Cost-efficiency - Finland

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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 30 17 NA NA
Determined costs 31 18 19 20
Difference costs -1 -1 NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 1.5% 1.6% 1.8%
Determined inflation index NA 105.7 107.4 109.3
Actual inflation rate NA 7.2% NA NA
Actual inflation index NA 112.4 NA NA
Difference inflation index (p.p.) NA +6.7 NA NA

AUC vs. DUC

In 2022, the terminal AUC was +16.1% (or +25.35 €2017) higher than the planned DUC. This results from the combination of significantly lower than planned TNSUs (-24.7%) and significantly lower than planned terminal costs in real terms (-12.6%, or -2.1 M€2017). It should be noted that actual inflation index in 2022 was +6.7 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (-24.7%) 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 (Fintraffic ANS) bearing a loss of -0.6 M€2017.

Terminal costs by entity

Actual real terminal costs are -12.6% (-2.1 M€2017) lower than planned. This is the result of lower costs for the main ANSP, Fintraffic ANS (-12.9%, or -2.0 M€2017) and the MET service provider (-9.1%, or -0.1 M€2017), while NSA costs were in line with the plan.

Terminal costs for the main ANSP at charging zone level

Significantly lower than planned terminal costs in real terms for Fintraffic ANS in 2022 (-12.9%, or -2.0 M€2017) result from:
- Significantly lower staff costs (-14.0%) resulting from cost-savings (temporary lay-offs, lower head count, abandoning bonuses, lower pension costs, postponing recruiting, etc.) introduced to compensate for significantly lower than planned traffic due to the war in Ukraine;
- Significantly lower other operating costs (-12.0%) due to cost-savings in many cost categories (Group service fees, training, travel, telecommunication costs, etc.); and,
- Slightly lower depreciation (-2.5%) and cost of capital (-0.2%).

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

AUCU components (€/SU) – 2022
Components of the AUCU in 2022 €/SU
DUC 165.79
Inflation adjustment 13.53
Cost exempt from cost-sharing 0.97
Traffic risk sharing adjustment 41.35
Traffic adj. (costs not TRS) 4.12
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 59.98
AUCU 225.77
AUCU vs. DUC + 36.2%
Cost exempt from cost sharing by item - 2022 €'000 €/SU
New and existing investments 83.1 1.02
Competent authorities and qualified entities costs 0.0 0.00
Eurocontrol costs 0.0 0.00
Pension costs -4.1 -0.05
Interest on loans 0.0 0.00
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing 79.0 0.97

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2022 (225.77 €) is +36.2% higher than the nominal DUC (165.79 €). The difference between these two figures (+59.98 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+13.53 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+0.97 €/SU);
- the addition of the traffic risk sharing adjustments (+41.35 €/SU); and,
- the addition of the traffic adjustment (+4.12 €/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 10.2%.

Regulatory result (RR)

Fintraffic ANS net gain on activity in the Finland terminal charging zone in the year 2022

Fintraffic ANS reported a net gain of +1.6 M€, as a combination of a gain of +2.3 M€ arising from the cost sharing mechanism, with a loss of -0.7 M€ arising from the traffic risk sharing mechanism.

Fintraffic ANS overall regulatory results (RR) for the terminal activity

Ex-post, the overall RR taking into account the net gain from the terminal activity mentioned above (+1.6 M€) and the actual RoE (+0.1 M€) amounts to +1.7 M€ (10.3% of the terminal revenues). The resulting ex-post rate of return on equity is 61.9%, which is higher than the 4.3% planned in the PP.