Cost-efficiency - France

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Terminal charging zone - France Zone 1

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 110 53 NA NA
Determined costs 114 59 60 62
Difference costs -5 -6 NA NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 1.2% 1.3% 1.4%
Determined inflation index NA 106.3 107.7 109.3
Actual inflation rate NA 5.9% NA NA
Actual inflation index NA 112.4 NA NA
Difference inflation index (p.p.) NA +6.1 NA NA

AUC vs. DUC

In 2022, the terminal AUC was -18.2% (or -20.83 €2017) lower than the planned DUC. This results from the combination of significantly lower than planned terminal costs in real terms (-14.0%, or -7.9 M€2017) and significantly higher than planned TNSUs (+5.1%). It should be noted that the actual inflation index in 2022 was +6.1 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (+5.1%) falls outside the ±2% dead band, but does not exceed the ±10% threshold foreseen in the traffic risk sharing mechanism. The resulting gain of additional terminal revenues is therefore shared between the ANSP and the airspace users, with the ANSP (DSNA) retaining an amount of +1.4 M€2017.

Terminal costs by entity

Actual real terminal costs are -14.0% (-7.9 M€2017) lower than planned. This is the result of lower costs for the main ANSP, DSNA (-14.4%, or -7.6 M€2017), the MET service provider (-6.7%, or -0.2 M€2017) and the NSA (-23.3%, or -0.1 M€2017).

Terminal costs for the main ANSP at charging zone level

Significantly lower than planned terminal costs in real terms for DSNA in 2022 (-14.4%, or -7.6 M€2017) mainly resulting from higher than planned inflation:
- Slightly lower than planned staff costs (-1.5%) due to the inflation index impact (+6.1 p.p.) since in nominal terms the costs are higher than planned (+4.2%),
- Significantly lower than planned other operating costs in real terms (-18.6%) due to lower operational expenditure associated to investments,
- Significantly lower than planned depreciation costs (-33.0%) “due to the redefinition and prioritization of SYSAT programme with a new ATM system for major airports: iATS project at Orly in 2024 and AVVISO system at CDG. The SYSAT contract has been redefined end 2021 / beginning 2022 and some 2022 planned expenditures postponed accordingly” as reported in the NSA Monitoring Report 2022,
- Significantly lower than planned cost of capital (-27.6%), “in line with the decrease of the depreciation costs” as reported in the additional information to the June 2023 reporting tables,
- Significantly higher than planned deduction for VFR exempted flights (+34.2%).
Note: It is understood that DSNA operating costs include costs of investments that are not capitalised (T3 TECH).

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

AUCU components (€/SU) – 2022
Components of the AUCU in 2022 €/SU
DUC 119.67
Inflation adjustment 4.80
Cost exempt from cost-sharing -8.47
Traffic risk sharing adjustment -2.30
Traffic adj. (costs not TRS) -0.36
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing 79.41
Other revenues -1.64
Application of lower unit rate 0.00
Total adjustments 71.44
AUCU 191.11
AUCU vs. DUC + 59.7%
Cost exempt from cost sharing by item - 2022 €'000 €/SU
New and existing investments -4,314.3 -8.34
Competent authorities and qualified entities costs -66.9 -0.13
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 0.0 0.00
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing -4,381.2 -8.47

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2022 (191.48 €) is +60.0% higher than the nominal DUC (119.67 €). The difference between these two figures (+71.82 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+4.80 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-8.09 €/SU);
- the deduction of the traffic risk sharing adjustments (-2.30 €/SU);
- the deduction of the traffic adjustment (-0.36 €/SU) for the costs not subject to traffic risk sharing;
- the cross-financing between the two TCZ (+79.41 €/SU); and
- the deduction of the other revenues (-1.64 €/SU).
The share of regulatory result in the AUCU (befored the deduction of other revenues) is 7.2%.

Regulatory result (RR)

DSNA net gain on activity in the France terminal charging zone 1 in the year 2022

DSNA reported a net gain of +5.5 M€, as a combination of a gain of +3.9 M€ arising from the cost sharing mechanism, with a gain of +1.6 M€ arising from the traffic risk sharing mechanism.

DSNA overall regulatory results (RR) for the terminal charging zone 1 activity

Ex-post, the overall RR taking into account the net gain from the terminal activity mentioned above (+5.5 M€) and the actual RoE (+1.5 M€) amounts to +7.0 M€ (12.7% of the terminal revenues in the Terminal Charging Zone 1). The resulting ex-post rate of return on equity is 76.6%, which is higher than the 16.2% planned in the PP.