(1)

Pursuant to Article 11 of Regulation (EC) No 549/2004, a performance scheme for air navigation services and network functions is to be set up. Furthermore, pursuant to Article 10 of Implementing Regulation (EU) 2019/317, Member States are to draw up, either at national level or at the level of functional airspace blocks (‘FABs’), binding performance targets for each reference period of the performance scheme for air navigation services and network functions. Those performance targets have to be consistent with the Union-wide targets adopted by the Commission for the reference period concerned. The Commission is responsible for assessing whether the proposed performance targets contained in the draft performance plans drawn up by the Member States are consistent with the Union-wide performance targets using the assessment criteria set out in Annex IV to Implementing Regulation (EU) 2019/317.

(2)

The outbreak of the COVID-19 pandemic has, since the first quarter of calendar year 2020, significantly impacted the air transport sector and has considerably reduced air traffic volumes as compared to pre-pandemic levels, due to the measures taken by the Member States and third countries to contain the pandemic.

(3)

Union-wide performance targets for the third reference period (‘RP3’) were originally set out in Commission Implementing Decision (EU) 2019/903 (3). As those Union-wide performance targets and the draft RP3 performance plans subsequently submitted by the Member States were drawn up before the outbreak of the COVID-19 pandemic, they could not take account of the resulting significantly changed circumstances for air transport.

(4)

In response to the impact of the COVID-19 pandemic on the provision of air navigation services, exceptional measures for RP3, which derogate from the provisions of Implementing Regulation (EU) 2019/317, were set out in Commission Implementing Regulation (EU) 2020/1627 (4). Pursuant to Article 2(1) of Implementing Regulation (EU) 2020/1627, the Commission adopted, on 2 June 2021, Implementing Decision (EU) 2021/891 (5) setting revised Union-wide performance targets for RP3.

(5)

The Commission notes that the October 2021 base traffic forecast of the Eurocontrol’s Statistics and Forecast Service (‘STATFOR’) projects that air traffic at Union-wide level will reach its pre-pandemic levels in the course of 2023 and will exceed those levels in 2024. However, the level of uncertainty regarding traffic development remains particularly high because of the risks related to the evolution of the COVID-19 epidemiological situation. The Commission also notes that the traffic recovery is expected to be uneven across Member States.

(6)

All Member States have developed and adopted draft performance plans containing revised local performance targets for RP3, which were submitted to the Commission for assessment by 1 October 2021. Following the verification of completeness of those draft performance plans, the Commission requested Member States to submit updated draft performance plans by 17 November 2021. The Commission’s assessment presented in this Decision is based on the updated draft performance plan submitted by the Czech Republic.

(7)

The performance review body, assisting the Commission in the implementation of the performance scheme pursuant to Article 11(2) of Regulation (EC) No 549/2004, has submitted to the Commission a report containing its advice on the assessment of RP3 draft performance plans.

(8)

In accordance with Article 14(1) of Implementing Regulation (EU) 2019/317, the Commission has assessed the consistency of the local performance targets proposed by the Czech Republic on the basis of the assessment criteria laid down in point 1 of Annex IV to that Implementing Regulation, and taking account of local circumstances. In respect of each key performance area and the related performance targets, the Commission has complemented the assessment by reviewing draft performance plans in respect of the elements set out in point 2 of Annex IV to that Implementing Regulation.

(9)

Concerning the key performance area of safety, the Commission has assessed the consistency of the targets submitted by the Czech Republic regarding the effectiveness of safety management of air navigation service providers based on the criterion laid down in point 1.1 of Annex IV to Implementing Regulation (EU) 2019/317. That assessment was conducted taking account of local circumstances and was complemented by the review of measures planned for the achievement of the safety targets in respect of the elements set out in point 2.1.(a) of Annex IV to Implementing Regulation (EU) 2019/317.

