ANNEX I

General requirements for the provision of air navigation services

1.   TECHNICAL AND OPERATIONAL COMPETENCE AND CAPABILITY

Air navigation service providers shall be able to provide their services in a safe, efficient, continuous and sustainable manner consistent with any reasonable level of overall demand for a given airspace. To this end, they shall maintain adequate technical and operational capacity and expertise.

2.   ORGANISATIONAL STRUCTURE AND MANAGEMENT

2.1.   Organisational structure

Air navigation service providers shall set up and manage their organisation according to a structure that supports the safe, efficient and continuous provision of air navigation services.

The organisational structure shall define:

(a)	the authority, duties and responsibilities of the nominated post holders, in particular of the management personnel in charge of safety, quality, security, finance and human resources related functions;

(b)	the relationship and reporting lines between different parts and processes of the organisation.

2.2.   Organisational management

2.2.1.   Business plan

Air navigation service providers shall produce a business plan covering a minimum period of five years. The business plan shall:

(a)	set out the overall aims and goals of the air navigation service provider and its strategy towards achieving them in consistency with any overall longer term plan of the air navigation service provider and with relevant Union requirements for the development of infrastructure or other technology;

(b)	contain appropriate performance targets in terms of safety, capacity, environment and cost-efficiency, as may be applicable.

The information listed in points (a) and (b) shall be consistent with the national or functional airspace block performance plan referred to in Article 11 of Regulation (EC) No 549/2004 and, as far as safety data is concerned, consistent with the State Safety Programme referred to in Standard 2.27.1 of Annex 11 to the Convention on International Civil Aviation, Amendment 47B from 20 July 2009 as applicable.

Air navigation service providers shall produce safety and business justifications for major investment projects including, where relevant, the estimated impact on the appropriate performance targets referred to in point (b) and identifying investments stemming from the legal requirements associated with the implementation of the Single European Sky ATM Research Programme (SESAR).

2.2.2.   Annual plan

Air navigation service providers shall produce an annual plan covering the forthcoming year which shall specify further the features of the business plan and describe any changes to it.

The annual plan shall cover the following provisions on the level and quality of service, such as the expected level of capacity, safety, environment and cost-efficiency, as may be applicable:

(a)	information on the implementation of new infrastructure or other developments and a statement how they will contribute to improving the performance of the air navigation service provider, including level and quality of services;

(b)	performance indicators consistent with the national or functional airspace block performance plan referred to in Article 11 of Regulation (EC) No 549/2004 against which the performance level and quality of service may be reasonably assessed;

(c)	information on the measures foreseen to mitigate the safety risks identified in the safety plan of the air navigation service provider, including safety indicators to monitor safety risk and, where appropriate, the estimated cost of mitigation measures;

(d)	the air navigation service provider’s expected short-term financial position as well as any changes to or impacts on the business plan.

2.2.3.   Performance part of the plans

The air navigation service provider shall make the content of the performance part of the business plan and of the annual plan available to the Commission on request under the conditions set by the competent authority in accordance with national law.

3.   SAFETY AND QUALITY MANAGEMENT

3.1.   Safety management

Air navigation service providers shall manage the safety of all their services. In doing so, they shall establish formal interfaces with all stakeholders which may influence directly the safety of their services.

Air navigation service providers shall develop procedures for managing safety when introducing new functional systems or changing the existing functional systems.

3.2.   Quality management system

Air navigation service providers shall have in place a quality management system which covers all air navigation services that they provide, according to the following principles.

The quality management system shall:

(a)	define the quality policy in such a way as to meet the needs of different users as closely as possible;

(b)	set up a quality assurance programme that contains procedures designed to verify that all operations are being conducted in accordance with applicable requirements, standards and procedures;

(c)	provide evidence of the functioning of the quality management system by means of manuals and monitoring documents;

(d)	appoint management representatives to monitor compliance with, and adequacy of, procedures to ensure safe and efficient operational practices;

(e)	perform reviews of the quality management system in place and take remedial actions, as appropriate.

