Working together with ATC

Airlines and air navigation service providers need to join forces to push for governmental reform, argues Alexander ter Kuile, secretary general of CANSO, the Civil Air Navigation Services Organisation.

In the past, relations between the airlines and air navigation service providers (ANSPs) have not been without their tensions. A primary cause has been that each side was simply not aware, beyond the most simplistic of levels, of the problems and constraints facing the other. Consequently, one side felt completely unsupported, whilst the other felt unjustifiably attacked.

There is now a real sea change and with it a chance to establish genuine co-operation between the two parties. But this will only be achieved if we acknowledge the reasons for our past difficulties, and with a serious resolve to co-operate, given our substantial mutual interests.

Lack of understanding

My sense is that the major problem has been the an inability for the sides to fully comprehend the problems and constraints of the other. One management culture is often necessarily driven by short-term considerations. The other, but the nature of its service provision, must consistently take a long term approach.

Airline management inevitably comprises a substantial element of short-term focus, responding to a competitive environment. Companies are faced with immediate revenue-threatening crises for which short-term solutions are critical to survival. With catastrophes such as 9/11 and SARS, and downturns in the world economy having instant effects on demand, financial figures, investor confidence and so on, the demand for immediate-term solutions is almost always imperative.

But unresearched, and thus sometimes unrealistic, demands of other sectors of the industry, themselves struggling under constraints also frequently imposed from outside, add nothing to what is already a potentially disastrous situation. This is the very time when stake-holders ought to be engaged in forging even closer links with each other in an urgent search for ready solutions in recognition that the aviation industry is one single system.

Unlike its counterpart in airlines, ANS management is, by very definition, considerably more focused on the long term. It is highly capital intensive, with long lead times for projects. And among the major constraints facing service providers is the constant governmental influence.

While the level of central control differs between service providers, ASNPs do not have the independence enjoyed by the majority of airlines. It may be true that CANSO, as the global voice of air traffic management, represents the global interests of ANSPs who together have responsibility for over 80% of world air traffic in some two-thirds of world airspace, but it must also be remembered that hardly any ANSPs have the strategic and policy freedom enjoyed by most IATA carriers.

That said, airlines looking for immediate cost-cutting efficiencies are often not aware of the measures that ANSPs are introducing. Likewise, ANSPs are often publicly blamed for policies and decisions for which they are not responsible.

Charging constraint

Charging systems are a case in point. For the most part, these are agreed at governmental level. CANSO is, in fact, in complete agreement with airlines on the crucial need for radical reform to ANS financial and charging systems. But the power to introduce the necessary changes lies, for the main part, with national governments.

In order to achieve the financial restructuring that we all agree is a major priority, the only effective way forward is for IATA and CANSO to join together. Supported by their members, a co-ordinated international campaign should be mounted to convince governments to make the necessary reforms.

Following recent talks between airline and ANSPs - in Singapore, Brisbane, Geneva, Bangkok and Amsterdam - it has become clear that both sides have a whole compass of common interests. These range from navigation charges and best practice in partnership agreements through to benchmarking and individual aspects of the Single European Sky implementation, as well as specific Eurocontrol issues.

Fortunately, things do seem now to be slowly moving in a more positive direction. Prior to the CANSO annual general meeting in Brisbane last month, ANSP chief executives joined with airlines and industry suppliers for a two-day conference dedicated to co-operation. As a direct consequence of that meeting, CANSO is creating a new customer-focused work group on air navigation that will have airline co-operation as a major priority. IATA user- charges director Jeff Poole, who spoke at the event, has agreed to work closely with that group.

IATA and CANSO share similar positions on several major issues - CANSO, for example, has made various public statements stating its priority commitment to seeking further on-going efficiencies. As such, it is completely counter-productive to continue with the same old knee-jerk reactions. The only possible thing which could now hold us back would be a lack of trust. But nothing builds confidence like success, so once rapid progress with real results is evident to all, a genuine partnership really could be in the making.

Source: Airline Business