(10)

The draft performance targets in the key performance area of safety proposed by the Czech Republic in respect of the effectiveness of safety management, broken down per safety management objective and expressed as a level of implementation, are as follows:

(11)

The Commission has found that the draft safety targets proposed by the Czech Republic for the air navigation service provider (ANS CR) are equal to the Union-wide safety targets in respect of calendar year 2024 as well as the preceding years of the reference period.

(12)

The Commission notes that the draft performance plan submitted by the Czech Republic sets out measures for ANS CR for the achievement of the local safety targets, such as the further development of mandatory and voluntary reporting systems, the establishment of a Safety Board comprising the NSA and ANS CR, and the development and support of the fatigue risk management system in ANS CR.

(13)

On the basis of the findings set out in recitals (11) and (12), and considering that the Union-wide safety performance targets set in Implementing Decision (EU) 2021/891 must be achieved by the final year of RP3, namely 2024, the draft targets included in the draft performance plan of the Czech Republic should be assessed as consistent with the Union-wide performance targets in the key performance area of safety.

(14)

Concerning the key performance area of environment, the consistency of the targets submitted by the Czech Republic regarding the average horizontal en route flight efficiency of the actual trajectory has been assessed based on the criterion laid down in point 1.2 of Annex IV to Implementing Regulation (EU) 2019/317. Accordingly, the proposed targets contained in the draft performance plan of the Czech Republic have been compared to the relevant en route horizontal flight efficiency reference values set out in the European Route Network Improvement Plan (‘ERNIP’) available at the time of adopting the revised Union-wide performance targets for RP3, that is on 2 June 2021. That assessment was conducted taking account of local circumstances and was complemented by the review of measures planned for the achievement of the environment targets in respect of the elements set out in point 2.1.(a) of Annex IV to Implementing Regulation (EU) 2019/317.

(15)

In respect of the calendar year 2020, the Union-wide performance target for RP3 in the key performance area of environment, which was initially set out in Implementing Decision (EU) 2019/903, was not revised by Implementing Decision (EU) 2021/891, considering that the time period for the application of that target had expired and that its implementation had thus become definitive leaving no possibility for retroactive adjustments. Accordingly, Member States were not requested to revise, in the draft performance plans submitted by 1 October 2021, their local performance targets for calendar year 2020 in the key performance area of environment. Therefore, the consistency of the local environment performance targets with the corresponding Union-wide performance targets should be assessed with regard to calendar years 2021, 2022, 2023 and 2024.

(16)

The draft performance targets in the key performance area of environment proposed by the Czech Republic and the corresponding national reference values for RP3 from the ERNIP, expressed as the average horizontal en route flight efficiency of the actual trajectory, are as follows:

(17)

The Commission observes that the draft environment targets proposed by the Czech Republic are equal to the corresponding national reference values for each calendar year from 2021 to 2024.

(18)

In respect of point 2.1(a) of Annex IV to Implementing Regulation (EU) 2019/317, the Commission notes that the Czech Republic has presented in the draft performance plan several measures for the achievement of the local environment targets which include new sectorisation for the Praha Flight Information Region, the suppression of routes in the Praha Terminal Manoeuvring Area (TMA) as well as increased cross-border collaboration.

(19)

Furthermore, the Commission observes that the Czech Republic has already completed the implementation of free route airspace (FRA) between flight level 95 and flight level 660 since February 2021.

(20)

On the basis of the findings set out in recitals (17) to (19), the draft targets included in the draft performance plan of the Czech Republic should be assessed as consistent with the Union-wide performance targets in the key performance area of environment.

(21)

Concerning the key performance area of capacity, the consistency of the targets submitted by the Czech Republic regarding the average en route air traffic flow management (‘ATFM’) delay per flight has been assessed based on the criterion laid down in point 1.3 of Annex IV to Implementing Regulation (EU) 2019/317. Accordingly, the proposed targets contained in the draft performance plan of the Czech Republic have been compared to the relevant reference values set out in the Network Operations Plan available at the time of adopting the revised Union-wide performance targets for RP3, that is on 2 June 2021. That assessment was conducted taking account of local circumstances and was complemented by the review of measures planned for the achievement of the capacity targets under point 2.1(a) of Annex IV to Implementing Regulation (EU) 2019/317.

