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Foreword by the President of Polish Air Navigation Services Agency

The fourth, full year of Polish Air Navigation Services Agency’s autonomous

business activity was mostly affected by the implementation of Single

European Sky Second Package (SES II) in the European Union Member

States. 2010 witnessed the preparation of National Performance Plan of air

traffic services for the years 2012 – 2014. The plan was drawn up in

accordance with EU legal regulations and includes PANSA course of activity

undertaken to contribute to the implementation of EU – wide targets in four

key performance areas, above all within capacity and cost efficiency.

In 2011 PANSA undertook several activities to ensure increase in work

efficiency. Last year the process of measuring and assessment of

performance continued in relation to the measurement of internal process indicators. This made it

possible to further reduce ATFM delays by 36% to finally reach its value of 0,63 minute per flight.

In 2011 PANSA continued with the implementation of numerous modern and innovative solutions,

targeted at increasing safety and capacity of Polish airspace. The most essential consisted of actions

aimed at implementation of new RNAV / GNSS solutions in the airspace, allowing for its better usage

by all users, modification of the airspace with the intention to increase its capacity until new

architecture of ATC sectors in FIR Warszawa is implemented (the latter is to introduced after the new

ATM system implementation).

PANSA undertook activities for optimizing of the capacity of main airports within the scope of

PANSA’s preparations for European Football Championships UEFA EURO 2012™. With hindsight we

can assert that PANSA’s large-scale preparations for the tournament as well as the operations and

passengers handling within event-related traffic proved successful.

On top of that, PANSA implemented a long-term investment project targeted at increase of operating

effectiveness and the capacity of Polish airspace while maintaining high safety level. In the

consecutive months of 2011 works on the implementation of the Agency’s priority investment

project i.e. the new air traffic management system – PEGASUS_21, as well as many facility

investments and CNS proceeded at a much faster pace.

The results of 2011 demonstrate that implementing investment plans, carrying out operational and

organizational activities and continuing acquiring new licensed personnel, PANSA obtained stability in

respect of operating costs and maintains employment costs at an optimum level, remaining one of

the most effective ATM/CNS service providers in Europe.

The results of 2011 were achieved thanks to the tireless efforts and involvement of PANSA’s staff

members as well as innovative approach to work organization and resources optimization issues.

Krzysztof Banaszek

President of Polish Air Navigation Services Agency

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Our Mission To provide high-quality, user and environment friendly air navigation services.

Our Vision To strengthen PANSA’s position in Europe as an economically competitive air

navigation services provider offering top safety and quality services in response to

the airspace users’ expectations.

Our Goals

Maintaining high level of air traffic safety

Ensuring required airspace capacity

Minimizing the negative environmental impact of air traffic

Optimizing cost efficiency

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Key data

Tab. 1 Table 1 Key Operational Data

Key operational data* 31.12.2010 31.12.2011 Change

(%)

Total IFR flights controlled by the ANSP

– GAT only (‘000) 590 645 9,3%

Total IFR flight-hours controlled by the ANSP (‘000)

346 382 10,4%

IFR air port movements controlled by

the ANSP (‘000) 288 298 3,5%

Total ATFM en-route delays (‘000 minutes)

659 422 -36%

ATFM en-route delays (in minutes per flight)

1,1 0,63 -43%

Employment (full time equivalent) 1 723 1 721 -0,12%

Employment – ATCO in OPS 436 449 3%

* Data on Total IFR flights controlled by the ANSP, total IFR flight-hours controlled by the ANSP, IFR airport movements controlled by the ANSP, total en-route ATFM delays based on PRU Operational data).

Tab. 2 Financial results in PLN thousand

Financial results in PLN thousand* 2010 2011

Revenue from sales in total 600 091 674 900

Operating costs 574 260 619 116

Sales profit 25 831 55 784

Gross profit 28 787 68 446

Net profit 24 260 55 647

*Over/under-recovery not included.

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Scope of activity

The year 2011 was the fourth, full 12-month period of Polish Air Navigation Services

Agency’s functioning.

PANSA is a certified entity designated by the Minister of Infrastructure by virtue of the

Aviation Law Act and European Community law to ensure air navigation services in the

airspace of FIR Warszawa.

PANSA is statutorily mandated to provide air traffic services and other air navigation

services (ANS), including:

communication services,

navigation services,

surveillance services,

aeronautical information services.

Furthermore, PANSA:

provides airspace users with the meteorological information generated by entities

holding relevant authorizations,

designs flight procedures,

performs flight-inspections of aeronautical communication, navigation and

surveillance systems,

provides training and consultation in the ANS-related field,

carries out R&D activity in the ANS-related field,

deals with infrastructure acquisition, maintenance and modernization.

