Implementing regulation 2019/317 - Performance and charging scheme in the single European sky - Main contents

EN

Official Journal of the European Union

L 56/1

The performance scheme referred to in Article 11 of Regulation (EC) No 549/2004 should improve the performance of air navigation services and network functions in the single European sky.

The charging scheme for air navigation services referred to in Article 15 of Regulation (EC) No 550/2004 is instrumental to the successful implementation of the performance scheme and should therefore complement it. The charging scheme should contribute to greater transparency in the determination, imposition and enforcement of charges to airspace users and should contribute to the cost efficiency of providing air navigation services and to efficiency of flights, while maintaining an optimum safety level. The charging scheme should be consistent with the Eurocontrol's charging system for en route charges and with Article 15 of the 1944 Chicago Convention on International Civil Aviation (the ‘Chicago Convention’).

In the interest of clarity, and in order to provide for an adapted regulatory framework for the third reference period of the performance scheme, it is necessary to revise the implementing rules governing the performance and charging schemes contained in Commission Implementing Regulation (EU) No 390/2013 (3) and Commission Implementing Regulation (EU) No 391/2013 (4) and to consolidate these provisions in a single Implementing Regulation.

In accordance with Article 11(1) of Regulation (EC) No 549/2004, the performance scheme should cover air navigations services and network functions referred to in Article 6 of Regulation (EC) No 551/2004 of the European Parliament and of the Council (5). Therefore, this Regulation should apply to the Network Manager appointed in accordance with Article 4(3) of Commission Implementing Regulation (EU) 2019/123 (6).

The performance and charging schemes should enhance the performance of air navigation services through a gate-to-gate approach covering both en route and terminal air navigation services. They should foster long-term improvements in the performance of air navigation services, as reflected in the European ATM Master Plan (7) while having due regard to the overriding safety objectives. The performance scheme should contribute to the reduction of greenhouse gas emissions from aviation and should allow optimum use of airspace, taking into account air traffic flows in the European airspace.

A Performance Review Body upon Commission's request may give independent advice to the Commission in all areas that affect the performance of air navigation services and network functions in the Union.

National supervisory authorities should be able to obtain from all relevant parties, including air navigation service providers under their supervision, relevant data necessary for the purpose of ensuring the proper implementation and oversight of this Regulation at a local level. Air navigation service providers should facilitate inspections and surveys carried out by the national supervisory authorities for the purpose of monitoring the implementation of the performance and charging schemes.

The Network Manager should provide relevant inputs to target setting at Union, national and functional airspace block levels, and should support the achievement of performance targets through measures and processes provided in the Network Operations Plan.

In implementing the performance scheme, the Commission and Member States should coordinate with the European Union Aviation Safety Agency in order to ensure that safety aspects are properly addressed, in line with the safety objectives and requirements stemming from Regulation (EU) 2018/1139 of the European Parliament and of the Council (8).

The duration of a reference period for the performance scheme should be such as to provide the certainty required to implement multi-annual capital expenditure programmes in order to achieve the expected return on investments in the form of performance improvements, while still allowing accuracy of forecasting.

Key performance indicators should be defined in the key performance areas of safety, environment, capacity and cost-efficiency. These key performance indicators should be used for the purpose of setting achievable, sustainable, realistic and time-bound performance targets at Union level, national level or functional airspace block level. The key performance indicators should cover both en route and terminal air navigation services, as well as network functions, in order to improve the overall performance of the network.

Union-wide performance targets should be set by the Commission, taking account of the level of performance achieved in the previous reference period or periods and of relevant inputs provided by the Performance Review Body, the Network Manager and the national supervisory authorities. The inputs from national supervisory authorities should include in particular initial cost and information about traffic forecasts for the reference period concerned. The Commission should substantiate Union-wide performance targets with a description of underlying assumptions and rationales. Drafting of the Union-wide performance targets should be subject to stakeholder consultation.

Member States should be able to decide on whether their respective performance plans are established at national level or at the level of functional airspace blocks, taking account of local circumstances.

National supervisory authorities should be responsible for the development of national or functional airspace block performance plans, including binding performance targets, based on key performance indicators applied at national level or at the level of functional airspace block. The national or functional airspace block performance plans should include initiatives to support cross-border cooperation between air navigation service providers, irrespective of their geographical scope.

Performance plans should provide full transparency on the determined costs of new and existing investments in respect of the purchase, development or leasing of fixed assets. Major investments should be detailed and justified, as well as consistent with SESAR deployment and with expected performance gains.

Consultations should take place at national or functional airspace block level in order to ensure that the views of stakeholders are taken into account in the establishment of performance plans and targets contained therein.

Given the strong links between the different key performance areas, the interdependencies between performance targets should be duly taken into account for the purposes of target setting, having regard to the overriding safety objectives.

Performance targets should be subject to incentives with a view to encouraging better performance, including the application of a traffic risk sharing mechanism in respect of the key performance area of cost-efficiency. Incentive schemes should be effective and should set parameters in a non-discriminatory and transparent manner for the purpose of rewarding or penalising actual performance in relation to the adopted performance targets. The safety key performance area should not be subject to any incentives due to its overriding nature. Member States should ensure that the implementation of incentive schemes does not adversely impact planned and ongoing investments aimed at delivering the adequate capacity and flight efficiency to users.

Member States should adopt draft performance plans and submit them to the Commission for the Commission's assessment and review. In this respect, the Commission should first verify whether the performance plans are complete. If the plans are complete, the Commission should assess whether the proposed performance targets contained in the performance plans are consistent with the Union-wide performance targets. If the required consistency cannot be established, the Commission should request Member States to revise their performance plans and targets, or to take corrective measures.

Member States should adopt and publish the final versions of their respective performance plans only after the Commission has found that the national performance targets or performance targets set at the level of functional airspace blocks (‘FAB performance targets’) contained therein are consistent with the Union-wide targets.

The targets set in the draft performance plans should apply during the procedures for the assessment from the start of the reference period and, where appropriate, during the revision of performance targets set at national or functional airspace block level. Upon the adoption of the final performance plans, the performance targets in the key performance area of cost-efficiency should apply retroactively through an adjustment of unit rates in order to ensure that airspace users benefit from performance improvements from the start of the reference period.

Member States should request permission from the Commission if they want to revise one or several performance targets during a reference period. Such a request can be made where alert thresholds are reached, or where the Member State demonstrates that the initial data, assumptions and rationales, including on investments, underpinning the performance targets are to a significant and lasting extent no longer accurate due to circumstances that were unforeseeable at the time of the adoption of the performance plan. The Commission should authorise the Member State concerned to proceed with the intended revision only if it is necessary and proportionate in light of the aforementioned circumstances, and where the revised performance targets ensure that consistency with the Union-wide performance targets is maintained.

The introduction of new technologies and business models to stimulate integrated service provision should lead to significant cost reductions to the benefit of users over time but can lead to initial restructuring costs. If a Member State demonstrates that restructuring measures bring a net benefit to users, it should also be able to request a revision of local cost-efficiency targets in order to recover the associated restructuring costs through a revision of the determined costs contained in their performance plans, subject to the Commission's authorisation.

The Commission should review the Union-wide performance targets during the reference period to determine whether they remain adequate. The Commission should consider a revision of Union-wide performance targets where it is demonstrated during a reference period that these targets are no longer adequate in light of changed circumstances, and that the revision of targets is necessary and proportionate. A revision of Union-wide targets during a reference period should trigger the start of a new reference period, including the establishment of associated performance plans and performance targets set at national or functional airspace block level.

Network functions should also be subject to performance targets and should contribute to the achievement of the Union-wide performance targets. For this purpose the Network Manager should prepare the Network Performance Plan which should be verified and adopted by the Commission.

An effective operational partnership and cooperative decision making between the principal stakeholders, such as air navigation service providers, functional airspace blocks, airports, civil and military airspace users and the Network Manager is of key importance for the achievement of performance targets of network functions.

The determined costs of air navigation services should be financed by charges imposed on airspace users. These charges should be levied in charging zones established for en route and terminal air navigation services. Member States should ensure that the geographical scope of these charging zones is clearly defined and that the charging zones are consistent with the provision of air navigation services. It may be necessary to modify a terminal charging zone during a reference period due to changes in the operation of airports.

A cost base for charges, which comprises the determined costs of eligible air navigation services and facilities, should be established for each charging zone. Member States should also be allowed to include in these cost bases the determined costs incurred by their national supervisory authorities as well as other State costs related to the provision of air navigation services.

