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    Cost-efficiency - Germany

    Download Report

    Terminal charging zone

    Unit cost (KPI#1)

    Actual and determined data
    Total costs - nominal (M€) 2020-2021 2022 2023 2024
    Actual costs 576 313 321 NA
    Determined costs 584 294 305 327
    Difference costs -8 19 16 NA
    Inflation assumptions 2020-2021 2022 2023 2024
    Determined inflation rate NA 1.1% 1.5% 1.7%
    Determined inflation index NA 107.2 108.8 110.6
    Actual inflation rate NA 8.7% 6.0% NA
    Actual inflation index NA 116.4 123.4 NA
    Difference inflation index (p.p.) NA +9.1 +14.5 NA
    Focus on unit cost

    AUC vs. DUC

    In 2023, the terminal AUC was +14.8% (or +29.3 €2017) higher than the planned DUC. This results from the combination of significantly lower than planned TNSUs (-18.2%) and significantly lower than planned terminal costs in real terms (-6.1%, or -17.3 M€2017). It should be noted that actual inflation index in 2023 was +14.5 p.p. higher than planned.

    Terminal service units

    The difference between actual and planned TNSUs (-18.2%) 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

    Actual real terminal costs are -6.1% (-17.3 M€2017) lower than planned. This is the result of lower costs for the main ANSP, DFS (-5.8%, or -16.0 M€2017), the MET service provider (-23.3%, or -1.1 M€2017) and the NSA (-11.4%, 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 DFS in 2023 (-5.8%, or -16.0 M€2017) result from:
    - Lower staff costs (-4.1%),mainly due to inflation index impact since in nominal terms staff costs are higher than planned by +8.7%, due to new wage collective agreement, compensation for the inflation and extraordinary payments for additional shifts and overtime due to staff shortages.
    - Higher other operating costs (+2.8%), as a result of inflation, higher prices of gas, more external staff employed than expected and intensification of the activities of recruiting staff.
    - Significantly lower depreciation (-20.8%), is mainly due to “the project Tower ATS next Generation, which is part of the Program ZAAS. Additionally, the maintenance activity ILS and the project Remote Tower Control as well as some projects and maintenance actions led to the reduction in 2023”.
    - Significantly lower cost of capital (-47.2%), mainly due to the coverage gap for interest on pensions, which is recalculated annually based on differences between planned and actual interest rates. The 2023 cost of capital the exclude the income of commercial papers, which had previously been included in the actual costs of 2021 and 2022.

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

    AUCU components (€/SU) – 2023
    Components of the AUCU in 2023 €/SU
    DUC 213.78
    Inflation adjustment 30.42
    Cost exempt from cost-sharing -5.79
    Traffic risk sharing adjustment 35.21
    Traffic adj. (costs not TRS) 1.00
    Finantial incentives 2.56
    Modulation of charges 0.00
    Cross-financing 0.00
    Other revenues -0.57
    Application of lower unit rate 0.00
    Total adjustments 62.84
    AUCU 276.61
    AUCU vs. DUC + 29.4%
    Cost exempt from cost sharing by item - 2023 €'000 €/SU
    New and existing investments -6,409.6 -5.49
    Competent authorities and qualified entities costs -135.9 -0.12
    Eurocontrol costs 0.0 0.00
    Pension costs -574.8 -0.49
    Interest on loans 0.0 0.00
    Changes in law 366.1 0.31
    Total cost exempt from cost risk sharing -6,754.1 -5.79
    Focus on AUCU

    The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2023 (276.30 €) is +29.2% higher than the nominal DUC (213.78 €). The difference between these two figures (+62.52 €/SU) is due to:
    - the positive inflation adjustment resulting from higher than planned inflation (+30.42 €/SU);
    - the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-6.10 €/SU);
    - the addition of the traffic risk sharing adjustments (+35.21 €/SU);
    - the addition of the traffic adjustment (+1.00 €/SU) for the costs not subject to traffic risk sharing;
    - financial incentives (+2.56 €/SU); and
    - the deduction of the other revenues (-0.57 €/SU).
    The share of the regulatory result in the AUCU (before the deduction of other revenues) is 0.6%.

    Regulatory result (RR)

    Focus on regulatory result

    DFS net gain on activity in the Germany terminal charging zone in the year 2023

    DFS reported a net gain of +0.5 M€, as a combination of a gain of +10.6 M€ arising from the cost sharing mechanism, with a loss of -13.1 M€ arising from the traffic risk sharing mechanism and a gain of +3.0 M€ relating to financial incentives.

    DFS 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 (+0.5 M€) amounts to +0.5 M€ (0.1% of the terminal revenues), as the RoE for DFS has been set to zero. The resulting ex-post rate of return on equity is 0.1%.

     
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