An EN ISO 9001 certificate, issued by an appropriately accredited organisation, covering the air navigation services of the provider shall be considered as a sufficient means of compliance. The air navigation service provider shall accept the disclosure of the documentation related to the certification to the competent authority upon the latter’s request.

Air navigation service providers may integrate safety, security and quality management systems into their management system.

3.3.   Operations manuals

Air navigation service providers shall provide and keep up-to-date operations manuals relating to the provision of their services for the use and guidance of operations personnel.

They shall ensure that:

(a)	operations manuals contain the instructions and information required by the operations personnel to perform their duties;

(b)	relevant parts of the operations manuals are accessible to the personnel concerned;

(c)	the operations personnel are expeditiously informed of amendments to the operations manual applying to their duties as well as of their entry into force.

4.   SECURITY

Air navigation service providers shall establish a security management system to ensure:

(a)	the security of their facilities and personnel so as to prevent unlawful interference with the provision of air navigation services;

(b)	the security of operational data they receive or produce or otherwise employ, so that access to it is restricted only to those authorised.

The security management system shall define:

(a)	the procedures relating to security risk assessment and mitigation, security monitoring and improvement, security reviews and lesson dissemination;

(b)	the means designed to detect security breaches and to alert personnel with appropriate security warnings;

(c)	the means of containing the effects of security breaches and to identify recovery action and mitigation procedures to prevent reoccurrence.

Air navigation service providers shall ensure the security clearance of their personnel, if appropriate, and coordinate with the relevant civil and military authorities to ensure the security of their facilities, personnel and data.

The safety, quality and security management systems may be designed and operated as an integrated management system.

5.   HUMAN RESOURCES

Air navigation service providers shall employ appropriately skilled personnel to ensure the provision of air navigation services in a safe, efficient, continuous and sustainable manner. In this context, they shall establish policies for the recruitment and training of personnel.

6.   FINANCIAL STRENGTH

6.1.   Economic and financial capacity

Air navigation service providers shall be able to meet their financial obligations, such as fixed and variable costs of operation or capital investment costs. They shall use an appropriate cost accounting system. They shall demonstrate their abilities through the annual plan as referred to in point 2.2.2 as well as through balance sheets and accounts as practicable under their legal statute.

6.2.   Financial audit

In accordance with Article 12(2) of Regulation (EC) No 550/2004, air navigation service providers shall demonstrate that they are undergoing an independent audit on a regular basis.

7.   LIABILITY AND INSURANCE COVER

Air navigation service providers shall have in place arrangements to cover their liabilities arising from applicable law.

The method employed to provide the cover shall be appropriate to the potential loss and damage in question, taking into account the legal status of the organisation and the level of commercial insurance cover available.

An air navigation service provider which avails itself of the services of another air navigation service provider shall ensure that the agreements cover the allocation of liability between them.

8.   QUALITY OF SERVICES

8.1.   Open and transparent provision of air navigation services

Air navigation service providers shall provide air navigation services in an open and transparent manner. They shall publish the conditions of access to their services and establish a formal consultation process with the users of air navigation services on a regular basis, either individually or collectively, and at least once a year.

Air navigation service providers shall not discriminate on the grounds of the nationality or identity of the user or the class of users in accordance with applicable Union law.

8.2.   Contingency plans

Air navigation service providers shall have in place contingency plans for all the air navigation services they provide in the case of events which result in significant degradation or interruption of their operations.

9.   REPORTING REQUIREMENTS

Air navigation service providers shall be able to provide an annual report of their activities to the relevant competent authority.

That annual report shall cover their financial results without prejudice to Article 12 of Regulation (EC) No 550/2004, as well as their operational performance and any other significant activities and developments in particular in the area of safety.