The determined costs for en route and terminal charges should be established prior to the start of each reference period, as part of the performance plans. These determined costs shall be specified for each calendar year of the reference period concerned. National supervisory authorities should verify that the established determined costs only comprise cost items that are eligible under the performance and charging scheme.

The determined costs included in a cost base for en route or terminal air navigation services should include staff costs, operating costs other than staff costs, depreciation costs, cost of capital, and exceptional costs. Actual costs incurred should be annually reported in accordance with the same categorisation in order to ensure consistency and transparency.

National supervisory authorities should, before the start of each reference period, define the criteria used to allocate costs between en route and terminal services and inform the Commission accordingly. Those criteria should ensure the transparent setting of determined costs and guarantee that there are no cross-subsidies between en route and terminal services.

Member States should annually calculate the unit rates for their en route and terminal charging zones. In calculating the unit rate, Member States should ensure that services or facilities funded through public funds including Union assistance programmes such as the Trans-European transport network, the Connecting Europe Facility and the Cohesion Fund, are not charged to airspace users. In calculating the unit rates, Member States should be allowed to adjust their determined costs for inflation.

The performance and charging scheme should provide for a traffic risk sharing mechanism to incentivise the provision of services. National supervisory authorities should be allowed to adjust the values of the traffic risk sharing parameters as defined in this Regulation in order to take account of local circumstances and to better incentivise the provision of air navigation services. That adjustment should be done after consultation of air navigation service providers and airspace users. However, those adjustments should not reduce the risk exposure of the air navigation service provider or providers concerned in comparison with the default mechanism set out in this Regulation.

Air navigation service providers should bear the cost risk with regard to differences between determined and actual costs, except for a limited number of cost items subject to specific requirements.

Air navigation service providers should not be allowed to generate financial surpluses as a result of the cancellation or postponement of new and existing investments during a reference period. Air navigation service providers should be able to annually adjust the planned major investments during a reference period, subject to a detailed justification and provided that the requested changes are approved by the national supervisory authority concerned. Where the actual costs of new and existing investments exceed the corresponding determined costs over a reference period, national supervisory authorities should be responsible for verifying the detailed justifications provided by air navigation service providers and for authorising any subsequent recovery of additional costs from airspace users. Any material difference in those costs should not be charged to users, unless the national supervisory authority has established that the additional costs were exclusively due to new and existing investments required for operational changes consistent with the implementation of the European ATM Master Plan and in particular SESAR common projects.

Unforeseeable changes in applicable legal provisions or financial conditions may lead, during a reference period, to significant deviations of actual pension costs from the determined pension costs set out in the performance plans. Subject to scrutiny by the national supervisory authority, those cost differences should be passed on to airspace users through unit rate adjustments.

Member States should set annually a unit rate for each charging zone. Member States should be able to set their unit rates collectively, in particular when charging zones extend across the airspace of more than one Member State or when they are parties to a joint route charges system. The Commission should verify that the unit rates submitted by Member States comply with the provisions on unit rate calculation of this Regulation.

The charging scheme should ensure complete and transparent information on the cost bases for charges, actual costs and unit rates. Before the start of a reference period, Member States should consult air navigation service providers, airspace users' representatives, and, where relevant, airport operators and airport coordinators on the planned determined costs, planned investments, service unit forecasts and the charging policy for the reference period concerned. During the reference period, Member States should ensure that these stakeholders are annually consulted on the intended unit rates and on the actual costs incurred in connection with the provision of air navigation services. Member States should make complete and adequate information available to all the consulted entities for the purpose of the consultations.

Member States should be able to decide to modulate air navigation charges to provide incentives to equip aircraft with systems included in the SESAR common projects. Member States should be able to further modulate charges, taking into account the level of congestion of the network in a specific area or on a specific route at specific times, to increase the efficiency of air navigation services and to promote their optimised use.

Member States should be able to collect en route charges collectively through a single charge per flight within a joint route charges system, in order to improve the efficiency of the charging scheme and to reduce the administrative and accounting workload.

Enforcement measures should be provided for in order to ensure the prompt and full payment of air navigation charges by airspace users.

Air navigation charges for any specific flight should be calculated, in respect of each charging zone, as a product of applicable unit rate and the number of service units. The level of charges imposed, in particular on light aircraft, should not discourage the use of facilities and services necessary for safety or the introduction of new techniques and procedures. Member States should cover the costs for the services that air navigation service providers have provided to flights exempted from air navigation charges.

Member States should have the possibility, where there is no historical evidence of operational issues, to apply a simplified charging scheme in order to incentivise air navigation service providers and to reduce the administrative burden for the air navigation service providers and national supervisory authorities concerned.

Where terminal air navigation services or communication, navigation and surveillance services, meteorological services for air navigation and aeronautical information services (‘CNS, MET and AIS’) or ATM data services are provided under market conditions, Member States should be allowed to exempt those services from certain provisions pertaining to the charging scheme and from target setting on cost-efficiency. Member States should be able to establish such market conditions during a reference period.

The provision of adequate data and information by national supervisory authorities, air navigation service providers, airport operators, airport coordinators, airspace users and the Network Manager, is essential for the purpose of performance target setting and monitoring at Union-wide level and at national or functional airspace block level.

The national supervisory authorities should regularly monitor the progress made in achieving the performance targets contained in the performance plans. Where the targets are not met, the Member State or national supervisory authority concerned should apply the appropriate measures that they have defined in order to address the situation.

The Commission should monitor the performance of air navigation services and network functions, and regularly assess the achievement of performance targets. The Commission should present the results of that monitoring annually to the Single Sky Committee.

Without prejudice to confidentiality requirements pertaining to market conditions, the essential information and final reports required under this Regulation should be made publicly available in order to guarantee adequate transparency and enable the proper consultation of stakeholders.

Implementing Regulation (EU) No 390/2013 and Implementing Regulation (EU) No 391/2013 should be repealed with effect from 1 January 2020, but should continue to apply beyond that date in respect of obligations related to the second reference period.

This Regulation should apply in respect of the third reference period and to the subsequent reference periods. In order to allow for the adoption of Union-wide targets and the preparation and adoption of performance plans before the beginning of the third reference period, this Regulation should apply with immediate effect from the date of its entry into force.

The measures provided for in this Regulation are in accordance with the opinion of the Single Sky Committee,

the air navigation service providers referred to in Article 2(5) of Regulation (EC) No 549/2004;

the body nominated by the Commission to perform the tasks necessary for the execution of the network functions (the ‘Network Manager’) in accordance with Article 6(2) of Regulation (EC) No 551/2004 and appointed in accordance with Article 4 of Implementing Regulation (EU) 2019/123.

air navigation services and network functions provided in airspace under their responsibility within other ICAO regions than the ICAO EUR region, without prejudice to the rights and duties of Member States under the 1944 Chicago Convention on international civil aviation (the ‘Chicago Convention’);

providers of air navigation services having the permission to provide air navigation services without certification, in accordance with Article 7(5) of Regulation (EC) No 550/2004.

‘actual cost’ means a cost actually incurred in a calendar year for the provision of air navigation services which are subject to certified accounts or, in the absence of such certified accounts, subject to a final audit;

‘air traffic services unit’ or ‘ATS unit’ means a unit, either civil or military, responsible for providing air traffic services in a given airspace;

‘airport coordinator’ means the natural or legal person appointed by a Member State to carry out the coordination duties at coordinated airports set out in Article 4 of Council Regulation (EEC) No 95/93 (9);

‘airport operator’ means any legal or natural person who operates one or more aerodromes;

‘airspace user’ means the operator of the aircraft at the time when the flight is performed or, if the identity of the operator is not known, the owner of the aircraft, unless it can be proved that another person was the operator at that time;

‘airspace users' representative’ means any legal person or entity representing the interests of one or several categories of airspace users;

‘area control centre’ means a unit providing air traffic services to controlled flights in its area of responsibility.

