Abstract. In the article the issue of prospects development of airspace and air traffic of Europe isconsidered. Main problems of the existed air navigation system have been reviewed. Some actions to beundertaken in Ukraine to improve its airspace indicators and increase the number of aircraft served by ATSunits have been proposed. A performance based navigation concept is used by authors as a method to solvethe problem. The concept is based on the principal of strict focus on desired results and well informeddecision making process. The structure of the Master Plan and its stepwise implementation in the Europeairspace is described. The methods proposed to follow the plan structure appropriately have been reviewed.The performance based navigation concept can serve a key point in researches aimed at finding efficientways to develop airspace and air traffic in Europe. The role and functions of ATS units within the frameworkof the performance based navigation concept are considered. In future more research of this issue will beconducted and new results will be published.