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Figure 1 PANSA: organizational chart effective in 2011

President of PANSA

Vice-President

Air Navigation

Department

Vice-President

Finance and

Administration

Department

Director

Administration

Bureau

Director Finance

Bureau

Chief Accountant

Director of Personnel

Training and

Development Bureau

Director Development

and Implementation

Bureau – EU Projects

Representative

Director of Safety and

Quality Management

Bureau

Crisis Management in

Air Traffic and Security

Service

Plenipotentiary for

Management

Legal Service Unit

Internal Control

Department

Health and Safety

Department

Director Air Traffic

Services Bureau

Director Airspace Management and

Operations Planning Bureau

Director Technical

Services Bureau

Planning and Strategic

Analyses Department

Business Activity

Development

Department

Operational Military

Affairs Department

Public Procurement

Department

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Significant events 28 January 2011 All entities engaged in the operation of Poznań – Ławica Airport sign a

contract on introducing CDM System (Collaborative Decision Making) at

Poznan Airport.

February 2011 PANSA makes an assessment of precision approach procedures

P-RNAV at Warsaw Chopin Airport; within the year of P-RNAV operation

the airspace capacity and punctuality of airspace operations increased;

due to the introduction of P-RNAV fuel consumption, exhaust gases and

noise volume decreased.

March 2011 During the ATC Global exhibition and conference in Amsterdam PANSA in

cooperation with Oro Navigacija (ON) meets the invited representatives of

industry, international and European ANSP organizations to present the

advancement of Baltic FAB feasibility study, performed by Helios

Company.

March 2011 PANSA demonstrates the satellite future of air traffic control; at the airports

of Katowice, Kraków and Mielec PANSA performed experimental flights

and approaches using vertical guidance APV I; the experimental flights

and approaches will help the APV procedures for Katowice, Kraków,

Mielec, Warsaw and Gdańsk.

April 2011 President of Polish Air Navigation Services Agency signs an agreement

with the President of Lublin Airport regarding the lease of land designed

for the deployment of DVOR/DME.

April 2011 The third meeting of Baltic FAB Strategic Committee chaired by the

Secretary of State to the Ministry of Infrastructure Tadeusz Jarmuziewicz

and Vice-minister of Transport and Communication of the Lithuanian

Republic, Rimvydas Vaštakas.

May 2011 Consultation meeting with air carriers regarding navigational charges.

June 2011 PANSA makes its resources available for the purpose of NATO – Russia

manoeuvers “Vigilant Skies 2011” within the scope of CAI (Cooperative

Airspace Initiative).

June 2011 The fourth meeting of Baltic FAB Strategic Committee.

June 2011 PANSA purchases from Poznań Airport operator land designed for the

construction of the ATC Tower Poznań and radio-communication center.

June 2011 Air Traffic Services National Performance Plan 2012 – 2014 is submitted

to the European Commission.

July 2011 The President of the Republic of Poland signed amendment to Aviation

Law Act, adjusting it to the requirements of the European Union.

August 2011 The President of Civil Aviation Office issued a decision introducing flight

schedule coordination in Warsaw Chopin Airport as of 25 March 2012, and

introducing temporary flight schedule coordination i.e. as of 01 June to 08

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July 2012 in Poznań – Ławica Airport, Lech Wałęsa Gdańsk Airport and

Wrocław – Strachowice Airport.

September 2012 The fifth meeting of Baltic FAB Strategic Committee.

September 2012 The celebration of fixing the foundation act for the construction of

new Control Tower at Rzeszów – Jasionka Airport.

October 2011 PANSA received FAI Group Diploma of Honour; the Diploma is the highest

prize awarded by FAI to organizations or associations for contribution in

development of sport and general aviation. The prize was awarded to

PANSA at the request of the Flying Club of Poland.

November 2011 The President of the Republic of Poland as of 18 November 2011

appointed Sławomir Nowak to the Council of Ministers to the position of

Minister of Transport, Construction and Maritime Economy.

November 2011 High appraisal of preparation for Baltic FAB; the European Commission

appraised the advancement of the preparations during meetings with all

members of Functional Airspace Block. Polish – Lithuanian project

initiative was among the three most advanced ones.

November 2011 PANSA participates in High Level Conference “Implementation of the

Single European Sky and its Extension to Third Countries”; the conference

is held under Poland’s presidency in the EU Council.

December 2011 A public tender for the project of new Control Tower at Kraków Airport was

awarded. The construction is due to commence in 2013, and be completed

in 2014.

.