‘en route charging zone’ means a volume of airspace that extends from the ground up to, and including, upper airspace, where en route air navigation services are provided and for which a single cost base and a single unit rate are established;

‘exceptional event’ means circumstances under which ATM capacity is abnormally reduced so that the level of air traffic flow management (‘ATFM’) delays is abnormally high, as a result of a planned limitation induced through operational or technical change, major adverse weather circumstances, the unavailability of large airspace parts either through natural or political reasons, or industrial action, and the activation of the European Aviation Crisis Coordination Cell (‘EACCC’) by the Network Manager;

‘IFR air transport movements per year’ means the sum of take-offs and landings performed under IFR, calculated as the yearly average over the three calendar years preceding the year in which the draft performance plan was to be submitted in accordance with Article 12;

‘forecast inflation index’ means the annual inflation index based on the third year before the start of a reference period and computed by using the latest available inflation forecast of average Consumer Price Index percentage change published by the International Monetary Fund for the Member State concerned at the time of drafting the performance plan. In case the percentage change published by the International Monetary Fund for a given year is negative, a zero value shall be used.

‘actual inflation index’ means the annual actual inflation index based on the third year before the start of a reference period and computed by using the actual inflation rate published by the Commission in the Eurostat Harmonised Index of Consumer Price for the State concerned in April of year n+1. In case the percentage change published by the Commission for a given year is negative, a zero value shall be used.

‘major investment’ means the acquisition, development, replacement, upgrade, or leasing of fixed assets representing a total value over the whole lifetime of the assets greater than EUR 5 million in real terms;

‘national authority’ means a regulatory or supervisory authority established by one or more Member States at national or functional airspace block level;

‘new and existing investment’ means the acquisition, development, replacement, upgrade or leasing of fixed assets where depreciation costs, cost of capital, or in the case of leasing, operating costs, for that investment are incurred during the reference period covered by the performance plan;

‘reference period’ means the period of validity and application of the Union-wide performance targets, as set out in point (d) of Article 11(3) of Regulation (EC) No 549/2004 and Article 7 of this Regulation;

‘reference value’ means the value computed by the Network Manager of en route ATFM delay for each Member State and each functional airspace block for the purpose of ensuring that the Union-wide en route ATFM delay target is met;

‘restructuring costs’ means significant one-time costs incurred by air navigation service providers in the process of restructuring for introducing new technologies, procedures or business models to stimulate integrated service provision, compensating employees, closing air traffic control centres, shifting activities to new locations, writing off assets or acquiring strategic participations in other air navigation service providers;

‘runway incursion’ means any occurrence at an aerodrome involving the incorrect presence of an aircraft, vehicle or person on the protected area of a surface designated for the landing and take-off of aircraft;

‘separation minima infringement’ means a situation in which prescribed separation minima were not maintained between aircraft;

‘terminal charging zone’ means an airport or a group of airports, located within the territories of a Member State, where terminal air navigation services are provided and for which a single cost base and a single unit rate are established.

the collection, examination, validation and dissemination of relevant data for the performance of air navigation services and network functions;

the selection or adaptation of key performance areas;

the definition of key performance indicators and indicators for monitoring;

the setting of Union-wide performance target ranges, and the setting and the revision of Union-wide performance targets;

the establishment of the baseline values, alert thresholds, and comparator groups referred to in Article 9(4);

the assessment of the consistency of draft national performance targets or performance targets set at the level of functional airspace blocks (‘FAB performance targets’) with the Union-wide performance targets in accordance with Article 14 and Article 15 and the review of draft performance plans in accordance with Article 14(1) and Article 15(1);

the verification of the completeness of the draft performance plans in accordance with Article 13;

the verification, in accordance with Article 19, of the draft Network Performance Plan as referred in Article 10(5) of this Regulation;

the assessment of revised performance targets and of the corrective measures adopted by Member States pursuant to Article 15(5);

the monitoring of the performance of air navigation services, including investment and capital expenditure, at Union level, at national level and at the level of functional airspace blocks;

the monitoring of the performance of the network functions in accordance with Article 37(2);

the assessment, in accordance with Article 37(3), of the information received from the national supervisory authorities in relation to the performance plans, for the purpose of monitoring the performance of the European ATM network;

the assessment of the achievement of the performance targets during the reference period;

the maintenance and support in the coordination of a stakeholder consultation calendar concerning performance plans and the consultation requirements referred to in Article 24(2) and (3) and in Article 30.

information about local conditions relevant to the setting of national performance targets or performance targets set at the level of functional airspace block;

data for establishing the return on equity rate for air navigation charges;

information about planned investments in the five years following the date of the request, showing the profile of planned expenditure for new and existing investments during and beyond the reference period and how major investments contribute to performance in each key performance area;

their business plan referred to in point ATM/ANS.OR.D.005 of Annex III of Commission Implementing Regulation (EU) 2017/373 (10);

information required for the application of Article 28(3);

data on cost bases and information on the allocation of costs among en route and terminal air navigation services, as well as data on revenues from commercial activities and the data on public funds received.

support the Commission by providing relevant input for the establishment of Union-wide performance targets before the start of a reference period and for the monitoring of the achievement of those targets during the reference period, including by drawing the Commission's attention, without undue delay, to any circumstances where performance targets are not met or risk not being met or where significant and persistent drops in operational performance are observed;

upon request of the Commission, support the national supervisory authorities by providing relevant input for the preparation of the performance plans and by informing the national supervisory authority concerned, without undue delay, of any circumstances where national performance targets or FAB performance targets are not met or risk not being met or where significant and persistent drops in operational performance are observed;

support the air navigation service providers in reaching national performance targets or FAB performance targets through, in particular, the development and implementation of the Network Operations Plan referred to in Article 9 of Implementing Regulation (EU) 2019/123.

safety aspects are properly addressed, including the setting, revision and implementation of key performance indicators and Union-wide performance targets in the key performance area of safety;

the key performance indicators and the performance targets in the key performance area of safety are consistent with the European Plan for Aviation Safety referred to in Article 6 of Regulation (EU) 2018/1139.

take account of the relevant inputs from the Performance Review Body, the Network Manager and the national supervisory authorities;

use en route traffic forecasts, expressed in terms of IFR movements and in service units and based on the latest available Eurocontrol's Statistics and Forecast Service (‘STATFOR’) base forecast;

substantiate each Union-wide performance target with a description of the underlying assumptions and rationale for that target, including the use made of inputs referred to in point (a) of this paragraph, the outcome of the consultation referred to in paragraph 2 and other relevant factual data.

a Union-wide ‘baseline value for determined costs’ and a Union-wide ‘baseline value for the determined unit cost’, for the purpose of setting targets in the key performance area of cost-efficiency for the key performance indicator referred to in point 4.1 of Section 1 of Annex I. Those baseline values shall be calculated in respect to the year preceding the start of the reference period.

The baseline value for determined costs shall be estimated by using the actual costs available for the preceding reference period and adjusted to take account of latest available cost estimates, traffic variations and their relation to costs.

The baseline value for the determined unit cost shall be derived by dividing the baseline value for the determined costs with the traffic forecast expressed in service units for the year preceding the start of the reference period;

alert thresholds beyond which Member States may request a revision of the performance targets contained in performance plans, in accordance with point (a)(i) of Article 18(1). Those alert thresholds shall be based on the following parameters:

the comparator groups of air navigation service providers with a similar operational and economic environment, for the purposes of assessing performance targets in the key performance area of cost-efficiency.

binding national performance targets or binding FAB performance targets, set on the basis of the key performance indicators referred to in Article 8(2), including a ‘baseline value for determined costs’ and a ‘baseline value for the determined unit cost’ for each charging zone, for the purpose of setting targets in the key performance area of cost-efficiency. Those baseline values shall be calculated in respect to the year preceding the start of the reference period.

The baseline value for determined costs shall be estimated by using the actual costs available for the preceding reference period and shall be adjusted to take account of latest available cost estimates, traffic variations and their relation to costs.

