Cost-efficiency - Austria

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Terminal charging zone

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 77 49 NA NA
Determined costs 78 45 43 43
Difference costs -1 4 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 8.6% NA NA
Actual inflation index NA 117.3 NA NA
Difference inflation index (p.p.) NA +7 NA NA

AUC vs. DUC

In 2022, the terminal AUC was +19.6% (or +43.9 €2017) higher than the planned DUC. This results from the combination of significantly lower than planned TNSUs (-13.4%) and higher than planned terminal costs in real terms (+3.6%, or +1.5 M€2017). It should be noted that actual inflation index in 2022 was +7.0 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (-13.4%) falls outside the ±10% threshold foreseen in the traffic risk sharing mechanism. The resulting loss of terminal revenues is therefore shared between the ANSP and the airspace users, with the ANSP (Austro Control) bearing a loss of -1.5 M€2017.

Terminal costs by entity

Actual real terminal costs are +3.6% (+1.5 M€2017) higher than planned. This is the result of higher costs for the main ANSP, Austro Control (+5.8%, or +2.2 M€2017) and lower costs for the NSA (-39.7%, or -0.1 M€2017), and the MET service provider (-18.2%, or -0.7 M€2017).

Terminal costs for the main ANSP at charging zone level

Higher than planned terminal costs in real terms for Austro Control in 2022 (+5.8%, or +2.2 M€2017) result from:
- Significantly higher staff costs (+13.6%), “staff costs were impacted by inflation and effects of Coronavirus on the smaller units. In addition, the pension costs were higher than determined.”
- Lower other operating costs (-3.4%), due to the inflation index impact (+7.0 p.p.) since in nominal terms the costs are higher than planned (+2.7%);
- Significantly lower depreciation (-8.1%), reflecting delayed investments due to the impact of COVID-19;
- Significantly lower cost of capital (-29.1%), reflecting delayed investments and”short-term financing conditions of the Republic of Austria, due to which the average net working capital was subject to interest at 0% in 2021” ;
- Lower exceptional costs (-6.0%).

Actual unit cost incurred by the users (AUCU) (PI#1)

AUCU components (€/SU) – 2022
Components of the AUCU in 2022 €/SU
DUC 242.02
Inflation adjustment 14.57
Cost exempt from cost-sharing 17.01
Traffic risk sharing adjustment 22.92
Traffic adj. (costs not TRS) 3.38
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 57.87
AUCU 299.89
AUCU vs. DUC + 23.9%
Cost exempt from cost sharing by item - 2022 €'000 €/SU
New and existing investments -958.3 -5.98
Competent authorities and qualified entities costs -65.5 -0.41
Eurocontrol costs 0.0 0.00
Pension costs 3,751.1 23.39
Interest on loans 0.0 0.00
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing 2,727.2 17.01

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2022 (301.37 €) is +24.5% higher than the nominal DUC (242.02 €). The difference between these two figures (+59.35 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+14.57 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+18.49 €/SU);
- the addition of the traffic risk sharing adjustments (+22.92 €/SU); and
- the addition of the traffic adjustment (+3.38 €/SU) for the costs not subject to traffic risk sharing.
The share of the regulatory result in the AUCU (before the deduction of other revenues) is -0.9%.

Regulatory result (RR)

Austro Control net gain on activity in the Austria terminal charging zone in the year 2022

Austro Control reported a net loss of -1.7 M€, as a combination of a gain of +0.1 M€ arising from the cost sharing mechanism, with a loss of -1.8 M€ arising from the traffic risk sharing mechanism.

Austro Control overall regulatory result (RR) for the terminal activity

Ex-post, the overall RR taking into account the net loss from the terminal activity mentioned above (-1.7 M€) and the actual RoE (+0.3 M€) amounts to -1.4 M€ (-3.1% of the terminal revenues). The resulting ex-post rate of return on equity is -34.0%.

Note 2: The analysis presented excludes MET services of Austro Control since MET data are disclosed separately in en route and terminal reporting tables.
The regulatory result of Austro Control’s MET services is shown in item 14.