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Safety

In order to guarantee the utmost safety standards recognized as PANSA’s priority

mission underpinning the provision of air traffic services the following activities were

launched in 2011:

processes of Air Traffic Safety Management and Services Quality Bureau

concerning air traffic safety management were improved,

EUROCONTROL carried out an external review of safety culture in PANSA,

interim reports on the areas and trends of threats recognized on the basis of

analyses conducted, identifying the areas of particular threat were published,

actions aimed at boosting safety awareness were launched e.g. a series of

air traffic safety & safety awareness training was carried out,

safety reviews, which accompanied the implementation of changes to the

ATM/CNS were carried out,

safety performance reviews were conducted,

safety was continuously monitored,

the electronic system for reporting events at ATM (Electronic Report of Duty

Manager) was implemented,

an in-depth analysis of the causes of incidents to include risk analysis into

balancing performance indicators and to ensure that high safety level

remains a predominant objective of PANSA.

In 2011 PANSA succeeded in delivering on the assumed safety

objectives. Sustaining of the preceding year safety level and, where

possible, enhancing safety levels against a backdrop of increasing

air traffic volumes and, consequently, preventing accidents in the

air and reducing the volume of serious incidents with a direct

or indirect ATM system involvement was PANSA’s primary goal.

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Airspace

The key assignments accomplished in 2011 in the airspace management area consisted

of:

further implementation of the works under ”Polish Airspace 2010+” Programme,

aiming at drawing up and harmonization of projects connected with re-

organization of existing and implementation of new elements and structures of the

airspace for the new configuration of Polish airspace (vertical split of ACC

sectors) considering the planned replacement air traffic control system,

further implementation of tasks related to the reorganization of airspace within

TMA Kraków, Gdańsk, Poznań, Warszawa, Wrocław, Szczecin, Łódź/Łask,

Rzeszów areas and the continuation of the programme involving the

reorganization of uncontrolled airspace and flexible structures (MIL/GA),

preparation of draft changes in the airspace structures as required for the

purposes of the European Football Championships EURO 2012” and AMS 2000

System feasibility until PEGASUS_21implementation date, including:

draft changes of TMA Gdańsk (Upper),

draft changes of TMA Wrocław and implementation of TMA Poznań South,

draft changes of TMA Szczecin,

implementation draft of TMA Bydgoszcz and reorganization of CTR,

reorganization draft of TMA Rzeszów,

change of inner division of TMA Gdańsk; implementation of LTMA and

UTMA Gdańsk, enabling temporary launching of DIR in Gdańsk Airport

controlled area,

raising the upper border of TMA Łódź,

development and modernization of European air routes in accordance with

ARN plans,

draft of raising upper border of FIR Warsaw to FL 66 under the amendment

to regulation of Minister competent for transportation.

Implementation in FIR Warsaw subsequent NightDCT, allowing Poland to join

European night routes net constituting an element of FEP (Flight Efficiency Plan),

performance of simulations and tests with the use of the SAAM program for the

purposes of implementation of “Polish Airspace 2010+” Programme, including

e.g.: analysis of the influence of implementation of prepared changes in the

airspace and the proposed flight level restrictions on the optimalization of forecast

air traffic volume in FIR Warsaw during EURO 2012.

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Air Navigation Services

In the year 2011 the following initiatives were completed in the scope of air traffic

services’ activity:

the assignments geared towards preparing the operational environment for the

implementation of the new PEGASUS_21 air traffic management system,

included the following tasks:

work technology and the operational implementation guidelines were

developed for the new PEGASUS_21 air traffic management system in FIR

Warszawa,

the process of operational personnel training in the scope of new air traffic

management system continued.

Actions aimed at improving ATFCM in ACC EPWW continued in 2011, in

particular:

new ACC EPWW human resources planning and management methods were

put into place,

new methods of ACC EPWW air traffic volume and sectorization management

were implemented,

the ACC EPWW sector opening schemes were optimized.

The above activities contributed to the improvement of the KPA

Capacity indicator and a reduction of an average delay in the air

traffic down to 0,63 min/flight, which is particularly praiseworthy if

the 9,3% increase in air traffic in 2011 is taken into account.

Figure 2 Air Traffic Volume and Delay in FIR Warsaw

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Other actions undertaken in 2011 in the scope of air traffic services activity included:

continuation of PANSA preparation for EURO 2012 in respect of airspace

optimalisation, air traffic flow management (in cooperation with DNM) and ATC

sectors capacity management,

continuation of works on the project A-CDM („Collaborative Decision Making”) for

Warsaw Chopin Airport,

continuation of the execution of the project involving the commissioning of radar

approach control for TMA Wrocław (control ensured by Poznań Center),

the implementation of ESARR 5 principles in the scope of monitoring and

supervision over ATCOs competences,

achieving by PANSA the readiness to comply with the statutory tasks executed by

the Aviation Rescue Coordination Center (“ARCC”); the full implementation of the

task is conditioned on the amendment to the Aviation Law and relevant

Regulations of the Minister of Infrastructure coming into force,

improvements of ATC procedures, including: adaptation of conclusions and

observations from the monitoring phase of implementation of P-RNAV procedures

in TMA Warszawa; test on visual departure procedures at Warsaw Chopin Airport

was launched in collaboration with Eurolot airline based in Warsaw,

DMEAN and FEP programmes were carried out and the programme aimed at

enhancing airport capacity – ACE (Airport Capacity Enhancement) was further

implemented,

further implementation of Continous Decent Approaches – CDA for Warsaw

Chopin Airport airport; implementation of CDA for Kraków-Balice, Katowice-

Pyrzowice, Gdańsk-Rębiechowo and Poznań-Ławica airports.

