Weekly Review #245 -Understanding the Pricing Challenges in ATM

Picture of Vincent Lambercy
Posted June 5 2024 by Vincent Lambercy
At FoxATM, we regularly hold business development workshops with industry providers. Large or small, the most anticipated part is always the same: pricing. I've said before that ATM systems are the product of a craft and not fully industrialized. This is also visible when it comes to the price of systems, products, and services. All projects contain parts that are tailor-made, which comes with a high price tag.
 
But how high is too high? And how do we define the price? There are many options, from cost-based to value-based, from one-time payments to subscription models, and don't get me started on conditional discounts and credit notes... Prices vary from project to project and from customer to customer. There is no such thing as a standard price — and this is why nobody advertises prices publicly.
 
This is a real challenge for buyers. How do you know the price of products when nobody publishes their prices? People speak with each other across countries and ANSPs, and initial, pre-tender discussions are possible. But what comes out of formal offers can vary and can be a surprise. Little changes in requirements can have a surprisingly high impact on the price... or not.
 
Defining and receiving a price for projects, systems and services in ATM sometimes feels complicated. But you're not alone. If you need some support and want to discuss how to price your products or how to evaluate the budget required for your next project, don't hesitate to contact us!
 
Vincent

ANSP news

  • Safely through turbulent times - DFS Annual Briefing- DFS published the Annual Press Briefing. DFS is giving an insight into the situation in German airspace and an outlook on the challenges of the coming years.
  • NAV Portugal implements Point Merge System – a system invented at EIH- NAV Portugal has recently successfully implemented the Point Merge System at Lisbon Airport. This innovative arrival sequencing model, originally developed at the EUROCONTROL Innovation Hub in 2006, replaces traditional models with a more efficient system, enhancing safety, environmental efficiency and predictability.
  • FAA still short about 3,000 air traffic controllers, new federal numbers show - British Aviation Group- Despite a surge in hiring last year, air traffic control stations nationwide are still about 3,000 controllers short, according to new FAA numbers. The FAA has about 11,500 controllers who are either fully certified or have reached the stage in training where they can work independently, known as Certified Professional Controller In Training. The staffing plans developed by the FAA and the union representing air traffic controllers calls for more than 14,600 controllers to fully staff towers and centers.
  • Collaboration between BHANSA and Naviair- Bosnia and Herzegovina's Experience as a useful case study for the Kingdom of Denmark Takeover of Airspace Control over Greenland.
  • Aeronautical chart is a reliable tool for general and recreational aviation in case of GPS interference - Recently, there have been reports of increased interference with satellite positioning in aviation in Finland. General and recreational aviators should note that especially when flying in the South-East of Finland, there might be interference in the data of the GPS equipment. This makes it even more important to be aware of your location beyond the GPS data.
  • Conclusion of a collective agreement for DFS - Following two years of intensive negotiations, the Executive Board of DFS and the air navigation services union (GdF) agreed on a comprehensive collective bargaining package "Zukunft DFS" or "Future of DFS". This will come into force on 1 January 2025.
  • A record number of flights were served in the airspace of the Republic of Kazakhstan- In 2023, in the airspace of the Republic of Kazakhstan, the specialists of “Kazaeronavigatsia” RSE serviced 415 497 flights, of which were 107 247 Kazakhstan and 308 250 foreign airlines. This figure is a record for all the years of the country’s independence. Thanks to the effective work of the Ministry of Transport, the Civil Aviation Committee, the Aviation Administration of Kazakhstan and “Kazaeronavigatsia” RSE in developing the aviation industry, the number of flights increases every year. Compared to 2015, the figure has almost doubled.

Airport news

Market news

Context information

  • Meeting between Smatsa and DHMI, Istanbul- SMATSA CEO, Mr. Predrag Jovanović and his associates visited DHMI Deputy Director General and Member of the Board, Dr. Cengiz PAŞAOĞLU and his team in Istanbul. Both ANS providers exchanged views on operations, on ATM and CNS improvements, introduced current business plans and reviewed opportunities to strengthen the relations between the two ANSPs.

