE_2005_007_EN_edition2007

3. Analysis of Political personnel’s perception of ATM (2007)

How political actors are made sensitive to the problem of air transport growth and the subject of sustainable development? Do they constitute one and the same problem? If so, what issues make up the various facets of this problem?

Res-Novae and the University Paris X-Nanterre have analysed in 2006 the views of the European political personnel about air transport growth in political parties, governments, parliaments in 5 countries (United Kingdom, Germany, France, Italy, Spain and in the European Institutions) in a survey of "official" political products only:

� All the political programmes of the parties were studied at election time as well as in the normal course of a parliament. A sample of political parties was taken in each country to give a full overview of the electoral issues.

� Parliamentary debates were then examined separately with a view to grasping the diversity of the topics discussed in the course of legislative procedures.

� Lastly, government projects were summarised and analysed in order to compare the public policies pursued.

The main findings relate to the specificities of the air transport as a niche in European politics. The report shows that air transport is a relatively low-profile topic in most political arenas, and is addressed by a population of non-specialist political personnel.

It also shows that the air transport political niche functions as a hollow-core, meaning that it is almost impossible for anyone to be aware of all what happens on the subject matter. In such a situation full of complexity and uncertainty, discussing and elaborating


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consensus solutions is not easy. Such complexity is illustrated in the UK by the difficulties of structuring the debate around the White Paper. The British debate around the White Paper can be seen has a tentative to work around this ‘hollow core’: efforts to overcome the fragmentation of interests regarding air transport by promoting a national debate involving all stakeholders imply initiatives, conflicts and very long debates potentially carrying political risks for the governments in charge. Confronted with such political risks, governments sometimes prefer to wait for and follow European initiatives on the subject.

The report finally shows how the European institutions and in particular the European Parliament have extended their competence over air transport and, while increasingly involving interest groups –between those who present the arguments of ecologists against nuisance and those of groups of public actors or industrialists, there is a whole range of negotiations and tensions-, the European institutions are progressively reshaping the evolution of this industrial sector. The process of reshaping the air transport industry has already started at the European level and decisions on new measures should be expected.

Politis Study: The Growth of Air Transport as Seen by the Political Actors in Europe (2000-2006)

4. Airports residents’ perception: knowledge and in dicators (2007)

Everywhere around the world, the population’s environmental well-being and quality of life appears to be a central issue in debates on air traffic and airports. The environmental capacity of airports is a major constraint on their development (EUROCONTROL, 2001), and "Air mobility increases faster than industry today produces and introduces technological and operational advancements to reduce emissions at source" (European Commission White Paper, 2001, p. 6). Research has been carried out for many years to measure noise and gaseous emissions, investigating their effects on humans. At a time of growing residential dissent, ever greater volumes of information on the environmental effects of airports and the emergence of a new role for more shared and co-built indicators, the various research activities and results have been collected by the Centre for Research on Planning:Land Use, Transport, Environment and Local Governments of University Paris XII-Creteil in a synthesis report aiming to constitute and structure the corpus of knowledge worldwide.

The report provides an overview of current scientific findings on the territorialized environmental effects of air traffic and airport activities: noise annoyance, health effects of noise and pollution, socio-spatial environmental effects around airports. It also highlights the shortcomings and advances made by research with the aim of enhancing any future airport related initiatives.

In particular, it highlights a new role for indicators on air transport and airports, understood as a key moment in the inclusion of local areas, their stakeholders and the effects. They determine the involvement of local governments and communities in decision-making processes, in the name of social acceptability and sustainable development of airport activities. Active tracers of territorial negotiations, they provide:

� at the time of their elaboration an opportunity for debate between multiple stakeholders with diverse interests (Zaccaï and Bauler, 2000), and


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� through their scientific design, an extensive knowledge basis and different disciplinary analyses, on the multiple and complex environmental effects.

“The most influential, valid, and reliable social indicators are constructed not just through the efforts of technicians, but also through the vision and understanding of the other participants in the policy process. Influential indicators reflect socially shared meanings and policy purposes as well as respected technical methodology” (Innes cited in Boulanger, 2004). Given the increasing demands and tensions, the co-building of complementary indicators must increasingly include the territorialized environmental effects of air traffic and airports activities. The report is a summary of a study completed in 2006 by the Centre for Research on Planning: Land use, Transport, Environment and Local Governments – CRETEIL (Université Paris XII) for the Autorité de Contrôle des Nuisances Sonores Aéroportuaires – ACNUSA (French Authority on Airport Noise Nuisances), the Aéroports de Paris - ADP (first French airport operator) and the French Civil Aviation Administration – DGAC - DSNA (French Ministry of Transport). Environmental Effects Around Airports: Towards New Indicators?

