Brian Humphries CBE

President EBAA

Sopwell House 6th March 2012

Curtailing Illegal FlightsCreating a WIN – WIN – WIN Environment

PASSENGERS INDUSTRY GOVERNMENTS

WIN WIN WIN

The Scope of Business Aviation in Europe

570 operators (source AMSTAT)

4,266 business aircraft in 2011 (source BART)

• 2,936 Jets• 1,279 Turboprops• 51 BBJs

The Scope of Business Aviation in Europe• 654,514 movements in 2011* • Representing 7.2% of all movements in EU 27* • 45% Commercial and 36% Non-Commercial** • 9% of these flights in 2009 were by “N-registered” aircraft** • Operations concentrated in Europe’s economic heart

* Source Eurocontrol 2011** Source Eurocontrol 2010

The Scope of Business Aviation in Europe

Business Aviation sector contributed a total of €19.7bn in annual gross value added (GVA) to the European economy in 2007, accounting for approximately 0.2% of the combined GDP of the European Union (EU), Norway and Switzerland. (PwC study)

Flying Europe’s Return to Economic Growth

The Issue

What is an illegal flight or operator? EU Operators

• Non-commercial EU operators performing public transportation within EU territory without a valid AOC

Non-EU Operators• Non-EU operators performing public transportation within EU territory without

traffic rights or /and without a valid AOC

Why You Should CareNumber of occurrences reported

It is difficult to estimate the number of illegal flights occurring in Europe. According to latest reports, the number of illegal flights ranges from

6% - 8% of all business aviation traffic in Europe• i.e. more than 45,000 movements/year • More worrying, this number is on the rise!

The prisoner's dilemma If illegal flights flourish in total impunity, forcing costs down by reneging on

safety and other critical standards, other operators may leave the market or echo the misconduct

The ImpactSafety

Depending on the country of aircraft registration, the illegal flight may be: • less safe • operated to less demanding standards

Consequently, the requirement for “a high and uniform level of protection of the European citizen that should at all times be ensured by civil aviation” (R216/2008) is unmet;

Accountability Aren’t all citizens supposed to know the law?

ON PASSENGERS

The ImpactUnfair competition

By following less demanding standards, escaping the costs of an AOC, illegal operators can operate less expensively.

Operating under a Non-Commercial flight plan allows illegal operators to operate to/from airports, but under less stringent ruling (cf. runway capacity for instance).

Non-Commercial operators can operate to shorter runways than their Commercial counterparts Reducing safety margins Resulting in an unfair competitive

advantage

ON INDUSTRY

The ImpactGovernments foot the bill

In case of an incident or accident, the passenger insurance coverage (including life insurance) may be withdrawn or invalidated;

If third-parties are impacted, the State may eventually be held liable for repairing or compensating the damage as no insurance covers the flight;

No VAT is perceived on the transaction, which represents a direct loss of income for States

ON GOVERNMENTS

The SolutionEnforcing the existing regulation

Directive 2004/36/CE (SAFA Regulation)• All Commercial aircraft• All Non-Commercial aircraft with MOTW > 5,700 KG • All Helicopters

Commission Regulation 768/2006• On collection/exchange requirements Tasks for MS and EASA

Commission Directive 2008/49 • Amending Annex II of the SAFA Directive Core elements of ramp inspection

procedures Guidance material Commission Regulation 351/2008

• Prioritisation of ramp inspections

Our ProposalDemand / Prevention

Inform passengers and operators of the risks• EBAA campaign on illegal flights• Media/ Communications• Work with service providers (airports, brokers) to help

identify illegal operators at point of booking. Provide passengers & brokers with means for

self assessment• The EU White List

Our ProposalSupply / Repression

Inform the potential illegal operator• Shine a spotlight each time an illegal operator has been caught!

Targeted ramp-check inspections• SAFA/SACA inspections targeted to unknown/suspicious operators • A clear definition of the population at risk, and a particular focus on this

population • SAFA inspections targeting major events where business aviation brings

many people to a specific location/area Improve the exchange of information between authorities

Our ProposalRegulatory solution

Adapt the existing regulation to help identify potential illegal operators• We propose amending Commission Regulation 351/2008 to reflect

targeting needs Provide inspectors with means to identify illegal operators

• Develop a toolkit to help inspectors identify all potential illegal operators

WIN – WIN – WIN

A complete reshuffle of current practices by MS and authorities is not needed. EBAA believes that:

1. Better Communication between authorities 2. The recognition of the importance of the issue – not only for BusAv, but for

safety in general 3. A greater focus on the population at risk, and 4. The establishment of a toolkit/procedure applied uniformly throughout

Europe5. Determination by the NAAs to enforce the law

… would help tremendously!

Outcome of Recent Briefing to Member States

• EBAA made a presentation on illegal flights during the 15th European SAFA Steering Group (ESSG) at the Commission to national inspectors.

• The presentation was welcomed by the audience. • EASA and the commission expressed a genuine interest in working hand in hand with

the industry against this issue. • MS declared themselves ready to renew their efforts, but

Admitted the complexity of the issue and need for help from the Associations.

THANK YOU

Are we all Committed to the task?