Commission Implementing Regulation (EU) 2019/317 of 11 February 2019 laying down a performance and charging scheme in the single European sky and repealing Implementing Regulations (EU) No 390/2013 and (EU) No 391/2013 (Text with EEA relevance.)

• (b) identification of the air navigation service providers and charging zones subject to the incentive schemes;

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

6. IMPLEMENTATION OF THE PERFORMANCE PLAN

Description of the processes that the national supervisory authorities will put in place, in order to:

• (a) monitor the implementation of the performance plan;

• (b) address the situation where targets are not reached during the reference period.

ANNEX III

TEMPLATE FOR THE NETWORK PERFORMANCE PLAN REFERRED TO IN ARTICLE 10(5)

1. INTRODUCTION

• 1.1. Description of the situation, including scope of the Network Performance Plan, network functions covered, roles and responsibilities and other general information relevant to the plan.

• 1.2. Description of the traffic forecast and macroeconomic scenario underpinning the Network Performance Plan.

• 1.3. Description of the consistency of the Network Performance Plan with the Network Strategy Plan.

• 1.4. Description of the outcome of the stakeholder consultation on the draft Network Performance Plan, including the points of agreement and disagreement as well as the reasons for any such disagreement, and description of the outcome of the consultation of the Network Management Board.

2. NETWORK MANAGER'S VALUE ADDED

Areas of cooperation to support tasks and activities of Member States, functional airspace blocks, air navigation service providers, airports, civil and military airspace users.

Description of the Network Manager's work on:

• (a) the elaboration and harmonisation of network and regional operational concepts;

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

• (c) reducing inefficient use of route network and available airspace;

• (d) the development of enhanced airspace management and air traffic flow and capacity management processes;

• (e) the harmonised capacity planning and measurement of operational performance;

• (f) supporting the resolution of air traffic controller shortages across the network;

• (g) 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;

• (h) the support to Network Safety and the implementation, monitoring and improvement of local safety performance.

3. PERFORMANCE TARGETS, OBJECTIVES AND MEASURES

• 3.1. Safety performance of the Network Manager

• (a) performance target for the Network Manager on effectiveness of safety management.

• (b) description of the measures that the Network Manager puts in place to achieve this target.

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

• 3.2. Cost-efficiency performance of the Network Manager

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

• 3.3. Performance targets and objectives specific to each network function

• (a) European Route Network Design (ERND) function:
• (i) performance targets for the key performance indicator set out in point 3.1 in Section 3 of Annex I;
• (ii) description and explanation of the measures aimed at achieving the performance targets for the ERND function:
• — measures related to the design of an efficient airspace structure;
• — measures related to a better airspace utilisation by the operational stakeholders;
• — measures related the optimisation of the flights.
• (iii) other flight efficiency initiatives.

• (b) Air Traffic Flow Management (ATFM) function;
• (i) performance targets for each relevant key performance indicator set out in point 4.1 in Section 3 of Annex I;
• (ii) description and explanation of the measures aimed at achieving the performance targets for the ATFM function:
• — initiatives and actions for reducing the ATFM delay including weekend delays, weather generated delays, minimising individual flight penalties, ATFM efficiency, reactionary delays, over deliveries;
• — military dimension of the plan.
• (iii) other capacity initiatives.

• (c) Coordination of scarce resources functions:
• (i) coordination of radio frequencies function:
• — description of the support to network capacity;
• — description of specific objectives.
• (ii) coordination of radar transponder codes function:
• — description of the support to network safety;
• — description of specific objectives.

4. IMPLEMENTATION OF THE NETWORK PERFORMANCE PLAN

Description of the measures that the Network Manager puts in place, in order to:

• (a) assist the monitoring and the reporting of the implementation of the Network Performance Plan;

• (b) address the situation where targets are not reached during the reference period;

• (c) communicate with the national supervisory authorities.

ANNEX IV

CRITERIA FOR THE ASSESSMENT OF PERFORMANCE PLANS AND TARGETS AT NATIONAL OR FUNCTIONAL AIRSPACE BLOCK LEVEL

1. CONSISTENCY ASSESSMENT OF NATIONAL PERFORMANCE TARGETS OR FAB PERFORMANCE TARGETS

1.1.   SAFETY

Effectiveness of safety management

Consistency of national performance targets or FAB performance targets on the level of effectiveness of safety management 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.