The annual report shall include as a minimum:

(a)	an assessment of the level of performance of air navigation services generated;

(b)	the performance of the air navigation service provider compared to the performance targets established in the business plan referred to in point 2.2.1, reconciling actual performance against the annual plan by using the indicators of performance established in the annual plan;

(c)	provide an explanation for differences with the targets, and identify measures for closing any gaps during the reference period referred to in Article 11 of Regulation (EC) No 549/2004;

(d)	developments in operations and infrastructure;

(e)	the financial results, as long as they are not published separately in accordance with Article 12(1) of Regulation (EC) No 550/2004;

(f)	information about the formal consultation process with the users of its services;

(g)	information about the human resources policy.

Air navigation service providers shall make the content of the annual report available to the Commission and the Agency on request and to the public under the conditions set by the competent authority in accordance with national law.

ANNEX II

Specific requirements for the provision of air traffic services

1.   OWNERSHIP

Providers of air traffic services shall notify to the competent authorities referred to in Article 7(2) of Regulation (EC) No 550/2004:

(a)	their legal status, their ownership structure and any arrangements having a significant impact on control over their assets;

(b)

any links with organisations not involved in the provision of air navigation services, including commercial activities in which they are engaged either directly or through related undertakings, which account for more than 1 % of their expected revenue; furthermore, they shall notify any change of any single shareholding which represents 10 % or more of their total shareholding.

Providers of air traffic services shall take all necessary measures to prevent any situation of conflict of interests that could compromise the impartial and objective provision of their services.

2.   OPEN AND TRANSPARENT PROVISION OF SERVICES

In addition to point 8.1 of Annex I and where a Member State decides to organise the provision of specific air traffic services in a competitive environment, that Member State may take all appropriate measures to ensure that the providers of these specific air traffic services shall neither engage in conduct that would have as its object or effect the prevention, restriction or distortion of competition, nor shall they engage in conduct that amounts to an abuse of a dominant position in accordance with applicable national and Union law.

3.   SAFETY OF SERVICES

3.1.   Safety management system (SMS)

3.1.1.   General safety requirements

Providers of air traffic services shall, as an integral part of the management of their services, have in place a safety management system (SMS) which:

(a)

ensures a formalised, explicit and proactive approach to systematic safety management in meeting their safety responsibilities within the provision of their services; operates in respect of all their services and the supporting arrangements under its managerial control; and includes, as its foundation, a statement of safety policy defining the organisation’s fundamental approach to managing safety (safety management);

(b)

ensures that everyone involved in the safety aspects of the provision of air traffic services has an individual safety responsibility for their own actions; that managers are responsible for the safety performance of their respective departments or divisions and that the top management of the provider carries an overall safety responsibility (safety responsibility);

(c)	ensures that the achievement of satisfactory safety in air traffic services shall be afforded the highest priority (safety priority);

(d)	ensures that while providing air traffic services, the principal safety objective is to minimise its contribution to the risk of an aircraft accident as far as reasonably practicable (safety objective).

3.1.2.   Requirements for safety achievement

Within the operation of the SMS, providers of air traffic services shall:

(a)	ensure that personnel are adequately trained and competent for the job they are required to do, in addition to being properly licensed if so required and satisfying applicable medical fitness requirements (competency);

(b)

ensure that a safety management function is identified with organisational responsibility for development and maintenance of the SMS; ensure that this point of responsibility is independent of line management, and accountable directly to the highest organisational level. However, in the case of small organisations where a combination of responsibilities may prevent sufficient independence in this regard, the arrangements for safety assurance shall be supplemented by additional independent means; and ensure that the top management of the service provider organisation is actively involved in ensuring safety management (safety management responsibility);

(c)	ensure that, wherever practicable, quantitative safety levels are derived and are maintained for all functional systems (quantitative safety levels);

(d)	ensure that the SMS is systematically documented in a manner which provides a clear linkage to the organisation’s safety policy (SMS documentation);

(e)	ensure adequate justification of the safety of the externally provided services and supplies, having regard to their safety significance within the provision of its services (external services and supplies);

(f)	ensure that risk assessment and mitigation is conducted to an appropriate level to ensure that due consideration is given to all aspects of the provision of ATM (risk assessment and mitigation). As far as changes to the ATM functional system are concerned, point 3.2 shall apply;

(g)

ensure that ATM operational or technical occurrences which are considered to have significant safety implications are investigated immediately, and any necessary corrective action is taken (safety occurrences). They shall also demonstrate that they have implemented the requirements on the reporting and assessment of safety occurrences in accordance with applicable national and Union law.

