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ICAO WARFM T&T Oct 2005 1Copyright, 1996 Dale Carnegie & Associates, Inc.
Agenda Item 1
ICAO Policies on Airport and Air
Navigation Charges
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ICAO WARFM T&T Oct 2005 2
OverviewOverview
Policy MaterialPolicy Material
Chicago Convention, Article 15 (Doc7300)
ICAOs Policies on Charges (Doc9082) and on Taxes (Doc 8632)
Assembly Resolutions
ICAO policy on implementation ofCNS/ATM systems
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ICAO WARFM T&T Oct 2005 3
ChicagoConvention
(Article 15)
Doc 7300
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ICAO WARFM T&T Oct 2005 4
Article 15 - Airport and similarcharges
Article 15 - Airport and similar
charges
Uniform conditions shall apply to use
of airports and air navigation facilitiesand services
Non discrimination in chargesNo charge solelyfor the right tooverfly, enter or exit
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ICAO WARFM T&T Oct 2005 5
The Chicago Convention is binding upon
all signatory States
A State may delegate operation offacilities and services but remains
responsible for ensuring that all
provisions of the Convention and
Annexes are complied with
A State may delegate operation offacilities and services but remains
responsible for ensuring that all
provisions of the Convention and
Annexes are complied with
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ICAO WARFM T&T Oct 2005 6
Conference on the Economics of
Airports and Air Navigation Services
Conference on the Economics of
Airports and Air Navigation Services
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New or revised policy guidanceNew or revised policy guidance
Independent mechanism for economic
regulation [15]Performance parameters [16]
Best commercial practices [17]
Joint charges collection [18]
Intermingling of non-aeronautical and
aeronautical revenues for establishingcharges [22 i), 22vii)]
Pre-funding of projects [24]
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ICAOs Policieson Charges for
Airports andAir NavigationServices
Doc 9082/7
Statements by the Councilto Contracting States onCharges for Airports andAir Navigation Services
Doc 9082/5
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ICAOs Policies in Doc 9082/7ICAOs Policies in Doc 9082/7
Contents
Introduction
ICAOs Policies on Airport Charges
ICAOs Policies on Charges for Air
Navigation Services
Appendices
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ICAO WARFM T&T Oct 2005 10
Definition of a chargeDefinition of a chargecharge = to recover the costs of
providing facilities and services foraviation
tax = to raise national or localgovernment revenue, usually notfor aviation
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ICAO WARFM T&T Oct 2005 11
Scope and proliferation of
charges [8-9]
Scope and proliferation of
charges [8-9]
The Council recommends that States:
Permit imposition of charges only for
services and functions provided for civilaviation operations
Refrain from charges that discriminate
against international civil aviation
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Organizational and
managerial issues [10-18]
Organizational and
managerial issues [10-18]Autonomy and privatization
Independent mechanism for economicoversight of airports and air navigationservices
Development and application ofperformance parameters
Best commercial practicesCharges collection
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Autonomy and privatizationAutonomy and privatization
Establish autonomous entities where best forproviders and users
Private involvement, State ultimately
responsible for safety, security and economic
oversight
ANS: international cooperation encouragedChicago Convention and Annexes must be
observed
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Each Contracting State has
responsibility forAirports and Air Navigation
Services in its territory inaccordance with Standards and
Practices recommended
or established pursuant to theConvention
Each Contracting State has
responsibility forAirports and Air Navigation
Services in its territory inaccordance with Standards and
Practices recommended
or established pursuant to theConvention
Doc 7300Doc 7300
Article 28Article 28
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ICAO WARFM T&T Oct 2005 15
Independent Mechanism for
Economic Regulation
Independent Mechanism for
Economic RegulationMain Functions
Ensure non discrimination in charging
Ensure no overcharging/anti-
competitive practices/abuse of position
Ensure transparency and presentation
of financial data
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Independent Mechanism for
Economic Regulation (cont.)
Independent Mechanism for
Economic Regulation (cont.)
Assess/encourage efficiency/efficacyEstablish standards, quality and level
of serviceMonitor investments for future demand
Ensure users views are considered
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Performance ParametersPerformance Parameters
Develop and collect data on performance
(safety, delay, predictability, flexibility,efficiency, availability, access,
environment and cost of service)Evaluate and improve quality of service
Consultations with users
Costing systems to understand the true
costs
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ICAO WARFM T&T Oct 2005 18
Best Commercial PracticesBest Commercial Practices
Quality/timeliness of services
Assessing investment proposals
Consultation with users
Accounting practices/transparency
Subsidization
Development plans
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Balance of interest and
cooperation
Balance of interest and
cooperation
Importance of air transport to
States
Share economic difficulties
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ICAO WARFM T&T Oct 2005 20
ICAOs Policies on Airport
Charges
ICAOs Policies on Airport
ChargesThe cost basis for charges [ 21-22]
Airport charging systems [ 23]
Pre-funding of projects [ 24]
Currency issues [ 25]
Landing charges [ 26]
Parking and hangar charges [ 27]
Passenger service charges [ 28]
Doc 9082/6Doc 9082/6
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ICAO WARFM T&T Oct 2005 21
ICAOs Policies on Airport
Charges (cont.)
