ANNEX IV -- CRITERIA FOR THE ASSESSMENT OF PERFORMANCE PLANS AND TARGETS AT NATIONAL OR FUNCTIONAL AIRSPACE BLOCK LEVEL

• Regulation (EU) 2019/317 found in: SKPI (No 2019/317) Safety Key Performance Indicators (Dec 2020)

ANNEX IV — CRITERIA FOR THE ASSESSMENT OF PERFORMANCE PLANS AND TARGETS AT NATIONAL OR FUNCTIONAL AIRSPACE BLOCK LEVEL Regulation (EU) 2019/317 1. CONSISTENCY ASSESSMENT OF NATIONAL PERFORMANCE TARGETS OR FAB PERFORMANCE TARGETS 1.1. SAFETY Effectiveness of safety management Consistency of national performance targets or FAB performance targets on the level of effectiveness of safety management with the Union-wide performance targets by which, for each calendar year of the reference period, the level of effectiveness of safety management is equal to, or higher than, the corresponding Union-wide performance targets. 1.2. ENVIRONMENT Average horizontal *en route* flight efficiency of the actual trajectory Consistency of national performance targets or FAB performance targets with the Union-wide performance targets for each calendar year of the reference period, by comparing the national performance targets or FAB performance targets with the *en route* horizontal flight efficiency reference values set out in latest version of the European Route Network Improvement Plan available at the time of adoption of the Union-wide performance targets. For the purpose of this paragraph, the ‘*en route* horizontal flight efficiency reference value’ means the estimated value by the Network Manager of the flight efficiency of the actual trajectory at national level or at the level of functional airspace blocks, for the purpose of ensuring that the Union-wide target on horizontal *en route* flight efficiency of the actual trajectory is met. 1.3. CAPACITY Average *en route* ATFM delay per flight Consistency of national performance targets or FAB performance targets with Union-wide performance targets for each calendar year of the reference period, by comparing the national performance targets or FAB performance targets with the reference values set out in the latest version of the Network Operations Plan available at the time of adoption of Union-wide performance targets. 1.4. COST-EFFICIENCY *En route* determined unit cost (a) Consistency of the determined unit cost trend at charging zone level over the reference period with the Union-wide determined unit cost trend over the same period, whereby those trends are expressed as a percentage. For the purpose of calculating those trends, the applicable Union-wide and local performance target values and the baseline values for the determined unit costs referred to in point (a) of [Article 9(4)](#_DxCrossRefBm1409943968), and in point (a) of [Article 10(2)](#_DxCrossRefBm1409943963) shall be used. (b) Consistency of the determined unit cost trend at charging zone level over a time period covering both the reference period covered by the performance plan and the preceding reference period (‘long term determined unit cost trend’) with the Union-wide determined unit cost trend over the same period, whereby those trends are expressed as a percentage. The long-term determined unit cost trend at charging zone level shall be calculated by using the actual unit cost at charging zone level for the year before the start of the preceding reference period concerned. (c) Consistency of the determined unit cost level: comparison of the baseline value for the determined unit cost referred to in point (a) of [Article 10(2)](#_DxCrossRefBm1409943963) at the level of the charging zone concerned with the corresponding average value of the charging zones where air navigation service providers have a similar operational and economic environment as defined in accordance with point (c) of [Article 9(4)](#_DxCrossRefBm1409943968). (d) A deviation from the criteria referred to in points (a) to (c) may be deemed necessary and proportionate in order to: (i) allow the achievement of the performance targets in the key performance area of capacity set at national level or the level of functional airspace blocks provided that the deviation from the Union-wide determined unit cost trend is exclusively due to additional determined costs related to measures necessary to achieve the performance targets in the key performance area of capacity; or (ii) implement restructuring measures that lead to restructuring costs referred to in [Article 2(18)](#_DxCrossRefBm1409943958), provided that the deviation is exclusively due to those restructuring costs and that a demonstration is provided in the performance plan that the restructuring measures concerned will deliver a net financial benefit to airspace users at the latest in the subsequent reference period. 2. REVIEW OF DRAFT PERFORMANCE PLANS 2.1. Elements subject to review: (a) measures for achievement of national or FAB performance targets in each key performance area as referred to in point 3.2 of [Annex II](#_DxCrossRefBm1409943981); (b) national or FAB performance targets on average arrival ATFM delay per flight: (i) comparison with the level and trend of actual performance during the reference period which precedes the reference period covered by the performance plan; (ii) at airport level, comparison of performance with similar airports; (c) national or FAB performance targets on terminal DUC: (i) comparison with the en route determined unit cost trend at local level; (ii) comparison with the level and trend of actual performance during the reference period which precedes the reference period covered by the performance plan; (iii) at airport level, comparison of performance with similar airports; (d) key factors and parameters underpinning the national or FAB performance targets or performance in the key performance area of cost-efficiency: (i) baseline values and assumptions underpinning the setting of determined costs for the first year of the reference period, in comparison with the latest available actual costs; (ii) traffic forecasts used in the performance plan and, where the forecasts differ from the STATFOR base forecasts, the justifications provided; (iii) planned cost of capital with regard to the level and composition of the regulatory assets base, as well as the planned cost of capital pre-tax rate, including the interest rate on debt and the return on equity; (iv) determined costs of new and existing investments and justifications provided for major investments; (v) determined pension costs and assumptions underlying their calculation; (vi) interest rate assumptions for loans financing the provision of air navigation services, including amounts, duration and other relevant information on loans, reconciliation with the weighted average interest on debt used to calculate the cost of capital pre tax rate and the cost of capital comprised in the determined costs; (vii) methodology used for the allocation of costs between *en route* and terminal services and justifications of any change in the methodology compared to the previous reference period. (e) values of the traffic risk sharing parameters referred to in [Article 27(2)](#_DxCrossRefBm1409944006) and (3) and, in the event that the national supervisory authority has adapted the values for these parameters in accordance with Article 27(5), justifications provided for those values; (f) incentive scheme or schemes, referred to in [Article 11](#_DxCrossRefBm1409943980); (g) performance benefits and synergies enabled by cross-border collaboration initiatives, including cooperation at the level of functional airspace blocks or through industrial alliances; (h) in respect to an application of a simplified charging scheme referred to in [Article 34](#_DxCrossRefBm1409944018), verification that the criteria referred to in Article 34(2) are met.