5. Foresight of Passengers demand for air transport in 2025 (2007)

Finally, the expected evolution of demand for air transport in Europe at the 2025 horizon has been studied in 2007 by M3 Systems and Elysées Consulting , using the EUROCONTROL STATFOR scenarios for the description of the general context in 2025. The development of competition between airlines which followed air transport deregulation, coupled with more efficient and less costly aircraft technologies led to the democratisation of the air transport mode. In 2003, 69% of the total numbers of air trips made by Europeans are leisure trips. The purpose of the DEMAND 2025 study was to explore what can be assumed today about the main features of the demand for leisure air transport in 2025 – leisure meaning all travel purposes except business, i.e. when the expense is a discretionary choice. Determining how leisure air travel demand will evolve in the future requires an understanding of how passengers make their decisions to travel and how their behaviour and needs will evolve. An original methodology combining an economic approach and a sociological approach has been devoted to the study and applied to the case of the French population, one of the top 5 European populations for leisure air traffic in EU15 in 2003. This innovative methodology has provided two categories of answers:

� Regarding the main characteristics of air travel demand in 2025 be in the considered scenarios, the study foresees a likely increase in the level of air travel demand for:

� the purpose of Visiting Friends and Relatives (VFR) � retired people; � as a way to escape from the very fast rhythm imposed by society

In addition, it foresees that: � demand for individualised travel would increase; � only higher air fares or regulation measures limiting supply levels will lead

people to reduce their air travel demand. How to improve long-term demand analysis methods in general?


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� Regarding the way to improve the long-term demand analysis methods in general, the study has highlighted the importance of further exploration of some aspects addressed in the study. It revealed the lack of understanding of current demand features and of the expectations of potential travellers, although such information is essential for long-term demand analysis.

Evolution of Demand for Leisure Air Transport in 2025


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Change in ATM

In the context of growing demand for air transport, experienced from the beginning and forecast to continue, the provision of air traffic management services has to develop new solutions and to adapt to change. At the same time, the public is becoming more and more aware of the impacts of aviation on the environment, and increasing pressure is being put on the aviation system to reduce its adverse impacts. In Europe, the Single European Sky legislative initiative has triggered a large process of change, integrated with the ATM modernisation project, SESAR. Understanding and managing change and transition in organisations is, therefore, a cornerstone of the success of SESAR, and of the ability of ATM to allow air transport growth in Europe. This topic has been addressed by the SESAR Definition Phase, the EUROCONTROL human factors SENSE Programme, and the EEC in Society research, recognising the importance of this issue and the need to overcome the reputation of resistance to change from the ATM professions. This thread focuses on ATM attitudes and its capacity to change. It explores the legislative context of ATM safety liability, beliefs and attitudes about new rules at different levels in ATM, and conditions for acceptability of change ranging from transparency in safety management to noise reduction demands at airports.

6. Liability and legal issues in ATM (2005-06)

All changes in the ATCOs working methods or airspace organization impact the legal aspects linked with the controller's job. With the help of students from IFURTA (Institut de Formation Universitaire et de Recherche du Trans port Aérien), University Aix-Marseille , the study of the impact of ATC legal issues on ATM operations has shown the necessity to take legal aspects in consideration in the definition of new ATM systems and procedures.

� In 2005, an analysis of the consequences of ATC penal liability on innovation in ATM was performed in conjunction with the INO Research Area (2005 INO report). It proposed an overview of the actual regulation applied to ATCOs and try to tackle two innovative projects, Supersector and Paradigm Shift, with this juridical view.

The study highlighted the benefits of increasing controllers’ awareness of their civil and penal liability: transparency on such information and clarity of penal liability increases ATC controllers’ trust and therefore their acceptability of new concepts .

It also highlighted that penal liability seems to pose difficulties to controllers whereas it is considered appropriate by judicial professionals, who dont’ see the need for specific legislation for controllers even if the job specificities and the impossibility to apply all of the abundant rules should be considered. For controllers on the contrary, the legal system is perceived as not adapted to their profession, with too rigid liability and job specificities not recognised enough.

All deplore the lack of ATM Judicial Experts in Courts , whereas Airlines Experts exist.

Impact de la Responsabilité Juridique dans le Domaine du Contrôle du Trafic Aérien


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� In 2006, a survey of penal liability frameworks in a number of European countries was performed together with an inventory of legal cases in France.

The survey concentrated on the technical and judicial procedures immediately following an accident and on the applicable law in different European countries. It describes the procedures of technical inquiries launched immediately after an accident by the country in which the accident took place, in Germany, Spain, France, Switzerland and UK, and shows important similarities in technical inquiries across countries (ICAO recommendation). It also presents the judicial inquiry procedure, which allocates penal responsibilities in case of death, in France. It finally describes and compares the penal system applicable to controllers in Germany, Belgium, Spain, Finland, France, Sweden and Switzerland.

Reports with restricted access: Legal issues in ATM EEC_SEE_2005_011; EEC_SEE_2005_012

7. Transparency in High Risk Organisations: the cas e of ATC (2007)

Safety is a cornerstone in the Air transport industry, recognised to be one of the safest transport modes. With the continuous traffic growth increasing efforts are devoted to maintaining the level of safety in each component of the industry. The complex Air Traffic Management system, that combines technical components, procedures and humans, can be qualified as a high risk organisation . In Europe, the ATM system has strengthened safety through the establishment of the EUROCONTROL Safety Regulation Unit in 1998 issuing harmonised EUROCONTROL Safety Regulatory Requirements ESARRs, and through more explicit safety management . The European Union, with the establishment of the EASA and the Single European Sky regulation endorses and reinforces those dispositions that are an integral part of SESAR.

