Cost-efficiency - Austria
PRB monitoring
▪ The en route 2023 actual unit cost of Austria was 47.44 €2017, -13% lower than the determined unit cost (54.65 €2017). The terminal 2023 actual unit cost of Austria was 224.54 €2017, +15% higher than the determined unit cost (195.09 €2017).
▪ The en route 2023 actual service units (3.8M) were +18% higher than the determined service units (3.3M).
▪ The en route 2023 actual total costs were +3.9 M€2017 (+2.2%) higher than determined. The actual staff costs contributed to this difference, rising by +7.9 M€2017 (+6.7%) compared to the determined costs. Within staff costs, Austria registered a significant gap in pension costs (+11.9 M€2017, or +67%), which are claimed as cost exempt from cost-sharing to be recovered from airspace users. On the other hand, difference were observed in all the other cost categories when comparing the determined and actual costs. The main gaps were attributable to depreciation costs (-3.1 M€2017, or -14%) and cost of capital (-1.4 M€2017, or -27%). These are included in the cost exempt from cost-sharing to be reimbursed to airspace users.
▪ Austro Control spent 27 M€2017 in 2023 related to costs of investments for both en route and terminal charging zones, -17% less than determined (33 M€2017). According to the NSA, this reduction is due to delayed investments as a result of the prolonged COVID-19 pandemic.
▪ The en route actual unit cost incurred by users in 2023 was 61.33€ (+2.2% above the 2023 DUC), while the terminal actual unit cost incurred by users was 268.75€ (+25% above the 2023 DUC). The difference between the AUCU and the DUC for the terminal charging zone is mainly driven by the inflation adjustment and cost risk sharing adjustment (+4.3 M€ and +3.7 M€, respectively).
En route charging zone
Unit cost (KPI#1)
| Actual and determined data |
| Total costs - nominal (M€) |
2020-2021 |
2022 |
2023 |
2024 |
| Actual costs |
363 |
211 |
221 |
NA |
| Determined costs |
381 |
202 |
196 |
196 |
| Difference costs |
−17 |
9 |
25 |
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% |
7.7% |
NA |
| Actual inflation index |
NA |
117.3 |
126.3 |
NA |
| Difference inflation index (p.p.) |
NA |
+7 |
+13.8 |
NA |
AUC vs. DUC
In 2023, the en route AUC was -13.2% (or -7.21 €2017) lower than the planned DUC. This results from the combination of significantly higher than planned TSUs (+17.7%) and higher than planned en route costs in real terms (+2.2%, or +3.9 M€2017). It should be noted that actual inflation index in 2023 was +13.8 p.p. higher than planned.
En route service units
The difference between actual and planned TSUs (+17.7%) falls outside the ±10% threshold foreseen in the traffic risk sharing mechanism. The resulting gain of additional en route revenues is therefore shared between the ANSP and the airspace users.
En route costs by entity
Actual real en route costs are +2.2% (+3.9 M€2017) higher than planned. This is the result of higher costs for the main ANSP, Austro Control (+1.9%, or +2.9 M€2017) and the NSA/EUROCONTROL (+14.7%, or +1.7 M€2017) and lower costs for the MET service provider (-3.9%, or -0.5 M€2017).
En route costs for the main ANSP at charging zone level
Higher than planned en route costs in real terms for Austro Control in 2023 (+1.9%, or +2.9 M€2017) result from:
- Significantly higher staff costs (+6.8% or +20.0% in nominal terms), due to overtime hours to cope with the increased traffic, impact of the inflation and the higher pension costs than planned;
- Higher other operating costs (+1.9% or +14.4% in nominal terms). No other driver information has been provided apart of the inflation effect;
- Significantly lower depreciation (-15.0%), reflecting delays in investments due to the COVID-19;
- Significantly lower cost of capital (-27.3%), 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 2023” ;
- Significantly lower exceptional costs (-11.0%), due to the inflation index (+13.8 p.p.) since in nominal terms the actual costs are equal to determined; and,
- Significantly higher deduction for VFR exempted flights (+11.1%).
Actual unit cost incurred by the users (AUCU) (PI#1)
| AUCU components (€/SU) – 2023 |
| Components of the AUCU in 2023 |
€/SU |
| DUC |
60.01 |
| Inflation adjustment |
5.04 |
| Cost exempt from cost-sharing |
3.11 |
| Traffic risk sharing adjustment |
−5.92 |
| Traffic adj. (costs not TRS) |
−1.13 |
| Finantial incentives |
0.22 |
| Modulation of charges |
0.00 |
| Cross-financing |
0.00 |
| Other revenues |
0.00 |
| Application of lower unit rate |
0.00 |
| Total adjustments |
1.32 |
| AUCU |
61.33 |
| AUCU vs. DUC |
+2.2% |
| Cost exempt from cost sharing by item - 2023 |
€'000 |
€/SU |
| New and existing investments |
−4,469.6 |
−1.16 |
| Competent authorities and qualified entities costs |
−182.5 |
−0.05 |
| Eurocontrol costs |
1,571.9 |
0.41 |
| Pension costs |
15,054.3 |
3.91 |
| Interest on loans |
0.0 |
0.00 |
| Changes in law |
0.0 |
0.00 |
| Total cost exempt from cost risk sharing |
11,974.0 |
3.11 |
The actual en route unit cost incurred by airspace users (AUCU) in respect of activities performed in 2023 (61.33 €) is +2.2% higher than the nominal DUC (60.01 €). The difference between these two figures (+1.32 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+5.04 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+3.11 €/SU);
- the deduction of the traffic risk sharing adjustments (-5.92 €/SU);
- the deduction of the traffic adjustment (-1.13 €/SU) for the costs not subject to traffic risk sharing; and
- financial incentives (+0.22 €/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is 6.7%.
Austro Control net gain on activity in the Austria en route charging zone in the year 2023
Austro Control reported a net gain of +12.7 M€, as a combination of a gain of +4.3 M€ arising from the cost sharing mechanism, with a gain of +7.5 M€ arising from the traffic risk sharing mechanism and a gain of +0.9 M€ relating to financial incentives.
Austro Control 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 (+12.7 M€) and the actual RoE (+1.0 M€) amounts to +13.7 M€ (6.6% of the en route revenues). The resulting ex-post rate of return on equity is 99.8%, which is higher than the 7.3% planned in the PP.