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Directorate also provided additional services to States and
ANSPs covering:
• The calculation, billing and collection of terminal charges
for Member States on the basis of bi-lateral agreements.
• The calculation, billing and collection of air navigation
charges for non-Member States on the basis of bi-lateral
agreements.
• The provision of advisory services on charging policies,
operation of air navigation charges and on the
funding/financing of air navigation services.
These additional services account for a considerable
amount of extra revenue, as well as helping to streamline the
overall billing and collection process in and around Europe.
Terminal charges levied for each departing flight
remunerate Member States for the costs incurred in providing
terminal air navigation services. In 2005, the CRCO operated
six bilateral agreements and billed a total of 2 million flights,
I amounting to some E320 million. The CRCO also bills and
collects the Shanwick communication charges on behalf of
the Irish Aviation Authority.
Currently, the CRCO operates seven bi-lateral agreements
with non-Member States in Europe/Eurasia and Africa for
collection of air navigation charges and, in 2005, billed a total
of 1 million flights amounting to some E245 million.
Meeting the needs of the industry
Being responsible for billing and collecting more than 80 per
cent of air navigation charge revenues, the CRCO has to
demonstrate year after year its capability to secure funds in a
reliable and stable manner. The pressure to achieve highest
performances comes from the States and the service providers,
which are themselves faced with the needs of the air transport
industry for safe and efficient operation. The resurgent growth
of air traffic since 2003, and the resultant demand for
improvement and investment in ATC service provision,
reinforces the imperative objective to collect amounts billed to
the highest extent possible and as quickly as possible.
The bottom-line for the CRCO’s overall performance is what
is ultimately collected from users. After one year, the CRCO
typically achieves a rate of recovery well in excess of 99 per
cent. In the last five years an average of 0.60 per cent of
amounts billed was written-off as irrecoverable, an indication
of what sustained action under pressure can produce. For the
2005 amount billed – E5.67 billion – 99.63 per cent has
already been collected and more is still expected.
The collection of such high percentages of route charges is
the result of decisions taken at strategic level down to the
level of daily activities and across all internal processes.
Applying principles for establishing route charges as defined
by the International Civil Aviation Organisation (ICAO), as well
as maintaining on-going contacts with the air transport
industry through multilateral consultation and daily
relationship with airlines, are undoubtedly key factors of
success. Powerful enforced recovery means that the States
have put in place also play a role.
However, results would not be what they are without skilled
and highly professional staff, streamlined procedures and
dedicated commitment for performances. All processes in the
CRCO are interdependent and collection success depends
heavily on state-of-the-art billing, accounting and information
ATM: THE CHALLENGE OF GROWTH
40
technology. The accuracy, reliability and cycle-speed of the
billing process has gained worldwide recognition as the best
in its class. The precision and speed of accounting procedures
give an accurate and speedy overall view of users’ accounts at
all times. CRCO computer experts oversee the developments
and operations of the many complex systems and its airline
database has no match in the aviation world.
The CRCO is constantly working to improve its services,
holds regular meetings with stakeholders and performs
regular customer satisfaction surveys. It is also undertaking
major efforts to ensure business continuity in the event of a
disaster. Greater integration with the Central Flow
Management Unit (CFMU), as the CFMU supplies high quality
flight information to the CRCO, is one of the most promising
means to support future changes in operation.
Revising the EUROCONTROL route charges system
The CRCO provides billing and collection services within the
framework of a common route charges system that is the
corner stone of the common policy for route charges adopted
by EUROCONTROL Member States and ANSPs. The
EUROCONTROL common policy builds on the Multilateral
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Partnership for Performance and Growth.(10)