Safety reporting is an essential component of the safety system in ATM. Given the low number of accidents where ATM is a contributing factor, enlarging its scope to include incidents is necessary to further improve the system and potentially increase the quality of the whole safety management system. This is the purpose of ESARR2 on safety reporting obligations for ANSPs. Safety incident reporting includes human reporting, which rely upon the willingness of the operators to report on non-nominal cases or incidents even when there is no legal obligation to do so. The level of such voluntary reporting, that involves notions of trust and culture in different countries and organisations, characterises what some call the ‘transparency’ of the ATM system.

For the sociologist, the concept of “Transparency” raises many questions; especially when applied to so-called High Risks or High Reliability Organisations, it raises new stakes in the relationships between those organisations and civil society, and in the relations between high risk organisations and regulation authorities. Research on the concept of ‘Transparency’ was performed between 2001 and 2005 in the context of a PhD research in sociology in the CETCOPRA laboratory of University Paris I-La Sorbonne.

The research explored the role and limits of culture and the relations between trust and transparency to explain differences in voluntary reporting levels between Air Navigation Service Providers. It used a socio-anthropological approach to explore, through the perception of more than 70 operational ATM professionals in different positions and different countries in 5 ANSP, the sense such a demand for transparency actually makes.


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However, when trying to understand the role of ESARR 2 in the ANSP’s reporting of incidents, it appears that many other factors influence the number of incidents reported by ANSPs, calling into question the concept of "safety data” itself. This calls for a much more complex understanding of what “safety data” or “incidents” really are, and questions the role and limits of quantitative “safety indicators” for complex notions such as safety, when organisations are accountable to other parties for what they do.

Transparency in High Risk Organisations: The Case of Air Traffic Control - A Comparative Research in 5 European countries

8. Attitudes to Change in ATM (2005-07)

In order to improve the understanding of attitudes to change in ATM, the University of Westminster performed an exploratory study in 2004 to better understand, through case studies, how changes can be successful in the operational context of ATM. The case of the introduction of noise abatement procedures at three European airports - the Basic Continuous Descent Approach (B-CDA) project at Manchester, Arlanda and Bucharest airport - was chosen to support the ‘Attitudes to Change’ study. The study was based on 82 structured interviews with controllers and pilots, airline managerial / training captains, controller supervisors, CDA designers and airport authority representatives. It aimed to delineate the barriers to, and drivers of, such change, within the societal context. For example: how directly and how intensely do ATC personnel and pilots feel community pressure and through what processes? The University of Westminster’s Seven Stages of Change model, integrating the Theory of Planned Behaviour constructs under funding from the EU’s TAPESTRY project, has been used. These seven stages represent the theoretical, cognitive and conative ‘process’ through which an individual may move, from one type of behaviour (e.g. not performing CDAs) to another type (e.g. habitually performing CDAs). In all three case studies, controllers had a poorer perception of the capacity effects of CDAs, compared with the pilots. Controllers declared that CDAs increased their own workload more than pilots declared that CDAs increased pilot workload. Across all sites, controllers cited traffic volumes and sequencing considerations above all others, with pilots often focusing on fuel savings and technical issues. Regarding inclusion in the consultation process over the introduction of the CDA trials, there was a consensus that it had been adequate, with scope in all three case studies to offer better internal feedback to the pilots and controllers. Summarising some key findings, behavioural change appeared more correlated with perceptions of benefits (‘halo effect’) in the case of the pilots, maybe partly because of the greater external constraints on controller behaviour in the case of CDAs. Looking at the relationships between perceived societal and system benefits, however, these particular aspects of this ‘halo effect’ were fairly similar when comparing pilots with controllers. The Seven Stages of Change model stresses that changes in attitude can be brought about regarding the importance of elements of change to people (e.g. “I think it is very important to control noise levels”), the perception of elements (e.g. “But I think noise levels here are very low”) and the respondent’s perceived responsibility for the element (e.g. “But noise levels are nothing to do with me anyway”).


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The Seven Stages of Change model has effectively contributed to an increase in the understanding of the associated complex psychological constructs, and their relationships: determining the perception of benefits, and how these are linked to behavioural change through acceptance of change. It has established a framework both for gaining deeper insights into the process of motivation, which may be used in the wider context of change implementation, for example within SESAR. Critically important in effectively managing the challenging transitions of behaviour and attitude which will be required within the Single European Sky context, is the need to identify factors which promote change and the key barriers to change: both physical and perceptual. The change process through the Seven Stages of Change model may be viewed as a successful implementation of change, and constitute a valuable framework for developing an understanding of attitudes and beliefs which determine behavioural change.

