Cost-efficiency - France

Terminal charging zone - France Zone 1

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 110 53 57 NA
Determined costs 114 59 60 62
Difference costs −5 −6 −3 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% 5.7% NA
Actual inflation index NA 112.4 118.8 NA
Difference inflation index (p.p.) NA +6.1 +11.1 NA

AUC vs. DUC

In 2023, the terminal AUC was -14.0% (or -14.27 €2017) lower than the planned DUC. This results from the combination of significantly lower than planned terminal costs in real terms (-13.0%, or -7.5 M€2017) and higher than planned TNSUs (+1.1%). It should be noted that actual inflation index in 2023 was +11.1 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (+1.1%) falls inside the ±2% dead band. Hence gain of additional terminal revenues is kept by the ANSPs .

Terminal costs by entity

Actual real terminal costs are -13.0% (-7.5 M€2017) lower than planned. This is the result of lower costs for the main ANSP, DSNA (-13.5%, or -7.3 M€2017), the MET service provider (-3.8%, or -0.1 M€2017) and the NSA (-24.1%, or -0.1 M€2017).

Terminal costs for the main ANSP at charging zone level

Significantly lower than planned terminal costs in real terms for DSNA in 2023 (-13.5%, or -7.3 M€2017) result from:
- Lower staff costs (-3.0%), mainly due to the inflation index impact (+11.1 p.p.) since in nominal terms the costs are higher than planned by +6.9%, “due to the payment of measures implemented after covid crisis in 2022”;
- Significantly lower other operating costs (-5.5%), mainly due to the inflation index impact (+11.1 p.p.) since in nominal terms the costs are higher than planned by +4.3%, due to the increase of energy prices and an increase of project related OPEX costs (see below);
- Significantly lower depreciation (-38.2%), “mainly in relation with the delay of the new Towers and Approach projects for Paris-CDG and Pairs-Orly (SYSAT) and the transfer of part of the investment costs to project-related OPEX costs”;
- Significantly lower cost of capital (-28.5%), mainly due to a lower asset base; and,
- Significantly lower deduction for VFR exempted flights (-6.0%).
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) – 2023
Components of the AUCU in 2023 €/SU
DUC 107.74
Inflation adjustment 7.88
Cost exempt from cost-sharing −10.38
Traffic risk sharing adjustment 0.00
Traffic adj. (costs not TRS) −0.07
Finantial incentives −0.82
Modulation of charges 0.00
Cross-financing 77.34
Other revenues −6.93
Application of lower unit rate 0.00
Total adjustments 67.03
AUCU 174.77
AUCU vs. DUC +62.2%
Cost exempt from cost sharing by item - 2023 €'000 €/SU
New and existing investments −6,149.2 −10.86
Competent authorities and qualified entities costs −68.9 −0.12
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 279.9 0.49
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing −5,875.2 −10.38

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2023 (174.77 €) is +62.2% higher than the nominal DUC (107.74 €). The difference between these two figures (+67.03 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+7.88 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-10.38 €/SU);
- the deduction of the traffic adjustment (-0.07 €/SU) for the costs not subject to traffic risk sharing;
- financial incentives (-0.82 €/SU);
- cross-financing (+77.34 €/SU); and
- the deduction of the other revenues (-6.93 €/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is 3.5%.

Regulatory result (RR)

DSNA net gain on activity in the France terminal charging zone 1 in the year 2023

DSNA reported a net gain of +1.8 M€, as a combination of a gain of +1.7 M€ arising from the cost sharing mechanism, with a gain of +0.6 M€ arising from the traffic risk sharing mechanism and a loss of -0.5 M€ relating to financial incentives.

DSNA overall regulatory results (RR) for the terminal charging zone 1 activity

Ex-post, the overall RR taking into account the net gain from the terminal activity mentioned above (+1.8 M€) and the actual RoE (+1.5 M€) amounts to +3.3 M€ (6.0% of the terminal revenues). The resulting ex-post rate of return on equity is 30.7%, which is higher than the 13.7% planned in the PP.