Build 2 Global

Question 1
Challenges Europe is facing with regard to developing a “one sky” policy because of all of the small independent states on the continent and their claims to airspace sovereignty.

Europe has several unique problems with respect to airspace and air traffic control. As depicted on the map below, Europe is comprised of several states, each of which have national sovereignty. Thus, each state owns the airspace above their national geographic boundaries, and has the responsibility for controlling air traffic above their land and within their airspace. If each state set up its own system for air traffic control, and even if they adhered to overall international standards, the operation in each state could differ significantly from that in another state. These differences would require aircraft to operate differently across state boundaries, and in many cases, jet transports flying enroute over Europe cross entire states within minutes.


Figure 1. Assessment of FUA Implementation by the ECAC States (Taken from Eurocontrol Web site:

In the case of high altitude over flights, Euyrocontrol was created to manage the upper altitude airspace over Europe to avoid congestion caused by multiple sovereignty rule differences that would need to be addressed by the aircraft in real time.

The local sovereignty issues, however, also traverse the airspace for aircraft landing or departing one country and flying to another. The individual states were reluctant to give up their rights to their air sovereignty, but with the introduction of the European Community (EC), this union formed the basis to attempt to unite the operation of European airspace.
Eurocontrol was created in the 1960s in part to unify all European airspace; however, the momentum was not in place to carry the notion through to fruition at that time for all aspects of the airspace. After 50 years of air traffic growth the resulting operational problems have created unfathomable delay and associated costs, causing a consensus for the grand European aviation scheme to finally go ahead. This time though there is a political structure in place, the 27 Member States of the European Union, that is robust enough to support the vision through to its fruition and pragmatic enough to work to extend it beyond its supranational borders.

Once the Single Sky concept is implemented, by 2020, the European aviation sector should however have radically overhauled the way the airspace above Europe is organized and the way in which aircraft fly within it. Reducing the distance aircraft have to fly over Europe will inevitably result in fewer emissions, which is good for the environment and good for the cost effectiveness of the entire network and all of the aviation operators that occupy the airspace.

One of the major remaining Single Sky challenges is to improve civil-military ATM coordination arrangements to reach beyond national boundaries in order to sufficiently match the Single European Sky environment, including future changes resulting from SESAR and the ATM Master Plan.

Question 2
Chinese OEMs The Chinese OEM, COMAC, has an aggressive schedule to market their single-aisle jetliner not only nationally but also internationally. Will their market continue to expand or will it collapse?
Comac C919

Commercial Aircraft Corporation of China, Ltd., or Comac, (Chinese: 中国商用机有限任公司) is a Chinese government-owned aerospace manufacturer who plans to design and build large passenger aircraft with a capacity of over 150 passengers to reduce the country's dependency on Boeing and Airbus. The first jet to be marketed is the current ARJ21 and will be followed by the C919, planned for release in 2016.

The Comac C919 is a planned family of 168-190 seat narrow-body airliners and will be the largest commercial airliner designed and built in China since the defunct Shanghai Y-10. Its first flight is expected to take place in 2014, with deliveries scheduled for 2016. The C919 forms part of China's long-term goal to break Airbus and Boeing's duopoly, and will compete against Airbus A320neo and the Boeing 737 MAX.

Construction of the nose section of the aircraft commenced on 2 September 2009.

Comac applied for a type certificate for the aircraft from the Civil Aviation Authority of China on 28 October 2010. In November 2011, Comac announced the completion of the joint definition phase, marking the end of the preliminary design of the C919. The company followed through with its stated plan to cut the first metal for the aircraft in December 2011, with estimated completion of the detailed design phase in 2012.

Design and assembly of the aircraft will be done in Shanghai, using CFM jet engines and Western avionics. However, China has expressed its desire to eventually produce a locally made engine for the C919. The center wing box, outer wing box, wing panels, flaps and ailerons are planned to be built in Xi'an, China. The center fuselage sections are planned to be built in Hongdu, China.

CFM International will supply a version of the LEAP-X engine, the LEAP-X1C, to power the aircraft.

