Cost-efficiency - Czech Republic
PRB monitoring
▪ The en route 2020/2021 actual unit cost of Czech Republic was 76.64 €2017, -3.5% lower than the determined unit cost (79.46 €2017). The terminal actual unit cost was 485.30 €2017, -3.2% lower than the determined unit cost (501.57 €2017).
▪ The en route 2021 actual service units (1,280K) were equal to the determined service units.
▪ In 2021, actual total costs were -6.8 M€2017 lower (-7.5%), with a decrease in all cost categories. The decrease was mainly driven by lower other operating costs (-4.7 M€2017, or -21%) and staff costs (-1.4 M€2017, or -3.4%). The NSA only explained the reasons for the variances between 2019 actual and 2021 (e.g. due to a decrease of travel, decrease of staff, etc.).
▪ ANS CR spent 25.7 M€2017 in 2021 related to costs of investments, -2.5% lower than planned (26.4 M€2017), mainly due to a higher share of financing through debt that led to a lower WACC.
▪ The en route actual unit cost incurred by users in 2020/2021 was 84.11€, while the terminal actual unit cost incurred by users was 526.46€.
En route charging zone
| Actual and determined data |
| Total costs - nominal (M€) |
2020-2021 |
2022 |
2023 |
2024 |
| Actual costs |
196 |
NA |
NA |
NA |
| Determined costs |
203 |
118 |
126 |
128 |
| Difference costs |
-7 |
NA |
NA |
NA |
| Inflation assumptions |
2020-2021 |
2022 |
2023 |
2024 |
| Determined inflation rate |
NA |
2.0% |
2.0% |
2.0% |
| Determined inflation index |
NA |
112.8 |
115 |
117.3 |
| 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 en route AUC (2,016.56 CZK2017 or 76.64 €2017) was lower by -3.5% (-74.07 CZK2017 or -2.82 €2017) comparing to the DUC (2,090.64 CZK2017 or 79.46 €2017). This was the sole effect of the lower than planned en route costs in real terms (-3.5%, -179.2 MCZK2017 or -6.8 M€2017).
En route service units
There is no difference in the number of TSU, as the figures used in the final version of the RP3 PP for the forecasted traffic for years 2020 and 2021 were in line with actuals.
En route costs by entity
Actual en route costs are -3.5% lower than planned (-6.8 M€2017) which is mainly driven by the lower by -3.6% (or -5.8 M€2017) costs for the main ANSP (ANS Czech Republic) and for the NSA/EUROCONTROL, -4.4% (or -1.1 M€2017). Actual 2020-2021 costs for METSP were slightly above plan (+2.1%).
En route costs for the main ANSP at charging zone level
The lower than planned en route costs in real terms for ANS CR (-3.6%, or -5.8 M€2017) result from:
- lower than planned staff costs by -1.4% (or -1.3 M€2017);
- lower other operating costs by -15.9% (or -3.8 M€2017);
- lower depreciation by -0.3% (or -0.1 M€2017); and
- lower cost of capital by -3.5% (or -0.5 M€2017);
- slightly higher deduction for VFR exempted flights (+3.0%).
The lower execution of costs in 2020-2021 were the effect of measures implemented by ANS CR, and in particular: cancelation of benefits, limitation of the contribution to supplementary pension savings, reduction of basic salary and reduction in the number of staff. In the area of other operating costs the travel, maintenance and training costs were reduced.
Actual unit cost incurred by the users (AUCU) (PI#1)
| AUCU components (€/SU) – 2020-2021 |
| Components of the AUCU in 2020-2021 |
€/SU |
| DUC |
84.80 |
| Inflation adjustment |
0.25 |
| Cost exempt from cost-sharing |
-0.72 |
| Traffic risk sharing adjustment |
0.00 |
| Traffic adj. (costs not TRS) |
0.00 |
| Finantial incentives |
0.00 |
| Modulation of charges |
0.00 |
| Cross-financing |
0.00 |
| Other revenues |
-0.23 |
| Application of lower unit rate |
0.00 |
| Total adjustments |
-0.69 |
| AUCU |
84.11 |
| AUCU vs. DUC |
-0.8% |
| Cost exempt from cost sharing by item - 2020-2021 |
€'000 |
€/SU |
| New and existing investments |
-610.3 |
-0.25 |
| Competent authorities and qualified entities costs |
11.3 |
0.00 |
| Eurocontrol costs |
-1,188.8 |
-0.49 |
| Pension costs |
57.3 |
0.02 |
| Interest on loans |
0.0 |
0.00 |
| Changes in law |
0.0 |
0.00 |
| Total cost exempt from cost risk sharing |
-1,730.4 |
-0.72 |
The actual en route unit cost incurred by airspace users (AUCU) in respect of activities performed in the combined year 2020-2021 (2,190.56 CZK or 84.11€) is -0.8% lower than the nominal DUC (2,208.42 CZK or 84.80€) which includes DUC initially charged: 1,237.66 CZK (or 47.60€); and to be charged: 970.76 CZK (or 37.20€). The difference between these two figures (-17.86 CZK/SU or -0.69€/SU) results from:
- the positive inflation adjustment (+6.41 CZK/SU or +0.25€/SU) resulting from higher than planned inflation;
- the deduction of the adjustment for costs exempt from cost-sharing (-18.33 CZK/SU or -0.72€/SU), to be reimbursed in future years; and
- the deduction of other revenues (-5.94 CZK/SU or -0.23€/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is 9.6%.
ANS CR’s net gain on activity in the en route charging zone in the combined year 2020-2021
ANS CR’s net gain amounts to +152.1 MCZK (or +5.9 M€) and fully resulting form the gains from the cost sharing mechanism.
ANS CR’s overall regulatory results (RR) for the en route activity
Ex-post, the overall RR taking into account the net gain from the en route activity mentioned above (+152.1 MCZK) and the actual RoE (+353.7 MCZK or +13.6 M€) amounts to +505.8 MCZK or +19.5 M€ (11.2% of the en route revenues). The resulting ex-post rate of return on equity is 9.9%, which is higher than the 7.0% planned in the PP.