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New Business Models for ANS Infrastructures
    Regulatory approach

    Alias Conference
    Francis Schubert
    15 June 2012




1
The need for new business models


› Comprehensive regulatory framework established for SES
› However, progress still unconvincingly slow. The main reasons for
  this are:
     No commonly-agreed business model to support the future
      provision of FABEC air navigation services, in order to generate
      consolidation effects.
     Process of establishing meaningful Functional Airspace Blocks
      (FABs) is being slowed by questions of governance and
      organisation.




2
The Virtual Center model


› A virtual centre is a group of air traffic services units operating from
  different locations which use fully standardised methods of operation,
  procedures and equipment in such a manner that they are perceived
  as a single system from an airspace user’s perspective.




3
The Virtual Center Model


    The Common Controller Cockpit
    – the enabler for standardized services
    - open system for European certified "plug ins"


    The Standardised Interface




    The information Cloud
    – the data service provisioning


                                                      page 4
4
The Virtual Center model


› Model inspired by:
     the development of aircraft cockpits
     the concept of cloud computing.
› Cockpits present similar interface and common functions throughout a
  particular aircraft family, and regardless of the aircraft’s operator.
› Cockpit equipment and functionalities are highly standardised,
  however, the technical equipment downstream from the cockpit may
  be based on very different systems provided by a wide range of
  potential suppliers.
› The concept is not new; but the time has come to extend it to air
  navigation services.


5
Common Controller Cockpit concept
› The “common controller cockpit” concept:
     Breaks away from conventional integrated and monolithic air traffic
       management system thinking.
     Assumes that the part of the system which is of common strategic
       importance to ANSPs is the controller’s workstation or human/machine
       interface.
     Fully standardises controller’s workstation and its functionalities to
       permit common working processes throughout Europe.
     Recognises the specificity of certain working environments but permits a
       broad selection of European-certified “plug-in” applications to perform
       particular functions:
           Certain approach control operations,
           Services in complex airspace,
           Safety and forecasting tools
           Etc.


6
The Information Cloud
› Provides ANSPs with a way to procure information services instead of technical
  equipment (e.g. FDP).
› Such data services can delivered either
       by multiple industry providers; or
       as an intermediate step, by ANSPs.
› ANSPs will also be free to
       purchase a full radar data processing system to connect to its workstations;
        or
       to purchase flight data directly from another ANSP or a commercial data
        supplier.
› The provision of the technical equipment downstream from the controller’s
  workstation need no longer form a part of the system owned or operated by an
  individual ANSP.



  7
The common standardised interface


› It will be critical to standardise the interfaces between the common
  controller cockpit and the systems providing and receiving required
  and processed data.
› The concept of such standards forms one of the three key pillars of a
  successful deployment of the next generation of technology,
  alongside the pillars of ‘technology’ and of ‘harmonised operational
  procedures’.




8
Benefits


› Reduction of ANSPs’ dependency on a small number of technical
  suppliers and consequently lower costs.
› Opens data processing and supply activities up to competition.
› Individual ANSPs no longer compelled to purchase a fully-fledged
  system of their own, but able to:
     acquire a service from a competitive supplier; or
     share equipment with another provider
› Reduction of investment costs and overall costs of providing the
  services.



9
Benefits


› Allow ANSPs to close down certain facilities at times of low traffic (e.g. at
  night).
› Offers an attractive option in terms of contingency facilities
› Airspace sectors can be more flexibly assigned among the centre’s units,
  depending on the resources available at any given time.
› Will allow multiple ANSPs to pool resources in the longer term, in particular
  within FABs.
› Reduce the cost of complexity of the European Air Traffic Management
  system by supporting common operational procedures.
› Facilitates controller mobility, by making it easier for a controller to adapt to
  another facility:
      Social acceptablity

10
Conclusions:
The need for an harmonised regulatory approach

› Virtual centre business model's underlying principles must be rapidly
  incorporated into the European regulatory framework.
      Regulatory approach can (and must) remain light and focused
      Transition period of no longer than 15-20 years
      relevant regulations must be harmonised across Europe.
› The regulatory foundation should take the form of:
      an EC implementing rule establishing:
            a requirement to standardise the HMI functions and interfaces with
             the controller workstations (to permit equipment downstream to be
             replaced by information services.)
            Standardised interface.
› Support via European funding:
      Support early adopters
      Incentives for RP2.