Introduction of a B-CDA trial at Manchester Airport

Attitudes to Change in ATM Operations: Introduction of CDA Trials at Manchester, Bucharest and Stockholm


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2. Economic Studies - Synthesis In support of Society studies, an understanding of the economic weight and challenges in Air Transport and ATM was essential. The economic studies followed research threads that explored:

� “Economics of air transport”: the economic contribution of air transport to European economy and the emergence of environmental priorities in the air transport economy;

� “Sustainability in air transport”: the meaning and impact of “sustainability” objectives for the air transport actors;

� “Business Strategies in air transport”: the factors influencing business strategies, with studies analysing competition and alliance strategies in airlines and methodologies for complex decision-making;

� “Governance evolution in ATM”: the possible institutional evolutions in ATM, looking at analogies with other industrial sectors.

Such exploration of the economic and business perspective in air transport aimed to contribute to long term planning of future ATM investments. WHAT HAVE WE LEARNED? Air transport has a positive impact on the economy both at regional and national (GDP) and more local (catalytic impacts) levels. At the same time, the economy of air transport is increasingly affected by its environmental impacts, both by regulation (taxes, trading, restrictions, studies towards internalisation of external costs etc) and also by the actors’ necessity to adopt sustainability strategies that maintain their legitimacy to operate and the survivability of their business (energy, nuisance,…). In finding the right balance between its social, economic and environmental impacts, air transport should benefit in a more integrated and collaborative common approach in front of the increased public attention and regulatory pressure. In this evolutive economy, the European ATM is reforming its governance under the SES umbrella, towards better performance and cost effectiveness. Lessons can be learned from exploring strengths and weaknesses in comparison with other networked industries more advanced in the process: new services, actors, prices, congestion management, liability.


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Economics of air transport

1. Air Transport and Environmental Economics (2003)

As presented in the European Commission’s 2001 White Paper, there is an increasing interest for the harmonisation of the pricing mechanism both across the different European countries and across the different modes of transport for an "internalisation of externalities". The motivations for this harmonisation are twofold: first, to obtain conditions allowing for a fair inter-modal competition; second, to obtain a pricing as close as possible to the real social marginal cost, including inter-alia environmental costs, with more and more emphasis on the "user pays", and "polluter pays" principles while the space left for a purely public financing of transport will be reduced to specific cases. A synthesis of the various institutional studies on environmental economics has been produced by STERIA in 2003 in order to provide a synthetic vision of their likely application in the air transportation sector. It appears that:

� The Green Paper from the European Commission -(1995) Towards Fair and Efficient Pricing : Policy Options for Internalising the External Costs of transport in the European Union. Green Paper. COM(95)691- and the INFRAS report -Maibach, M. (2000) External Costs of Transport: Accident, Environmental and Congestion Costs in Western Europe- have defined the concept of externalities for the whole transportation sector. INFRAS concludes to a total value of transport externalities in the EUR17, excluding congestion costs, around 530 Billions € (equivalent to 8% of the GDP).

� According to IPCC in 1999 , the environmental impact of aviation emissions represented 3.5 % of radiative forcing effects world-wide in 1992 and were expected to reach 5% by 2050 (IPCC ’99).

� Out of the range of possible economic actions, the three main candidate options to curb aviation environmental impacts are fuel taxation, emissions trading, and environmental charges .

Air Transport and Environmental Economics

2. The Economic Catalytic Effects of Air Transport in Europe (2005)

Air transport is a rapidly growing sector across Europe’s economies. The growth in air transport has a wide range of associated benefits and costs for the economies concerned. The economic impact of air transport is traditionally estimated in terms of direct, indirect and induced impacts, that don’t reflect the effect on economic dynamism –appeal for business decisions, level of investments, and level of jobs- that the presence of an airport brings to a region, as for example:

� the 2001 ACI Europe study estimates that European airports directly contribute to around 2% of total employment in Europe.

� the report cites research that estimates the overall contribution of air transport to GDP in the range 1.4% to 2.5%.

� the ACARE study (ACARE, The Economic Impact of Air Transport on the European Economy, September 2003) estimates that air transport contributes 2.6% of EU GDP.


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The ‘economic catalytic impacts’ of air transport are defined as “The net economic effects (eg on employment, incomes, government finances etc) resulting from the contribution of air transport to tourism and trade (demand-side effects) and the long run contribution to productivity and GDP of growth in air transport usage (the supply-side performance of the economy).”A proposed methodology for measuring the ‘economic catalytic impacts’ of air transport has been developed in 2005 by Oxford Economics Forecasting and Mott MacDonald, with ACI Europe and ATAG. According to the research, the economic catalytic effects of air transport in Europe are already substantial, and are set to increase in years to come. The study estimates that the catalytic effect of air transport usage over the last decade has been to increase European GDP by approximately 4% in the long run, which is €410 billion at today’s prices. By 2025, growth in air transport is forecast to lead to a further GDP growth of 1.8% in the long run , or €200 billion at today’s prices, in particular to the supply-side of the European economy. This catalytic impact on the supply-side is even more pronounced in the ten accession economies, where the current provision of air transport services is least developed, and the growth in air transport is most rapid. These economies have the most to gain from improvements in air transport services – nearly twice as much as the fifteen more-developed economies with mature air transport sectors. The economic catalytic effects of European air transport should be seen as part of the total contribution that air transport makes to European economies it should be emphasised that the economic catalytic contribution of air transport to GDP is bigger than its combined direct, indirect and induc ed impact . The Economic Catalytic Effects of Air Transport in Europe