(22)

In respect of the calendar year 2020, the Union-wide performance target for RP3 in the key performance area of capacity, which was initially set out in Implementing Decision (EU) 2019/903, was not revised by Implementing Decision (EU) 2021/891, considering that the time period for the application of that target had expired and that its implementation had thus become definitive leaving no possibility for retroactive adjustments. Accordingly, Member States were not requested to revise, in the draft performance plans submitted by 1 October 2021, their local performance targets for calendar year 2020 in the key performance area of capacity. Therefore, the consistency of the local capacity performance targets with the corresponding Union-wide performance targets should be assessed with regard to calendar years 2021, 2022, 2023 and 2024.

(23)

The draft en route capacity targets proposed by the Czech Republic for RP3, expressed in minutes of ATFM delay per flight, as well as the corresponding reference values from the Network Operations Plan are as follows:

(24)

The Commission observes that the draft capacity targets proposed by the Czech Republic are equal to the corresponding national reference values for each calendar year from 2021 to 2024.

(25)

In respect of point 2.1(a) of Annex IV to Implementing Regulation (EU) 2019/317, the Commission notes that the Czech Republic has presented in the draft performance plan a range of measures for the achievement of the local en route capacity targets. Those measures include the transition to a new air traffic management (ATM) system, the implementation of an ATM optimisation and restructuring project, the introduction of an airspace management tool, new sectorisation as well as a significant increase in the number of air traffic controllers (ATCOs) in operations by the end of RP3.

(26)

On the basis of the findings set out in recitals (24) and (25), the draft targets included in the draft performance plan of the Czech Republic should be assessed as consistent with the Union-wide performance targets in the key performance area of capacity.

(27)

With regard to airports which fall within the scope of Implementing Regulation (EU) 2019/317 as set out in Articles 1(3) and (4) of that Regulation, the Commission has complemented its assessment of draft en route capacity targets by the review of the draft capacity targets for terminal air navigation services in accordance with point 2.1(b) of Annex IV to Implementing Regulation (EU) 2019/317. Those draft targets were found to raise concerns in respect of the Czech Republic.

(28)

Specifically, the Commission has found that the proposed RP3 targets for the average arrival ATFM delay of 0,40 minute per flight for calendar years 2021 to 2024 are significantly higher than the achieved ATFM delay performance during the second reference period (‘RP2’), which ranges from 0,01 to 0,16 minute per flight.

(29)

Therefore, the Commission considers that, in connection with the adoption of its final performance plan in accordance with Article 16, point (a) of Implementing Regulation (EU) 2019/317, the Czech Republic should further justify the terminal capacity targets for RP3 in light of the observations set out in recital (28), or should revise downwards those targets.

(30)

Concerning the key performance area of cost-efficiency, the consistency of the targets submitted by the Czech Republic regarding the determined unit cost (‘DUC’) for en route air navigation services has been assessed based on the criteria laid down in points 1.4(a), (b) and (c) of Annex IV to Implementing Regulation (EU) 2019/317. Those criteria consist of the determined unit cost trend over RP3, the long-term determined unit cost trend over RP2 and RP3 (2015-2024), and the baseline value for the DUC at charging zone level compared with the average value of the charging zones where air navigation service providers have a similar operational and economic environment.

(31)

The assessment of en route cost efficiency targets was conducted taking account of local circumstances. It was complemented by the review of the key factors and parameters underpinning those targets as specified in point 2.1(d) of Annex IV to Implementing Regulation (EU) 2019/317.

(32)

The draft en route cost-efficiency targets proposed by the Czech Republic for RP3 are as follows:

(33)

Concerning the criterion laid down in point 1.4(a) of Annex IV to Implementing Regulation (EU) 2019/317, the Commission observes that the en route DUC trend of the Czech Republic at charging zone level of +2,4 % per year over RP3 underperforms the Union-wide trend of +1,0 % over the same period.

