Cost-efficiency - Austria
PRB monitoring
▪ The 2020 actual service units (1,509K) were 55% lower than the actual service units in 2019 (3,325K).
▪ Austria had the second highest percentage saving in 2020 across Member States, reducing total costs in 2020 by 42 M€2017 (-20%) compared to 2019 actual costs. The greatest reduction has been staff costs, with a decrease of 46 M€2017 (-32%), due to reduction of overtime, salary, hiring freeze and public funding of short time work.
▪ Exceptional costs in 2020 are 5 M€2017 (+94%) higher compared to 2019 actual costs, in line with the 2019 draft performance plan (due to inclusion of cost exempt stemming from RP2).
▪ Austro Control spent 32 M€2017 in 2020 related to cost of investments, 5% less than planned in the 2019 draft performance plan (34 M€2017). The reduction is due to a lower cost of capital driven by a lower asset base.
En route charging zone
Unit cost (KPI#1)
| Actual and determined data |
| Total costs - nominal (M€) |
2020-2021 |
2022 |
2023 |
2024 |
| Actual costs |
363 |
NA |
NA |
NA |
| Determined costs |
381 |
202 |
196 |
196 |
| Difference costs |
−17 |
NA |
NA |
NA |
| Inflation assumptions |
2020-2021 |
2022 |
2023 |
2024 |
| Determined inflation rate |
NA |
2.5% |
2.0% |
2.0% |
| Determined inflation index |
NA |
110.3 |
112.5 |
114.8 |
| Actual inflation rate |
NA |
NA |
NA |
NA |
| Actual inflation index |
NA |
NA |
NA |
NA |
| Difference inflation index (p.p.) |
NA |
NA |
NA |
NA |
AUC vs. DUC
In the combined year 2020-2021, the AUC was -4.4% (or -4.85 €2017) lower than the planned DUC. This results from the combination of slightly lower than planned TSUs
(-0.2%) and lower than planned en route costs in real terms (-4.6%, or -16.8 M€2017).
En route service units
The difference between actual and planned TSUs (-0.2%) falls within the ±2% dead band. Hence the resulting loss of revenue is borne by the ANSP.
En route costs by entity
Actual real en route costs are -4.6% (-16.8 M€2017) lower than planned. This is mainly driven by the lower costs of the main ANSP - Austro Control (-4.7%, or -14.9 M€2017 for ATM/CNS/AIS and SAR services) and (-3.3%, or -0.8 M€2017 for meteorological services). NSA/EUROCONTROL costs were -4.6% lower than planned.
En route costs for the main ANSP at charging zone level
The lower than planned en route costs in real terms for Austro Control (-4.7%, or -14.9 M€2017, excluding the costs for meteorological services) result from:
- lower staff costs (-4.5%); “due to cost containment measures of Austria including reduction of overtime, salary and hiring freeze and one time effects such as short time”;
- lower other operating costs (-7.3%); “due to cost containment measures of Austria such as reduction of travel expenses, non-operational training and much more”;
- lower depreciation (-3.9%) and cost of capital (-12.2%) reflecting delayed investments due to the impact of COVID-19; and,
- slightly higher than planned deduction for VFR exempted flights (+1.2%).
Actual unit cost incurred by the users (AUCU) (PI#1)
| AUCU components (€/SU) – 2020-2021 |
| Components of the AUCU in 2020-2021 |
€/SU |
| DUC |
114.85 |
| Inflation adjustment |
0.17 |
| Cost exempt from cost-sharing |
−3.04 |
| Traffic risk sharing adjustment |
0.00 |
| Traffic adj. (costs not TRS) |
0.03 |
| Finantial incentives |
0.00 |
| Modulation of charges |
0.00 |
| Cross-financing |
0.00 |
| Other revenues |
0.00 |
| Application of lower unit rate |
0.00 |
| Total adjustments |
−2.84 |
| AUCU |
112.01 |
| AUCU vs. DUC |
−2.5% |
| Cost exempt from cost sharing by item - 2020-2021 |
€'000 |
€/SU |
| New and existing investments |
−2,755.9 |
−0.83 |
| Competent authorities and qualified entities costs |
−247.4 |
−0.07 |
| Eurocontrol costs |
−910.3 |
−0.28 |
| Pension costs |
−6,146.1 |
−1.86 |
| Interest on loans |
0.0 |
0.00 |
| Changes in law |
0.0 |
0.00 |
| Total cost exempt from cost risk sharing |
−10,059.8 |
−3.04 |
The actual en route unit cost incurred by airspace users (AUCU) in respect of activities performed in the combined year 2020-2021 (112.01€) is -2.5% lower than the nominal DUC (114.85€) which includes DUC initially charged: 63.56€; and to be charged: 51.28€. The difference between these two figures (-2.84€/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+0.17€/SU);
- the impact of adjustments resulting from the costs exempt from cost-sharing mechanism (-3.04€/SU); and,
- the positive traffic adjustment (+0.03€/SU) for the costs not subject to traffic risk sharing to be charged in future years.
The share of regulatory result in the AUCU (before the deduction of other revenues) is 2.6%.
Austro Control net gain on activity in Austrian en route charging zone in the combined year 2020-2021
Austro Control generated a net gain of +6.4 M€, resulting from a gain of +7.1 M€ arising from the cost sharing mechanism and a loss of -0.7 M€ arising from the traffic risk sharing mechanism.
Austro Control overall regulatory results (RR) for the en route activity (see Note 2 above)
Ex-post, the overall RR taking into account the net gain from the en route activity mentioned above (+6.4 M€) and the actual RoE (+2.3 M€) amounts to +8.6 M€ (2.7% of the en route revenues). The resulting ex-post rate of return on equity is 27.9%, which is significantly higher than the 7.3% planned in the PP.