EASA Industry Briefing day17 Nov 2005 Cologne

Nick Mower: General Manager Technical Services

Martin Ambrose: Manager Maintenance

European Regions Airline Association

Contents

ERA key facts Focus Funding & Fees and Charges Regulatory Gap Conclusion

ERA key facts

The recognised representative body for regional air transport throughout Europe

Membership composition 69 airlines: almost 1200 aircraft in fleet 13 aircraft & equipment manufacturers 60 different types or variants 39 airports 104 suppliers

ERA publicly continues to support the concept of EASA as Europe’s Safety Agency……..

However – The Devil is in the detail!

Focus

EASA must cover all aspects of aviation safety: aircraft, operators, crews, ATC, airports, training

Objective of a European equivalent to US FAA must not be lost

All aviation safety aspects are increasingly integrated and inter-related

need for an efficient and consistent safety regulation by a single organisation

Focus

EASA’s legal competencies: short term

Flight Operations (2007/8) Flight Crew Licensing (2007/8) Third Country operator aircraft (JAA LO)

Longer term European Air Traffic Management system

(2010-12) Airport safety (2010-12)

Focus

EASA has an operational role unlike other EU Agencies

must be recognised by EU institutions A clear business model must be defined and imposed

on both EASA and NAAs NAA’s are EASA’s “Master and Servant”

Focus

Standardisation must be enhanced to ensuring uniform implementation of safety rules in

Europe vital element for the credibility of European aviation

safety system vis-à-vis Industry, foreign authorities and International Civil Aviation Organisation (ICAO)

Focus

Funding & Fees and Charges

Agency are predicting a year end deficit in excess of €1m (down from €13m) due to:

Income less than expected (>30% predicted) Costs higher than expected Cash flow problems Incorrect budget assumptions

Why? amount and cost of work outsourced by the Agency incorrect assumptions on expected income from the

Fees and Charges Agency assumed all invoices would be paid in 30

days.

Funding & Fees and Charges

Outsourcing This should have been better budgeted for! Furthermore the Agency appears to be using the most

expensive NAA to do a high percentage of the work

Funding & Fees and Charges

Additional subsidy by the Commission Industry stated that the Commission should make

good the deficit as the overall costs were within budget

Business Plan Industry pointed out that the Agency should have a

long term strategy and a realistic and attainable business plan supported by a strategic budget

Approval delivery Contract Contract performance ‘Credit’ Bank Account for applications to be processed

Funding & Fees and Charges

NAA’s reduction in resources This must be assured & the aggregate cost of

Regulation must be seen to decrease

Increase in “public” funding EC so far give a negative response to additional

subsidy

Cash reserve The Agency must be provided with a cash reserve to

smooth the peaks and troughs in income and expenditure

Funding & Fees and Charges

ERA continues to make it clear that any shortfall should not and must not come from Industry!

EASA should not be compromised by lack of (public) Funds

Funding & Fees and Charges

Regulatory Gap

Future of JAA Working Group (FUJA) No Industry participation! 3 main tasks

transfer remaining activities to EASA and disband JAA

deal with non-EU states decide funding of JAA

Future of JAA – roadmap milestones Big Bang date 1 Jan 2007! JAA HQ Hoofddorp closes 31 Dec 2006 JAA Liaison Office established in Köln

coordinate non-EU states JAA Training Office remains in Hoofddorp

implementing JARS and IRs

Regulatory Gap

Future of JAA – conflicts Will EASA experience levels and resources be enough

for Ops and FCL by 1 Jan 2007? Implementing Rules for EU Part OPS and EU Part FCL

not expected before Sep 2007 EASA need to administer JAR OPS 1 until then

rely on JAA? only 10 personnel follow JAR 11 procedures? industry input possible?

Regulatory Gap

Future of JAA – conflicts EU PART OPS unlikely before Sep 2007 – any delay

could impact further on Part OPS some states not keen on EASA administering JAR

OPS due to lack of competence and reluctant to relinquish their own oversight responsibilities

therefore, Sep 2007 is very optimistic date for EASA rule concerning Operations and FCL

Regulatory Gap

Future of JAA – existing work programmes All existing JAA expert groups…. all cease work by

mid 2006 unless NPA can be issued for consultation and

subsequently processed and published by then, they will be handed over to EASA

priority items only Earliest introduction of EU-OPS 1 vital possible “void” of up to 18-months!

Regulatory Gap

ERA will continue to assist the Agency in developing its competence in order to enhance the global competitiveness of Europe’s aviation industry

Member of the Industry EASA Advisory Board (EAB) Member of the EASA Safety Standards Consultative

Committee (SSCC) Chairmanship of SSCC Maintenance Sub -Working

Group Supporting earliest establishment of EASA Safety

Strategic Initiative: ESSI EASA Budget & Future Work programme Review

Groups

Conclusion

ERA, the EASA Advisory Board (and industry in general) want a successful EASA

But we have concerns: Must have real stakeholder involvement Scope Relationships between NAA’s and EASA Standardisation Funding Regulatory gap

Conclusion