Research and innovation

  • Artificial Intelligence: EASA publishes final report of the Machine Learning Application Approval Research Project - The report was developed by the project consortium consisting of Airbus protect, LNE (Laboratoire National de Métrologie et d'Essais), and Numalis, following a 2-year Research Project funded by Horizon Europe. The European Commission delegated the contractual and technical management of this research action to EASA.
  • SESAR Joint Undertaking - Engage Summer School 2024- Engage 2 is thrilled to announce the dates for its first Summer School. Hosted at the Faculty of Transport and Traffic Engineering in Belgrade, the event is scheduled to take place from September 9 to 13, 2024. Building upon the success of Engage KTN’s previous edition, this inaugural Summer School promises an enriching experience featuring presentations and tutorials that explore various facets of the ATM industry.
  • Saab technology in new digital air traffic test centre in Belgium- The Belgian air traffic service provider Skeyes recently unveiled its Digital Tower Test Centre in Steenokkerzeel, Belgium, based on Saab’s digital air traffic management technology.
  • Optimizing vertiport safety with hyper-local weather awareness- The future of urban air mobility is rapidly taking shape, with advanced air mobility solutions like drones, air taxis, and other eVTOL aircraft primed for significant growth and adoption. However, the success and long-term viability of AAM operations depend greatly on addressing a critical challenge: the unique and localized weather phenomena around vertiport infrastructure in high-density urban centers and beyond.
  • DAS and Athens Int. Airport will redesign Athens TMA airspace- DFS Aviation Services will redesign the Terminal Manoeuvring Area (TMA) of Athens and develop Performance Based Navigation (PBN) flight procedures for Athens International Airport.
  • What Changes Could We See In The Future Of Air Traffic Control?- This articles discusses the the future of ATC which is driven by automation and control systems, and the complexity of global air traffic.
  • Safely integrating Remotely Piloted Aircraft Systems (RPAS) into European airspace - SESAR JU- The IRINA project is working to ensure that unmanned, remotely piloted aircraft systems can safely share the sky with their manned counterparts. Whether used for inspection, survey, surveillance, or delivery operations, RPAS have the potential to revolutionise society and the economy. But leveraging this potential requires that these aircraft, which are remotely operated by a pilot, be able to fly alongside manned aircraft in all airspace classes.
  • SESAR innovation in the spotlight at FLY AI Forum- On 29-30 April, FLY AI partners organised a two-day conference to explore the latest developments and deployments of artificial intelligence and machine learning in aviation. Hosted by FLY AI partner, EUROCONTROL, the conference included updates from the European Commission on AI regulatory matters, the discussion of practical-use cases of AI benefits to aviation, an exhibition of projects and success stories, and an overview of ongoing research and training activities.
  • Grappling with hardware, software and integration challenges — and opportunities — in digital tech stacks- Understanding the shifting relationship between hardware and software is fundamental to the future of the digitised aviation industry, and to the technology stacks on which it is built. But how is the industry navigating those changes and challenges? We talk tech with key researchers looking into how the digital landscape is changing — and needs to adapt.

Reports and data

  • Aireon's Safety Dashboard Adds New Rejected Takeoff Metric- A rejected takeoff occurs when an aircraft begins its takeoff roll but must abort the attempt. There are many reasons for a rejected takeoff occurrence including mechanical problems, objects obstructing the runway, and more. These situations demand precise decision-making, especially when other aircraft are present or speeds approach Rotational Velocity.
  • KIX / ITAMI / KOBE Traffic Report for April 2024- The number of non-Japanese traffic for international flights was 1.59 million, which hit a record high, and the total number of international passengers was 87% vs April 2019. The international cargo traffic was lower than the previous year both in ATM and cargo volume.
  • NAV CANADA reports April 2024 traffic figure- NAV CANADA announced today its traffic figure for the month of April 2024 as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to the prior year.
  • ENAIRE managed nearly 200,000 flights in April, 8.2% more than in 2023, a record year- ENAIRE managed over nearly 200,000 flights (198,151) in April, 8.2% more than in the same month in 2023, a record year. International flights (113,896) were up by 8.8%, domestic flights (39,986) by 7.8%, and overflights (44,269), which do not land at or depart from a Spanish airport, by 7.0%.

UAV and UTM