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A short term reprieve for ATM?

We live in unprecedented times. The past 12 months have seen oil prices soar to US$ 147 a barrel, then drop like a lead balloon to the current price of around US$ 40 per barrel as we go to press. As we entered 2009, the world's financial system was on the verge of collapse, with major financial institutions being nationalized or simply disappearing altogether. Air traffic movements, which enjoyed a global increase of 7.4% in 2007 and the first half of 2008, started to drop dramatically towards the end of 2008. International passenger traffic saw a 4.6% drop in December 2008, and cargo traffic fell by a staggering 22.6%. While the depth of the global economic crisis remains uncertain, history indicates that markets will recover - and that they may do so more forcefully and well before many of us expect.

What consequences for the ongoing modernization of global air traffic management? One thing is certain: despite the unrelenting growth in air traffic movements ever since the 9/11 dip, the system is still largely based on antiquated equipment/procedures, and, due to its fragmented nature, is struggling to cope safely with existing traffic levels.

The current down turn should and must be seen as short-term reprieve for the air traffic management industry, as it will allow the various entities involved to progress with the introduction of a modernized and efficient air navigation system without the daily pressures resulting from a system that's - in many instances - creaking at the seams and unable to cope efficiently and safely with further increases in air traffic movements.

The economy will eventually rebound, and when it does it will do so with vigour. We as a community need to be ready to handle the air traffic growth that will ensue. With the airlines losing US$ 5 billion in 2008, and losses of a further US$ 2.5 billion forecast for 2009, there will be an inevitable reduction in the funding available to invest in air navigation system modernization. In light of this, the industry must refocus and redouble its efforts by introducing solutions that will deliver benefits in the short term, i.e. over
the next 3-5 years.

SITA, for its part, has increased its investment in the research, development, productization and promotion of pragmatic air traffic management solutions, including Airport Collaborative Decision Making (A-CDM), air/ground data link communications in response to the Single European Sky's Data Link Services Implementation Rule, regional IP network services, national ATC networks, ADS-Broadcast services, next generation messaging services and Voice over IP.

All of these are needed to increase ATM efficiency, capacity and safety whilst providing the technology platforms to reduce infrastructure fragmentation. They also enable
consequential reductions in CO2 emissions, and are either directly or indirectly required by the Single European Sky and US NextGen plans as enablers for the introduction
of future ATM concepts.

SITA firmly believes that the efficient evolutionary introduction of new concepts and technology can only realistically be managed through partnerships between industry
players. Having already delivered promising results through various partnerships with leading ANSPs such as AENA, DFS and Airservices Australia, we look forward to
expanding these and developing additional partnerships in 2009, as we move towards the realization of a global, seamless and efficient air navigation system.

This newsletter provides a high-level overview of the various activities SITA has been involved in during 2008, and which we firmly believe will provide the platform for continued realization of air navigation efficiencies. We look forward to receiving any feedback and/or questions you may have.

Sincerely,
Akhil Sharma
Director, Air Traffic Management
Business Development
SITA

A short term reprieve for ATM?

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