Cost-efficiency - France

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Terminal charging zone - France Zone 2

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 392 194 NA NA
Determined costs 382 190 191 192
Difference costs 10 4 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 +7.8% (or +27.54 €2017) higher than the planned DUC. This results from the combination of significantly lower than planned TNSUs (-9.7%) and lower than planned terminal costs in real terms (-2.7%, or -4.8 M€2017). 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 (-9.7%) falls outside the ±2% dead band, but does not exceed 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 (DSNA) bearing a loss of -6.6 M€2017.

Terminal costs by entity

Actual real terminal costs are -2.7% (-4.8 M€2017) lower than planned. This is the result of lower costs for the main ANSP, DSNA (-1.7%, or -2.8 M€2017) and the MET service provider (-15.4%, or -2.3 M€2017) and higher costs for the NSA (+28.1%, or +0.3 M€2017).

Terminal costs for the main ANSP at charging zone level

Slightly lower than planned terminal costs in real terms for DSNA in 2022 (-1.7%, or -2.8 M€2017) mainly resulting from higher than planned inflation:
- Lower than planned staff costs (-2.6%) due to the inflation index impact (+6.1 p.p.) since in nominal terms the costs are higher than planned (+2.9%),
- Higher than planned other operating costs (+3.3%) in real terms and (+9.2%) in nominal terms, reported to be mainly due to the increase in energy prices,
- Lower than planned depreciation costs (-3.0%),
- Higher than planned cost of capital (+3.6%) due to a higher than planned asset base and higher average interest on debt.
- Higher than planned deduction for VFR exempted flights (+4.2%).
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 374.25
Inflation adjustment 20.72
Cost exempt from cost-sharing 1.23
Traffic risk sharing adjustment 20.30
Traffic adj. (costs not TRS) 3.56
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing -89.44
Other revenues -58.11
Application of lower unit rate 0.00
Total adjustments -101.74
AUCU 272.51
AUCU vs. DUC -27.2%
Cost exempt from cost sharing by item - 2022 €'000 €/SU
New and existing investments 262.0 0.57
Competent authorities and qualified entities costs 303.9 0.66
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 565.9 1.23

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2022 (271.69 €) is -27.4% lower than the nominal DUC (374.25 €). The difference between these two figures (-102.56 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+20.72 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+0.41 €/SU);
- the addition of the traffic risk sharing adjustments (+20.30 €/SU);
- the addition of the traffic adjustment (+3.56 €/SU) for the costs not subject to traffic risk sharing;
- the cross-financing between teh two TCZ (-89.44 €/SU); and
- the deduction of the other revenues (-58.11 €/SU).
The share of regulatory result in the AUCU (befored the deduction of other revenues) is 1.3%.

Regulatory result (RR)

DSNA net gain on activity in the France terminal charging zone 2 in the year 2022

DSNA reported a net loss of -4.2 M€, as a combination of a gain of +3.3 M€ arising from the cost sharing mechanism, with a loss of -7.5 M€ arising from the traffic risk sharing mechanism.

DSNA overall regulatory results (RR) for the terminal charging zone 2 activity

Ex-post, the overall RR taking into account the net loss from the terminal activity mentioned above (-4.2 M€) and the actual RoE (+3.8 M€) amounts to -0.4 M€ (-0.2% of the terminal revenues in the Terminal Charging Zone 2).