3. Pricing and internalisation of external costs

Participation to the EC Thematic Network IMPRINT-2 has allowed sharing understanding on the issues of pricing transport services and internalisation of external costs from the air transport perspective. IMPRINT-EUROPE served as a link between research and policy development and implementation, with the aim to assist the implementation of pricing reform in transport based on marginal cost principles. The key areas in which IMPRINT-EUROPE reached conclusions regard:

� Measurement of marginal social cost � Impacts, acceptability and phasing of pricing reform � Key Issues for Newly Associated States � Priorities for action � Priorities for future researchRef IMPRINT web site

Socio-Economic Projects In Energy, Transport and Environment - REC ...

4. Attitudes to Aircraft Annoyance Around Airports- 5A (2003-05)

The environmental impact of aircraft and the valuation of such impacts are areas of growing policy concern against a background of rapid growth in demand for air travel. The University of Leeds have performed research on the valuation of environmental effects of aviation.Values are required for three main reasons:


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1. In setting prices and taxes : The view in Europe is that the external costs of transport should be internalised via charging mechanisms. The 2001 EC White Paper “European transport policy for 2010: time to decide” discusses two options for air travel, removing the fuel tax exemption and the introduction of differential navigation charges which take into account the environmental impact of aircraft.

2. Values may be used in Cost Benefit Analysis (CBA) of transport projects. 3. Values are needed in determining the appropriate levels of regulation, mitigation

and compensation .

� The initial step in 2003 has been an exploratory study applying attitudinal and stated preference techniques to the issue of aircraft noise and annoyance valuation around airports in three European countries. Three different types of stated preference experiments (SP) were designed to enable methodological issues to be tested and a range of values to be estimated:

• SP1: embeds aircraft noise nuisance within a broader quality of life context. • SP2: offers changes in aircraft movements by aircraft type within specific time

periods. • SP3: offers changes in generic aircraft movements by time of day.

Our conclusion is that the preferred way forward is to use the quality of life form of SP to establish the absolute valuations and then to use SP approaches which focus on aircraft annoyance to obtain valuations according to factors such as time of day and aircraft type.

Attitudes Towards and Values of Aircraft Annoyance and Noise Nuisance - 5A Survey Report...

� The final report in 2005 fully exploits the existing social survey and stated preference data set obtained in the previous phase. By establishing a monetary value for aircraft noise per db(A) as an indicator of annoyance it explores variations in such values. It also identifies factors that influence the response to noise and subjective response variables. It presents the informed conclusions about the test for the presence of threshold effects and non-linearities in response and examines the performance of different indices.

Further Analysis of the 5A Attitudinal and Stated Preference Data Sets - Final Report


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Sustainability in air transport

This important research in the field of economics and sustainability imply a focus on the long-term equilibrium between society, environment and economics. Driven by the growing attention in society to broad sustainability issues and debates, sustainability has progressively risen as a shaping factor in air transport.

5. Defining Sustainability in air transport (2004)

Research started in 2004 with a survey of the different meanings of “sustainability” in air transport and the analysis of possible growth scenarii implementing the notions of sustainability. ISA Software Ltd reviewed how the three fundamental pillars of sustainability - namely, society, environment and economics - are interpreted by a range of key actors, including international and inter-governmental organisations, airlines, air navigation service providers, the ATM Industry, aircraft and engine manufacturers. It has become clear from the study that no commonly agreed definition is currently used in the aviation sector or by the stakeholders related to the sector. Most organisations use limited definitions, which meet the organisations’ political ability or the operators’ commercial objectives.

Whilst recognising that air transport is a driver for economic and social development, the weight given to each of the three pillars by the different actors largely reflects the “political” message that they wish to disseminate. A Stakeholder Viewpoints Score Card model has been developed to include the overall and subordinated objectives for each group of players in the aviation sector. It is a good illustration of the difficulties faced in identifying a common view of sustainability.

Defining Sustainability in the Aviation Sector

6. Indicators for management of Sustainable Growth in air transport (2004)

This following project by ISA Software Ltd aimed at the development of an initial set of indicators defining the impact of air transport on Society, Environment and the Economy. The report investigates the definition of such indicators for trend evaluation of the aviation sector impacts on society in Europe, as a step towards assessing its sustainability. Three domains of impact were identified in accordance with the literature: economic, environmental, and social. Similarly seven principal stakeholders were used to define the air transport activity. Those were the air navigation services providers (ANSPs), aircraft and engine manufacturers, airports, civil airspace users, military airspace users, passengers, and finally citizens.


