Preliminary Cost-Benefit Analysis CS#6 - Management of Common Network Resources Service (CNR)
Alberto Varano Principal Director Resources 5 July 2013...
Preliminary Cost-Benefit Analysis CS#6 - Management of Common Network Resources Service (CNR)
Alberto Varano Principal Director Resources 5 July 2013
CBA Method Preliminary CBA at feasibility stage to assess value of the CS concept CBA compares 2 scenarios: Current best case fragmented implementation inc. FAB deployments and SESAR Common Project deployments Deployment of Centralised Service
For robust CBA, uncertainties addressed through conservative assumptions: ‘High’ Costs for Centralised Service Scenario ‘Low’ Costs for Fragmented scenario
CBA Method (2) CBA quantifies impact of deploying CS on aviation stakeholders: ANSP, EUROCONTROL, Airlines and other Airspace Users CBA takes account of Investment costs, Operating and Maintenance Costs Operational benefits such as fuel burn, ATCO productivity and QoS The cost and benefit impact of time to operations
Not included in the CBA: knock on effects on costs and benefits of enabling better performance (e.g. better data quality will lead to improvement of services) Impact of tendering the services. The competition in tendering , can lead to best innovative solutions in the most cost efficient conditions
An external company will validate EUROCONTROL CBAs
CBA Scenarios The CBA compares two scenarios in 2014-2030: Fragmented Scenario: Continuation of existing centralised services partially used and fragmented implementation of new services in FAB Centralised Service: Centralised services fully used and rationalised. Implementation of new services in a centralised way.
Preliminary Cost Benefit Analysis CS#6
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CBA Dates Fragmented Scenario (new services) Feasibility Phase
Development
Deployment Phase
Start Operations
Full Operations
CBA Time Horizon
N/a
2014-2015
2015-2022
2015
2023
2014-2030
Centralised Service (CS#6) Feasibility Phase
Development
Deployment
Start Operations
Full Operations
CBA Time Horizon
2014-2015
2015-2016
2016-2017
2017
2017
2014-2030
Preliminary Cost Benefit Analysis CS#6
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Centralised Service vs Fragmented Deployment – CS#6 Common Network Service Costs Investment Costs
Operating & Maintenance Costs
ATCO Costs
Operational Benefits Time to Operations
Fuel burn / Route Extension
CO2 Tax Savings
ATCO productivity
QoS (Capacity, Delay..)
CS #6 is an enabler and does not have direct operational benefits. CS#6 enables the introduction of further improvements by providing a common management of infrastructure technical data and parameters needed for interoperability. Potential of reduction of manual procedure to maintain and coordinate data (frequencies, network adresses etc…) reducing errors. These are not quantified in the CBA
Preliminary Cost Benefit Analysis CS#6
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Costs
CS#6 will have significantly lower investment, operating & maintenance costs than the fragmented scenario
Investment Costs
Operating & Maintenance Costs
ATCO Costs
Time to Operations
Other Costs
-
-
0
0
0
Investment cost is 4 times lower for the centralised solution
The yearly operating costs can be cut in half by centralised services
For new security services 6 M€ in CS#6 vs 27 M€ in Fragmented Scenario
For new services 20 M€ in CS#6 vs 42 M€ in Fragmented Scenario
Preliminary Cost Benefit Analysis CS#6
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Preliminary Cost Benefit Analysis Results CS#6 Management of Common Network Resources Service (CNR)
Deployment of CS#6 reduces European ANS costs by 22 M€ a year Total cost saving with CS#6 is 240 M€ in 2014-2030