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ATM/CNS infrastructure

PANSA’s core activity in 2011 was focused on the continuation of

works aiming at preparation, launching, certification and

implementation of a new air traffic management system

PEGASUS_21 (P_21) in FIR EPWW.

The Pegasus_21 project is scheduled to be delivered in three key phases including:

Installation of a local ATM system for TWR/APP/FIS in TMA Kraków,

Installation of a local ATM system for TWR/APP/FIS in TMA Gdańsk,

Installation of the central ATM System at ATMC (Air Traffic Management Centre)

Warszawa for the TWR/APP/ACC/FIS/OAT/AMC services and the final integration

of the central ATM system with the local systems installed in TMA

Kraków/Katowice, TMA Gdańsk, TMA Poznań and the regional TWR Bydgoszcz,

Wrocław, Rzeszów, Szczecin and Łódź.

The two first phases under the project were completed in the first quarter of 2009 with

the certification of the systems at the Civil Aviation Office. The local Pegasus_21

systems in Gdańsk and Kraków/Katowice have been in operational use since April 2009.

In the year 2010 the operational tests of the P_21 system in Warsaw were carried out,

work technology and guidelines for the operational implementation of the new ATM

system were elaborated. Training of operational personnel in the new system was

launched. The implementation of the system was scheduled at the turn of 2012 and

2013.

The year 2011 saw the carrying out of the following undertakings included in Stage III,

Phase 2 of the implementation of PEGASUS-21:

Tests and evaluation of P-21 System,

Meetings and arrangements with INDRA to precipitate the Dry Run and SAT Beta

tests starting dates;

Integration of the system with regional centers and commencement of integration

tests in accordance with project schedule,

Carrying out Dry Run and SAT Beta tests for P-21 System,

Carrying out final acceptance tests for SAT Beta,

Performance of operational configuration works,

Signing the P-21 System final acceptance protocol (technical completion of the

project),

Drawing up Basis of P-21 Work Technology,

Supervision over validation and elaboration of work technology as well as

operational documentation of P-21 system and carrying out corresponding tests,

Approval of Document on P-21 system Work Technology,

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Installation of equipment and infrastructure for system development in terms of

establishing radar service for approach service in Wrocław,

Supervision over OLDI test procedures with external partners.

The investment projects carried out in 2011 (to be continued in the

forthcoming years) focused not only on streamlining the air traffic

flow within Polish airspace, but served first of all to prepare for

increasing air traffic, to ensure greater operational effectiveness and

maintain high level of safety of provided services.

Project in the area of control-and-measurement

equipment installed in aircraft for ensuring air

control of ground air traffic protection equipment

was completed,

The construction works of TWR Łódź were

completed,

Works under the project of construction of TWR Rzeszów and TWR Poznań

continued,

Construction works in respect of construction of DVOR/DME Zielona Góra,

DVOR/DME Modlin, DVOR/DME Katowice, DME Drezdenko were completed,

Construction works of DVOR/DME Kraków, DVOR/DME Łódź, DVOR/DME

Wrocław continued,

Construction works under the project to construct radiolocation system at the

airports in Poznań, Warszawa and Wrocław were continued,

Installation of Radiolocation Centers in Grajewo, Stare Iganie, Trzebnica and

Jędrzejów was completed,

ILS/DME at Warszawa Okęcie Airport on RWY 11 was replaced.

In 2011 within the scope of key investment projects performance:

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In 2011 PANSA’S expenses for investment projects totalled PLN 60

million. On top of that payments accomplished in 2011 which were

not included to investment expenditures accounted for ca. PLN 20

million which means that PANSA’s involvement in investments in

2011 totaled ca. PLN 80 million.

Table 3 Major PANSA’s investment projects in terms of value planned for 2011 (PLN)

Project Commencem

ent date

Planned completion

date

Planned expenses in

2011

Planned total

expenditure

Radars: Poznań, Wrocław 2009 2012 20,3 mln 31,2 mln

ATM Pegasus_21 2008 2012/2013 16,0 mln 104,0 mln

TWR: Łódź, Rzeszów, Poznań

2009 2015 15,2 mln 59,2 mln

Control and Measurement

Equipment 2010 2011 4,9 mln 11,1 mln

VCS System 2010 2011 4,5 mln 10,2 mln

Total 60,9 mln 215,7 mln

In 2011 PANSA activities focused additionally on acquiring grants from the EU funds for

the majority of crucial investment initiatives realized within the period of the years 2007-

2015.

