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 51 NA
Determined costs 78 45 43 43
Difference costs −1 4 8 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 terminal AUC was +15.1% (or +29.45 €2017) higher than the planned DUC. This results from the combination of significantly lower than planned TNSUs (-7.6%) and significantly higher than planned terminal costs in real terms (+6.3%, or +2.5 M€2017). It should be noted that actual inflation index in 2023 was +13.8 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (-7.6%) 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.

Terminal costs by entity

Actual real terminal costs are +6.3% (+2.5 M€2017) higher than planned. This is the result of higher costs for the main ANSP, Austro Control (+7.5%, or +2.7 M€2017) and lower costs for the NSA (-16.4%, or -0.03 M€2017) and the MET service provider (-4.9%, or -0.2 M€2017).

Terminal costs for the main ANSP at charging zone level

Significantly higher than planned terminal costs in real terms for Austro Control in 2023 (+7.5%, or +2.7 M€2017) result from:
- Significantly higher staff costs (+15.7% or +30.0% in nominal terms), “impacted by inflation and pension costs which were much higher than determined. A cost cutting due account for lower traffic has been hampered by the opening-times of the airports and could not bring substantial savings under the assumption that staff shall be retained’;
- Significantly higher other operating costs (+5.0% or +17.9% in nominal terms). No other driver information has been provided apart of the inflation effect;
- Significantly lower depreciation (-10.9%), 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” ; and,
- 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.

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

AUCU components (€/SU) – 2023
Components of the AUCU in 2023 €/SU
DUC 214.56
Inflation adjustment 23.36
Cost exempt from cost-sharing 19.81
Traffic risk sharing adjustment 8.32
Traffic adj. (costs not TRS) 1.64
Finantial incentives 1.05
Modulation of charges 0.00
Cross-financing 0.00
Other revenues 0.00
Application of lower unit rate 0.00
Total adjustments 54.18
AUCU 268.75
AUCU vs. DUC +25.3%
Cost exempt from cost sharing by item - 2023 €'000 €/SU
New and existing investments −1,031.6 −5.54
Competent authorities and qualified entities costs −28.7 −0.15
Eurocontrol costs 0.0 0.00
Pension costs 4,745.6 25.50
Interest on loans 0.0 0.00
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing 3,685.3 19.81

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2023 (268.75 €) is +25.3% higher than the nominal DUC (214.56 €). The difference between these two figures (+54.18 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+23.36 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+19.81 €/SU);
- the addition of the traffic risk sharing adjustments (+8.32 €/SU);
- the addition of the traffic adjustment (+1.64 €/SU) for the costs not subject to traffic risk sharing; and
- financial incentives (+1.05 €/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is -1.3%.

Regulatory result (RR)

Austro Control net gain on activity in the Austria terminal charging zone in the year 2023

Austro Control reported a net loss of -1.6 M€, as a combination of a loss of -0.4 M€ arising from the cost sharing mechanism, with a loss of -1.4 M€ arising from the traffic risk sharing mechanism and a gain of +0.2 M€ relating to financial incentives.

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

Ex-post, the overall RR taking into account the net loss from the terminal activity mentioned above (-1.6 M€) and the actual RoE (+0.3 M€) amounts to -1.3 M€ (-2.9% of the terminal revenues). The resulting ex-post rate of return on equity is -33.1%, which is lower than the 7.3% planned in the PP.