Performance indicators, targets, steering

1
Performance indicators, targets, steering

• Technical Interchange meeting
• Toulouse, 15-17 May 2002
• Xavier FRON
• Head Performance Review Unit

2
ECAC institutional strategy

• A Performance oriented strategy
• PRC role
• Measure performance (KPI)
• Safety, delays, cost
• Propose performance targets
• Recommendations to meet targets

3
European IFR traffic demand
In 10 years Flights 60 (4.8p.a.) Distance
80 (6 p.a.) In 2001 Flights -0.6 Distance
0.2
4
Key Performance Areas
ATM 2000
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Safety target

• ATM 2000 target set
• But no reliable performance indicator

6
Air transport delays
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Traffic-delay-capacity relationship

• Traffic/delay relationship
• Very non-linear response
• Capacity gain gt large delay reduction

8
Measuring capacity
Effective capacity traffic handled at optimal
delay
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Effective capacity (yearly)
2001 ATFM en-route delay cost to airspace users
1100-1700 M
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Effective capacity (monthly)
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Cost of capacity

Linear relationship
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Delay/capacity targets
Agreed ECAC delay target 1 minute per flight
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ECAC capacity target Meet traffic demand...
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Delay target
Key performance indicator (ECAC)
15
Reaching Delay/capacity targets
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Simple ACC capacity model
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ACC capacity
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ECAC economic objective
Total cost should not increase Is this adequate?
19
Cost targets

• No absolute reference
• Continental benchmarking
• Initial US/Europe comparison
• IFR flights x 2
• Total cost x 1.15
• Similar number of air traffic controllers

20
Breakdown of cost effectiveness
21
ECAC cost target (qualitative)
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ANSP cost-effectiveness

• 2001 route charges 4800 million Euro
• Is this appropriate?
• Substantial variance in unit ratesMin21,
  Max114 Euro
• Is this justified?
• Unit costs (per km) rising in real terms
• ATM system less cost-effective ?
• Indication of investment for future capacity ?

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Key Performance Indicator (State view)
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Benchmarking
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Benchmarking

• Unit cost model takes weighted density and
  climb/descent into account

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Cost-effectiveness
Outputs Controlled traffic
Efficiency of allocation
Inputs (Resources)
Capacity

• KPI Working Paper (www.eurocontrol.int/prc)

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Information disclosure
An obligation to disclose information about
monopolyATM activities
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Information disclosureStatus

• Developed with 17 ANSPs in 2001
• Cost-effectiveness analysis framework (KPIs)
• Specification (V2) has been adopted
• 2000 data submitted and analysed (voluntary
  basis)
• 2001 data due by 15 July 2002

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European ATM performance summary

• Safety
• No reliable safety indicator

• Capacity
• ATFM Delay costs in 2001 1.1-1.7 billion
• Improvement anticipated in 2002
• Be prepared for future traffic growth

• Cost effectiveness
• En-route terminal charges 6.2 billion
• Unit cost 70 above US
• Potential net savings 1-2 billion

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Soft regulation

• Safety
• European safety indicator needed
• Capacity/costs
• ECAC target
• Publication by ANSPs of own performance targets,
  accountability, autonomy, incentives
• Consolidation by EUROCONTROL
• Loop in case of divergence

Hard regulation or alternative if insufficient
31
Success test for the ECAC Institutional strategy

Risk