In the reported period comments were forwarded to the contractor of the Feasibility

Study in respect of complete documentation. Two annexes to the Contract were signed

with the contractor in consideration of remarks of JASPERS on current stage.

In 2nd

quarter of 2011 the subject of the contract was accepted and working version of

application for additional financing from Centre for EU Transport Projects (CEUTP) was

submitted. In July 2011 an official version of the application was submitted to CEUTP.

Currently the application is being evaluated.

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Environmental activities

The activities of Polish Air Navigation Services Agency focused on the abatement of

negative impact of air transport on the environment entailed the compliance with the

tasks included in the ESSIP (European Single Sky Implementation) and European ATM

Master Plan, including, in particular:

reduction of CO2 and NOX emissions into the atmosphere caused by aircraft fuel

burn and

reduction of aircraft generated noise.

PANSA’s environmental measures in the ATM area focus primarily on the efficient

airspace management with a view to improving horizontal flight efficiency. Another

PANSA’S activity focuses on popularization and familiarization with the CDA technique at

major FIR Warszawa controlled airports.

In 2011 CDA operations totalled 35 078 at Warsaw Chopin Airport.

Other areas where activities were launched, include, among others, improvement of

Integrated Management System, adequate preparation of investment projects in terms of

their environmental impact, supervision of electromagnetic fields emission into the

atmosphere, monitoring of ozone reducing factors and effective waste management. In

order to boost ecological awareness at PANSA relevant training in the environmental

aspects was provided to the candidates for air traffic controllers and air traffic controllers.

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Human resources policy

The employment as of 31 December 2011 in PANSA stood at 1.733 full time employees

and decreased by 0,17% compared to the figures of 31 December 2010, with an average

employment of 1.719,42 headcounts.

However, when translated into the number of full time equivalent (FTE), the employment

as of 31 December 2011 in PANSA stood at 1.721,29 FTE, with an average yearly

employment - 1.707,76 FTE.

Table 4 Employment at PANSA as of 31.12.2010 – allocation of employees according to

Performance Review Unit Specification – EUROCONTROL

PRU Category Employment as at 31.12.2010

Employment as at 31.12.2011

Change (y/y)

Air Traffic Controllers 436,58 449,83 13,25

Air traffic controllers on other duties 12,00 9,00 -3,00

Ab-initio trainees 40,00 28,00 -12,00

On-the-job trainees 46,00 39,50 -6,50

ATC assistants 85,70 90,30 4,60

OPS-support 262,40 268,30 5,90

Technical suport for operational CNS/ATM monitoring and control system staff

341,50 342,00 0,50

Technical suport Staff for the development and implementation of CNS/ATM systems

63,20 64,20 1,00

Administration staff 327,03 320,41 -6,62

Staff for ancillary services 109,25 109,75 0,50

Total 1 723,66 1 721,29 -2,37

Within the period from 01.01.2011 to 31.12.2011 Polish Air Navigation Services Agency

executed the following recruitment activities:

external recruitment – 34,5 full-time employment contracts were awarded, of

which 21 were awarded to ab-initio trainees.

in respect of the staff already employed the amount of working time increased by

3,55 full-time employment contracts.

Within the referred period the employment decreased by 40,42 FTE, including:

termination of employment contract due to retirement – 5 FTE,

termination of employment contract due to lapse of employment contract – 9 FTE,

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expiry of employment contract due to death of employee – 3 FTE,

termination of employment contract due to employer’s notice of termination – 4,5

FTE,

termination of employment contract due to agreement between the parties – 9

FTE,

termination of employment contract due to employee’s notice of termination – 7

FTE,

decrease in number of full time equivalent – 2,92 FTE.

PANSA’s activities in the scope of human resources development in

2011 consisted in maintaining the employment ratio on an unaltered

level (excluding the ops employees) due to costs reducing policy.

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Consultations with Airspace Users

PANSA, as every certified air navigation services provider operating in pursuance of

applicable European Commission Regulations is obliged to ensure openness and

transparency in the process of consultation and calculation of charges for air navigation

services.

In 2011, as every year, two consultation meetings with the airspace users’

representatives were held. They were attended by the representatives of airspace users,

i.e. air carriers, FIR Warszawa airspace users organizations (e.g. IATA, AEA), the Civil

Aviation Office, the Institute of Meteorology and Water Management and Polish Air

Navigation Services Agency.

As a result of consultations held in 2010 and in compliance with air carriers expectations,

upon the analysis of proposals of rates submitted by PANSA, the President of the Civil

Aviation Office approved the terminal charge unit rate in the amount of PLN 1051,03

effective from 1 January 2011 at all airports in Poland. However, starting from 1 January

2012 at all airports in Poland providing air traffic services, the terminal charge unit rate

collected for the provision of air navigation services in respect of aircraft take-off and

landing operation totals PLN 781,06.