The baseline value for the determined unit costs shall be derived by dividing the baseline value for the determined costs with the latest available traffic forecast expressed in service units for the year preceding the start of the reference period;

determined costs for en route and terminal air navigation services set in accordance with points (a) and (b) of Article 15(2) of Regulation (EC) No 550/2004 and with this Regulation;

the incentive schemes established in accordance with Article 11, specifying the parameters of the incentive schemes, the modulation mechanism of pivot values referred to in Article 11(3) where applicable, as well as measures aimed at achieving the objectives of those incentive schemes;

a description of the main measures aimed at achieving performance targets;

a confirmation that it is consistent with the scope of this Regulation pursuant to Article 1 of this Regulation and Article 7 of Regulation (EC) No 549/2004;

en route traffic forecasts, expressed in terms of IFR movements and in service units and based on Eurocontrol's STATFOR base forecast;

terminal traffic forecasts, expressed in terms of IFR movements and in service units, based on Eurocontrol's STATFOR base forecast;

a description of initiatives to support cross-border coordination and the provision of cross-border services which are beneficial to the operational performance or cost-efficiency, or both;

information about:

the value added of the Network Manager in support to the activities of Member States, functional airspace blocks, air navigation service providers and civil and military airspace users towards achieving capacity and environment targets, and set out the contribution of the network functions towards achieving the Union-wide performance targets;

the performance targets and objectives for the Network Manager and for each network function and the measures aimed at achieving those targets.

set out incentives of financial nature for the achievement of the performance targets in the key performance areas of cost-efficiency and capacity in an effective and proportional manner;

apply during the entire period covered by the performance plan;

be non-discriminatory, transparent and effective;

apply to en route and terminal air navigation services.

they shall be proportionate to the level of ATFM delay and consist of financial advantages and financial disadvantages having material impact on revenue at risk;

they shall be set so that the maximum financial disadvantages are at least equal to the maximum financial advantages;

The national supervisory authority shall define the maximum fixed percentages referred to in the second subparagraphs of points 2.1(a) and 2.2(a) of Annex XIII and in the second subparagraphs of points 2.1(b) and 2.2(b) of Annex XIII for the calculation of the financial advantages and disadvantages, subject to consultation of airspace users' representatives and of air navigation service providers concerned.

In respect to the maximum fixed percentages referred to in the second subparagraphs of points 2.1(a) and 2.2(a) of Annex XIII for the calculation of the financial advantages, those percentages shall not exceed 2 %;

for the purpose of calculating the financial advantages or disadvantages, pivot values shall be used;

The national supervisory authority shall decide, before the start of the reference period, whether those pivot values are to be based:

The national supervisory authority shall inform the Commission about the pivot values annually;

there shall be a symmetric range around the pivot value set by the national supervisory authority, subject to consultation of airspace users' representatives and of air navigation service providers concerned, to ensure that minor variations in ATFM delay do not lead to any financial advantages or disadvantages;

where the actual average ATFM delay per flight in year n is lower than the pivot value set for year n and beyond the range referred to in point (d), this shall result in a financial advantage through an increase of the unit rate in year n+2 in accordance with point 2 of Annex XIII;

where the actual average ATFM delay per flight in year n is higher than the pivot value set for year n and beyond the range referred to in point (d), this shall result in a financial disadvantage through a reduction of the unit rate in year n+2 in accordance with point 2 of Annex XIII;

for the en route targets in the key performance area of capacity and where the performance plan is established at functional airspace block level, the following provisions shall apply, in additional to the principles referred to in points (a) to (f):

after the Commission has adopted a decision in application of Article 14(2), Article 15(2) or Article 15(4);

after the Commission has adopted a decision pursuant to the second subparagraph of Article 15(7);

after the Commission has adopted a decision following a request of a Member State or Member States concerned to revise during the reference period performance targets pursuant to Article 18(1), provided that the performance plan is adjusted by the Member State concerned in respect of the revised performance targets.

the Member State or Member States concerned consider that the intended revision is necessary and proportionate in light of the occurrence of one or more of the following situations:

the Commission has, based on a reasoned request by the Member State or Member States concerned, decided that:

consult the airspace users' representatives and air navigation service providers concerned prior to the modification;

notify, without undue delay, the Commission and the CRCO of Eurocontrol of the modification;

provide the Commission, without undue delay, with all of the following:

determined costs incurred by competent authorities;

determined costs incurred by the qualified entities referred to in Article 3 of Regulation (EC) No 550/2004;

determined costs stemming from the Eurocontrol International Convention relating to cooperation for the safety of air navigation of 13 December 1960 as last amended.

staff costs;

operating costs other than staff costs;

depreciation costs;

cost of capital;

exceptional costs;

the sum of the average net book value of fixed assets in operation or under construction and possible adjustments to total assets determined by the national supervisory authority and used by the air navigation service provider and of the average value of the net current assets, excluding interest-bearing accounts, that are required for the purposes of providing air navigation services;

the weighted average of the interest rate on debts and of the return on equity. For air navigation service providers without any equity capital, the weighted average shall be calculated on the basis of a return applied to the difference between the total of the assets referred to in point (i) and the debts.

aerodrome control services or aerodrome flight information services which include air traffic advisory services and alerting services;

air traffic services related to the approach and departure of aircraft within a certain distance of an airport which shall be defined on the basis of operational requirements;

the proportional part of the air navigation services common to en route and terminal services.

the determined costs of exempted VFR flights, calculated through a marginal cost methodology;

the determined costs of exempted IFR flights, calculated as the product of the following elements:

the determined costs, expressed in nominal terms, for the relevant year as set in the performance plan;

the adjustments for inflation in accordance with Article 26;

the adjustments resulting from the application of the traffic risk sharing mechanism in accordance with Article 27(2) to (5);

the adjustments resulting from the application of the cost risk sharing mechanism in accordance with Article 28(4) to (6);

the adjustments resulting from the application of the financial incentive schemes in accordance with Article 11(3) and (4);

the adjustments resulting from the modulation of air navigation charges in accordance with Article 32;

the adjustments resulting from traffic variations, in accordance with Article 27(8);

the adjustments resulting from traffic variations, in accordance with Article 27(9);

a deduction of other revenue, in accordance with paragraph 3 of this Article;

cross-financing between en route charging zones, or between terminal charging zones, in accordance with point (e) of Article 15(2) of Regulation (EC) No 550/2004;

adjustments for differences in revenue resulting from the temporary application of the unit rate in accordance with Article 29(5);

adjustments relating to previous reference periods.

public funds obtained from public authorities, including financial support from Union assistance programmes;

revenue obtained from commercial activities, where the Member State or Member States concerned have decided that those revenues are to be deducted;

with regard to terminal air navigation services, revenue obtained from contracts or agreements concluded between air navigation service providers and airport operators, where the Member State or Member States concerned have decided that those revenues are to be deducted.

consult on the intended values the airspace users' representatives and air navigation service providers concerned;

ensure that the resulting risk exposure of the air navigation service providers is not lower than the maximum revenue at risk under the mechanism laid out in paragraphs 2 and 3;

consider the variation of costs of capacity provision by the air navigation service provider concerned due to variation in traffic.

the determined costs established in accordance with the third subparagraph of Article 22(1);

the determined costs for meteorological services.

where, over the whole reference period, actual costs fall below the determined costs, the air navigation service provider or the Member State concerned shall retain in full the resulting difference;

where, over the whole reference period, actual costs exceed the determined costs, the air navigation service provider or Member State concerned shall cover in full the resulting difference.

unforeseen changes in costs of new and existing investments;

unforeseen changes in costs referred to in the third subparagraph of Article 22(1);

unforeseen and significant changes in pension costs established in accordance with Article 22(4) resulting from unforeseeable changes in national pensions law, pensions accounting law or unforeseeable changes in financial market conditions, on the condition that such changes in pension costs are outside the control of the air navigation service provider and, in the case of cost increases, that the air navigation service provider has taken reasonable measures to manage cost increases during the reference period;

unforeseen and significant changes in costs resulting from unforeseeable changes in interest rates on loans that finance costs arising from the provision of air navigation services, on the condition that such changes in costs are outside the control of the air navigation service provider and, in the case of cost increases, that the air navigation service provider has taken reasonable measures to manage cost increases during the reference period;

unforeseen and significant changes in costs resulting from unforeseeable changes in national taxation law or other unforeseeable new cost items not covered in the performance plan but required by law.

where, over a calendar year or over the whole reference period, actual costs fall below the determined costs, the air navigation service provider or the Member State concerned shall reimburse the resulting difference to airspace users, through a reduction of the unit rate in year n+2 or in the following reference period, unless, based on a detailed justification of the air navigation service provider, the national supervisory authority decides, after consultation with airspace users' representatives, that the air navigation service provider shall not reimburse a part of the resulting difference;

where, over a calendar year or over the whole reference period, actual costs exceed the determined costs by not more than 5 %, Member States may decide that the resulting difference is recovered from airspace users by the air navigation service provider or the Member State concerned, through an increase of the unit rate in year n+2 or in the following reference period, subject to the approval by the national supervisory authority of a detailed justification provided by the air navigation service provider in particular as regards the need to increase capacity and after consultation with airspace users' representatives.

