Cost-efficiency - Finland

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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 30 17 17 NA
Determined costs 31 18 19 20
Difference costs -1 -1 -2 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

AUC vs. DUC

In 2023, the terminal AUC was +12.8% (or +18.66 €2017) higher than the planned DUC. This results from the combination of significantly lower than planned TNSUs (-25.7%) and significantly lower than planned terminal costs in real terms (-16.2%, or -2.9 M€2017). It should be noted that actual inflation index in 2023 was +9.8 p.p. higher than planned.

Terminal service units

The difference between the 2023 actual and planned TNSUs (-25.7%) falls outside 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

The 2023 actual real terminal ANS costs are -16.2% (-2.9 M€2017) lower than planned. This is the result of lower than planned costs for the main ANSP, Fintraffic ANS (-16.2%, or -2.6 M€2017) and the MET service provider (-17.0%, or -0.2 M€2017).

Terminal costs for the main ANSP at charging zone level

The 2023 real actual terminal ANS costs for Fintraffic ANS are significantly lower than planned (-16.2%, or -2.6 M€2017) , partially due to a higher than planned inflation index and resulting from:
- Significantly lower than planned staff costs (-21.6%) reported to be mainly due to “lower head count (postponed recruitment), staff cost savings included temporary lay-offs, abandoning bonuses, lower pension costs and other savings in staff costs.”,
- Significantly lower than planned other operating costs (-8.4%), reported to be mainly dur to the impact of the inflation index,
- Depreciation costs in line with the plan in real terms (-0.1%),
- Significantly lower than planned cost of capital (-19.2%), reported to be mainly “due to lower fixed assets. Most of the cost of capital is included in the leasing costs (included in other operating costs).Finavia owns the ANS assets and Fintraffic ANS pays for their use.

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

AUCU components (€/SU) – 2023
Components of the AUCU in 2023 €/SU
DUC 156.51
Inflation adjustment 18.83
Cost exempt from cost-sharing -0.75
Traffic risk sharing adjustment 41.55
Traffic adj. (costs not TRS) 3.87
Finantial incentives 0.00
Modulation of charges 0.00
Cross-financing 0.00
Other revenues 0.00
Application of lower unit rate 0.00
Total adjustments 63.51
AUCU 220.02
AUCU vs. DUC + 40.6%
Cost exempt from cost sharing by item - 2023 €'000 €/SU
New and existing investments 10.2 0.11
Competent authorities and qualified entities costs 0.0 0.00
Eurocontrol costs 0.0 0.00
Pension costs -77.3 -0.86
Interest on loans 0.0 0.00
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing -67.1 -0.75

The actual terminal unit cost incurred by airspace users (AUCU) in respect of the activities performed in 2023 (220.02 €) is +40.6% higher than the 2023 nominal DUC (156.51 €). The difference between these two figures (+63.51 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+18.83 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-0.75 €/SU);
- the addition of the traffic risk sharing adjustments (+41.55 €/SU); and
- the addition of the traffic adjustment (+3.87 €/SU) for the costs not subject to traffic risk sharing.

The share of the regulatory result in the AUCU (before the deduction of other revenues) is 13.1%.

Regulatory result (RR)

Fintraffic ANS net gain on the activity in Finland terminal charging zone in the year 2023

Fintraffic ANS reported a net gain of +2.3 M€, as a combination of a gain of +3.0 M€ arising from the cost sharing mechanism, with a loss of -0.8 M€ arising from the traffic risk sharing mechanism.

Fintraffic ANS overall regulatory results (RR) for the terminal activity

Ex-post, the overall RR taking into account the net gain from the terminal activity mentioned above (+2.3 M€) and the actual RoE (+0.1 M€) amounts to +2.4 M€ (or 12.9% of the terminal revenues). The resulting ex-post rate of return on equity is 104.3%, which is higher than the 4.3% planned in the PP.