Fees

1
Fees ChargesRegulation

• Ralf Erckmann
• Certification Manager

2
Last Industry Meeting (18/11/04)

• Need for Fees Charges Regulation
• Fees Revenue must cover full costsof services
  delivered (Basic Regulation)
• Responsibilities Parties Involved
• EASA, NAAs, MB, Industry, EASA Committee
• Challenges
• First common charging system, complexity,
  workload estimates, basic EU rules
• Later adjustments necessary

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Objectives

• Fair and transparent charging system
• System allowing to keep track of the resources
  devoted to different activities
• Generate Income to cover all certification costs
  (direct and indirect)
• EASA staff
• Operational costs (missions etc.)
• NAAs (transition period)
• Infrastructure (support for transition period)
• Other service provider, if necessary

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Assumptions

• 300 people necessary to run a single
  certification system in Europe
• 230 Experts (PCM/Specialists)
• 70 Manager, Assistants, Secretaries
• Some new working methods
• Total costs 45 M

• This assumption is directly linked to the
• level of involvement
• depth of investigation
• degree of surveillance

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State of Play

• Regulation adopted in March 2005
• Implemented since 1 June 2005
• Procedures in place
• Staff recruited and trained
• Service contracts with 14 NAAs
• Processing of 5000 applications with some
  shortcuts in place
• No disruptions for Industry
• More than 10 M invoiced

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Lessons Learned

• Very complex and heavy system
• Burdensome administrative processes
• Available database software tools not adequate
• Complex contract management
• Regular contract meetings with 14 NAAs
• Harmonisation of working methods ongoing
• Income less than expected
• Early income simulations partly wrong/and or too
  optimistic (number of applications, workload
  assumptions, hourly rate, etc.)

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Counter-Measures

• EASA Budget WG to analyse the situation
• Participation of Management Board, the EASA
  Advisory Board and the Commission
• Two dedicated meetings (08/08/05 01/09/05)
• Solutions for 2005 budget
• Action EASA to draft revision of FC Regulation
• Creation of EASA Fees Charges WG
• Participation of Member States, Industry and the
  Commission

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Fees Charges WG

• Objectives
• Propose Improvements (simplifications,
  corrections)
• Revise tariffs to generate sufficient income for
  2006
• Time Frame
• Proposals by end of November
• Discussion next MB meeting in December
• EASA Committee January
• Earliest Implementation March/April

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Fees Charges WG

• Achievements so far
• Common understanding on some fundamental
  improvements (payment modalities, quotation,
  instalments)
• Challenges
• Availability of real data to verify workload
  assumptions
• Time Frame

10
Questions?

• Thank you for your attention

11

• Additional Slide

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Efficiency Considerations

• Cost of previous JAA/NAA system difficult to
  estimate
• More than 700 certification experts are known
• Workload functioning partially unknown
• Government subsidies to NAAs
• Cross subsidies between branches, activities,
  etc.
• Efficiency of the EASA certification system
• Future 230 certification experts
• Total costs transparent