where, over a calendar year, actual costs fall below the determined costs established for that calendar year, Member States shall reimburse the resulting difference to airspace users through a reduction of the unit rate in year n+2;

where, over a calendar year, actual costs exceed the determined costs established for that calendar year, Member States shall recover the resulting difference from airspace users through an increase of the unit rate in year n+2.

where, over a calendar year or over the whole reference period, actual costs fall below the determined costs, the air navigation service provider or the Member State concerned shall reimburse the resulting difference to airspace users through a reduction of the unit rate in year n+2, in the following reference period or in the following two reference periods if the amounts to be recovered impact the unit rate in a disproportionate manner;

where, over a calendar year or over the whole reference period, actual costs exceed the determined costs, Member States may decide that the resulting difference is recovered from airspace users by the air navigation service provider or the Member State concerned, through an increase of the unit rate in year n+2, in the following reference period or in the following two reference periods if the amounts to be recovered impact the unit rate in a disproportionate manner.

national supervisory authorities shall submit, on behalf of their respective Member State, the calculated unit rate to the Commission and to the CRCO of Eurocontrol by 1 June of year n-1. This submission shall include the reporting tables and additional information set out in Annex VII and Annex IX;

before 1 November of year n-1, if needed, national supervisory authorities shall update the calculated unit rate referred to in point (a), following consultation with airspace users. They shall submit this calculated updated unit rate, on behalf of their respective Member State, to the Commission and the CRCO of Eurocontrol, at the latest by 1 November of year n-1;

Member States shall set the unit rate for year n at the latest by 20 December of year n-1 and inform the Commission and the CRCO of Eurocontrol of that rate.

a first adjustment of the unit rate in the year following the revision of the unit rate, and

a final adjustment of the unit rate two years after that year.

flights performed by aircraft with a maximum authorised take-off weight which is less than two metric tons;

mixed VFR/IFR flights in the charging zones where they are performed exclusively under VFR and where an en route charge is not levied for VFR flights;

flights performed exclusively for the purpose of transport, on official mission, of reigning Monarchs and their immediate family, heads of state, heads of government and government ministers, where it is substantiated by the appropriate status indicator or remark on the flight plan that the flight is performed exclusively for that purpose;

search and rescue flights authorised by the appropriate competent body.

military flights performed by aircraft of a Member State or any third country;

training flights performed solely within the airspace of the Member State concerned and exclusively for the purpose of obtaining a licence, or a rating in the case of cockpit flight crew, where it is substantiated by an appropriate remark on the flight plan that the flight is performed exclusively for that purpose;

flights performed exclusively for the purpose of checking or testing equipment used or intended to be used as ground aids to air navigation, excluding positioning flights by the aircraft concerned;

flights terminating at the airport from which the aircraft has taken off and during which no intermediate landing has been made;

VFR flights;

humanitarian flights authorised by the appropriate competent body;

customs and police flights.

optimise the use of air navigation services;

reduce the environmental impact of flying;

reduce the level of congestion of the network in a specific area or on a specific route at specific times.

accelerate the deployment of SESAR ATM capabilities in anticipation of the time period set out in the common projects referred to in Article 15a(3) of Regulation (EC) No 550/2004, in particular with a view to giving incentives to equip aircraft with systems included in those common projects.

one or more en route and one or more terminal charging zones;

one or more air navigation service providers providing services in the charging zone or zones referred to in point (a).

a Commission decision adopted pursuant to Article 14(2), Article 15(2) or Article 15(4) confirms that the performance targets set by the Member State in the draft performance plan referred to in Article 12 are consistent with the Union-wide performance targets;

the performance targets in the key performance areas of safety, capacity and environment have been met in the three years preceding the adoption of the draft performance plan referred to in Article 12;

the performance plan includes an incentive scheme on capacity targets as required in Article 11;

the air navigation service providers concerned and the airspace users concerned have been consulted on the intended decision and airspace users representing at least 65 % of the IFR flights operated in the airspace where the Member State or Members States concerned are responsible for the provision of air navigation services agree with the intended decision.

the traffic risk sharing mechanism referred to in Article 11(2) and Article 27. By not applying the traffic risk sharing mechanism, the traffic risk is therefore borne in full by the air navigation service provider;

the provisions of Article 28(4) to (6) related to the cost risk sharing mechanism;

the over or under recoveries resulting from the modulation of air navigation charges pursuant to Article 32.

apply cost-efficiency targets, including the setting of determined costs, for the key performance indicators referred to in point 4.1 of Section 2 of Annex I;

apply traffic risk sharing and cost sharing mechanisms in accordance with Articles 27 and 28;

set financial incentives in the key performance areas of capacity and environment in accordance with Article 11;

calculate terminal charges in accordance with Article 31(2);

set terminal unit rates in accordance with Article 29;

be subject to the consultation requirements specified in Article 24(3).

its national supervisory authority has found, on the basis of a detailed assessment in accordance with the conditions laid down in Annex X, that the provision of the services concerned is subject to market conditions;

it has consulted the airspace users' representatives concerned on the intended decision and on that assessment, and has taken account of their comments where appropriate;

it has made its intended decision and that assessment publicly available;

it has submitted its intended decision and that assessment to the Commission and received the agreement of the Commission.

any decisions which they have taken pursuant to Article 1(4) and (5);

any decisions which they have taken pursuant to point (c) of Article 35(3);

their draft performance plans referred to in Article 12;

their adopted performance plans referred to in Article 16;

their reporting tables referred to in Articles 24, 29 and 30.

the draft Network Performance Plan referred to in Article 19(1);

the adopted Network Performance Plan referred to in Article 19(3).

safety policy and objectives;

safety risk management;

safety assurance;

safety promotion;

safety culture.

The rate of runway incursions at Union level with a safety impact calculated in accordance with point 1.2(a) of Section 2;

The rate of separation minima infringements at Union level with a safety impact calculated in accordance with point 1.2(b) of Section 2.

the indicator is the comparison between the length of the en route part of the actual trajectory derived from surveillance data and the achieved distance, summed over IFR flights within or traversing the airspace as defined in Article 1, hereinafter referred to as ‘European airspace’;

‘en route part’ refers to the distance flown outside a circle of 40 NM around the airports;

where a flight departs from or arrives at an airport outside the European airspace, the entry or exit points of the European airspace are used for the calculation of this indicator as the origin or destination respectively, rather than the departure or destination airport;

where a flight departs from and arrives at an airport inside the European airspace and crosses a non-European airspace, only the part inside the European airspace is used for the calculation of this indicator;

‘achieved distance’ is a function of the position of the entry and exit points of the flight into and out of each portion of airspace for all parts of the trajectory. Achieved distance represents the contribution that those points make to the great circle distance between origin and destination of the flight;

the indicator is calculated for the whole calendar year and for each year of the reference period, as an average. When calculating this average, the ten highest daily values and the ten lowest daily values are excluded from the calculation.

The average horizontal en route flight efficiency of the last filed flight plan trajectory, calculated as follows:

The average horizontal en route flight efficiency of the shortest constrained trajectory, calculated as follows:

The effective use of reserved or segregated airspace calculated as the ratio of the initial requested allocated time for reservation or segregation from general air traffic, and the final allocated time used for the activity requiring such segregation or reservation. The indicator is calculated for all airspace allocations notified to the Network Manager.

The rate of planning via available airspace structures, including reserved or segregated airspace and conditional routes, for general air traffic calculated as the ratio of aircraft filing flight plans via such airspace structures and the number of aircraft that could have planned through those airspace structures.

The rate of using available airspace structures, including reserved or segregated airspace, conditional routes, by general air traffic calculated as the ratio of aircraft flying via such airspace structures and the number of aircraft that could have planned through these airspace structures.

the en route ATFM delay is the delay calculated by the Network Manager, expressed as the difference between the estimated take-off time and the calculated take-off time allocated by the Network Manager;

for the purposes of this indicator:

this indicator covers all IFR flights and all ATFM delay causes, excluding exceptional events;

this indicator is calculated for the whole calendar year and for each year of the reference period.

