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Air Traffic Management: Future Prospects and Strategies Yasmine El Alj Stephan Wilde Markus Witte Air Traffic Management: Future Prospects and Strategies Yasmine El Alj Stephan Wilde Markus Witte Julia Griese Margarita Marinova Alexander Zock Nuria Margarit Dorthe Windeck Angela Won

Agenda Introduction Infrastructure/ Regulations Market Mechanisms Operations/ Technology Agenda Introduction Infrastructure/ Regulations Market Mechanisms Operations/ Technology

What is Air Traffic Management (ATM) ATM provides for safe, orderly and expeditious flow What is Air Traffic Management (ATM) ATM provides for safe, orderly and expeditious flow of air traffic both in the air and on the ground* n Division of airspace n n Vertical (upper/lower airspace, approach) and horizontal (regional/national) sector provider 4 sector provider 2 A sector provider 1 sector provider 3 Quelle: INCAS-Studie Defined flight routes and beacons for navigation n Controllers optimize trajectories n * Source: Recherche ENAC

Current European ATM situation Constraints in Capacity • Large military airspace • Low ATC Current European ATM situation Constraints in Capacity • Large military airspace • Low ATC productivity • No growth potential • Full skies Unilateral Cost Burden • Non-negotiable ATC charges • Risk-free ATC Lufthansa’s Motivation for Change • Growth Strategy • Stay Cost Competitive • Drive innovation

Infrastructure/Regulation Infrastructure/Regulation

Potential ATM development Today Tomorrow Organization n Organization Monolithic structure Infrastructure n European Commission Potential ATM development Today Tomorrow Organization n Organization Monolithic structure Infrastructure n European Commission (EC) Multiple authorities (infrastructure, service, pricing) Infrastructure ATC Airlines technology Procedures, technology n n n 47 ATC-organizations 22 operating systems 30 programming languages Procedures, technology n n n Standardization 1 ATC-organization 1 operating system

ATM data sharing via “ATM portal” n Share all data – real time n ATM data sharing via “ATM portal” n Share all data – real time n n decision n Airlines (lobbying, incentives) ATM EC, gov’t Advantages n n ATM portal n Standardized interface and information (e. g. via web) Airline can anticipate congestion Can adapt routing real time with adaptive decision making Provision of digital data automatically (static & dynamic) Obstacles n decision Airlines and ATM supply all data Create ATM portal to process data and supply it in a meaningful format n ATM labor force Security

Dynamic and flexible airspace utilization n Optimize special use airspace (SUA) utilization dynamically in Dynamic and flexible airspace utilization n Optimize special use airspace (SUA) utilization dynamically in a collaborative fashion n Incentives (airline military) Technology n n Advantages n n n Differentiate SUA (core, temporary) Optimal use of temporal SUA windows Integrated civil & military ATM Supply of real time digital data More useable airspace (increases capacity) Starting strategic cooperation between airlines and military Obstacles n n n Ability to incorporate this data for flight planning Security Establish collaboration with military

Market Mechanisms Market Mechanisms

Market mechanisms require a new relationship between airlines and ATC European ATC New compensation Market mechanisms require a new relationship between airlines and ATC European ATC New compensation scheme for controllers Interaction • Differentiation in ATC services offered to airlines • Airport/Route congestion pricing • Airlines/ATC performance monitoring and penalty system Airlines Slot/Holding time Exchange System

Differentiation in ATC services offered to airlines n ATC Possibilities for service differentiation n Differentiation in ATC services offered to airlines n ATC Possibilities for service differentiation n Service C C C n „One for all“ ATC S n S C „One for each“ n Airline given priority in the airspace/airport system in exchange for a higher ATC charges Airlines pooling resources together to pay ATC for extra service during peak hours Leasing of „exclusive“ airways (e. g. Star Alliance North Atlantic Route“) Advantages n n better punctuality for airlines willing to pay extra cost new sources of revenue for ATC

Airline ATC clearing house collaboration concept n Clearing house n Prerequisite: Agreement and negotiation Airline ATC clearing house collaboration concept n Clearing house n Prerequisite: Agreement and negotiation on standard gate-to-gate performance benchmarks and penalities Clearing house n ATC Penalty Airline System Penalty System: entity responsible for the system disruption penalized through bonus/malus system n n Exchange n Airline System n Airline airline should depart at scheduled time ATC should provide agreed-upon service performance Exchange System between airlines: can exchange slots and holding time priorities Database containing all data tracked and bonus points will be accessible to all stakeholders (ATC/ Airlines)

Advantages of clearing house collaboration ATC Airlines n n Requirements for on-time performance will Advantages of clearing house collaboration ATC Airlines n n Requirements for on-time performance will be met Real-time trade-off between punctuality and cost through exchange program Stable scheduling process => reduction in delay costs; better aircraft utilization Reduced crew costs n n n Better planification for lower airspace/ landing approach Bonus for performing at agreed-upon service levels Transparency allows ATC not to be blamed ATC is under no obligation to meet standard Gate-to-gate time if airline not departing on-time New revenue source for ATC

Operations and Technology Operations and Technology

Better utilization of existing system n Solutions to overloading of airspace at peak times Better utilization of existing system n Solutions to overloading of airspace at peak times n Expand schedule: n n Premium price tickets at high peak times Use secondary airports and enhance intermodality Advantages: n n n Low price tickets at low peak times Create additional capacity Add value to different customer segments Obstacles: n n n Regulation of night flying (curfews) Limited public transportation at night Labor issues

Unification of flight segments n Reduction of ATC complexity by: n n n Advantages: Unification of flight segments n Reduction of ATC complexity by: n n n Advantages: n n Standardizing of existing ATM procedures and technologies Assigning one controller per flight from departure to landing Seamless ATC experience Increased staffing flexibility Less controllers in low traffic segments Obstacles: n n n Regulation issues New training concepts Redefinition of controllers

ATC of the future No pilots Aircraft at high altitude No controllers New navigation ATC of the future No pilots Aircraft at high altitude No controllers New navigation systems

Questions Questions