1.2.   ENVIRONMENT

Average horizontal en route flight efficiency of the actual trajectory

Consistency of national performance targets or FAB performance targets with the Union-wide performance targets for each calendar year of the reference period, by comparing the national performance targets or FAB performance targets with the en route horizontal flight efficiency reference values set out in latest version of the European Route Network Improvement Plan available at the time of adoption of the Union-wide performance targets.

For the purpose of this paragraph, the ‘ en route horizontal flight efficiency reference value’ means the estimated value by the Network Manager of the flight efficiency of the actual trajectory at national level or at the level of functional airspace blocks, for the purpose of ensuring that the Union-wide target on horizontal en route flight efficiency of the actual trajectory is met.

1.3.   CAPACITY

Average en route ATFM delay per flight

Consistency of national performance targets or FAB performance targets with Union-wide performance targets for each calendar year of the reference period, by comparing the national performance targets or FAB performance targets with the reference values set out in the latest version of the Network Operations Plan available at the time of adoption of Union-wide performance targets.

1.4.   COST-EFFICIENCY

En route determined unit cost

• (a) 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.

• (b) 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.

• (c) 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).

• (d) A deviation from the criteria referred to in points (a) to (c) may be deemed necessary and proportionate in order to:
• (i) allow the achievement of the performance targets in the key performance area of capacity set at national level or the level of functional airspace blocks provided that the deviation from the Union-wide determined unit cost trend is exclusively due to additional determined costs related to measures necessary to achieve the performance targets in the key performance area of capacity; or
• (ii) implement restructuring measures that lead to restructuring costs referred to in Article 2(18), provided that the deviation is exclusively due to those restructuring costs and that a demonstration is provided in the performance plan that the restructuring measures concerned will deliver a net financial benefit to airspace users at the latest in the subsequent reference period.

2. REVIEW OF DRAFT PERFORMANCE PLANS

• 2.1. Elements subject to review:

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

• (b) national or FAB performance targets on average arrival ATFM delay per flight:
• (i) comparison with the level and trend of actual performance during the reference period which precedes the reference period covered by the performance plan;
• (ii) at airport level, comparison of performance with similar airports;

• (c) national or FAB performance targets on terminal DUC:
• (i) comparison with the en route determined unit cost trend at local level;
• (ii) comparison with the level and trend of actual performance during the reference period which precedes the reference period covered by the performance plan;
• (iii) at airport level, comparison of performance with similar airports;

• (d) key factors and parameters underpinning the national or FAB performance targets or performance in the key performance area of cost-efficiency:
• (i) baseline values and assumptions underpinning the setting of determined costs for the first year of the reference period, in comparison with the latest available actual costs;
• (ii) traffic forecasts used in the performance plan and, where the forecasts differ from the STATFOR base forecasts, the justifications provided;
• (iii) planned cost of capital with regard to the level and composition of the regulatory assets base, as well as the planned cost of capital pre-tax rate, including the interest rate on debt and the return on equity;
• (iv) determined costs of new and existing investments and justifications provided for major investments;
• (v) determined pension costs and assumptions underlying their calculation;
• (vi) interest rate assumptions for loans financing the provision of air navigation services, including amounts, duration and other relevant information on loans, reconciliation with the weighted average interest on debt used to calculate the cost of capital pre tax rate and the cost of capital comprised in the determined costs;
• (vii) methodology used for the allocation of costs between en route and terminal services and justifications of any change in the methodology compared to the previous reference period.

• (e) 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;

• (f) incentive scheme or schemes, referred to in Article 11;

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

• (h) 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.

ANNEX V

CRITERIA FOR THE ASSESSMENT OF THE DRAFT NETWORK PERFORMANCE PLAN

• (a) 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;

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

• (c) 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;

• (d) flight efficiency improvement measures generated by the European Route Network Design function;

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

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

• (g) 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.

