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Hungarian National Assembly

Committee on Economics

Martijn van Helvert (CDA) 

Salima Belhaj (D66)

Parliamentary rapporteur on the matter Single European Sky

House of Representatives of the Netherlands

Budapest, 1 June 2016

Dear Mr Martijn van Helvert,

Dear Mrs Salima Belhaj,

As chairman of the Committee on Economics of the Hungarian National
Assembly I inform you about our committee’s standpoint of the issue of
the Single European Sky (SES). 

1. Sovereignty, sensitivity lies

Although Hungary is committed to implement and operate efficiently the
Single European Sky we think it should be without prejudice to the
sovereignty of Member States in their airspace. There are several
national economic and national security matters that cannot be ignored.
We think Member States should have had more time to assure the full
implementation the requirements of SES II package and draw consequences
to base the adequate changes.

2. Market competition, implementation of the existing regulations,
achieving the performance targets and social aspects

Hungary has a serious concern about the market-opening approach proposed
by the Commission in its proposal on SES2+ package. We think that is
unfortunate to provide air safety related public services on a revenue
orientated base. In our view this can lead decay of the quality of the
service and the safety. Furthermore we think opening the market of any
air navigation service can development of some big service providers
with monopolistic characters.

In the process of creating a single European airspace the Hungarian Air
Navigation Service Provider (ANSP), HungaroControl, is seeking
opportunities and taking initiatives for development and cooperation
between air navigation service providers. The Company’s strategic aim
is to create efficient and market-driven bi- or multilateral
collaborations offering added value, without institutional constraints
and along the lines of shared interests. In order to promote the
professional and business interests of Hungarian air traffic control and
Hungarian aviation, HungaroControl intends to take an active part in
shaping the international process. In addition to maintaining
independence, HungaroControl’s strategic objective is to uphold
financial and business stability in the long run, in a manner compliant
with the long-term performance targets set by the European Union.

Hungary and HungaroControl are committed to operate in full compliance
with the existing EU regulations. The performance of Hungarian ANSP is
very good at all four European key performance areas: 

a) Cost-effectiveness: With its 35.04 Euro unit rate, HungaroControl is
one of the cheapest service providers in Europe and the cheapest in FAB
CE, entirely complying with cost-effectiveness targets. 

b) Capacity: No delay caused by ANSP

c) Environment: With the introduction of the first restriction-free free
route airspace (and now together with Romania at night) in 2015
February, flown routes are significantly shortened, reasonable amount
– foreseeable 16 million kilogrammes/year – fuel is saved, which
implies savings of almost 3 million euros for the airspace users. 

d) Safety: full compliance with safety targets, Hungary’s safety
commitments correspond with the highest standards possible with relation
to all indicators.

Since April 2014 HungaroControl provides air traffic control in the
upper airspace over Kosovo resulting in reducing fuel consumption by 24
thousand tons of fuel, thus saving 18 million euros and reducing CO2
emission by 75 thousand tons annually.

FAB CE has defined its Implementation Phase in two layers:

a)	The Development layer substantiated through putting of the FAB CE
enablers in place to comply with the SES requirements at all the levels
to achieve enhanced cooperation between the FAB CE States, their NSAs,
Military Authorities and ANSPs by 4th December 2012; and 

b)	The Deployment layer focusing on further continuation of long term
FAB CE developments in domain of the European ATM and to comply with the
newly issued packages of the SES regulations

FAB CE also has taken significant steps forward towards meeting Single
European Sky goals and Commission targets by establishing a joint
venture limited company to manage its programme activities. FABCE
Aviation Services, Ltd. (“FCE”) has been formed as the joint legal
entity of the FAB CE ANSPs and is seeking to rationalise common
procurement and project management.

Update of the FAB CE Strategy has been followed by a major update of the
FAB CE High Level Plan (HLP). The FAB CE HLP presents the link from the
FAB CE Strategy and its strategic objectives to the domain activity
planning and presents – as such – a high-level roadmap for the
implementation of the FAB CE strategic goals. One of the overarching
strategic targets of the FAB CE is seen in a full compliance with the
SESAR Deployment Programme (DP), which has a main objective to assure
full alignment with the European ATM Master Plan and all its performance
improvement targets.

There have been no social negotiations in this context. HungaroControl
is among the most developed ANSPs within the European Union therefore it
is seeking for maintaining its current status for the long-term in
European the ATC/ATM domain.

3. Military-civil collaboration

In FAB CE the military-civil collaboration primarily takes place in
JCMACC (Joint Civil Military Airspace Coordination Committee). JCMACC
has been established to institutionally cover the civil-military
cooperation with respect to the FAB CE aiming at strategic coordination
of national ASM and airspace design policies, ATFCM processes and
civil-military cooperation of all FAB CE States. Currently the
elaboration of the Airspace Charter and the ‘Military Dimension of the
Performance Plan’ are on the agenda. Besides JCMACC military is always
consulted in different FAB CE programs on operative level in all
relevant topics, e.g. in the yearly supervision of the Airspace Plan or
in the elaboration of the flexible use of airspace.

Within Hungary and the Hungarian airspace the military-civil
collaboration is adequate. The design of airspaces is done in
cooperation and all of relevant issues are reconciliated. The use of
airspace – based on the flexible use of airspace concept and the
operational coordination between the service providers – also works
properly.

4. Lack of Progress with regard to the SESII+

According to our information, the progress of the SESII+ is lacking due
to the debate between UK and Spain. Hungary has not competence to do
anything about it and does not feel entitled to express an opinion on
any dispute between two other sovereign states.

Although we think the compromise text, which was partially adopted by
the Council in 2014 December is an acceptable conciliation, we remain to
think that Member States had not enough time to implement the
requirements of the SES II package and draw its conclusions to base the
necessary changes.

5. Obstacles of the Single European Sky

We think all of the ANSPs should fulfil all performance targets. We
support a comprehensive regulation that includes incentives for those
with outstanding performance. Instead of rigid rules, a more flexible
framework with more opportunities for business cooperation would be very
welcome. We could support an operating environment that provides
flexibility for ANSPs to innovate, cooperate and deliver services beyond
their national boundaries as well as accommodates the local variations.

Yours faithfully,

Erik Bánki

chairman

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H-1357, Budapest, Kossuth tér 1-3.