Cost-efficiency - Finland
PRB monitoring
▪ The en route 2023 actual unit cost of Finland was 55.84€2017, +35% higher than the determined unit cost (41.43€2017). The terminal 2023 actual unit cost was 164.57€2017, +13% higher than the determined unit cost (145.92€2017).
▪ The en route 2023 actual service units (0.7M) were -39% lower than determined (1.1M) mainly due to shifted traffic flows caused by the Russia’s war of aggression against Ukraine.
▪ The en route 2023 actual total costs were -8.2M€2017 lower (-18%) compared to determined, as all categories registered lower-than-planned costs. The main reason for the reduction was the lower staff costs (-4.3M€2017, or -19%) which resulted from various measures including temporary layoffs, a reduction in headcount, the elimination of bonuses, lowered pension costs, deferred recruitment, and other staff-related savings. Other operating costs registered an underspend (-2.0M€2017, or -12%) due to savings across several categories such as group service fees, voluntary staff costs, and travel expenses.
▪ Fintraffic ANS spent 5.4M€2017 in 2023 related to costs of investments for both en route and terminal charging zones, -26% lower than determined (7.2M€2017) due to the postponement of investments.
▪ The en route actual unit cost incurred by users in 2023 was 71.48€ (+63% above the 2023 DUC), while the terminal actual unit cost incurred by users was 220.02€ (+41% above the 2023 DUC). The difference between the AUCU and the DUC is strongly affected by the difference between the determined and actual SU for both the en route and terminal charging zones.
▪ The en route regulatory result for Fintraffic ANS amounted to +5.9M€, or 14% of the 2023 revenue. This may indicate that the airspace users are charged for costs which have not materialised in 2023. The PRB will take into consideration the implementation of the RP3 performance plan when assessing the RP4 cost-efficiency targets.
En route charging zone
Unit cost (KPI#1)
Actual and determined data | ||||
Total costs - nominal (M€) | 2020-2021 | 2022 | 2023 | 2024 |
---|---|---|---|---|
Actual costs | 75 | 40 | 42 | NA |
Determined costs | 79 | 45 | 48 | 50 |
Difference costs | −4 | −6 | −6 | 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% | 4.3% | NA |
Actual inflation index | NA | 112.4 | 117.3 | NA |
Difference inflation index (p.p.) | NA | +6.7 | +9.8 | NA |
Actual unit cost incurred by the users (AUCU) (PI#1)
AUCU components (€/SU) – 2023 | |
Components of the AUCU in 2023 | €/SU |
---|---|
DUC | 43.91 |
Inflation adjustment | 5.39 |
Cost exempt from cost-sharing | −2.91 |
Traffic risk sharing adjustment | 21.86 |
Traffic adj. (costs not TRS) | 3.90 |
Finantial incentives | 0.00 |
Modulation of charges | 0.00 |
Cross-financing | 0.00 |
Other revenues | −0.65 |
Application of lower unit rate | 0.00 |
Total adjustments | 27.58 |
AUCU | 71.48 |
AUCU vs. DUC | +62.8% |
Cost exempt from cost sharing by item - 2023 | €'000 | €/SU |
---|---|---|
New and existing investments | −1,850.9 | −2.81 |
Competent authorities and qualified entities costs | 0.0 | 0.00 |
Eurocontrol costs | 106.6 | 0.16 |
Pension costs | −174.7 | −0.27 |
Interest on loans | 0.0 | 0.00 |
Changes in law | 0.0 | 0.00 |
Total cost exempt from cost risk sharing | −1,919.1 | −2.91 |