The en-route charge effective as of 1 January, 2011 amounted to PLN 155,17. However,

as a result of consultations with air carriers in November 2011, the charge approved for

2012 amounts to PLN 155,40.

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International cooperation

In 2011 the main area of PANSA’s international cooperation involved

the issues related to the advancement of works on the Baltic

Functional Airspace Block (“Baltic FAB”).

In 2011 PANSA participated actively in the meetings of the Inter-Ministerial Committee

for FAB and the works of respective expert working groups dedicated to individual

aspects.

As part of activities related to establishment of Baltic FAB, in 2011 the following tasks

were accomplished:

Polish - Lithuanian Baltic FAB Program Management Office was set up,

The Steering Committee accepted the work schedule and Terms of Reference for four working groups within Baltic FAB project, i.e. WG1 (working group for operational and technical issues), WG2 (group dealing with strategic and economic questions), WG3 (group dealing with safety and environmental issues) and WG4 (group concerned with legal and legislation issues within FAB),

Works commenced on establishing a special task group for the preparation of cross-border air traffic control service provision within FAB,

Report No. 4 was accepted – the Final Baltic FAB Development Study, prepared by Helios company,

A contract with Helios company was concluded for the update of Feasibility Study, including draft FAB application,

A number of consultation meetings was held for Polish and Lithuanian working groups experts;

during the meetings works were carried on documents planned to be submitted to the European Commission in view of formal application for Baltic FAB,

PANSA participated in meetings with the European Commission, e.g. in FAB Focal Points Group; a bilateral meeting with DG Move was held to discuss the status of Baltic FAB works,

Within the framework of cooperation with neighbouring FAB initiatives meetings were held with ANS CR/Helios concerning discussion of the potential cooperation areas between Baltic FAB and ANS as well as between Baltic FAB with Swedish and Dutch DK/SE FAB,

Baltic FAB project was presented on the 44

th Single Sky Committee

meeting,

PANSA participated in FABs Seminar for Central and Eastern European ANSP held in the Czech Republic.

Besides, in 2011 PANSA consistently intensified its activity in the

works of key ANSP institutions (e.g. EUROCONTROL, CANSO)

involving the participation in the formulation of opinions, reports and

drafts of legal acts presented further on the international fora.

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Operational performance in 2011

In 2011 the following number of operations was performed in Polish airspace:

En–route output - 645 262 MVS,

Terminal output - 189 022 MVS*.

*Source: PANSA – in accordance with European regulations establishing a common pattern of collecting charges for ATC services, considering arrival and departure as one operation.

In 2011 total en-route traffic (MVS) increased by 9% as compared

with 2010 and service units (SU) increased by 11% in comparison to

the previous year.

Figure 3 En-route traffic by months in 2010 and 2011 by en-route operation

Figure 4 En-route traffic by months in 2010 and 2011 by en-route service units

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Figure 5 Terminal traffic by months in 2010 and 2011 by number of airport movements*

* In 2010 data was processed by ARMS System, and for 2011 the data was collected by Oracle System and supplemented by ARMS data.

Figure 6 Terminal traffic by months in 2010 and 2011 by Terminal SU

The percentage share of individual airports in total of departures and arrivals in 2011 is

shown in Figure 7.

Almost half of the number of terminal operations in 2011 was performed in Warsaw

Chopin Airport (47,9%). Other airports by share in the volume of terminal output are:

Kraków Jan Paweł II Airport(11,1%), Gdańsk L. Wałęsa Airport (10,5%), Katowice –

Pyrzowice Airport (9,4%), Wrocław – Strachowice M. Kopernik Airport (7,5%) and

Poznań – Ławica H. Wieniawski Airport (6,8%).

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Figure 7 The percentage share of individual airports by volume of terminal navigation

operations in 2011

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Financial results

In 2011 Polish Air Navigation Services Agency generated a net financial profit of PLN

55647 thousand. The service sales profit amounted to PLN 674900 thousand, and the

operational costs for 2011 amounted to PLN 619116 thousand.

.

Figure 8 PANSA’s revenues and costs in 2011 (in PLN)

Revenue

The major source of the total revenue generated by PANSA was the revenue from the

sale of services of:

en-route navigation,

terminal navigation.

The value of revenue from the sale of navigation services in 2011 compared to the

previous year was impacted by the increase of en-route traffic and change in the rates of

navigation services charge - the en-route navigation service unit rate decreased by 10,71

compared to 2010, while the terminal navigation service unit rate was determined by the

President of the Civil Aviation Office in the amount of PLN 1051,33 at all airports in

Poland, i.e. it increased by PLN 183,15 compared to unit rate effective in 2010.