3.1.3.   Requirements for safety assurance

Within the operation of the SMS, providers of air traffic services shall ensure that:

(a)	safety surveys are carried out as a matter of routine, to recommend improvements where needed, to provide assurance to managers of the safety of activities within their areas and to confirm compliance with the relevant parts of the SMS (safety surveys);

(b)	methods are in place to detect changes in functional systems or operations which may suggest any element is approaching a point at which acceptable standards of safety can no longer be met, and that corrective action is taken (safety monitoring);

(c)	safety records are maintained throughout the SMS operation as a basis for providing safety assurance to all associated with, responsible for or dependent upon the services provided, and to the competent authority (safety records).

3.1.4.   Requirements for safety promotion

Within the operation of the SMS, providers of air traffic services shall ensure that:

(a)	all personnel are aware of the potential safety hazards connected with their duties (safety awareness);

(b)	the lessons arising from safety occurrence investigations and other safety activities are disseminated within the organisation at management and operational levels (lesson dissemination);

(c)	all personnel are actively encouraged to propose solutions to identified hazards, and changes are made to improve safety where they appear needed (safety improvement).

3.2.   Safety requirements for risk assessment and mitigation with regard to changes

3.2.1.   Section 1

Within the operation of the SMS, providers of air traffic services shall ensure that hazard identification as well as risk assessment and mitigation are systematically conducted for any changes to those parts of the ATM functional system and supporting arrangements within their managerial control, in a manner which addresses:

(a)	the complete life cycle of the constituent part of the ATM functional system under consideration, from initial planning and definition to post-implementation operations, maintenance and decommissioning;

(b)	the airborne, ground and, if appropriate, spatial components of the ATM functional system, through cooperation with responsible parties;

(c)	the equipment, procedures and human resources of the ATM functional system, the interactions between these elements and the interactions between the constituent part under consideration and the remainder of the ATM functional system.

3.2.2.   Section 2

The hazard identification, risk assessment and mitigation processes shall include:

(a)	a determination of the scope, boundaries and interfaces of the constituent part being considered, as well as the identification of the functions that the constituent part is to perform and the environment of operations in which it is intended to operate;

(b)

a determination of the safety objectives to be placed on the constituent part, incorporating: (i) an identification of ATM-related credible hazards and failure conditions, together with their combined effects; (ii) an assessment of the effects they may have on the safety of aircraft, as well as an assessment of the severity of those effects, using the severity classification scheme set out in Section 4; (iii) a determination of their tolerability, in terms of the hazard’s maximum probability of occurrence, derived from the severity and the maximum probability of the hazard’s effects, in a manner consistent with Section 4;

(c)

the derivation, as appropriate, of a risk mitigation strategy which: (i) specifies the defences to be implemented to protect against the risk-bearing hazards; (ii) includes, as necessary, the development of safety requirements potentially bearing on the constituent part under consideration, or other parts of the ATM functional system, or environment of operations; (iii) presents an assurance of its feasibility and effectiveness;

(d)	verification that all identified safety objectives and safety requirements have been met: (i) prior to its implementation of the change; (ii) during any transition phase into operational service; (iii) during its operational life; (iv) during any transition phase until decommissioning.

3.2.3.   Section 3

The results, associated rationales and evidence of the risk assessment and mitigation processes, including hazard identification, shall be collated and documented in a manner which ensures that:

(a)

complete arguments are established to demonstrate that the constituent part under consideration, as well as the overall ATM functional system are, and will remain tolerably safe by meeting allocated safety objectives and requirements. This shall include, as appropriate, specifications of any predictive, monitoring or survey techniques being used;

(b)	all safety requirements related to the implementation of a change are traceable to the intended operations/functions.