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Indicators for the Management of Sustainable Growth in the Air Transport System

7. Energy Efficiency Strategies in Air Transport (2 005-07)

Research continued with a PhD student from the CEMI (Centre for Study of Industrial Management) of theEHESS (Ecole des Hautes Etudes en Science Sociales) Paris explored sustainability management in air transport from the angle of energy efficiency strategies in airlines, airports, manufacturing industry and ATM. Conference papers allow following the progression of the research.

� AIMS 2005 –Aix: The paper « Développement Durable et Entreprise Responsable: Formation des Politiques de Développement Durable et Cohérence des Stratégies » set the scene of how companies integrate sustainability in their strategies and policies.

Développement durable et entreprise responsable : formation des politiques de développement durable et ... :

� ATRS 2006-Nagoya: The paper “The Energy Dilemma: European Air Transport Growth between the Devil and the Deep Blue Sea” explored the air transport actors’ sustainability strategies from the particular angle of energy efficiency strategies. The starting point is the unsustainable pathway of Air Transport summarized by two main energy related constraints: the Peak Oil and the Kyoto protocol.

“When thinking about air transport and sustainability, many problems come to mind. The multi-dimensionality of sustainability brings about rational conflicts between the short term goals of the economic development of air transport


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(enhancing the capacities, maximising the yields of industrial and economical assets...) and the need to find ways of rational development in the long term (mainly based on increasing quality of life and preserving natural resources). The research analyzed the position of the air transport network regarding its energy consumption patterns : it summarizes and discusses the main operational, organisational and institutional levies that could enhance the energy efficiency of this network. It was found that building up an “environmentally sustainable transport” requires to mobilize each actor within the network but also to elaborate a cohesive institutional framework to enforce effecti ve co-ordination . “

The energy dilemma: European air transport growth between the devil and the deep blue sea

GARS 2007: The paper “Are energy efficiency strategies in air transport a matter of social contestability? », using the theoretic framework of institutional economics, analyzes a survey of energy efficiency strategies of 25 air transport actors (airlines, airports, and manufacturers). The results of that survey show some variations in the implementation of the environmental strategies and especially in the energy efficiency strategies. To explain such heterogeneity , several hypotheses developed by the institutional economics are enounced, between which the social contestability model that describes the implementation of environmental strategies as a trade off between economical and social contestability. It shows that heterogeneous implementation of energy efficiency can be induced by the fact that stakeholders have to face various degrees of critics upon their contribution to climate change.

“Airlines seem to invest less in their environmental strategies than airports because they are more constrained by economic contestability, whereas airports have more elaborated environmental strategies because they must produce some compromise with their social stakeholders in order to protect their social license to operate. Moreover, if airlines are more concerned by the energy efficiency issues, it is for three majors reasons:

- Complementarities exist between economic competition and reduction of energy consumption, despite the lack of institutional rules. - There is a risk of generalized social critics upon the environmental impact of airlines’. To avoid it, airlines must adapt their economic strategies, to show that they are still legitimate to operate. - Being efficient is perceived as a performance indicator and a way to enhance the quality of products. This environmental differenciation is also a way to reduce the economic contestability of their activities (this factor is particularly true for Full Service Carrier that are more engaged in quality competition than other airlines –Regional Carrier or Low Fare Carrier).”

This heterogeneity across air transport actors in dealing with environmental impacts and energy efficiency could be a potential weakness of the sector in defining and implementing common air transport sustainability strategies.

Are energy efficiency strategies in air transport a matter of social contestability?


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Business Strategies in air transport

Understanding business strategies in air transport is an important source of insight into the evolutionary trends in the sector. After a general state-of-the-art on multi-stakeholders decision-making methodologies, the research has focused on airlines and airports strategies.

8. Trade-off methods in Decision-making (2006)

In preparation for detailed policy decisions, part of the Single European Sky definition phase, this initial research into methods and tools to support trade-offs in ATM (applicable to performance, environmental measures ...) has been commissioned to the London Business School with the aim to support trade-off evaluation of alternative air traffic management systems among objectives such as capacity, safety, environment and efficiency. The methods described are applicable in cases with multiple stakeholders, so they can serve in such cases where many perspectives and interests must be taken into consideration. The proposed methodology has been tested using a case study on decisions related to ATM improvements suggested to the management of arrival and departure of aircrafts to and from airports. The major benefits of the approach are:

1. Enhancement of communication (transparency) amongst multiple stakeholders by creating a shared language,

2. Ability to identify sources of agreements but also of disagreements, 3. Traceability and credibility of decisions,

R&D requirements can be derived through this approach and the R&D results be used in clear support of decision making.