Dimensions of the C919 are very similar to the Airbus A320, possibly to allow for a common pallet to be used. Its fuselage will be 13 feet wide, and 13 feet, 8 inches high, producing a cross-section of 139 square feet. The wingspan will be 110 feet, 3 inches, or 116 feet, 3 inches if winglets are included. Its cruise speed will be Mach 0.785 and it will have a maximum altitude of 39,800 feet. The standard version will have a range of 2,200nm, with the extended-range version able to fly 3,000nm.

According to a film shown by Comac at the 2010 Zhuhai Airshow, the company plans to build six different models of the aircraft: a base passenger aircraft with 168 seats, as well as stretched and shrunk passenger versions, business jet and freighter models, and a type designated only as "special."

At the 2010 Zhuhai Airshow, Comac announced orders for 55 C919 aircraft from six airlines, with an additional 45 options. The purchasing airlines or lessors were China Eastern Airlines, Air China, Hainan Airlines, China Southern Airlines, CDB Leasing Company, and GE Capital Aviation Services. GE Capital represents the only non-Chinese state-owned airline to have placed an order, although they are not disclosing for whom the order has been placed or if it is merely speculative.

In February 2011 Ryanair announced discussions with Comac about the purchase of the aircraft. Ryanair will receive the last of the Boeing 737-800 from their current orders in 2012, and have no order placed thereafter. By this time they will have over 300 of this aircraft type. They withdrew from negotiations with Boeing and Airbus in 2009 as they stated that they were unhappy with the prices offered. In June 2011 Michael O'Leary of Ryanair announced the company had signed an agreement to help develop the aircraft. O'Leary indicated Ryanair would share its experience and expertise to assist Comac developing the new C919 commercial aircraft, with up to 200 seats, which would enable Ryanair to lower its costs.

On 20 October 2011, Chinese leasing company ICBC Leasing announced an order for 45 C919s, as well as an agreement to be the launch customer for the aircraft.
Boeing, the current leader in China, wants to maintain a market share of a little more than 50 per cent over the next 20 years and Airbus hopes to increase its portion above 50 per cent. But Comac has set its sights on grabbing one-third of the domestic market in the next two decades.

Initially at least, Comac’s ambitious goal will not bring it into direct competition with them, but the real prize in China is the market for larger single-aisle jets. Typically served by 150-seat aircraft, it will account for 71 per cent of total airplane deliveries in China by 2030, Boeing forecast.
“The way this market works, they [Comac] will eat into everyone’s share,” said Ihssane Mounir, a senior vice-president with Boeing. “But we are not worried about competition. Competition is the mother of all improvements.”

Additionally, Comac released the second civil aviation market forecast report since its establishment, the COMAC Market Forecast Report (2011-2030), at the Aviation Expo/China 2011 on September 21st, 2011. This is the only global aviation market forecast report that is released both in Chinese and English at the same time for the aviation industry. The report shows that more than 30,900 new aircraft will be delivered at a total value of nearly 3.7 trillion dollars, based on 2011 catalog prices, in the next 20 years, where the most of aircraft to be delivered are single-aisle jets. It also shows that the Global Revenue Passenger Kilometres (RPK) will increase at an average annual rate of 4.9% in the next 20 years. By 2030, the global air passenger demand will grow 250%, and the global passenger aircraft fleet will reach nearly 36,000, more than doubling the existing aircraft fleet (17,600). In the next 20 years, about three quarters of the existing fleet, i.e. 12,700 aircraft will be out of business passenger services, and will be converted into business aircraft, cargo aircraft and different models for other purposes or permanently retired. In addition, more than 18,200 newly added passenger aircraft will be required by the global market.
With an emphasis on research of China market, the report points out that about 4,700 new aircraft will be delivered to China airlines with the market value of more than 500 billion dollars in the next 20 years. By 2030, the proportion of China market will increase from the current 9% to 15% in the global passenger aircraft fleet. Were Comac to capture only a moderate percentage of the forecast Chinese market its fortunes will be assured.

