Air Traffic Control Symposium on Organisational Reform Options Experience of the Irish Aviation Authority Donal Handley 7 th July 2015
Air Traffic Control Symposium on Organisational Reform Options Experience of the Irish Aviation Authority
Donal Handley 7th July 2015
IAA Role
• IAA Act 1993 - Semi State Body established 1994
• Commercial State Sponsored Body – No State Financing • No loans, grants, subventions • No bank loan guarantees or other support • IAA pays Corporation Tax at 12.5% • Dividend of €6.5 million to State in 2015
• Safety – Essence of the Corporate Mission
• 650 staff across 5 locations
IAA Overview
Key Roles of the IAA
Safety Regulation of Civil Aviation
Aviation Security
Regulation
Comms on North
Atlantic
Air Traffic Control at
State Airports
Air Navigation Services in
Irish Airspace
Safety within the IAA
Primary Corporate Objective First tick in the box for everything Compliance with all safety standards To International Standards Acts in the Public Interest
ICAO Safety Ranking* Top Ten European Countries
Country % of Effective Implementation
France 94.43% Ireland 94.04% UK (Europe) 93.63% Germany 89.83% Switzerland 89.08% Netherlands (Europe) 88.16%
Poland 87.57% Czech Republic 86.71% Italy 86.66% Belgium 85.82%
Comparison: Major States Worldwide
Country % of Effective Implementation
UAE 98.86% Canada 95.33% France 94.43% Ireland 94.04% UK (Europe) 93.63% USA 91.35% Germany 89.83% China 86.43% Brazil 85.75% Russia 83.02% Australia 82.67%
*ICAO Universal Safety Oversight - Continuous Monitoring Approach (CMA) Audit - January 2015
EASA / Eurocontrol 2014
86
0
10
20
30
40
50
60
70
80
90
100
Effectiveness of Safety Management (State Level) - 2014
Source: www.eurocontrol.int/prudata/dashboard/eur_view_2014.html
Governance & Management
Board
• Nine Members including Chairman
• Appointed by the Minister for Transport
• 7 Non Executive, 1 Executive and 1 Staff (expert skills & aviation)
• Board Objectives and Work Plan
• Various Board Committees – Audit – Finance and Planning – Personnel, Appointments and Remuneration – Investment Planning
Director Finance
Airworthiness
Flight Operations
Airspace Oversight
Aerodromes Oversight
Regulatory Performance and Licensing
Industrial Relations
Recruitment
Training & Development
Manpower Planning
ATM Technology
Training
Information Technology
ATM Safety Management
Director Safety Regulation
Director Human Resources
Director Commercial, Technology & Training
Director ATM Operations & Strategy
Internal Auditor*
Chief Executive
Air Traffic Control State Airports
Air Traffic Management Enroute service
North Atlantic Communications
Standards/ Procedures
Airspace
Company Secretary & Solicitor
Head of Corporate Affairs
Financial Control
Treasury & Funding
Customer Relations
Business Corporate Planning
International & Shareholder Relations
Public & Internal Communications
Strategic Projects
Quality Management
Property & Security
Environment
IAA Corporate Structure
*Reports to Audit Committee
Pensions Security Oversight
Board/Chairman
Commercial Contracts & Procurement
Business Continuity Planning
Airworthiness
Flight Operations
Airspace Oversight
Aerodromes Oversight
Regulatory Performance and Licensing
ATM Technology
ATM Training
ATM Safety Management
Director Safety Regulation
(Accountable Manager)
Human Resources
Director ATM Operations & Strategy
(Accountable Manager)
Chief Executive
Air Traffic Control State Airports
Air Traffic Management Enroute service