The average time, expressed in minutes, of arrival ATFM delay per flight attributable to terminal and airport air navigation services and caused by landing restrictions at the destination airport, calculated as follows:

The percentage of flights with en route ATFM delay greater than 15 minutes, calculated as below:

The average time, expressed in minutes, of all cause-departure delay per flight, calculated as follows:

this indicator is expressed as a percentage, reflecting the year-on-year variation of the average Union-wide DUC for en route air navigation services, starting from the baseline value referred to in point (a) of Article 9(4);

this indicator is calculated for the whole calendar year and for each year of the reference period;

the average Union-wide DUC for en route air navigation services is the ratio between the en route determined costs and the en route forecast traffic, expressed in en-route service units, expected during each year of the reference period at Union level, as contained in the Commission's assumptions for establishing the Union-wide performance targets in accordance with Article 9(3);

the average Union-wide DUC for en route air navigation services is calculated in euro and in real terms.

this indicator is calculated for the whole calendar year and for each year of the reference period as the weighted average of the sum of the DUC for each Member State for air navigation services and of the adjustments in accordance with Article 25(2) stemming from that year;

this indicator is expressed in euro and in nominal terms.

The rate of runway incursions at airports located in a Member State, calculated as the total number of runway incursions with a safety impact that occurred at those airports divided by the total number of IFR and VFR movements at those airports.

The rate of separation minima infringements within the airspace of all controlling air traffic services units in a Member State, calculated as the total number of separation minima infringements with a safety impact that occurred in that airspace divided by the total number of controlled flight hours within that airspace.

The rate of runway incursions at an airport calculated as the total number of runway incursions with any contribution from air traffic services or CNS services with a safety impact that occurred at that airport divided by the total number of IFR and VFR movements at that airport.

The rate of separation minima infringements within the airspace where the air navigation service provider provides air traffic services, calculated as the total number of separation minima infringements with any contribution from air traffic services, or CNS services with a safety impact divided by the total number of controlled flight hours within that airspace.

Where automated safety data recording systems are implemented, the use of these systems by the air navigation service providers, as a component of their safety risk management framework, for the purposes of gathering, storing and near-real time analyses of data related to, as a minimum, separation minima infringements and runway incursions.

this indicator is the comparison between the length of the en route part of the actual trajectory derived from surveillance data and the achieved distance, summed over IFR flights within or traversing the local airspace;

‘en route part’ refers to the distance flown outside a circle of 40NM around the origin and destination airports;

where a flight departs from or arrives at an airport outside the local airspace, the entry or exit points of the local airspace are used for the calculation of this indicator;

where a flight departs from and arrives at an airport inside the local airspace and crosses a non-local airspace, only the part inside the local airspace is used for the calculation of this indicator;

‘achieved distance’ is a function of the position of the entry and exit points of the flight into and out of the local airspace. Achieved distance represents the contribution that those points make to the great circle distance between origin and destination of the flight;

for the purposes of this indicator, ‘local’ means at national level or at the level of functional airspace blocks, depending on the level at which the performance plan is established;

the indicator is calculated for the whole calendar year and for each year of the reference period, as an average. When calculating this average, the ten highest daily values and the ten lowest daily values are excluded from the calculation.

The average horizontal en route flight efficiency of the last filed flight plan trajectory, calculated at local level as follows:

The average horizontal en route flight efficiency of the shortest constrained trajectory, calculated at local level as follows.

The additional time in the taxi-out phase, calculated at local level as follows:

The additional time in terminal airspace, calculated at local level as follows:

The share of arrivals applying Continuous Descent Operation (CDO), calculated at local level as follows:

The effective use of reserved or segregated local airspace, calculated in accordance with point 2.2(c) of Section 1.

The rate of planning via available local airspace structures, calculated in accordance with point 2.2(d) of Section 1.

The rate of using available local airspace structures, calculated in accordance with point 2.2(e) of Section 1.

For the purposes of the indicators set out in points (a) and (b), ‘local’ means at national level or at the level of functional airspace blocks depending on the level at which the performance plan is established, including cases of delegation of the responsibility for the provision of air traffic services as a result of collaborative cross-border arrangements. For the purposes of the indicators set out in points (c) and (d), ‘local’ means at airport level with a minimum of 80 000 IFR air transport movements per year. For the purposes of the indicator set out in point (e), ‘local’ means at airport level. For the purposes of the indicators set out in points (f) to (h), ‘local’ means at national level with a breakdown at the level of area control centres' area of responsibility, including cases of delegation of the responsibility for the provision of air traffic services as a result of collaborative cross-border arrangements.

The average minutes of en route ATFM delay per flight attributable to air navigation services, calculated as follows:

The average time, expressed in minutes, of arrival ATFM delay per flight attributable to terminal and airport air navigation services, calculated at local level as follows:

The percentage of IFR flights adhering to their ATFM departure slots at local level calculated for the whole calendar year and for each year of the reference period.

The average minutes of air traffic control pre-departure delay per flight caused by take-off restrictions at the departure airport, calculated at local level as follows:

The average time, expressed in minutes, of departure delay from all causes per flight, calculated at local level in accordance with point 3.2(c) of Section 1.

For the purpose of the indicator set out in point (a), ‘local’ means at national level with a breakdown at airport level. For the purposes of the indicator set out in points (b) and (c), ‘local’ means at airport level for airports with 80 000 IFR air transport movements or more per year.

The DUC for en route air navigation services, calculated as follows:

The DUC for terminal air navigation services, calculated as follows:

For the purposes of the indicators set out in points (a) and (b), ‘local’ means at charging zone level.

this indicator is calculated for the whole calendar year and for each year of the reference period as the sum of the DUC for air navigation services and of the adjustments in accordance with Article 25(2) stemming from that year;

this indicator is expressed in nominal terms and in national currency.

the ratio between the time that the number of flights exceeds by more than 10 % the capacity limits of a sector declared by the air navigation service provider where ATFM regulations are imposed, and the total time where ATFM regulations are imposed, calculated for the whole calendar year and for each year of the reference period;

for the purposes of this indicator, the regulated time is divided in overlapping hourly slices at every 20-minutes interval.

The percentage of en route ATFM delay savings from the Cooperative Decision-Making network procedures and Network Manager Operations Centre actions, over the total year-on-year en route ATFM delay savings, where en route ATFM delay is calculated in accordance with point 3.1 of Section 1.

The percentage of arrival ATFM delay savings from the Cooperative Decision-Making network procedures and Network Manager Operations Centre actions, over the total arrival ATFM delay savings, where arrival ATFM delay is calculated in accordance with point 3.2(a) of Section 1.

The annual percentage of IFR flights with ATFM delay above 15 minutes.

The average, over a calendar year, of the daily number of ATFM regulations that each produces less than 200 minutes of delay.

The average, over a calendar year, of en route ATFM weekend delay expressed in minutes of delay per flight.

The annual percentage of first rotation delay due to capacity and staffing for a pre-selection of area control centers/airports with the most significant potential delay reduction as identified annually by the Network Manager.

The effective use of reserved or segregated airspace, calculated in accordance with point 2.2(c) of Section 1.

The rate of planning via available airspace structures, calculated in accordance with point 2.2(d) of Section 1.

The rate of using available airspace structures, calculated in accordance with point 2.2(e) of Section 1.

this indicator is the ratio between the actual costs for the execution of the tasks of the Network Manager and the en route traffic, expressed in en route service units, during the reference period, at the level of the geographical area where the Network Manager performs its tasks necessary for the execution of the network functions;

this indicator is expressed in euro and in real terms;

this indicator is calculated for the whole calendar year and for each year of the reference period.

the determined costs of new and existing investments in respect of depreciation, cost of capital and cost of leasing over the whole reference period and in respect of each calendar year thereof, as required in Annex VII;

description and justification of the major investments, including with regard to the following elements:

detail of synergies achieved at the level of functional airspace blocks or, through other cross-border cooperation initiatives as appropriate, in particular in terms of common infrastructure and common procurement.

determined costs for en route and terminal air navigation services set in accordance with points (a) and (b) of Article 15(2) of Regulation (EC) No 550/2004 and with this Regulation, for each year of the reference period;

en route and terminal service units forecast, for each year of the reference period;

the baseline values for en route and terminal cost-efficiency targets referred to in point (a) of Article 10(2) and description and justification of the methodology used to estimate those values for each charging zone;

description and justification of the criteria and methodology used for the allocation of costs to charging zones and allocation of costs between en route and terminal services, in accordance with Article 22(5);

description and justification of the return on equity of the air navigation service providers concerned, as well as on the gearing ratio and on the level and composition of the asset base used to calculate the cost of capital comprised in the determined costs;

description and justification of economic assumptions, including:

description and explanation of the adjustments resulting from the years preceding the reference period;

identification and categorisation of the determined costs relating to the cost items referred to in Article 28(3);

where applicable, a description of any significant restructuring planned during the reference period;

where applicable, approved restructuring costs from previous reference periods to be recovered.