Project decision support using performance driven trade-off analysis

9. Multipoint competition in air transport in Europ e (2005-07)

A PhD research by University Aix Marseille III on airlines competitive strategies analysed the rivalry and forbearance behaviours of competing airlines on market segments such as connecting flight between origin-dectination airport pairs. The research has provided empirical evidence for the inverted U-shaped relation between the level of multi-territory contact and the level of forbearance as measured by entries into and exits from rival territories in the European airline industry context between 2002 and 2006. Combined with Baum and Korn (1999) findings in the context of California commuter carriers, our results open the path towards further support for the universality of forbearance within competition. We also found that the magnitude of forbearance is higher between European airlines than between California commuter carriers. We explain theses differences by higher cultural propensities of European to forebear due to a dissimilar set of educational Institutions and particular taboos against competing on the home sphere of influence of historical national carriers. Our results also suggest that cultural explanations are superior to calculus based explanations in this instance.

paper:“Rivalry_and_forebearance_within_American_and_European_airline_industries” 31 March 2008


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10. Inter-modality at airports: MODAIR (2006)

In a context of fast evolution of the air transport market, the future of the ATM will not only be linked to the improvements in technologies, but also to the evolution of traffic flows. Despite recent hurdles in air transport, forecasts still mention strong traffic growth for the years to come. One of the main axis chosen by the EC for coping with airport congestion problem and transports’ pollution is to foster intermodality in transports. This is an important objective of the EC since intermodality and multimodality are at the heart of the 2001 EC White Paper on transport.

Following the study “The Airport of the future: Central link of intermodal transports?”, the study “MODAIR: Measure and development of interMODality at AIRport” , performed by M3 System in co-operation with the INO Research Area in the context of CARE, aimed at measuring intermodality and determining what could be the development of intermodality at airports, often considered as a way to increase airport attractiveness and ease air congestion, by evaluating how a development in intermodality could impact airport attractiveness.

Impacts of the development of air/rail intermodality on airport attractiveness are analysed through factors of airports attractiveness for passengers. 3 types of airports were identified based on the nature of traffic:

� Outbound traffic airport: local attractiveness in terms of air trips production (high proportion of passengers starting round trip); no management of connections.

� Inbound traffic airport: local attractiveness in terms of air trips attraction (high proportion of last destination passengers); no management of connections.

� Pure hub airport: operating only as a medium/long-haul hub on which passengers are mostly connecting passengers

Airports can also have mixed traffic: inbound, outbound and/or hub traffic, which tends to reinforce their attractiveness for passengers.

Impacts of intermodality on airport attractiveness may change a lot between the different categories of airport, and between the two types of intermodality considered in MODAIR:

� Airport access : access to/from the airport from/to the city centre; � Airport integration : feeding airport flights with other transport modes (either

regional or high-speed trains)

Whilst never decreasing airport attractiveness, both types of intermodality do not increase airport attractiveness for passengers in the same way. Local outbound passengers (i.e. resident passengers) at outbound airports look for airport access intermodality whereas other passengers are likely more interested in airport integration in the wider transport network. Airport access intermodality may have no impact on inbound traffic airport attractiveness while airport integration intermodality may increase the airport attractiveness for all passengers. Mixed airports can expect increased attractiveness for connecting passengers; as opposed to pure hub airports, they may find in airport integration a way to increase their attractiveness as a hub by becoming a multimodal hub.

http://www.eurocontrol.int/care-innov/public/standard_page/innov2_modair.html


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Governance evolution in ATM

11. ATM market evolution due to deregulation (2005)

The Single European Sky (SES) legislation sets out regulatory principles with a view to improve the overall efficiency of the ATM system. In this context, the ATM market structure, its actors, and the services provided to users may experience significant changes. The European Commission launched studies addressing the legislative and regulatory dimensions able to generate the right incentives for meeting the SES objectives, but no exploratory work on the shape of a future ATM organisation was done.

The study performed described by ENVISA some of the major services provided by “Air Traffic Management” with a market oriented vision. The structure of the ATM market was partially analysed in terms of demand and supply –with emphasis on Air Navigation Service Providers (ANSPs) and EUROCONTROL units in charge of these services-, with the view to identify possible discrepancies. The aim was to investigate how the current ATM markets may evolve through time and as consequences of Single European Sky projects, in light of the evolution happening in other network industries such as the internet, mobile telecommunications, and passenger air transport sectors.

3 scenarios were explored for the future of the ATM market, in line with the SES initiative and aiming to address ATM scarce capacity and need for greater efficiency, introducing significant attributes of the three networks compared with ATM, such as “backbone”, “flat rate as pricing mechanism”, “guaranteed flows”, etc.

1. Introduction of intermediate organisations , comparable with the travel agencies in the passenger air transport market, between the airspace users and the ANSPs. These would deal with the ATM issues (e.g. obtaining the capacity that the airlines need, billing procedure for the ATM related charges, etc.) in the name of their member airlines. The aim is to introduce a more service-oriented approach to the ATM market.

2. New capacity management, using slot mechanism for airports and ATFM that would be based on economic incentives .

3. Vertical unbundling of the national ANSPs in order to create international “backbones” for control of the upper airspace by re-bundling the related business units at European level.