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Table 5 Air navigation services unit rates in the years 2010-2011 (in PLN)

2011 2010 Change

2011-2010

En-route navigation (PLN)

Unit rate 155,17 165,88 -10,71

Terminal navigation (PLN)

PL Warszawa

1 051,03 867,88 183,15

PL Kraków

PL Gdańsk

PL Bydgoszcz

PL Katowice

PL Łódź

PL Poznań

PL Rzeszów

PL Szczecin

PL Wrocław

PL Zielona Góra

The air navigation services are the major item in PANSA’s revenues. The revenue from

the sale of PANSA’s air navigation services in 2011 increased by PLN 74373 thousand,

i.e. by 12,6% (compared to the similar period of 2010), reaching the value of PLN

664819 thousand.

Table 6 Revenues from sales

Item PLN

as of 31.12.2011

Revenues from sale of air navigation services, including: 664 819 076

Revenues from en-route navigation services 576 612 024

Revenues from terminal navigation services 139 326 142

Reimbursement on flights exempt from air navigation charges 7 278 852

Deferred revenues from settlements with airspace users - 58 397 942

Revenues from sale of other services 9 007 823

Revenues from sale of material 6 328

EU grants 1 066 627

Revenues from sales 674 899 854

In the analysed 2010 year the revenues generated from en-route navigation services

(over-flights, arrivals to domestic airports) accounted for 80% of the total revenue from

the sale (the adjustment mechanism was not taken into consideration).

Page | 26

Figure 9 PANSA Services Sale Structure in 2011

In the above mentioned period PANSA generated revenue from non-navigation service

sales, other operational revenue and financial revenue totalled PLN 32021 thousand, i.e.

PLN 13 968 thousand more than in 2010.

Costs

The total value of costs incurred by PANSA in 2011, consisting mostly of operating costs

amounted to PLN 629 467 thousand.

The main cost items include:

operating costs: PLN 619 116 thousand, i.e. 98,36% of total costs;

other operating costs: PLN 10 195 thousand, i.e. 1,62% of total costs;

financial costs: PLN 157 thousand, i.e. 0,02% of total costs.

Beside employment costs (personnel) typical of the company, other items included in

operation costs were as follows:

Amortization costs

Met services

EUROCONTROL membership fees and charges

CAA fee.

The METEO,EUROCONTROL and CAA costs of out of control of PANSA amounted to

PLN 69 564 thousand and constituted 11,05% of total costs.

Page | 27

Figure 10 PANSA’s operating costs structure in 2011

Performance

PANSA is actively involved in the benchmarking process measuring

its performance results against other air navigation services

providers in Europe.

The benchmarking process is based on the active participation of the Agency’s

representatives in the ACE Benchmarking Working Group under the aegis of

EUROCONTROL.

The meetings attended by PANSA’s representatives give them the opportunity to consult,

make arrangements and interpret human resources, financial and operational data

submitted by PANSA. Based on the validated information the key ANSPs’ performance

indicators are elaborated and presented, which ultimately act as the benchmarking tool

to measure the institution’s performance in the respective areas.

A certain drawback to the above benchmarking process is the fact that the publication of

reports on the ANSPs’ performance is delayed by at least 18 months. For instance, the

EURORONTROL/PRU report entitled “ATM Cost-Effectiveness (ACE) – 2010

Benchmarking Report” describing the basic indicators of European ANSPs, was

published as late as the end of May 2012. For this reason PANSA refers to data from the

year 2010. The main indicators concerning functioning of European ANSPs as included

in EURORONTROL/PRU ACE Benchmarking Report 2010 are shown in the graphs

below.

Page | 28

Figure 11 Financial cost-effectiveness (ATM/CNS services provision costs by composite flight-

hour)

The financial cost-effectiveness indicator in accordance with

EUROCONTROL/PRU methodology (ATM/CNS services provision costs

by aggregated flight-hour) in 2010 totalled for PANSA EUR 303,

whereas the European system average for ANSPs amounted to EUR

419. In 2011 the financial cost-efficiency indicator for PANSA

amounted to EUR 311.

ATCO productivity indicator determines human resources effectiveness in PANSA. In

2010 ATCO productivity increased by 4% in relation to 2009 and read 0,91. In 2010 the

level of ATCO productivity reached by PANSA is the more praiseworthy if we consider

that the average European indicator was 0,77 at the discussed period. It must be

emphasized that in 2011 the indicator was even higher and amounted to 0,99.

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Figure 12 ATCO-hour productivity (composite flight hours per ATCO-hour)

As a result of the initiated activities, PANSA achieved an outstanding result in respect of

delays. The level of an average delay 0,63 min/flight is the more noteworthy when it is

remembered that in 2011 the air traffic volume in FIR Warszawa increased by 9%.

In 2011 the share of Poland (FIR Warszawa) in the delays generated in Europe

decreased to the level of 2,5%, whereas the share of e.g Germany amounted to 23,7%,

Spain - 18,4%, Greece – 14,3%, France – 10,9% and Great Britain – 5,5%.

