The document discusses several challenges facing the global air traffic management system, including the need for cost efficiency given airline losses, rising fuel costs, and overcapacity. It also notes the fragmentation of ATM across regions and a lack of coordination. A global ATM concept is needed to address issues of safety, interoperability, transparency, predictability, and efficiency to support continued traffic growth and improve performance.

1. Towards a Global Air Traffic Management Concept

4. Airline operating costs

6. The Air Transport revenue chain Return on capital invested 16% 15% 6% 14% 13% 10% >30% Aircraft Manufacturers 2 suppliers: 100% of market Aircraft Leasing Companies 2 suppliers: 45% of market Airlines > 1500 airlines, over capacity, strong competition Airport Handling Services Mostly monopolies at state-run airports, less than 3 suppliers privately owned airports Catering 2 suppliers: 40% of market, 7 suppliers service 70% Airports monopoly Glogal Distribution Systems 4 suppliers worldwide, some dominate specific regions ANSPs Source: McKinsey, TEATS Ltd 2.8 to 10% Aircraft Manufacturers Aircraft Leasing Companies Airlines Aircraft Handling Services Catering Airport Aircraft Leasing Companies ANSPs

9. European Contribution EURO OCD ICAO OCD ATM 2000+ European ATM Master Plan IATA

11. Traffic / Delays Delays have reached an all-time low: En-Route Flow Management delay: 1.2 min/flight Summer 2004

12. Traffic / Delays Delays have reached an all-time low: En-Route Flow Management delay: 1.2 min/flight Summer 2004

19. Cost-effectiveness Raising performance to 3 rd best levels: Significant improvements (10%= €700 M p.a.) Complexity is not an obstacle to high productivity (Maastricht, CH, NL, UK) Support costs: 23% Productivity: +56%

21. Fragmentation Lack of ATM system coordination Constrained route & sector design Lack of ACC economies of scale Over-provision of secondary radar Communications/navigation duplication Sub-optimal maintenance/development Piecemeal procurement Fragmented planning Causes of fragmentation costs

22. Functional Blocks of Airspace

24. NETWORK OPTIMISATION Cooperative Network Design, Pan-European Functions National Pan-European Regulation Service Provision Air Traffic Management Success Factors Regulation Service Provision Regulation Service Provision Regulation Service Provision Regulation Service Provision Regulation Service Provision Functional Blocks GLOBAL PLANNING - GLOBAL CONCEPT Global