EUROCONTROL’s Performance Review Unit (PRU) has released a new high-level summary report on the cost-efficiency performance for 2023, prior to the final ACE benchmarking report planned for release in May 2025. This report offers the first insights into the pan-European system and individual ANSPs (Air Navigation Service Providers) cost efficiency for 2023, as well as monitoring ANSPs’ financial indicators, cash assets, and liquidity status.
Key Findings:
- Traffic Increase and Decline: In 2023, traffic saw an 11% increase in composite flight hours. However, it remained 4% lower compared to 2019 levels. This was largely attributed to the war in Ukraine, leading to airspace closures and restrictions on air carriers, directly affecting traffic flows in Europe.
- Increase in ATFM Delays: 2023 saw a significant increase in ATFM (Air Traffic Flow Management) delays, with many ANSPs facing capacity issues. Delays were at similar levels to 2019, and ATFM delays accounted for 24% of the 2023 unit economic costs.
- Cost Increases and Personnel Costs: ATM/CNS supply costs rose by 3% in 2023, totaling an additional €272 million. Among 38 ANSPs, 27 reflected cost increases. Personnel costs rose by 5%, resulting in an additional €309 million. Non-personnel operating costs increased by 6%, creating €99 million in additional costs.
- Lower Cost Base Compared to 2019: Despite the cost increases in 2023, ANSPs’ cost base is still €360 million (4%) lower than in 2019, owing to significant cost savings in 2020 and 2021.
- Staff Levels and ATCO Demand: The ATM/CNS workforce increased by 1% in 2023, adding 537 full-time equivalents (FTEs). This increase was most noticeable in operational personnel such as Air Traffic Controllers (ATCOs), with an additional 231 FTEs.
- Debt Levels: 2023 debt levels decreased by 11%, but short- and long-term debt remains 2.5 times higher than 2019 levels.
Conclusions and Evaluations:
The report outlines EUROCONTROL’s monitoring of pan-European ATM system developments, cost-efficiency indicators, and ANSPs’ financial status, aiming for a more efficient, low-cost, high-capacity air traffic management system. External factors, such as the war in Ukraine, have shown the impact on airspace use and traffic flows.
Additionally, the report emphasizes the need for ANSPs to develop more efficient management strategies to address operational challenges such as ATFM delays and personnel costs. This calls for smarter resource allocation and process optimization to ensure smoother air traffic management moving forward.
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