North Atlantic Communications
Standards/ Procedures
Airspace
IAA Safety Chain Structure
Board/Chairman
Quality Management
Corporate Services Legal
Finance
Shares held by State No interference in day-to-day operations Approvals required for very large CAPEX Inputs into Corporate Plan and other
strategic forward planning documentation from Shareholder
Adopt Public ‘procurement’ methods
Shareholder Relations
Safety Oversight
Airworthiness • 1,200 Aircraft on Irish Register • 727 Large Public Transport Aircraft /
434 Small Aircraft (includes amphibians, balloons, gliders, etc)
• 8 PART 147 Maintenance Engineer Training organisations
Flight Operations • 15 Airline/Commercial Operators • 8,500 Pilots (Commercial,
Airline, student & Private Pilots) • 1,500 Aircraft Maintenance
Engineers
Air Navigation Regulation • 338 Air Traffic Control Officers • 76 Radio Officers • 451,000 sq km airspace • ATC Radar and Comms Systems
Aerodromes & Airspace • 27 aerodromes licensed:
3 State Airports 11 other Public Licensed
Aerodromes 13 Private Licensed
Aerodromes
Oversight Scope
Irish Register – 1,200 Heavy Aircraft
Foreign Leased Aircraft
No# of Aircraft
Italy 125 Russia 116 Spain 14 Norway 2 Mexico 7 Mongolia 2
Irish AOC No# of Aircraft
318 48 27 17 14 9
Irish Airspace & Service Provision
North Atlantic delegated jointly to Ireland & UK by ICAO
Full Irish Radar Service
90% Traffic
Sample of IAA ATM Innovations
Founding member of COOPANS ATM
System
Point Merge (Arrivals
Management CDA system)
Partner in Aireon (Satellite based
ADS-B)
Remote Towers (SESAR Trial)
Joint IAA/ISAVIA Voice
Communications Control System
(VCCS)
Free Route Airspace (FRA)
since 2009
Business Performance & Charges
22
63%
12% 11% 10% 3% 1%
En route Terminal SafetyRegulation
North AtlanticComms
Commercial Other
Financial Performance 2014
EURO (m)
En route €112.1m
Terminal €21.1m
Safety Regulation €19.7m
North Atlantic Comms €18.4m
Commercial & Other €6.2m
Total Income €177.5m
Operating Expenses (€147.8m)
ROI (Operating profit) €29.7m
IAA Performance 2014
2013 Ranking Customer Share (ATM
Revenue) 1 British Airways 10.5% 2 United Airlines 9.3% 3 Aer Lingus 8.3% 4 Delta 8.2% 5 Air France/KLM/CityJet 7.7% 6 Ryanair 6.6% 7 Lufthansa 5.2% 8 American Airlines 4.7% 9 Virgin Atlantic 4.0%
10 Air Canada 3.6% 11 US Airways 2.8% 12 Swiss 1.6% 13 Thomson Airways 1.4% 14 Air Transat 1.2% 15 Aer Arann 1.0% 16 Federal Express 1.0% 17 Thomas Cook Airlines 1.0% 18 Turkish Airlines 0.9% 19 Alitalia 0.9% 20 Air Berlin 0.8%
MAIN CUSTOMERS
Conclusions
IAA Overall Experience • Clear delegation of Safety & Service Provision • No comprise on safety
Functional Separation
• Our decision • Our timescales
Investments / CapEx
• Highly suitable structure for Ireland Scale
•Re-invest profits to drive future efficiencies •Generate shareholder returns
Company orientated
• Flexible hiring policy Staffing
• Broad base • No risk of regulatory capture
Customers
Customer charges – En route 2005 – 2015 (€)
Benchmarking – En route
38.5039.75
40.9542.20
43.00
43.0044.10
45.00
45.00 45.00 45.00
30
40
50
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
North Atlantic Communications
120.06133.23
176.93
202.74
160.24
153.72156.92
156.92
0
50
100
150
200
250
2008 2009 2010 2011 2012 2013 2014 2015
Other Charges
Terminal Service Units
Other Charges
Safety Regulation
Charges Frozen since 2008
Marginal increase planned in Q4 2015
Aviation Security Charge
Currently Assessing Options
For introduction in 2016