the reporting tables and additional information required in Annexes VII, IX and XI which to be attached to the performance plan;

identification of the applicable range referred to in Article 27(2) and of the traffic risk sharing keys referred to in Article 27(3);

in the event that the national supervisory authority adapts the values of the parameters of the traffic risk sharing mechanism referred to in point (a) in accordance with Article 27(5):

description and justification of the parameters of the incentive scheme defined in accordance with Article 11(3), including the pivot values, and the modulation mechanism of pivot values where applicable;

identification of the air navigation service providers and charging zones subject to the incentive schemes;

where applicable, description of the additional incentive schemes referred to in Article 11(4).

monitor the implementation of the performance plan;

address the situation where targets are not reached during the reference period.

the elaboration and harmonisation of network and regional operational concepts;

the development and harmonisation of airspace projects based on network priorities including cross-border airspace design initiatives;

reducing inefficient use of route network and available airspace;

the development of enhanced airspace management and air traffic flow and capacity management processes;

the harmonised capacity planning and measurement of operational performance;

supporting the resolution of air traffic controller shortages across the network;

strengthening technical area coordination including at FAB level and addressing technical interoperability among air navigation service providers' systems and in particular with the Network Manager's systems;

the support to Network Safety and the implementation, monitoring and improvement of local safety performance.

performance target for the Network Manager on effectiveness of safety management.

description of the measures that the Network Manager puts in place to achieve this target.

description of the measures that the Network Manager puts in place to address ATFM over-deliveries.

(a)

description of the measures that the Network Manager puts in place to improve its cost-efficiency.

European Route Network Design (ERND) function:

Air Traffic Flow Management (ATFM) function;

Coordination of scarce resources functions:

assist the monitoring and the reporting of the implementation of the Network Performance Plan;

address the situation where targets are not reached during the reference period;

communicate with the national supervisory authorities.

Consistency of the determined unit cost trend at charging zone level over the reference period with the Union-wide determined unit cost trend over the same period, whereby those trends are expressed as a percentage.

For the purpose of calculating those trends, the applicable Union-wide and local performance target values and the baseline values for the determined unit costs referred to in point (a) of Article 9(4), and in point (a) of Article 10(2) shall be used.

Consistency of the determined unit cost trend at charging zone level over a time period covering both the reference period covered by the performance plan and the preceding reference period (‘long term determined unit cost trend’) with the Union-wide determined unit cost trend over the same period, whereby those trends are expressed as a percentage.

The long-term determined unit cost trend at charging zone level shall be calculated by using the actual unit cost at charging zone level for the year before the start of the preceding reference period concerned.

Consistency of the determined unit cost level: comparison of the baseline value for the determined unit cost referred to in point (a) of Article 10(2) at the level of the charging zone concerned with the corresponding average value of the charging zones where air navigation service providers have a similar operational and economic environment as defined in accordance with point (c) of Article 9(4).

A deviation from the criteria referred to in points (a) to (c) may be deemed necessary and proportionate in order to:

measures for achievement of national or FAB performance targets in each key performance area as referred to in point 3.2 of Annex II;

national or FAB performance targets on average arrival ATFM delay per flight:

national or FAB performance targets on terminal DUC:

key factors and parameters underpinning the national or FAB performance targets or performance in the key performance area of cost-efficiency:

values of the traffic risk sharing parameters referred to in Article 27(2) and (3) and, in the event that the national supervisory authority has adapted the values for these parameters in accordance with Article 27(5), justifications provided for those values;

incentive scheme or schemes, referred to in Article 11;

performance benefits and synergies enabled by cross-border collaboration initiatives, including cooperation at the level of functional airspace blocks or through industrial alliances;

in respect to an application of a simplified charging scheme referred to in Article 34, verification that the criteria referred to in Article 34(2) are met.

Completeness of the draft Network Performance Plan in terms of the elements needed to assess compliance with the requirements listed in Article 10(5) and Annex III;

comprehensiveness of the actions taken by the Network Manager to contribute to network optimisation covering the actions listed in point 2 of Annex III;

consistency of the target on the level of effectiveness of safety management of the Network Manager with the Union-wide performance targets, by which, for each calendar year of the reference period, the level of effectiveness of safety management is equal to, or higher than, the corresponding Union-wide performance targets;

flight efficiency improvement measures generated by the European Route Network Design function;

en route ATFM delay savings from the Cooperative Decision-Making network procedures and Network Manager Operations Centre actions;

arrival ATFM delay savings from the Cooperative Decision-Making network procedures and Network Manager Operations Centre actions;

adequacy of the measures aimed at achieving the performance targets for the network functions including the relevance of investments and capital expenditure as regards the European ATM Master Plan, the common projects referred to in Article 15a of Regulation (EC) No 550/2004 and Regulation (EU) No 409/2013, and, where applicable, the Network Strategy Plan.

(a)

data used and calculated by the Network Manager as defined in Annex I and Annex II of Implementing regulation (EU) 2019/123, including flight plans for general air traffic under IFR rules, actual routing, surveillance data based on 30 seconds reporting interval, en route and arrival ATFM delays, exemptions from ATFM regulations, respect of ATFM slots and frequency of conditional route usage;

ATM-related safety occurrences;

information on safety recommendations and corrective actions taken on the basis of ATM-related incident analysis or investigation in accordance with Regulation (EU) No 996/2010 of the European Parliament and of the Council (1) and Regulation (EU) No 376/2014 of the European Parliament and of the Council (2);

information collected by air navigation service providers, airport operators and air transport operators through automated safety data recording systems where available, as a minimum on runway incursions and separation minima infringements;

trends in, as a minimum, separation minima infringements and runway incursions, at all air traffic services units;

the data referred to in the Eurocontrol Specification titled ‘Eurocontrol Specification for Economic Information Disclosure’, Edition 2.6 of 31 December 2008 with the reference Eurocontrol-SPEC-0117 for the provision of data up to, and including, year 2013, and Edition 3.0 of 4 December 2012 from year 2014 onwards.

This data shall be provided before 15 July of year n+1, except for forward looking data which shall be provided by 1 November of year n + 1;

information required for the purpose of monitoring the key performance indicators and the indicators for monitoring referred to in points 1.1 and 1.2 of Section 2 of Annex I;

This information shall be provided before 1 February of each year.

information on safety occurrences collected through automated safety data recording systems where available;

trends in, at the minimum, separation minima infringements, and runway incursions occurrences at all air traffic services units from both voluntary reports and automated safety data recording systems where available.

the data referred to in the Eurocontrol Specification document titled ‘Airport Operator Data Flow — Data Specification’ version 1.0, 2018.

This data shall be provided on a monthly basis;

information on safety occurrences collected through automated safety data recording systems where available;

This information shall be provided on an annual basis.

the data referred to in the Eurocontrol Specification document titled ‘Air Transport Operator Data Flow — Data Specification’ version 1.0, 2018.