(34)

Concerning the criterion laid down in point 1.4(b) of Annex IV to Implementing Regulation (EU) 2019/317, the Commission observes that the long-term en route DUC trend of the Czech Republic at charging zone level over RP2 and RP3 of -0,1 % per year underperforms the long-term Union-wide trend of -1,3 % over the same period.

(35)

It should be taken into account, however, when comparing the local and Union-wide DUC trends referred to in recitals (33) and (34), that the en route traffic growth forecasted by Eurocontrol STATFOR for the Czech Republic over RP3 is foreseen to be significantly lower than the average traffic growth at Union-wide level. This renders it more challenging for the Czech Republic to meet the said Union-wide DUC trends.

(36)

Concerning the criterion laid down in point 1.4(c) of Annex IV to Implementing Regulation (EU) 2019/317, the Commission observes that the baseline value for the DUC of EUR 41,95 of the Czech Republic in real terms at 2017 prices (‘EUR2017’) is 8,0 % higher than the average baseline value of EUR 38,85 in EUR2017 of the relevant comparator group. The Commission notes that that difference becomes even larger during RP3, as the determined en route unit cost of the Czech Republic for 2024 is higher by 12,4 % than the average of the comparator group.

(37)

The Commission has further examined whether the deviations observed in recitals (33), (34) and (36) could be deemed necessary and proportionate under point 1.4(d) of Annex IV to Implementing Regulation (EU) 2019/317, provided that the observed deviations from the Union-wide DUC trend and from the long-term Union-wide DUC trend are exclusively due to additional determined costs related to measures necessary to achieve the performance targets in the key performance area of capacity or to restructuring measures within the meaning of Article 2(18) of Implementing Regulation (EU) 2019/317.

(38)

In respect of the criterion specified under point 1.4(d)(i) of Annex IV to Implementing Regulation (EU) 2019/317, the Commission observes that the Czech Republic sets out in its draft performance plan a wide range of measures undertaken by the ANSP (ANS CR) for the purpose of achieving the local capacity targets. The Czech Republic contends that without major investments into systems, procedures and operational staff during RP3, ANS CR would not be able to accommodate the level of traffic recorded in 2019, in the pre-COVID context, given also a continued increase in traffic complexity.

(39)

Indeed, the capacity-enhancement measures outlined in the draft performance plan aim to deliver a structural increase in capacity and productivity in respect of en route services, in particular by enabling air traffic controllers previously responsible for aerodrome control at regional airports to take over new responsibilities in respect of the control of lower en route airspace. The underlying measures include a dedicated training process for the air traffic controllers concerned, a reorganisation of work within the company and airspace re-sectorization. Drawing on this initiative and on the recruitment of new air traffic controllers, the planned number of en route air traffic controllers shows a significant increase over RP3 compared to 2019 levels. A further positive contribution to capacity is expected from the new ATM system planned to be put in operations in 2022.

(40)

Based on the detailed analysis by the performance review body, the Commission considers that the relevant measures outlined by the Czech Republic in the draft performance plan are indeed necessary to achieve the local capacity targets. Furthermore, having regard to the evaluation made by the performance review body, it can be concluded that the additional costs of those measures are larger than the deviations from the Union-wide DUC trend and from the long-term Union-wide DUC trend referred to in recitals (33) and (34).

(41)

In light of the considerations in recitals (38) to (40), the Commission finds that the criterion set out in point 1.4(d)(i) is fulfilled in respect of the Czech Republic.

(42)

It follows from the foregoing observations that it is not necessary to further examine whether the criterion set out under point 1.4(d)(ii) would be fulfilled with regard to the Czech Republic.

(43)

On the basis of the findings set out in recitals (33) to (42), the draft targets included in the draft performance plan of the Czech Republic should be assessed as consistent with the Union-wide performance targets in the key performance area of cost-efficiency.

