4 Financial cost-effectiveness
This chapter provides a preliminary analysis of financial cost-effectiveness.
4.1 Pan-European system level
Figure 4.1 shows that in 2023 the unit ATM/CNS provision costs fell by -7.3% compared to 2022, reaching an amount of €460. This is the result of traffic increase (+11.0%) being partly offset by growth of ATM/CNS provision costs (+2.9%).
Unit ATM/CNS provision costs in 2023 returned to the level of financial cost-effectiveness achieved in 2019, itself the lowest unit cost achieved since the inception of the ACE benchmarking in 2002.
The analytical framework used in the ACE analysis to break down the financial cost-effectiveness indicator into relevant economic drivers is presented in Figure 4.2. These key drivers include:
a) ATCO-hour productivity (0.97 composite flight-hours per ATCO-hour);
b) ATCO employment costs per ATCO-hour (€144); and,
c) support costs per unit output (€311).
Figure 4.3 shows that in 2023, ATCO employment costs per ATCO-hour rose by +2.2% while ATCO-hour productivity rose by +9.0% compared to 2022. As a result, ATCO employment costs per composite flight-hour decreased (-6.3%). In the meantime, unit support costs fell by -7.8% due to an increase in composite flight-hours (+11.0%) being partly offset by an increase in support costs (+2.3%). Consequently, in 2023, unit ATM/CNS provision costs fell by -7.3% at the Pan-European system level compared to 2022, taking into account the relative weighting of ATCO employment and support costs based on their shares of total ATM/CNS provision costs.
As the values of the 2022 indicators were affected by the persistent consequences of the COVID-19 crisis, Figure 4.4 below provides an additional analysis using 2019 as a reference year. It shows that in 2023 traffic was still -3.7% below its 2019 level. However, an equivalent reduction in total support costs (-3.8%) means that unit support costs in 2023 were all but level with 2019 (-0.1%). ATCO employment costs were also very close to their 2019 value (+0.6%) as both employment costs per ATCO-hour and ATCO-hour productivity remained marginally below pre-pandemic levels (-0.3% and -0.9% respectively). Overall, the unit cost in 2023 was +0.1% higher than in 2019.
4.2 ANSP level
All figures presented in this section present the preliminary benchmarking results for the 38 ANSPs. Because of their weight in the Pan-European system, the six largest ANSPs by cost (DFS, DHMI, DSNA, ENAIRE, ENAV and NATS) are also shown in a miniature replica of the chart (top right corner of the figures). Compared to previous years’ report, DHMI is now part of this group since its share in the total Pan-European system costs is now reaching 7%, which is close to ENAV and NATS shares. The 1st and 3rd quartiles for each indicator are also shown in all figures. The gap between these two quartiles provides additional insight on the dispersion of the values.
Figure 4.5 presents the financial gate-to-gate cost-effectiveness indicator at ANSP level for the year 2023. The dotted lines represent the 1st and 3rd quartiles (€352 and €536, respectively).
Figure 4.6 presents the ATCO-hour productivity indicator at ANSP level for the year 2023. The dotted lines represent the 1st and 3rd quartiles (0.7 and 1, respectively).
Figure 4.7 presents the employment costs per ATCO in OPS indicator at ANSP level for the year 2023. The dotted lines represent the 1st and 3rd quartiles (€64 and €151, respectively).
Figure 4.8 presents the support costs per composite flight-hour indicator at ANSP level for the year 2023. The dotted lines represent the 1st and 3rd quartiles (€238 and €363, respectively).
A more detailed analysis of the changes in cost-effectiveness, ATCO-hour productivity, ATCO employment costs per ATCO-hour and unit support costs will be available in the final ACE benchmarking report.