Privatisation of Air Traffic Services

Background

A Civil Aviation Authority required the support of CAAi to identify the real cost of service provision in relation to ATS.

Requirements

The Project remit was part of the Air Navigation Rehabilitation Project to advise on the commercialisation of the ATS provided by the regulator and on cost recovery and scheme of charges.

Approach

The overall objective of the Project was to provide technical support to build capacity and to bring the regulatory oversight capabilities fully into line with ICAO and EU standards. The Project remit required a plan to develop the structure for the CAA with CAAi’s involvement including the following:

  • Financial
    Examination of accounting systems in use to establish procedures on accounting for assets and policies regarding depreciation of assets thus establishing the true cost of providing ATS.
  • Pricing
    Establishing principles for the division between airport and en route costs as well as a cost base for both elements for charging purposes; Unit rates were also produced based on flight statistics and flight patterns.
Benefits

The client was able to establish the foundations for commercialisation of ATS and future full cost recovery of their operating costs.

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