Europe’s air navigation service providers (ANSPs) are forging ahead with cross-border functional blocks of airspace (FABs) as they gear up for a more competitive future.

ANSPs in the UK and Ireland announced in early July the results of a study into the feasibility of developing an FAB covering the two neighbouring countries. German air traffic navigation provider DFS, meanwhile, is positioning itself to offer air navigation services in other parts of Europe.

The report into the proposed UK/Ireland scheme, drawn up by the Solar Alliance consultancy, was described as “ground breaking” by UK National Air Traffic Services (NATS) and the Irish Aviation Authority (IAA), which are keen to form closer ties. It recommends:

  • three centres to cater for high-level en-route traffic, based at Shannon in Ireland, Prestwick in Scotland and Swanwick in southern England;
  • an integrated charging scheme across the entire FAB;
  • a new Atlantic interface system based at Shannon to improve service quality through joint airspace management;
  • control of the Dublin terminal area to be transferred to Prestwick.

The Solar Alliance says the level of co-operation that already exists between the two ANSPs means that, subject to agreement of a framework of principles between the two parties, the FAB could potentially be operational by 2008.

It also recommends, however, that a more detailed study is undertaken to address other implications for users, regulators and governments, as well as the management and labour unions at the two ANSPs.

“For the IAA and NATS, this will require detailed consultation with stakeholders including the military, unions, safety regulators and the Irish and UK governments,” the report says.

Meanwhile, Germany’s DFS has set up a subsidiary called the Tower Company to bid for air traffic control contracts at regional airports in other parts of Europe – something that will be allowed next year under the European Commission’s Single European Sky programme to reform air traffic management. Tower staff will be paid lower salaries than standard DFS rates, enabling the company to be more competitive on costs.

DFS is also looking to co-operate with neighbouring ANSPs to set up FABs. While competition for operating airspace blocks is not a reality yet, this is the ultimate goal of the Single Sky, and DFS says that the negotiations with neighbouring providers on co-operation has this in mind. “We are doing this for the sake of European development and the future of our company,” says DFS chief executive Dieter Kaden. “In the long term, only those ANSPs that offer high quality at favourable prices will survive on our continent.”

Observers note that DFS has been casting its eyes over the Maastricht control centre in the Netherlands, which operates a block of airspace covering the Low Countries and part of northern Germany. The Maastricht centre is managed by Eurocontrol, Europe’s air traffic management agency.

The German government plans to sell off 74.9% of DFS to private investors next year, a move that will take it a step beyond the UK’s NATS, a pioneer in terms of European ANSP privatisation. NATS is 48.9% owned by the UK government, 5% by NATS employees and the balance with seven UK airlines and UK airports group BAA.

DFS plans to lower its charges by 10% in 2006, on the back of 20-30% reductions in 2005, and is looking to cut 600 jobs from its 5,400 workforce by 2010. In a recent report, Standard & Poor’s said that “DFS is centrally positioned to benefit from recent and ongoing growth in east-west and north-south international air traffic.”

COLIN BAKER LONDON

Source: Airline Business