Figure 13 The Delay Share of Poland (PANSA) in Europe in 2011

Page | 30

Financial Statement and Accounts

BALANCE SHEET as of 31 December 2011 (PLN)

Item 31.12.2011 31.12.2010

A. FIXES ASSETS 654 924 850 635 297 688

I. Intangible assets 26 132 783 26 992 844

II. Tangible fixed assets 571 841 638 559 241 645

III. Advances for tangible fixed assets under construction 1 280 088 7 703 599

IV. Long-term receivables 1 026 271 998 916

V. Deffered tax assets 51 225 839 37 471 622

VI. Other prepayments 3 418 231 2 889 062

B. CURRENT ASSETS 290 691 781 205 256 067

I. Inventory 372 996 824 852

II. Trade receivables and other receivables 129 704 029 118 161 284

III. Receivables from income tax on legal entities 4 939 936 4 615 170

IV. Short-term prepayments 2 632 413 2 517 903

V. Cash and pecuniary assets 153 042 407 79 136 857

TOTAL ASSETS 945 616 630 840 553 755

Item 31.12.2011 31.12.2010

A. EQUITY 633 750 539 578 103 255

I. Statutory Fund 475 021 841 475 021 841

II. Reserve Fund 103 081 413 78 821 099

III. Profit retained 55 647 285 24 260 314

B. LONG-TERM LIABILITIES 93 277 066 88 056 092

I. Long-term provisions 83 508 261 79 814 792

II. Deffered income tax provisions 8 879 015 7 412 236

III. Other long-term liabilities 889 791 829 064

C. SHORT-TERM LIABILITIES 218 589 025 174 394 408

I. Shor-term liabilities 11 164 536 9 624 973

II. Trade liabilities and other 47 206 870 66 362 726

III. Accruals 160 217 619 98 406 710

TOTAL LIABILITIES 945 616 630 840 553 755

Page | 31

PROFIT AND LOSS ACCOUNT as of 31 December 2011 (PLN)

Item 31.12.2011 31.12.2010

Revenues from sales 674 899 854 600 091 380

Operating expenses 619 115 632 574 260 672

Profit (loss) on sales 55 784 221 25 830 708

Other operating revenues 1 346 802 5 238 897

Other operating expenses 10 194 597 1 180 565

Profit (loss) on operating activities 46 936 426 29 889 040

Financial revenues 21 666 492 4 104 869

Financial expenses 156 637 5 206 542

Profit (loss) on business activities 68 446 281 28 787 368

Result on extraordinary events 0 0

Gross profit (loss) 68 446 281 28 787 368

Income tax 12 798 996 4 527 053

Net profit (loss) 55 647 285 24 260 314

Page | 32

CASH FLOW STATEMENT (PLN)

Item 31.12.2011 31.12.2010

A. Cash flow from operating activities

I. Gross profit (loss) 68 446 281 28 787 368

II. Total adjustments 59 657 065 48 916 573

1. Amortization and depreciation 47 972 272 45 082 625

2. Foreign exchange gains (losses) -8 554 213 1 626 408

3. Interest and profit sharing (dividends) -2 299 656 -3 055 392

4. Profit (loss) on investment activities 236 023 177 894

5. Change in provisions 5 233 032 562 762

6. Change in inventory 451 856 -36 021

7. Change in receivables -11 570 100 -30 832 873

8. Change in short-term liabilities -897 918 3 075 375

9. Change in prepayments and accruals 61 167 231 61 072 078

10. Tax paid -25 411 201 -21 687 134

11. Other adjustments -6 670 261 -7 069 149

III. Net cash flow from operating activities 128 103 347 77 703 941

B. Cash flow from investment activities

I. Inflows 0 42 429

II. Outflows for the purchase of intangible assets and tangible fixed assets -71 666 116 -61 933 099

III. Net cash flow from investment activities -71 666 116 -61 890 670

C. Cash flow from financial activities

I. Inflows 9 124 594 11 174 018

1. Credits and loans 0 0

2. Intrests received 2 454 334 4 104 868

3. Other financial inflows 6 670 261 7 069 149

II. Outflows -210 488 -1 260 930

1. Repayment of credits and loans 0 0

2. Payment of liabilities arising from financial leases -55 810 -211 454

3. Interest paid -154 678 -1 049 476

III. Net cash flow from financial activities 8 914 106 9 913 088

D. Total net cash flow 65 351 337 25 726 359

– change in cash due to foreign exchange differences 8 554 213 -1 626 408

E. Balance sheet change in cash, including: 73 905 549 24 099 950

F. Cash and its equivalent opening balance 79 136 857 55 036 907

G. Cash and its equivalent closing balance 153 042 407 79 136 857