ANNEX VI

LIST OF PERFORMANCE-RELATED DATA TO BE PROVIDED TO THE COMMISSION FOR MONITORING OF PERFORMANCE IN ACCORDANCE WITH ARTICLE 36(1) AND ARTICLE 37

1. DATA TO BE PROVIDED BY NATIONAL SUPERVISORY AUTHORITIES

• 1.1. National supervisory authorities shall ensure that the following data is provided on a monthly basis:

• (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;

• 1.2. National supervisory authorities shall ensure that the following data is provided on an annual basis:

• (a) ATM-related safety occurrences;

• (b) 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 ([^E0004]) and Regulation (EU) No 376/2014 of the European Parliament and of the Council ([^E0005]);

• (c) 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;

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

2. DATA TO BE PROVIDED BY AIR NAVIGATION SERVICE PROVIDERS

• 2.1. Air navigation service providers shall provide the following on an annual basis:

• (a) 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;

• (b) 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.

• (c) information on safety occurrences collected through automated safety data recording systems where available;

• (d) 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.

• 2.2. Air navigation service providers shall provide the data referred to in Article 4 upon request.

3. DATA TO BE PROVIDED BY AIRPORT OPERATORS FOR AIRPORTS WITH 80 000 IFR AIR TRANSPORT MOVEMENTS OR MORE PER YEAR

Airport operators shall provide the following:

• (a) the data referred to in the Eurocontrol Specification document titled ‘Airport Operator Data Flow — Data Specification’ version 1.0,  2019. This data shall be provided on a monthly basis;

• (b) information on safety occurrences collected through automated safety data recording systems where available; This information shall be provided on an annual basis.

4. DATA TO BE PROVIDED BY AIRPORT COORDINATORS

Airport coordinators shall provide the data referred to in points (c) and (d) of Article 4(8) of Regulation (EEC) No 95/93 twice a year, in accordance with the time intervals referred to in Article 6 of that Regulation.

5. DATA TO BE PROVIDED BY AIRSPACE USERS

Airspace Users shall provide the following:

• (a) 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;

• (b) information on safety occurrences collected through automated safety data recording systems where available; This information shall be provided on an annual basis.

6. DATA TO BE PROVIDED BY THE NETWORK MANAGER

The Network Manager shall provide on a monthly basis the data required for the monitoring of the key performance indicators and the indicators for monitoring referred to in points 2 and 3 of Section 1 of Annex I, points 2 and 3 of Section 2 of Annex I and in Section 3 of Annex I.

ANNEX VII

DETERMINED AND ACTUAL COSTS

1. REPORTING TABLE ON TOTAL COSTS AND UNIT COSTS

• 1.1. A reporting table on total costs and unit costs shall be filled separately for each relevant entity incurring costs in a charging zone using the template of Table 1. In addition, a consolidated reporting table shall be filled using the template of Table 1 aggregating the data from the relevant entities for the charging zone.

In respect of terminal air navigation services, an additional reporting table on total costs and unit costs shall be filled in for each airport subject to this Regulation using the template of Table 1. Where Member States decide to apply the provisions of this Regulation to other airports referred to in Article 1(4), the costs for these airports may be presented in a consolidated table using the template of Table 1, except for the total costs referred to in line 4.2 of the template of Table 1 which shall be provided for each airport separately.

When a charging zone extends across the airspace of more than one Member State, a joint reporting table using the template of Table 1 shall be filled in in accordance with the requirements of consistency and uniformity referred to in Article 21(4).

• 1.2. The reporting tables on total costs and unit costs referred to in point 1.1 shall be filled in as part of the performance plan for each calendar year of the reference period and shall also be filled in annually to report on actual costs and actual service units. Actual service units shall be established on the basis of the figures provided by the entity that is billing and collecting charges. Any difference from these figures shall be duly justified in the additional information.

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2. ADDITIONAL INFORMATION TO THE REPORTING TABLES ON TOTAL COSTS AND UNIT COSTS

• 2.1. The following additional information shall be provided, together with the information to be included in reporting tables on total costs and unit costs referred to in point 1.1 prior to the beginning of a reference period, as part of the performance plan:

• (a) 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;

• (b) 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);

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

• (d) 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;

• (e) 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;

• (f) 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;

• (g) 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;

• (h) 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;

• (i) 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;

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

Any changes to points (a) to (j) during the reference period shall be reported together with the information provided in accordance with point 2.2.

• 2.2. The following additional information shall be provided annually, together with the information to be included in the reporting tables on total costs and unit costs referred to in point 1.1:

• (a) 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;

• (b) 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;

• (c) the breakdown of the actual costs of common projects per individual project;

• (d) 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;

• (e) 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).