3.2.4.   Section 4

Hazard identification and severity assessment

A systematic identification of the hazards shall be conducted. The severity of the effects of hazards in a given environment of operations shall be determined using the classification scheme set out in the following table, while the severity classification shall rely on a specific argument demonstrating the most probable effect of hazards, under the worst-case scenario.

Severity class	Effect on operations
1 (Most severe)	Accident as defined in Article 2 of Regulation (EU) No 996/2010 of the European Parliament and of the Council (1).
2	Serious incident as defined in Article 2 of Regulation (EU) No 996/2010.
3	Major incident associated with the operation of an aircraft, in which the safety of the aircraft may have been compromised, having led to a near collision between aircrafts, with ground or obstacles.
4	Significant incident involving circumstances indicating that an accident, a serious or major incident could have occurred, if the risk had not been managed within safety margins, or if another aircraft had been in the vicinity.
5 (Least severe)	No immediate effect on safety.

In order to deduce the effect of a hazard on operations and to determine its severity, the systematic approach/process shall include the effects of hazards on the various elements of the ATM functional system, such as the air crew, the air traffic controllers, the aircraft functional capabilities, the functional capabilities of the ground part of the ATM functional system, and the ability to provide safe air traffic services.

Risk classification scheme

Safety objectives based on risk shall be established in terms of the hazard’s maximum probability of occurrence, derived both from the severity of its effect, and from the maximum probability of the hazard’s effect.

As a necessary complement to the demonstration that established quantitative objectives are met, additional safety management considerations shall be applied so that more safety is added to the ATM system, whenever reasonable.

3.2.5.   Section 5

Software safety assurance system

Within the operation of the SMS, a provider of air traffic services shall implement a software safety assurance system in accordance with Regulation (EC) No 482/2008.

3.3.   Safety requirements for engineering and technical personnel undertaking operational safety related tasks

Providers of air traffic services shall ensure that technical and engineering personnel including personnel of subcontracted operating organisations who operate and maintain ATM equipment approved for their operational use have and maintain sufficient knowledge and understanding of the services they are supporting, of the actual and potential effects of their work on the safety of those services, and of the appropriate working limits to be applied.

With regard to the personnel involved in safety-related tasks including personnel of subcontracted operating organisations, providers of air traffic services shall document the adequacy of the competence of the personnel; the rostering arrangements in place to ensure sufficient capacity and continuity of service; the personnel qualification schemes and policy, the personnel training policy, training plans and records as well as arrangements for the supervision of non-qualified personnel. They shall have procedures in place for cases where the physical or mental condition of the personnel is in doubt.

Providers of air traffic services shall maintain a register of information on the numbers, status and deployment of the personnel involved in safety related tasks.

That register shall:

(a)	identify the accountable managers for safety-related functions;

(b)	record the relevant qualifications of technical and operational personnel, against required skills and competence requirements;

(c)	specify the locations and duties to which technical and operational personnel are assigned, including any rostering methodology.

4.   WORKING METHODS AND OPERATING PROCEDURES

Providers of air traffic services shall be able to demonstrate that their working methods and operating procedures are compliant with the standards in the following annexes to the Convention on International Civil Aviation as far as they are relevant for the provision of air traffic services in the airspace concerned:

(a)	Annex 2 on rules of the air in its 10th edition of July 2005, including all amendments up to No 42;

(b)	Annex 10 on aeronautical telecommunications, Volume II on communication procedures including those with PANS Status in its sixth edition of October 2001, including all amendments up to No 85;

(c)	Annex 11 on air traffic services in its 13th edition of July 2001, including all amendments up to No 47-B.

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(1)   OJ L 295, 12.11.2010, p. 35.

ANNEX III

Specific requirements for the provision of meteorological services

1.   TECHNICAL AND OPERATIONAL COMPETENCE AND CAPABILITY

Providers of meteorological services shall ensure that the meteorological information, necessary for the performance of their respective functions and in a form suitable for users, is made available to:

(a)	operators and flight crew members for pre-flight and in-flight planning;

(b)	providers of air traffic services and flight information services;

(c)	search and rescue services units;

(d)	aerodromes.