11

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Regulatory Aspects of New Innovative Business Model by F. Schubert

  • 1. New Business Models for ANS Infrastructures Regulatory approach Alias Conference Francis Schubert 15 June 2012 1
  • 2. The need for new business models › Comprehensive regulatory framework established for SES › However, progress still unconvincingly slow. The main reasons for this are:  No commonly-agreed business model to support the future provision of FABEC air navigation services, in order to generate consolidation effects.  Process of establishing meaningful Functional Airspace Blocks (FABs) is being slowed by questions of governance and organisation. 2
  • 3. The Virtual Center model › A virtual centre is a group of air traffic services units operating from different locations which use fully standardised methods of operation, procedures and equipment in such a manner that they are perceived as a single system from an airspace user’s perspective. 3
  • 4. The Virtual Center Model The Common Controller Cockpit – the enabler for standardized services - open system for European certified "plug ins" The Standardised Interface The information Cloud – the data service provisioning page 4 4
  • 5. The Virtual Center model › Model inspired by:  the development of aircraft cockpits  the concept of cloud computing. › Cockpits present similar interface and common functions throughout a particular aircraft family, and regardless of the aircraft’s operator. › Cockpit equipment and functionalities are highly standardised, however, the technical equipment downstream from the cockpit may be based on very different systems provided by a wide range of potential suppliers. › The concept is not new; but the time has come to extend it to air navigation services. 5
  • 6. Common Controller Cockpit concept › The “common controller cockpit” concept:  Breaks away from conventional integrated and monolithic air traffic management system thinking.  Assumes that the part of the system which is of common strategic importance to ANSPs is the controller’s workstation or human/machine interface.  Fully standardises controller’s workstation and its functionalities to permit common working processes throughout Europe.  Recognises the specificity of certain working environments but permits a broad selection of European-certified “plug-in” applications to perform particular functions:  Certain approach control operations,  Services in complex airspace,  Safety and forecasting tools  Etc. 6
  • 7. The Information Cloud › Provides ANSPs with a way to procure information services instead of technical equipment (e.g. FDP). › Such data services can delivered either  by multiple industry providers; or  as an intermediate step, by ANSPs. › ANSPs will also be free to  purchase a full radar data processing system to connect to its workstations; or  to purchase flight data directly from another ANSP or a commercial data supplier. › The provision of the technical equipment downstream from the controller’s workstation need no longer form a part of the system owned or operated by an individual ANSP. 7
  • 8. The common standardised interface › It will be critical to standardise the interfaces between the common controller cockpit and the systems providing and receiving required and processed data. › The concept of such standards forms one of the three key pillars of a successful deployment of the next generation of technology, alongside the pillars of ‘technology’ and of ‘harmonised operational procedures’. 8
  • 9. Benefits › Reduction of ANSPs’ dependency on a small number of technical suppliers and consequently lower costs. › Opens data processing and supply activities up to competition. › Individual ANSPs no longer compelled to purchase a fully-fledged system of their own, but able to:  acquire a service from a competitive supplier; or  share equipment with another provider › Reduction of investment costs and overall costs of providing the services. 9
  • 10. Benefits › Allow ANSPs to close down certain facilities at times of low traffic (e.g. at night). › Offers an attractive option in terms of contingency facilities › Airspace sectors can be more flexibly assigned among the centre’s units, depending on the resources available at any given time. › Will allow multiple ANSPs to pool resources in the longer term, in particular within FABs. › Reduce the cost of complexity of the European Air Traffic Management system by supporting common operational procedures. › Facilitates controller mobility, by making it easier for a controller to adapt to another facility:  Social acceptablity 10
  • 11. Conclusions: The need for an harmonised regulatory approach › Virtual centre business model's underlying principles must be rapidly incorporated into the European regulatory framework.  Regulatory approach can (and must) remain light and focused  Transition period of no longer than 15-20 years  relevant regulations must be harmonised across Europe. › The regulatory foundation should take the form of:  an EC implementing rule establishing:  a requirement to standardise the HMI functions and interfaces with the controller workstations (to permit equipment downstream to be replaced by information services.)  Standardised interface. › Support via European funding:  Support early adopters  Incentives for RP2. 11