ANNEX VIII

REQUIREMENTS FOR THE CALCULATION OF EN ROUTE AND TERMINAL SERVICE UNITS REFERRED TO IN ARTICLE 25

1. Calculation of en route service units

• 1.1. The en route service units shall be calculated as the product of the distance factor and the weight factor for the flight concerned. The total en route service units shall consist of the total service units in respect of IFR flights, as well as the service units in respect of VFR flights, where VFR flights are not exempted in accordance with Article 31(3), 31(4) and 31(5).

• 1.2. The distance factor in respect of a given charging zone shall be obtained by dividing by one hundred the number of kilometres flown in the great circle distance between the aerodrome of departure within, or the entry point into, the charging zone and the aerodrome of arrival within, or the exit point from, the charging zone, according to the actual route flown as recorded by the Network Manager.

The distance to be taken into account shall be reduced by 20 kilometres for each take-off from and for each landing in the charging zone.

• 1.3. The weight factor, expressed as a figure taken to two decimal places, shall be the square root of the quotient obtained by dividing by fifty the number of metric tons expressed as a figure taken to one decimal in the certificated maximum take-off weight of the aircraft as shown in the Aircraft Flight Manual.

• 1.4. Where an aircraft has multiple certificated maximum take-off weights, the highest one shall be used.

• 1.5. Aircraft operators shall declare the composition of their fleet and the certificated maximum take-off weight of each of their aircraft to the body responsible for the collection of the charge whenever there is a modification and at least annually.

Where the weight factor is unknown, the weight factor shall be calculated by taking the weight of the heaviest aircraft of the same type known to exist.

• 1.6. Where charges are billed on a regional basis, Member States may adopt common modalities of application.

2. Calculation of terminal service units

• 2.1. The terminal service unit shall be equal to the weight factor for the aircraft concerned.

• 2.2. The weight factor, expressed as a figure taken to two decimal places, shall be the quotient, obtained by dividing by fifty the number of metric tons in the highest maximum certified take-off weight of the aircraft, referred to in points 1.3 to 1.5 of Annex VIII, to the power of 0,7.

ANNEX IX

UNIT RATES

1. REPORTING TABLES ON UNIT RATE CALCULATION

A reporting table on unit rate calculation shall be filled in annually and separately for each relevant entity incurring costs in a charging zone using the template of Table 2. In addition, a consolidated reporting table shall be filled annually using the template of Table 2 aggregating the data from the relevant entities for the charging zone.

2. REPORTING TABLES ON COMPLEMENTARY INFORMATION ON ADJUSTMENTS

A consolidated reporting table for each charging zone on complementary information on adjustments shall be filled in annually using the template of Table 3.

3. REPORTING TABLES ON COMPLEMENTARY INFORMATION ON COMMON PROJECTS AND ON REVENUES FROM UNION ASSISTANCE PROGRAMMES

A consolidated reporting table for each charging zone on complementary information on common projects and on revenues from Union assistance programmes shall be filled in annually using the template of Table 4.

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4. ADDITIONAL INFORMATION TO THE REPORTING TABLES REFERRED TO IN POINTS 1, 2 AND 3

The following additional information shall be provided together with the information to be included in the reporting tables on unit rate calculation and on complementary information on adjustments, referred to in points 1 and 2:

• (a) 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;

• (b) description of the policy on exemptions and description of the financing means to cover the related costs;

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

• (d) 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;

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

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

• (g) 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.

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

• (i) 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;

• (j) 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;

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

The following additional information shall be provided together with the information to be included in the reporting tables on complementary information on common projects and on Union assistance programme referred to in point 3:

• (l) 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.

ANNEX X

CRITERIA FOR THE ASSESSMENT OF WHETHER THE PROVISION OF THE SERVICES REFERRED TO IN ARTICLE 35(1) IS SUBJECT TO MARKET CONDITIONS

• 1. The extent to which service providers can freely choose to enter or withdraw from the provision of those services:

• (a) 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;

• (b) the scope, duration and value of service contracts;

• (c) 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.

• 1. The extent to which there is a free choice in respect to service provider, including, in the case of airports, the option to self-supply terminal air navigation services:

• (a) 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;

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

• 1. The extent to which a market structure and competition either exists or a credible prospect of competition exists:

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

• (b) 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.