This data shall be provided on a monthly basis;

information on safety occurrences collected through automated safety data recording systems where available;

This information shall be provided on an annual basis.

a description of the methodology used for allocating costs of facilities or services between different air navigation services, based on the list of facilities and services listed in ICAO Regional Air Navigation Plan, European Region (Doc 7754) as last amended, and a description of the methodology used for allocating those costs between different charging zones;

a description of the methodology and assumptions used to establish the costs of air navigation services provided to VFR flights, when exemptions are granted for VFR flights in accordance with Article 31(3), 31(4) and 31(5);

the criteria used to allocate costs between terminal and en route services, in accordance with Article 22(5);

a breakdown of the meteorological costs between direct costs and the costs of supporting meteorological facilities and services that also serve meteorological requirements in general (‘MET core costs’). MET core costs include general analysis and forecasting, surface and upper-air observation networks, meteorological communication systems, data processing centres and supporting core research, training and administration;

a description of the methodology used for allocating total meteorological costs and MET core costs referred to in point (d) to civil aviation and between charging zones;

for each entity, description of the composition of each item of the determined costs by nature and by service (points 1 and 2 of Table 1), including a description of the main factors explaining the planned variations over the reference period;

for each entity, a description and justification of the method adopted for the calculation of depreciation costs (point 1.3 of Table 1): historical costs or current costs referred to in the fourth subparagraph of Article 22(4), and, where current cost accounting is used, provision of comparable historical cost data;

for each entity, description and underlying assumptions of each item of complementary information (point 3 of Table 1), including a description of the main factors explaining the variations over the reference period;

for each entity, description of the assumptions used to compute the cost of capital (point 1.4 of Table 1), including the composition of the asset base, the return on equity, the average interest on debts and the shares of financing of the asset base through debt and equity;

description of the determined costs of common projects (point 3.9 of Table 1).

for each entity and for each cost item, a description of the reported actual costs and the difference between those costs and the determined costs, for each year of the reference period;

a description of the reported actual service units and a description of any differences between those units and the figures provided by the entity that is billing and collecting charges as well as any differences between those units and the forecast set in the performance plan, for each year of the reference period;

the breakdown of the actual costs of common projects per individual project;

justification of the difference between the determined and the actual costs of new and existing investments of the air navigation service providers, as well as the difference between the planned and the actual date of entry into operation of the fixed assets financed by those investments for each year of the reference period;

description of the investment projects added, cancelled or replaced during the reference period with respect to the major investment projects identified in the performance plan, and approved by the national supervisory authority in accordance with Article 28(4).

description and rationale for establishment of the different charging zones, in particular with regard to terminal charging zones and potential cross-subsidies between charging zones;

description of the policy on exemptions and description of the financing means to cover the related costs;

description of adjustments resulting from the traffic risk sharing mechanism in accordance with Article 27;

description of the differences between determined costs and actual costs of year n as a result of the changes in costs referred to in Article 28(3) including description of the changes referred to in that Article;

description of adjustments resulting from unforeseen changes in costs in accordance with Article 28(3) to (6).

description of the other revenues, if any, broken down between the different categories indicated in Article 25(3);

description of the application of the financial incentive schemes referred to in Article 11(3) and 11(4) in year n and the resulting financial advantages and disadvantages; description and explanation of the modulation of air navigation charges applied in year n under Article 32 where applicable, and resulting adjustments.

description of adjustments relating to the temporary application of a unit rate under Article 29(5);

description of the cross-financing between en route charging zones, or between terminal charging zones, in accordance with point (e) of Article 15(2) of Regulation (EC) No 550/2004;

information on the application of a lower unit rate under Article 29(6) than the unit rate calculated in accordance with Article 25(2) and the means to finance the difference in revenue;

information and breakdown of the adjustments relating to previous reference periods impacting the unit rate calculation.

information on the costs of common projects and other funded projects broken down per individual project, as well as of public funds obtained from public authorities for these projects.

the existence of any significant legal, economic or other barrier that would prevent a service provider from offering to provide, or continue to provide those services;

the scope, duration and value of service contracts;

the existence of procedures allowing tangible and intangible assets, intellectual property and staff to be transferred or otherwise be made available from the incumbent to another party.

the existence of legal, contractual or practical barriers to change service provider, or in the case of terminal air navigation services, to move towards self-supply of air navigation services by airports;

the existence of a consultation process to take airspace user views into account when altering service provision arrangements.

the existence of a public tendering process (not applicable in case of self-supply);

evidence of credible alternative service providers able to participate in a tendering process and having provided services in the past, including the option of self-supply for the airport.

whether airports actively compete for airline business;

the extent to which airports bear the air navigation service charge;

whether airports operate in a competitive environment or under economic incentives designed to cap prices or otherwise incentivise cost reductions.

the tables shall be filled in for each charging zone. Costs and prices shall be established in national currency;

for Table A, the figures shall be actual figures for year (n-5) until year (n-1) and planned figures for year (n) onwards;

for Table B, the annual price shall reflect the value of the contract. The unit of output considered to determine the value of the contract shall be described and reported in the table by the Member State concerned. As regards terminal air navigation services, Table B shall be filled in separately for each airport where air navigation services are provided under market conditions in the terminal charging zone.

description of the unit of output used in Table B;

description of the criteria used for allocating costs of facilities or services between different air navigation services based on the list of facilities and services listed in ICAO Regional Air Navigation Plan, European Region (Doc 7754);

description and explanation of differences between planned and actual figures for years (n-5) to (n-1) in respect to all data provided in Tables A and B;

description and explanation of five year planned costs and investments in relation to expected traffic;

description and explanation of the method adopted for calculating depreciation costs: historic costs or current costs;

justification for the cost of capital, including the components of the asset base;

description of the sources of financing of the air navigation services concerned in respect of each charging zone where services are subject to market conditions.

actual costs incurred during the previous year and the difference between the actual costs and the determined costs contained in the performance plan;

evolution of costs referred to in Article 28(3).

charging policy, including, inter alia, timing of adjustments to the unit rates and cross financing between terminal charging zones;

evolution of traffic compared to the traffic forecast set out in the performance plan;

the application of the traffic risk sharing mechanism referred to in Article 27 and of the incentive scheme or schemes implemented on the basis of Article 11;

if applicable, intended modifications of terminal charging zones in accordance with point (a) of Article 21(5);

if applicable, services foreseen to be subject to market conditions in accordance with point (b) of Article 35(3).

enable significant and unforeseen changes in traffic to be taken into account, in which case the pivot value for year n shall be informed by the reference value at the level of each air navigation service provider from the November release of year n-1 of the Network Operations Plan;

limit the scope of incentives to cover only delay causes related to ATC capacity, ATC routing, ATC staffing, ATC equipment, airspace management and special events with the codes C, R, S, T, M and P of the ATFCM user manual.

enable significant and unforeseen changes in traffic to be taken into account, in which case the pivot value for year n shall be modulated on the basis of objective and transparent principles defined in the performance plan.

limit the scope of incentives to cover only delay causes related to ATC capacity, ATC routing, ATC staffing, ATC equipment, airspace management and special events with the codes C, R, S, T, M and P of the ATFCM user manual.

The financial advantage referred to in point (e) of Article 11(3) shall be calculated as a percentage of the determined costs of year n and recovered from airspace users through an increase of the unit rate in year n+2 where the deviation of the average ATFM delay per flight in year n below the pivot value is greater in absolute value than the lower bound of the symmetric range referred to in point (d) of Article 11(3).

The percentage of the determined costs shall, from the lower bound of the symmetric range up to the alert threshold referred to in point (b)(iii) of Article 9(4), follow a smooth sliding scale with the maximum fixed percentage to be applied where the deviation of the average ATFM delay per flight in year n below the pivot value is in absolute value equal to or greater than the value of the alert threshold.

The financial disadvantage referred to in point (f) of Article 11(3) shall be calculated as a percentage of the determined costs of year n and reimbursed to airspace users through a reduction of the unit rate in year n+2 where the deviation of the average ATFM delay per flight in year n above the pivot value is greater in absolute value than the upper bound of the symmetric range referred to in point (d) of Article 11(3).

The percentage of the determined costs shall, from the upper bound of the symmetric range up to the alert threshold referred to in point (b)(iii) of Article 9(4), follow a smooth sliding scale with the maximum fixed percentage to be applied where the deviation of the average ATFM delay per flight in year n above the pivot value is in absolute value equal to or greater than the value of the alert threshold.

The financial advantage referred to in point (e) of Article 11(3) shall be calculated as a percentage of the determined costs of year n and recovered from airspace users through an increase of the unit rate in year n+2 where the actual arrival ATFM delay per flight in year n is smaller than the lower bound of the symmetric range referred to in point (d) of Article 11(3).

The percentage of the determined costs shall, from the lower bound of the symmetric range down to 50 % of the pivot value, follow a smooth sliding scale with the maximum fixed percentage to be applied where the actual arrival ATFM delay per flight in year n is equal to or lower than 50 % of the pivot value.

The financial disadvantage referred to in point (e) of Article 11(3) shall be calculated as a percentage of the determined costs of year n and reimbursed to airspace users through a reduction of the unit rate in year n+2 where the actual arrival ATFM delay per flight in year n is greater than the upper bound of the symmetric range referred to in point (d) of Article 11(3).

The percentage of the determined costs shall, from the upper bound of the symmetric range up to 150 % of the pivot value, follow a smooth sliding scale with the maximum fixed percentage to be applied where the actual arrival ATFM delay per flight in year n is equal to or greater than 150 % of the pivot value.