Cost-efficiency - Romania

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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 35 23 29 NA
Determined costs 36 21 24 25
Difference costs −1 2 4 NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 9.3% 4.0% 3.0%
Determined inflation index NA 125.9 130.9 134.8
Actual inflation rate NA 12.0% 9.7% NA
Actual inflation index NA 129 141.5 NA
Difference inflation index (p.p.) NA +3.1 +10.6 NA

AUC vs. DUC

2023, the terminal AUC was +12.8% (or +155.12 RON2017, +33.97 €2017) higher than the planned DUC. This results from the combination of significantly higher than planned terminal costs in real terms (+9.6%, or +8.3 MRON2017, +1.8 M€2017) and lower than planned TNSUs (-2.8%). It should be noted that actual inflation index in 2023 was +10.6 p.p. higher than planned.

Terminal service units

The difference between the 2023 actual and planned TNSUs (-2.8%) 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

The 2023 real actual terminal costs are +9.6% (+1.8 M€2017) higher than planned. This is the result of higher than planned costs for the main ANSP, ROMATSA (+9.9%, or +1.9 M€2017) and lower than planned costs for the NSA (-30.8%, or -0.1 M€2017).

Terminal costs for the main ANSP at charging zone level

Significantly higher than planned terminal costs in real terms for ROMATSA in 2023 (+9.9%, or +1.9 M€2017) result from:
- Significantly higher than planned staff costs (+12.9%), reporetd to be mainly due to “an increase of pension costs and compensation of personnel with inflation”
- Significantly higher than planned other operating costs (+11.9%) reported to be mainly due to “a provision for unsettled clients as the recovery rate is progressing slowly”.,
- Significantly lower than planned depreciation (-18.8%), reported to be mainly due “to the postponement of finalisation for the Modernization of A-SMGCS at DSNA Bucharest - Implementation of Advanced Tower Messaging”.
- Significantly lower than planned cost of capital (-12.4%). reported to be mainly due to “the postponment of the A_SMGCS investment, partially offset by the increasing interest rate for the contracted loan”
- Significantly lower than planned deduction for VFR exempted flights (-87.6%).

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

AUCU components (€/SU) – 2023
Components of the AUCU in 2023 €/SU
DUC 313.29
Inflation adjustment 23.91
Cost exempt from cost-sharing 10.94
Traffic risk sharing adjustment 1.78
Traffic adj. (costs not TRS) 0.55
Finantial incentives 1.60
Modulation of charges 0.00
Cross-financing 0.00
Other revenues −0.45
Application of lower unit rate 0.00
Total adjustments 38.34
AUCU 351.63
AUCU vs. DUC +12.2%
Cost exempt from cost sharing by item - 2023 €'000 €/SU
New and existing investments −261.6 −3.79
Competent authorities and qualified entities costs −47.8 −0.69
Eurocontrol costs 0.0 0.00
Pension costs 1,050.0 15.22
Interest on loans 14.5 0.21
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing 755.0 10.94

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2023 (1 738.37 RON or 351.63 €) is +12.2% higher than the nominal DUC (1 548.81 RON or 313.29 €). The difference between these two figures (+189.57 RON/SU or +38.34 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+118.23 RON/SU or +23.91 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (+54.11 RON/SU or +10.94 €/SU);
- the addition of the traffic risk sharing adjustments (+8.78 RON/SU or +1.78 €/SU);
- the addition of the traffic adjustment (+2.74 RON/SU or +0.55 €/SU) for the costs not subject to traffic risk sharing;
- financial incentives (+7.92 RON/SU or +1.60 €/SU); and
- the deduction of the other revenues (-2.21 RON/SU or -0.45 €/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is -7.2%.

Regulatory result (RR)

ROMATSA net gain on activity in the Romania terminal charging zone in the year 2023

ROMATSA reported a net loss of -10.4 MRON, as a combination of a loss of -8.6 MRON arising from the cost sharing mechanism, with a loss of -2.3 MRON arising from the traffic risk sharing mechanism and a gain of +0.5 MRON relating to financial incentives.

ROMATSA 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 (-10.4 MRON) and the actual RoE (+1.7 MRON) amounts to -8.7 MRON (-7.3% of the terminal revenues). The resulting ex-post rate of return on equity is -39.5%.