ICAOs Policies on Airport
Charges (cont.)
Security charges [ 29]
Noise-related charges [ 30]
Consultation with users [ 31-33]
Development of revenues from
concessions, rental of premises,
and free zones [ 34]
Fuel concession fees [ 35]
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ICAO WARFM T&T Oct 2005 23
Aviation Security Costs
( 29)
Aviation Security Costs
( 29)
1. Consultations before any securitycosts are assumed by airports, aircarriers or other entities
2. Recovery in a fair and equitablemanner
3. Direct relation to costs incurred
4. No charging for general security
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Security (cont.)Security (cont.)
Appendix 1 of Doc 9082 updated
(services to be taken into account whendetermining costs related to airport
security)
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Policies on Air Navigation
Services Charges
Policies on Air Navigation
Services Charges
Cost basis for charges
Allocation of costs among aeronautical
users
Charging systems
Prefunding of projects
Currency issues
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Policies on Air Navigation
Services Charges (cont)
Policies on Air Navigation
Services Charges (cont)
Approach and aerodrome control
charges
Route chargesCharges for services used when
not over provider State
Consultation with users
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Policies on Air Navigation
Services Charges (cont)
Policies on Air Navigation
Services Charges (cont)
Security measures ( 38 iv)):- preventive nature, routine basis
- If not already considered in thecontext of safety-related measures
- No duplication with airportmeasures
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ICAO WARFM T&T Oct 2005 29
Airport Economics ManualAirport Economics Manual1. ICAO policy on airport charges
2. Organizational structures
3. Airport management
4. Determining the cost basis5. Charges on air traffic and their collection
6. Development and management of non-
aeronautical activities7. Financing
Doc 9562/2Doc 9562/2
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Manual on Air Navigation
Services Economics
Manual on Air Navigation
Services Economics
ICAO Policy on ANS Charges
Organizational Structures
International cooperation
Financial management
Financing ANS Infrastructure
Determining the Cost BasisANS Charges and their Collection
Doc 9161/4Doc 9161/4
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ICAO WARFM T&T Oct 2005 31
Assembly ResolutionsAssembly Resolutions
Consolidated Statement of ContinuingICAO Policies in the Air Transport Field(A35-18)
Consolidated Statement of ContinuingICAO Policies and Practices Related toEnvironmental Protection (A35-5)
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A35-18 Appendix FA35-18 Appendix FSection 1. Charging policy
Definition of a charge and a taxThe Assembly urges Contracting States
To ensure that Article 15 is fully
respectedTo base recovery of costs on Article 15and Doc 9082
To ensure that charges only be appliedtowards defraying costs
To publish and communicate charges
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ICAO WARFM T&T Oct 2005 33
A35-18 Appendix FA35-18 Appendix F
Section 2. Economics and managementThe Assembly
Reminds Contracting States that theyremain responsible under Article 28Urges States to cooperate in recovery ofcosts of multinational facilities and servicesRequests Council to provide economic andorganizational advice
Requests Council to keep the economicsituation under reviewUrges States to provide financial data
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A35-5 Appendix IA35-5 Appendix IUse of market-based measures to limit
or reduce aircraft engine emissionsRequest the Council to developguidance for implementing these
measures
Evaluate the costs and benefits of
measures studied (voluntary measures,charges, emissions trading)
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ICAO WARFM T&T Oct 2005 35
CNS/ATM systemsCNS/ATM systemsICAO policy on implementation andoperation of CNS/ATM systems is inDoc 9750: Global Air Navigation Plan forCNS/ATM Systems
Based on the observance of a certainnumber of principles (accessibility,States responsibility and sovereignty,ICAOs role, technical cooperation,institutional arrangements, GNSS, costrecovery, etc.)
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DiscussionDiscussionAny queries or problems with ICAO
policy guidance?Does cooperation exist in your State inaccordance with paragraph 20?
Who is providing security at yourinternational airports, and how are thecosts recovered (are they recovered
through a separate charge/fee and/orincluded in another charge/fee)?
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