• 1. For terminal air navigation services, the extent to which airports are subject to commercial cost pressures or incentive-based regulation:

• (a) whether airports actively compete for airline business;

• (b) the extent to which airports bear the air navigation service charge;

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

• 1. The extent to which a provider of terminal air navigation services or CNS, MET and AIS services or ATM data services that also provides en route air navigation services has separate accounting and reporting.

• 1. For terminal air navigation services, the assessment in this Annex shall be carried out at each individual airport, or in groups of airports.

ANNEX XI

REPORTING TABLES TO SUPPORT THE COST BASE AND UNIT RATES TO BE PROVIDED TO THE COMMISSION IN ACCORDANCE WITH ARTICLE 35(6)

1. THE COSTS OF AIR NAVIGATION SERVICES

1.1.   Reporting tables

The following instructions shall be followed for the purpose of reporting data in Tables A and B;

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

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

• (c) 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.

Table A

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Table B

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1.2.   Additional information

The following additional information shall be provided together with the information to be included in Tables A and B:

• (a) description of the unit of output used in Table B;

• (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);

• (c) 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;

• (d) description and explanation of five year planned costs and investments in relation to expected traffic;

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

• (f) justification for the cost of capital, including the components of the asset base;

• (g) 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.

ANNEX XII

ESSENTIAL ELEMENTS FOR THE CONSULTATIONS REFERRED TO IN ARTICLE 24(3) AND ARTICLE 30(1)

• 1. The consultation referred to in Article 24(3) shall concern in particular the following essential elements related to the transparency of costs:

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

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

• 1. The consultation referred to in Article 30(1) shall concern in particular the following essential elements related to the transparency of unit rates:

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

• (b) evolution of traffic compared to the traffic forecast set out in the performance plan;

• (c) 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;

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

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

ANNEX XIII

SPECIFIC REQUIREMENTS ON INCENTIVE SCHEMES REFERRED TO IN ARTICLE 11(3)

1. MODULATION OF PIVOT VALUES

1.1.   For en route air navigation services

Where a national supervisory authority decides to apply a modulation mechanism of en route pivot values in accordance with points (c)(ii), (g)(iii) and (v) of Article 11(3), this modulation mechanism may follow one or both of the points below:

• (a) 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;

• (b) 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.

1.2.   For terminal air navigation services

Where a national supervisory authority decides to apply a modulation mechanism of terminal pivot values in accordance with points (c)(ii), (g)(iii) and (v) of Article 11(3), this modulation mechanism may follow one or both of the points below:

• (a) 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.

• (b) 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.

2. CALCULATION OF FINANCIAL ADVANTAGES AND DISADVANTAGES

2.1.   For en route air navigation services

• (a) 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.

• (b) 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.

2.2.   For terminal air navigation services

• (a) 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.

• (b) 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.

[^E0001]: Council Regulation (EEC) No 95/93 of 18 January 1993 on common rules for the allocation of slots at Community airports (OJ L 14, 22.1.1993, p. 1).

[^E0002]: Commission Implementing Regulation (EU) 2017/373 of 1 March 2017 laying down common requirements for providers of air traffic management/air navigation services and other air traffic management network functions and their oversight, repealing Regulation (EC) No 482/2008, Implementing Regulations (EU) No 1034/2011, (EU) No 1035/2011 and (EU) 2016/1377 and amending Regulation (EU) No 677/2011 (OJ L 62, 8.3.2017, p. 1.)

[^E0003]: Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (OJ L 320, 29.11.2008, p. 1).

[^E0004]: Regulation (EU) No 996/2010 of the European Parliament and of the Council of 20 October 2010 on the investigation and prevention of accidents and incidents in civil aviation and repealing Directive 94/56/EC (OJ L 295, 12.11.2010, p. 35).

[^E0005]: Regulation (EU) No 376/2014 of the European Parliament and of the Council of 3 April 2014 on the reporting, analysis and follow-up of occurrences in civil aviation, amending Regulation (EU) No 996/2010 of the European Parliament and of the Council and repealing Directive 2003/42/EC of the European Parliament and of the Council and Commission Regulations (EC) No 1321/2007 and (EC) No 1330/2007 (OJ L 122, 24.4.2014, p. 18).