Providers of meteorological services shall confirm the level of attainable accuracy of the information distributed for operations, including the source of such information, whilst also ensuring that such information is distributed in a sufficiently timely manner, and updated as required.

2.   WORKING METHODS AND OPERATING PROCEDURES

Providers of meteorological services shall be able to demonstrate that their working methods and operating procedures are compliant with the standards in the following annexes to the Convention on International Civil Aviation as far as they are relevant for the provision of meteorological services in the airspace concerned:

(a)	Annex 3 on meteorological service for international air navigation in its 17th edition of July 2010, including all amendments up to No 75;

(b)	Annex 11 on air traffic services in its 13th edition of July 2001, including all amendments up to No 47-B;

(c)	Annex 14 on aerodromes in the following versions: (i) Volume I on aerodrome design and operations in its 5th edition of July 2009, including all amendments up to No 10-B; (ii) Volume II on heliports in its 3rd edition of July 2009, including all amendments up to No 4.

ANNEX IV

Specific requirements for the provision of aeronautical information services

1.   TECHNICAL AND OPERATIONAL COMPETENCE AND CAPABILITY

Providers of aeronautical information services shall ensure that information and data is available for operations in a form suitable for:

(a)	flight operating personnel, including flight crew, as well as flight planning, flight management systems and flight simulators;

(b)	providers of air traffic services which are responsible for flight information services, aerodrome flight information services and the provision of pre-flight information.

Providers of aeronautical information services shall ensure the integrity of data and confirm the level of accuracy of the information distributed for operations, including the source of such information, before such information is distributed.

2.   WORKING METHODS AND OPERATING PROCEDURES

Providers of aeronautical information services shall be able to demonstrate that their working methods and operating procedures are compliant with the standards in:

(a)	Commission Regulation (EU) No 73/2010 (1);

(b)

the following Annexes to the Convention on International Civil Aviation as far as they are relevant for the provision of aeronautical information services in the airspace concerned: (i) Annex 3 on meteorological service for international air navigation in its 17th edition of July 2010, including all amendments up to No 75; (ii) Annex 4 on aeronautical charts in its 11th edition of July 2009, including all amendments up to No 56; (iii) without prejudice to Regulation (EU) No 73/2010, Annex 15 on aeronautical information services in its 13th edition of July 2010, including all amendments up to No 36.

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(1)   OJ L 23, 27.1.2010, p. 6.

ANNEX V

Specific requirements for the provision of communication, navigation or surveillance services

1.   TECHNICAL AND OPERATIONAL COMPETENCE AND CAPABILITY

Providers of communication, navigation or surveillance services shall ensure the availability, continuity, accuracy and integrity of their services.

Providers of communication, navigation or surveillance services shall confirm the quality level of the services they are providing and shall demonstrate that their equipment is regularly maintained and where required calibrated.

2.   SAFETY OF SERVICES

Providers of communication, navigation or surveillance services shall comply with the requirements of point 3 of Annex II on the safety of services.

3.   WORKING METHODS AND OPERATING PROCEDURES

Providers of communication, navigation or surveillance services shall be able to demonstrate that their working methods and operating procedures are compliant with the standards of Annex 10 on aeronautical telecommunications to the Convention on International Civil Aviation in the following versions as far as they are relevant for the provision of communication, navigation or surveillance services in the airspace concerned:

(a)	Volume I on radio navigation aids in its sixth edition of July 2006, including all amendments up to No 85;

(b)	Volume II on communication procedures including those with PANS status in its sixth edition of October 2001, including all amendments up to No 85;

(c)	Volume III on communications systems in its second edition of July 2007 including all amendments up to No 85;

(d)	Volume IV on surveillance radar and collision avoidance systems in its fourth edition of July 2007, including all amendments up to No 85;

(e)	Volume V on aeronautical radio frequency spectrum utilisation in its second edition of July 2001, including all amendments up to No 85.