Fees & Charges Regulation

1. Fees & ChargesRegulation Ralf Erckmann Certification Manager Industry Meeting

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 Industry Meeting

3. 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 Industry Meeting

4. 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 Industry Meeting

5. 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 Industry Meeting

6. 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.) Industry Meeting

7. 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 F&C Regulation • Creation of EASA Fees & Charges WG • Participation of Member States, Industry and the Commission Industry Meeting

8. 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 Industry Meeting

9. 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 Industry Meeting

10. Questions? • Thank you for your attention Industry Meeting

11. Additional Slide Industry Meeting

12. 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 Industry Meeting