Although a total comparison between ATM and the selected network industries is not possible due to the safety factor in the ATM market, some general consequences of the deregulation in the three markets can be determined which give an idea of the possible results of the deregulation of ATM:

� Fast development of the technology � Introduction of new services types � Lower prices that result in increased demand and high penetration rates

ATM Market Evolution due to Deregulation


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12. Institutional Evolution in ATM (2007)

The CRG, Ecole Polytechnique, Paris , studied European institutions evolution, in particular in air transport. Over the past years, major changes have occurred in the governance of the European ATM system. A key feature has been the evolution of the institutional setting (PRC, SES initiative, Single Sky Committee, Industry Consultation Body, SESAR, NRAs etc). However, the institutional dynamics is still burgeonning. It does not entail particular future outcomes for the ATM governance.The study focuses on this issue.It daddresses the institutional dynamics according to three main perspectives: industrial organisation economics; economics of law; economics of institutions.


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Events on sustainability of air transport - Synthe sis

EUROCONTROL Society-Economics Research Workshop (20 05)

Initial exploratory research over the last few years has produced a better understanding of issues relating to society, economics and sustainability in Air Transport Management. These results are presented at the first SEE annual workshop, on 5th December 2005. The workshop included an adversarial debate, with invited speakers from AEA, Green Skies Alliance, UNEP and the French DGAC, on the sustainability of Air Transport. The vote that followed the debate showed the audience didn’t believe that “Air Transport can be socially, economically and environmentally sustainable in the short and long term “. The workshop aimed, in particular, to point out to decision-makers that a common effort should be made in order to better understand and adapt the changing world of Air Traffic Management to the challenge of sustainability. By doing so, the SEE Research Area seeked to actively contribute to identifying new synergies and foster cultural change within ATM.

� the SEE workshop on the sustainability of air transport (held at the EEC in December 2005)

SciencesPo-EUROCONTROL Symposium Air transport & su stainable development (2006)

A symposium on air transport and sustainable development organised by the Chair of Sustainable Development, Sciences-Po Paris with the assistance of EUROCONTROL was held in Paris on 1 and 2 June 2006. The development of air transport since 1945 has been based on the objective of strengthening international trade, and the rate of development has been governed by numerous technological advances. Political, economic and social representations in relation to this mode of transport have been translated into State implementation of a regulatory framework intended to support this objective of growth. Continuous liberalisation of this sector of activity since the early 1980s and the ongoing privatisation of a number of the actors involved have considerably reduced the autonomy of the said State regulatory framework. However, although the system of standards and rules governing the development of air transport now largely issues from Brussels, the system itself is still based on the representations inherited from the post-war period, which we might refer to as the reference framework for the problem of the "development of air transport", to use social science terminology. This reference framework would appear to have been weakened in the course of the 1990s by the growing tide of separate demands centred around the idea of controlled growth of this mode of transport, or in other words readjustment of the economic, safety-related, technical and environmental criteria. These demands, combined with the eagerness of governments to avoid the proliferation of disputes about airports and to reassure a general public increasingly sensitive to environmental issues, have gradually resulted in the emergence of an alternative reference framework in terms of "sustainable development of air transport". This prompts us to explore the representations and values linked to this mode of transport, such as mobility and growth. The purpose of the symposium was therefore to reflect on how the air transport sector in Europe, faced with continual growth in demand for transport on the one hand, and increased questioning of the effects of such growth on the other, can respond to this challenge with a view to sustainable development.


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Four areas were singled out for reflection:

� the construction of the "air transport" problem: the requirements linked to growth, focussing on public action and the response of society at local, national and international level. The discussions also covered the challenges posed by growth for infrastructures and changes in decision-making were demonstrated as regards the development of the sector in recent years under the impact of both local mobilisation and institutional developments at national and European level.

� the conditions for mobility: the social and environmental impacts of air transport, and

the conditions governing the political, environmental and social acceptability of developments in air transport was raised. In the light of the increase in risks, uncertainties and public awareness, it was important to be able to discuss in a public forum, outside the realm of a debate between experts, the risks associated with air transport and its viability.

� the governance of air transport: the challenges posed by the distortion of territorial

scales. Multi-level governance interacts with the large number of different actors and creates new opportunities for the representation of interests and lobbying (transatlantic agreements with the gradual withdrawal of the States, and the loss of control of the airlines; territorial reference framework around airports). In this context, the question arises of the construction of general interest in a framework in which interest groups will be called upon to play a more important role, deriving from the concepts of sustainable development and participatory democracy. It is through this research work that the question has been asked "indirectly" of a possible confluence, with the relative disappearance of the national level, of the local and European levels, focussing on challenges which would be shared.

� the sustainable development of air transport: representations and values linked to

mobility. Looking at air transport growth from the perspective of transport in general and its role in the consumption of oil (a non-renewable resource) and greenhouse gas emissions questions the fact that economic development is finite and that the world is shrinking. This question is centred on the confrontation of two fundamental principles and rights: freedom and safety; on the one side freedom, and above and beyond the placatory nature of transport, the freedom to meet one another at planetary level; on the other side, the right to safety, to the quality of the air.

The question of the right to mobility and the challenges this poses for society were discussed by way of conclusion.

Sciences Po-Paris conference on air transport and sustainability (held in Paris in June 2006)

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