Opinion of the European Economic and Social Committee on the Proposal for a Council Regulation on the establishment of a Joint Undertaking to develop the new generation European Air Traffic Management System (SESAR) COM(2005) 602 final — 2005/0235 (CNS)
Date: 2006-07-06
Institutions: European Economic and Social Committee
Subjects: air space, air traffic, air traffic control, air transport, common transport policy, trans-European network

16.12.2006

EN

Official Journal of the European Union

C 309/133

Opinion of the European Economic and Social Committee on the Proposal for a Council Regu-
lation on the establishment of a Joint Undertaking to develop the new generation European Air
Traffic Management System (SESAR)

COM(2005) 602 final — 2005/0235 (CNS)

(2006/C 309/27)

On 4 January 2006 the Council decided to consult the European Economic and Social Committee, under
Article 171 of the Treaty establishing the European Community, on the abovementioned proposal.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for
preparing the Committee's work on the subject, adopted its opinion on 30 May 2006. The rapporteur was
Mr McDonogh.

At its 428th plenary session, held on 5 and 6 July 2006 (meeting of 6 July 2006), the European Economic
and Social Committee adopted the following opinion by 37 votes to one with three abstentions.

1. Introduction

traffic control.

1.1
SESAR is the technological part of the single European
sky initiative, launched in 2004 to reform the organisation of
air
introduce new communication,
control, and computing technologies between the ground and
aircraft which will optimise the work of air traffic controllers
and pilots. Today, while the cockpit is becoming increasingly
automated, controllers and pilots still communicate by radio.

It will

The total cost of the definition phase,

1.6
including the
EUR 43 million contract will be EUR 60 million. The EC and
Eurocontrol are each providing half of the cost, with Eurocon-
trol's contribution including cash, staff expertise and research.
The EC stated that the development phase will require about
EUR 300 million a year, with funding to come from the
Commission,
industry and Eurocontrol. EUR 200 million a
year is already spent on ATM research and development, and
this will be channelled to SESAR.

1.2
SESAR is a new generation air traffic management
system, which will be vital for managing the growth in air
traffic. SESAR will boost the safety and the environmental
performance of air transport and will ensure that Europe
remains at the forefront of the world aviation market. The
Commission will develop this major industrial project together
with Eurocontrol and with industrial partners.

1.7
The definition phase is fully funded by the Commission
and Eurocontrol. For the development phase, it is foreseen that
industry at large will fund one third of the programme, which
represent something like EUR 100 million per year for seven
years. The EU will contribute EUR 100 million per year and
Eurocontrol will contribute EUR 100 million per year.

1.3
Europe will have the most effective air traffic control
infrastructure in the world. By making air transport more effi-
cient SESAR is estimated to have a net present value of EUR 20
billion. The direct and indirect effects of the project are esti-
mated to EUR 50 billion. The project will create almost
200 000 highly skilled jobs.

1.8
It is not clear yet who will fund how much of the
industry EUR 100 million per year. The contribution from
industry has to be defined, but first we will have to solve diffi-
cult issues such as IPRs (Intellectual Property Rights), competi-
tion clauses, etc.

Growth forecasts for air traffic in Europe show that
1.4
traffic will increase significantly by 2025. This growth will not
be possible without a complete overhaul of
the air traffic
control
infrastructure to optimise air routes and eliminate
congestion. SESAR will also enhance air transport safety, which
today is hampered by ageing technologies and fragmented air
traffic control.

An indication of the amount of money that industry
1.9
will contribute to SESAR is, however, provided by the current
level of R&D expenses in ATM. EUR 200 million per year,
from which around EUR 75 million is provided by ANSPs (Air
Navigation Service Providers). A substantial part if not all of
this money will go into SESAR instead of being used in a frag-
mented manner.

jointly
The European Commission and Eurocontrol
1.5
funded the EUR 43 million (US $50,5 million) contract,
awarded to a consortium of 30 airlines, air navigation organisa-
tions and aerospace manufactures. The contract covers the defi-
nition phase of the Single European Sky ATM (Air Traffic
Management) Research, previously known as SESAME but now
renamed SESAR. The two-year definition phase will include not
only the design of the future ATM system, but also a timeline
for its introduction through 2020.