Question 3
Overview of Indian OEMs, market and demand

India is often viewed as a nation of two sides. One side contains the extravagant infrastructure where the rich and powerful industrialists live and the other side is the over populated slums where millions of poor Indians live. While these two sides paint distinctive images, they both have a common interest. Each side provides the other with a necessity. The slums provide the industrialists with the cheap labor that pays less than minimum wage (Pulling every lever, 2012). That is the basic concept that drives the economy of 1.2 billion people.

The production of any product is a complex process that involves a long chain of suppliers and manufacturers. Managing such operations focuses on the production and delivery of the product. Thus, an entire network is developed that would ensure operational management. This network often contains a number of original equipment manufacturers (OEM) that provide tactical strategies for operational planning and control of the product in the long run (Chase, Jacobs, & Aquilano, 2006).

Besides India’s low production cost that makes it a strategic OEM global partner, the country is rich in talented man power. Billions of dollars are outsourced to India on an annual basis (Ram, 2010). Harmonization of U.S. based organizations with offshore Indian partners is an important strategy to bolster Western economies at affordable budgets (Ram, 2010).

Two of the most outsourced services are consultancy and technology services (Giridharadas, 2007). In order to compete with market challenges and upcoming industry competitors, Indian companies are establishing outsourcing offices in North America and Europe. These foreign outsourcing branches are based in less developed regions that offer Indian establishments the joy of affordable expenses (Giridharadas, 2007).

Since India has a good grip of Western industrial markets, it has the luxury to offer more services that directly connects it to manufacturers where they actively interact with supply and demand. This approach boosts the Indian economy by extending their market to international territories that eventual reflects the technological development back to their domestic regions. In fact, the Indian automotive industry has witnessed unprecedented developments and maturity that allows Indian automobile manufacturers such as Tata and Mahindra & Mahindra to enter international markets with competitive prices.

With the current developmental trend experienced by Indian markets, Western companies such as Siemens and Aerospace Systems depend on Indian Original Equipment Manufacturer (OEM). India’s emerging markets are offering specialized services in manufacturing and design that blends with Western technology. Currently, the Indian aerospace industry is one of the fastest growing industries offering high end global services. Such advancements have attracted major civil and military aviation and aerospace vendors to Indian markets.

India’s economy is growing at a rate of 8% and is expected to have the third largest economy by 2050 (Kovaichelvan, 2007). This rate of economic growth is allowing India to become a major player in the aerospace industry. With their strong domestic manufacturing base, talented and well educated work force, and most importantly IT competitiveness, India has more to offer than outsourced jobs.

In terms of aircraft manufacturing, the Indian market has plenty to offer. In fact, the country is attracting major manufacturers such as Boeing to their arena. Mutual indutrial interests offer significant advantages for Boeing as India is rich in motivated engineers and programmers. India is also benefiting from this industrial participation as it boosts it economy by offering thousands of jobs to the local people. On the other hand, while India is attracting foreign businesses, it is creating one of its own. Hindustan Aeronautics is one of India's leading aerospace firms that is gaining military and civil contracts across the Indian subcontinent. The combination of acceptance of foreign markets and the establishment of local firms in India is a strong strategical movement for India towards manufacturing their own aircraft as they develop their aerospace and aviation industry. Market recession is certainly not a concern for the Indian market. There is a potential growth in the Indian market as more foreign markets depend on their resources.

Question 5
Examine the role of IATA in the 2030 timeframe. Will it be more assertive and become an enforcement agency?

The U.S. DOT requires training for all hazmat employees in the United States, regardless of the rules you are following to prepare hazardous materials for transportation. The U.S. DOT allows shippers to follow the IATA Dangerous Goods Regulations and/or the IMDG Code if part or all of the shipment is shipped by air or vessel (49 CFR 171.24 and 171.25). In addition to meeting the U.S. DOT training standard, hazmat employees must also be trained on the IATA and/or IMDG rules "to the extent such training addresses functions authorized by 49 CFR Part 171 Subpart C." Essentially, if U.S. shippers choose to ship under the international rules, they must be in compliance and trained on applicable sections of 49 CFR as well as the IATA DGR and/or IMDG Code (Lion, 2012). The DOT enforces all hazmat transportation training in the United States. Although air and vessel carriers require training on international rules, where applicable, the U.S. DOT requires training and training records only to comply with 49 CFR training rules. However, in order to do business with many air or vessel carriers, one must comply with any stricter standards in the IATA or IMDG rules. Therefore, it is advisable to make sure that all IATA and IMDG training records meet all applicable standards.

Whilst IATA identifies itself as an association of airlines companies, it is clearly assuming a more regulatory stance. IATA is effectively a powerful lobbying body for international air carriers, while ICAO is an inter-governmental organization which deals with regulatory aspects of national civil aviation oversight. ICAO makes recommendations and sets standards (although it has no enforcement powers) which are (generally) followed by national civil aviation authorities.

IATA’s published priorities (IATA, 2011) include the following when considering its regulatory prowess:
- Gain IATA Safety Operations Audit (IOSA) recognition by the European Aviation Safety Agency (EASA)
- Obtain one regulator’s acceptance of a pilot training initiative including multi-crew pilot licensing and evidence based training
- Prevent regulatory action on slots that would adversely affect the four cornerstones of the World Scheduling Guidelines

Vision 2050 represents IATA’s long term vision for the air transport industry. There is no questioning the criticality of the industry for the global economy, supporting 32 million jobs across the globe and $3.5 trillion in economic activity. Moreover, the industry is growing. By 2050, it is estimated that some 16 billion passengers and 400 million tons of freight will need to be flown yearly. However, with historical margins of 0.1% over the last 40 years, the industry faces enormous challenges, including financial sustainability. To prepare the industry for the future, IATA is working on an ambitious plan, Vision 2050, based on four pillars (IATA, 2012). The Vision 2050 pillars:
- Structuring for profitability
- Sufficient and efficient infrastructure
- Sustainable technology to power the industry
- Capability to meet the needs of the customer of the future

IATA, the aviation’s industry body, and ICAO, the UN agency responsible for air transport, have laid out broad plans for tackling emissions (Climate Group, 2009). This seemingly benign statement intrinsically represents the fundamental posture IATA maintains in their self-perception. It seems that IATA will evolve as a more regulatory agency similar to ICAO or any national aviation regulatory agency. Whilst IATA, like ICAO, possesses no real estate of its own, its wealth is in its membership and its membership’s commitment to IATA’s strength in the international aviation industry. Though IATA as a governing body can only draw on its membership for its intrinsic strength, when agencies like the USA’s DOT endorses the value of IATA training and IATA’s DGR as prescribed with the CFR. This serves as an encouragement for IATA to grow, blossom, and embrace the esteemed position as the sole voice of regulatory power governing international aviation. Since IATA is comprised of some 240 airlines and 118 countries (IATA, 2011), this empowers it beyond the UN’s ICAO membership of 191 countries as of October 2011 (ICAO, 2011). Though the ICAO has real estate through its membership of UN nations, IATA possesses the wealth of power at the root, within the airlines who conduct the business everyday worldwide. This gives IATA greater strength than UN membership ever could. The strength of commerce wins over the strength of diplomacy, again. Surely, as the global economy will necessarily grow stronger than any one country or small collection of countries, global business partnerships similar to IATA will embody more global strength and regulatory authority. Though the IATA cartel is second only to the OPEC cartel, its reach has greater diversity and subscription. This truly gives it its global strength and authority, beyond simple real estate.

Question 6
Embraer has entered the single-aisle jetliner market where they continue to expand their manufacturing capability. As they continue to grow, will they enter the wide-body market for aircraft by the 2030 time frame?

Embraer predicts a 5.2% annual growth for air transport through the year 2030. They expect this will create demand for 7,000 new aircraft in the 61 to 120-seat capacity segment out of a total 31,435 new aircraft (Embraer, 2011). Table 1 provides a detailed breakdown of Embraer predictions.

Embraer also includes a forecast of narrow and wide-body jets: aircraft with capacity beyond 120 seats. This forecast is shown in Table 2 and is nearly three times the demand of the under 120-seat market (Embraer, 2011).

Nothing in the Embraer report cited suggests the manufacturer will enter the narrow or wide-body market.
According to a January 23, 2013 Aviation Week & Space Technology report, while Embraer had considered the possible development of a 130-160 seat airliner to compete with the A320 and 737 aircraft, they abandoned the idea (Jaworowski, 2012).

Given the literature, there is no information to support Embraer’s entry into the above 120-seat market. However, given Embraer seems to have the technical skill to produce aircraft and being the company considered larger aircraft in the past, it seems sensible to conclude that if economic growth and aviation demand outpace forecasts, Embraer could enter this market (personal conjecture).

Table 1
Embraer Market Forecasts by Segment and Year, Small Jets
Note: From Embraer global market forecast 2011-2030, p. 8.

Table 2
Embraer Market Forecasts by Segment and Year, Narrow and Wide-Body Jets
Note: From Embraer global market forecast 2011-2030, p. 9.

Question 7
Will the international airlines with international alliances become truly global entities with no national borders?

Relationships between airlines can usually be characterized as one of three forms: ordinary, tactical and strategic (Fan et al., 2001). Ordinary cooperation is found where one airline contracts certain functions to another such as an environment where an airline has minimal operations at an airport. The airline with few operations contracts to a carrier with facilities at the airport to service/turn the flight. Tactical relationships are developed when two airlines cross-sell capacity on certain routes (Fan et al., 2001). The third, strongest form of relationships between airlines, are strategic alliances. Strategic alliances are characterized by network-wide cooperation consisting of reciprocal frequent flyer program recognition, shared lounges, extensive code-sharing, coordinated schedule and fare planning to deliver seamless travel for passengers across the entire network (Fan et al., 2001).

The forces affecting airline consolidation can be summarized as (Fan, Vigeant-Langlois, Geissler, Bosler, Wilmking , 2001):
  • Increased globalization
  • Increased intra-regional interaction
  • Economic incentives
  • Pace of liberalization
  • Anti-trust

As globalization continues there is a continued need for international and intercontinental travel (Fan et al., 2001). Strategic alliances where passengers can travel seamlessly between carries will be more valuable to passengers than travel with unaffiliated airlines. This level of service is very useful for frequent business travelers.

However as globalization continues, there remains a need for increased regional identity (Fan et al., 2001). A strategic alliance between an international carrier and a local carrier can be valuable for both parties and the customer. The customer feels comfortable by purchasing travel on a local business while enjoying the benefits of an international company. This arrangement between carriers can be classified as “glocalisation”, where the airline is able to “think globally and act locally”.

A large force in driving consolidation is the economic benefits. Economic benefits can be realized through increased (density) revenue while enjoying lower unit costs (Fan et al., 2001). Mergers and acquisitions are a much faster method of creating a larger network than organic growth (Fan et al., 2001).

As the liberalization of the global airline industry continues so will the pace of consilidation (Fan et al., 2001). Two restrictions still remain that prohibit completely liberalizing the international air transportation market: first, the granting of air traffic rights to specific carriers is usually based on carrier country of ownership and secondly, foreign ownership limitations for international airlines. (Fan et al., 2001).

Anti-trust concerns remain an opposing force to airline consolidation. As consolidation continues and the benefits realized increase a desire for further mergers, regulation may veto all further strategic alliances (Fan et al., 2001).

While airlines are able to provide a “seamless” travel experience for passengers, regulation issues regarding anti-trust and security will limit consolidation at some level. Airline consolidation into global entities over the next 20 years will only be attempted if a business case exists. As many factors influence this type of decision it is impossible to predict where and how these alliances will develop. There are many benefits from a global entity, but becoming too large can have negative affect if the local touch is lost.

Question 8
Future issues in Africa – growth of traffic and cargo and infrastructure issues

Air transport has grown strongly in Africa in recent years. Overall, international air traffic to and from the continent has been growing at about 6 percent a year over the last decade, while domestic traffic has been growing at 12 percent, driven largely by an explosion of activity in Nigeria. In southern and eastern Africa, air traffic is growing strongly around hubs in Johannesburg, Addis Ababa, and Nairobi.

However, air transport in Africa is expensive, connections are patchy, and safety is a problem. Landing charges are high owing to the absence of support from concessions enjoyed in many parts of the world. Operating costs have soared with fuel prices, choking off air connections in many countries. Despite the overall growth in traffic, the number of city pairs served in Sub-Saharan Africa dropped by 229 between 2001 and 2007 as routes were consolidated, spelling a large reduction in air connectivity for many smaller countries. Excluding South Africa, Nigeria, and Mozambique, there was an average annual decline of 1 percent a year and a loss of 137 routes between 2004 and 2007.

For air safety issue, more than one-fifth of the world’s air accidents occurred in Africa in 2004, whereas the continent accounted for just 4.5 percent of all flights. In 2006, African carriers lost 4.31 aircraft per million departures, compared with 0.65 worldwide. Some commentators have ascribed this bad record to the use of old/or inferior aircraft and outdated air traffic control system; however, in recent years fleets have undergone extensive renewal. Much more significant is that so many aircraft are flown by small, poorly regulated fringe carriers. Their pilots are poorly trained and regularly work long hours in a dangerous operating environment—a formula for pilot error. Several international organizations have identified poor regulatory oversight as the top threat to safety in Africa, followed by inadequate safety management. All regions of Africa perform worse than the world average in all the critical elements of safety implementation—in most cases by a factor of two. These deficiencies are highly correlated with accident rates, suggesting that institutional failings explain much of the poor African accident record. Therefore, governmental policies to promote air safety in Africa can play a role in the recovery. Policy challenges include strengthening regulatory oversight and achieving full liberalization of the air transport sector.

For the issue of physical infrastructure, although the number of airports is stable, and there are enough runways to handle traffic, there is some evidence of inadequate air traffic control (except in South Africa and Kenya). Addis Ababa, for example, uses no civilian radar, forcing extra distance and time separations between aircraft. Even where the equipment exists, radar procedures (and radar separations) are not always implemented. There are areas in Africa where an airliner could fly for more than an hour and not be able to make contact with the ground. However, this problem cannot be solved easily as we thought. Specifically, the revenues from airports and air traffic are probably high enough to finance the necessary investments, but the sector does not capture them. Again, the problem is political and organizational.

Question 9
Future issues in South American - growth of traffic and cargo and infrastructure issues

While much of the world has been caught in the economic malaise of recent years, the economy of the Caribbean and Latin America seems to have enjoyed a degree of isolation from this phenomenon, attracting the attention of the major foreign airlines which service the region to the point where the region has become central to the growth plans of those airlines (Kingsley-Jones, 2011). The potential for the growth of commercial traffic in the region is strong enough that Delta Air Lines created a new Latin American and Caribbean division as recently as last year (Kingsley-Jones, 2011). But foreign airlines aren’t alone in their focus on the region. Latin America’s own carriers posted healthy growth in the third quarter of 2011 and most are going into 2012 with ambitious plans to grow both capacity and route structure well into double digit percentages (Yeo, 2011). Cargo carriers will also enjoy an increase in business in the Latin American region. From a low of 1.1 million tons of air cargo transported between Latin American and North America in 2009, the cargo market between the two regions is predicted to grow at a rate of 5.7% annually through 2029 (Boeing, 2010). The cargo carriage rate is slated to grow between Latin American and Europe as well with a predicted annual growth rate of 5.6% over the same time period (Boeing, 2010).

But while the potential for growth in the region is encouraging, the region’s safety record isn’t so positive. Flight Safety Foundation statistics show Latin America and Caribbean states have the third highest accident rate after Africa and Asia with a rate of 3.2 hull-loss accidents per million as compared to the worldwide average of 1.03 and an average of less than 1 in North America, Europe and Oceania (Civil Air Navigation Services Organisation, 2009). So if the region’s predicted growth in air traffic is to be routed safely, its airspace infrastructure will have to be improved to facilitate that growth. Fortunately, work is underway to do just that.

The International Civil Aviation Organization’s (ICAO) South American (SAM) regional office in Lima, Peru is focused on helping states achieve high standards of navigation service provision and established the Regional Aviation Safety Group in the first half of 2008 to help states implement the ICAO Global Aviation Safety Plan (GASP) (Civil Air Navigation Services Organisation, 2009). SAM leads regional initiatives to improve the air traffic system route network across the region which includes a South American Implementation Group (SAMIG) which meets twice yearly to coordinate the implementation of initiatives like performance based navigation (PBN) and the automation of air traffic management (ATM) in the network (Civil Air Navigation Services Organisation, 2009).

The US Federal Aviation Administration is also involved in South American, working with Chile to implement ADS-B and Local Area Augmentation Systems (LAAS) at 12 Chilean airports and working extensively with Brazil to develop and implement Global Navigation Satellite System (GNSS) technologies and procedures (Krakowski, 2010). The FAA is committed to continuing its cooperation with Brazil as the country transitions to satellite and aircraft performance-based navigation technologies and procedures (Krakowski, 2010).
Of all South American Nations, Brazil has been the most aggressive in implementing a modern air traffic management system. Activated in 2006, Brazil’s Air Navigation Management Centre (CGNA) is a central unit that monitors air traffic service on a 24 hour basis and responds dynamically to phenomena like adverse meteorological conditions, degradation of the airport infrastructure or similar events that require traffic flow to be restructured in real time (Civil Air Navigation Services Organisation, 2011b). The unit makes adjustments to ensure minimum disruption to day to day operations using the structure and human resources available and includes permanent representatives of all the airlines as well as the Brazilian National Agency of Civil Aviation (ANAC) and airport representatives who collaborate in the decision making (Civil Air Navigation Services Organisation, 2011b).

Brazil also has several other initiates that have already been achieved based on the identification of operational requirements, availability of appropriate technology and allocation of resources, including:
  • • Accomplishment of the Automatic Dependent Surveillance by Contract (ADS-C) established at the Atlantic Area Control Center (ACC-AO) in Recife to more effectively route transcontinental air traffic flow over the Atlantic Ocean;
  • • Implementation of Performance Based Navigation (PBN) in some Brazilian terminal areas like Recife and Brasilia; and
  • • Implementation with the start of initial tests of the Ground Based Augmentation Systems (GBAS) at Rio de Janeiro International Airport. (Civil Air Navigation Services Organisation, 2011a).

Brazil’s focus on the establishment of PBN routes will reach a milestone in March of this year when the Brazilian Department of Airspace Control (DECEA) will open a new structure of routes, over the center-south of Brazil (an imaginary polygon whose vertices bond five Brazilian cities: São Paulo, Brasilia, Belo Horizonte, Vitória and Rio de Janeiro), an enterprise aimed at increasing the efficiency of existing routes in this area in order to match them to future PBN operations scheduled for the following year (Civil Air Navigation Services Organisation, 2012). However, Brazil’s biggest challenge where PBN routes are concerned will be the implementation of PBN on the routes to and from the busiest air terminals of the country, Sao Paulo and Rio de Janeiro by its goal of 2013 (Civil Air Navigation Services Organisation, 2012).

Along with Brazil, Chile and Columbia are also investing in the long-term modernization of their ATM programs but progress for the entire South American region will continue to be hampered by its fragmented structure and small number of joint projects (Civil Air Navigation Services Organisation, 2009). If Latin America is to improve its safety record, and go some way to meeting the ICAO objectives to optimize its ATM route network, there needs to be stronger cooperation between all South American states (Civil Air Navigation Services Organisation, 2009).


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