(44)

With regard to airports which fall within the scope of Implementing Regulation (EU) 2019/317 as set out in Articles 1(3) and (4) of that Regulation, the Commission has complemented its assessment of draft en route cost-efficiency targets with the review of the draft cost-efficiency targets for terminal air navigation services in accordance with point 2.1(c) of Annex IV to Implementing Regulation (EU) 2019/317. Those draft targets were found to raise concerns in respect of the Czech Republic.

(45)

When comparing the terminal DUC with the performance of similar airports for RP3, the Commission observes that the DUC for Prague airport is estimated to be above the median DUC of the relevant airports by a very significant margin.

(46)

Therefore, the Commission considers that, in connection with the adoption of its final performance plan in accordance with Article 16, point (a) of Implementing Regulation (EU) 2019/317, the Czech Republic should further justify the terminal cost-efficiency targets for RP3 in light of the observations set out in recital (45), or should revise downwards those targets.

(47)

In accordance with point 2.1(f) of Annex IV to Implementing Regulation (EU) 2019/317, in relation to the draft capacity targets, the Commission has complemented its assessment by a review of the draft incentive schemes referred to in Article 11 of Implementing Regulation (EU) 2019/317. In this respect, the Commission has examined whether the draft incentive schemes fulfil the substantive requirements set out in Article 11(1) and (3) of Implementing Regulation (EU) 2019/317. The draft incentive schemes contained in the draft performance plan of the Czech Republic were found to raise concerns.

(48)

The Commission observes that both the en route capacity incentive scheme and the terminal capacity incentive scheme proposed in the Czech Republic’s draft performance plan comprise a maximum financial disadvantage amounting to 0,50 % of determined costs and a maximum financial advantage amounting to 0,50 % of determined costs.

(49)

In respect of those incentive schemes, the Commission, on the basis of expert advice provided by the performance review body, has strong doubts whether the proposed maximum financial disadvantage, which amounts to 0,50 % of determined costs, would have any material impact on the revenue at risk, as required pursuant to Article 11(3), point (a) of Implementing Regulation (EU) 2019/317.

(50)

Therefore, the Czech Republic should revise, in connection with the adoption of its final performance plan in accordance with Article 16, point (a) of Implementing Regulation (EU) 2019/317, its incentive schemes for achieving en route and terminal capacity targets so that the maximum financial disadvantages stemming from those incentive schemes are set at a level having a material impact on the revenue at risk, as expressly required under Article 11(3), point (a) of Implementing Regulation (EU) 2019/317, which in the Commission’s view should lead to a maximum financial disadvantage equal to or higher than 1 % of determined costs.

(51)

On the basis of the assessment set out in recitals (9) to (50), the Commission has found that the performance targets contained in the draft performance plan submitted by the Czech Republic are consistent with the Union-wide performance targets.

(52)

The Commission notes that some Member States have indicated their intention to include cost items relating to airport drone detection in their RP3 cost bases. It has not been possible to precisely establish, based on the elements contained in the draft performance plans, to what extent Member States have included such determined costs in their RP3 cost bases and, where such costs have been included, to what extent they are incurred in relation to the provision of air navigation services and could thus be deemed eligible under the performance and charging scheme. The Commission services have sent an ad hoc information request to all Member States in order to gather relevant information, and will further examine the reported airport drone detection costs in the context of unit rate compliance verification. This Decision is without prejudice to the findings and conclusions of the Commission on the topic of drone detection costs.

(53)

In response to Russia’s military aggression against Ukraine, which started on 24 February 2022, the Union has adopted restrictive measures prohibiting Russian air carriers, any Russian-registered aircraft and any non-Russian-registered aircraft which is owned or chartered, or otherwise controlled by any Russian natural or legal person, entity or body from landing in, taking off from, or overflying the territory of the Union. Those measures are leading to a reduced air traffic in the airspace over the territory of the Union. The impact at the Union-wide level should however not be comparable to the reduction of air traffic which resulted from the outbreak of the COVID-19 pandemic in March 2020. Therefore, it is appropriate to maintain the existing measures and processes for the implementation of the performance and charging scheme in RP3.