1.10
The Project Associates are Air Traffic Management
Research and Development (ATM R&D) Centres, Eurocontrol
Military Domain (EURAMID), United Kingdom Civil Aviation
Authority (UK CAA), Non-European Industry (Boeing, Honey-
well, Rockwell-Collins) professional organisations International
Federation of Air Traffic Controllers Associations (IFATCA),
European Cockpit Association (ECA) and European Transport
Workers Federation (ETF).

C 309/134

EN

Official Journal of the European Union

16.12.2006

1.11
definition phase:

The following are the list of companies involved in the

USERS: Air France, Iberia, KLM, Lufthansa, Association of Euro-
pean Airlines (AEA), European Regional Airlines Association
(ERAA),
International Airline Transport Association (IATA),
International Aircraft Owners and Pilots Association (IAOPA).

Air Navigation Service Providers (ANSPs): Aeropuertos Espa-
noles y Navegacion Aerea (Spain) (AENA), Austrocontrol, DFS,
Directorate of Air Navigation Services (France) (DSNA), Italian
Company for Air Navigation Services (ENAV), Luftfartsveket
(Swedish Airport Operator) (LFV), Luchtverkeersleidins Neder-
land (Dutch Air Traffic Control Provider) (LVNL), National Air
Traffic Services (UK) (NATS), NAV.

AIRPORTS: Aeroports de Paris, BAA, Fraport, Amsterdam,
Munich, AENA, LFV.

INDUSTRY: Airbus, BAE Systems, European Aeronautic
Defence and Space Company (EADS), Indra, Selex, Thales ATM,
Thales Avionics, and Air Traffic Alliance.

2. Recommendations and comments

Any initiative which would modernise Air Traffic
2.1
Control in Europe, has to be welcomed as a constructive move.

It should result in more efficient routing, enhanced fuel

2.2
savings and reduce flight times for the travelling public.

2.3
The establishment of functional airspace blocks (FAB)
should enable optimum use of airspace while at the same time
respecting regional agreements and taking into consideration
the living conditions and interests of local communities (cities,
towns and villages) under the FABs.

By avoiding the duplication of research and develop-
2.4
ment activities,
lead to an
increase in the overall volume of air users' contribution to
research and development efforts.

the SESAR project should not

2.5
Following the Community's accession to Eurocontrol,
the Commission and Eurocontrol have signed a cooperation
framework agreement for the implementation of the Single

Brussels, 6 July 2006.

European Sky and for research and development activities in
the field of ATM. This should improve both safety and the
operational effectiveness of ANSPs.

The

Joint Undertaking must

2.6
an integrated
approach, with the combined effort of the public/private part-
nership on all
issues (technical, operational, regulatory and
institutional) ensuring a seamless transition from the Definition
Phase to the Implementation Phase and from Research and
Development to Deployment.

take

2.7
The scope of financing for the Joint Undertaking should
be reviewed when the Definition Phase is completed. All parties
will need to consider the impact of any additional costs to be
financed by the Private sector
through the User Charges
mechanism, as this could lead to knock on effects for the
travelling public.

The public budget for the implementation phase of the
2.8
SESAR project should be supplemented by contributions from
the private sector.

2.9
Taking into account the number of players who will
need to be involved in this process, and the financial resources
and technical expertise needed, it is vital to set up a legal entity
capable of ensuring the coordinated management of the funds
assigned to the SESAR project during its implementation phase.

The companies involved in the definition phase are
2.10
limited and not
the European Aviation
Industry as a whole. The European Commission should extend
participation in the definition phase to smaller size holders,
and in particular to the new EU Member States.

representative of

SESAR will require a step-by-step implementation. The
2.11
final,
implementation phase should be fully implemented as
quickly as possible. The Commission should establish clear
milestones in order to accelerate the realisation of the project
and reduce the length of implementation.

2.12
because of increased efficiency brought about by SESAR.

European Air Traffic charges

should be reduced,

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND