Cost-efficiency - Spain

Download Report

Terminal charging zone

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 196 119 110 NA
Determined costs 201 104 105 105
Difference costs -4 16 5 NA
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 1.3% 1.5% 1.6%
Determined inflation index NA 104.9 106.5 108.2
Actual inflation rate NA 8.3% 3.4% NA
Actual inflation index NA 114.4 118.2 NA
Difference inflation index (p.p.) NA +9.5 +11.8 NA

AUC vs. DUC

In 2023, the terminal AUC was -9.8% (or -11.08 €2017) lower than the planned DUC. This results from the combination of significantly higher than planned TNSUs (+5.9%) and lower than planned terminal costs in real terms (-4.5%, or -4.5 M€2017). It should be noted that, in nominal terms, terminal costs were +4.9% (+5.1 M€) above the plan since the inflation index in 2023 was +11.8 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (+5.9%) falls outside the ±2% dead band, but does not exceed the ±10% threshold foreseen in the traffic risk sharing mechanism. The resulting gain of additional terminal revenues is therefore shared between the ANSP and the airspace users .

Terminal costs by entity

Actual real terminal costs are -4.5% (-4.5 M€2017) lower than planned. This is the result of lower costs, in real terms, for the main ANSP, ENAIRE (-5.1%, or -4.9 M€2017) and the MET service provider (-0.5%) and higher costs for the NSA (+26.6%, or +0.4 M€2017).

Terminal costs for the main ANSP at charging zone level

Significantly lower than planned terminal costs in real terms for ENAIRE in 2023 (-5.1%, or -4.9 M€2017) result from:
- Lower staff costs (-3.3%) in real terms. It is noted that in nominal terms the costs were above the plan (+7.4%), reflecting a combination of increases driven by changes in national laws on Public Employees salary and on Social Security Scheme National Law as well as the introduction of Special Active Reserve (through Law 26/2022 of 19 December), which, among others, solves the problem of forced retirement of ATCOs at the age of 65.
- Significantly lower other operating costs (-14.3%),
- Significantly lower depreciation costs (-21.0%) reflecting “a lower percentage of asset base cost allocation in the TNC charging zone”, and
- Higher cost of capital (+3.3%), primarily reflecting the use of much higher average interest rate on debts to calculate WACC (3.3% vs 0.8% planned).

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

AUCU components (€/SU) – 2023
Components of the AUCU in 2023 €/SU
DUC 119.13
Inflation adjustment 11.00
Cost exempt from cost-sharing 1.35
Traffic risk sharing adjustment -2.93
Traffic adj. (costs not TRS) -0.28
Finantial incentives -0.03
Modulation of charges 0.00
Cross-financing 0.00
Other revenues -85.76
Application of lower unit rate -5.74
Total adjustments -82.40
AUCU 36.73
AUCU vs. DUC -69.2%
Cost exempt from cost sharing by item - 2023 €'000 €/SU
New and existing investments 90.9 0.10
Competent authorities and qualified entities costs 593.0 0.64
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 0.0 0.00
Changes in law 575.5 0.62
Total cost exempt from cost risk sharing 1,259.4 1.35

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2023 (34.16 €) is -71.3% lower than the nominal DUC (119.13 €). The difference between these two figures (-84.97 €/SU) is due to:
- the deduction of the other revenues (-85.76 €/SU), since aerodrome service is subject to a contract between AENA (the airport operator) and ENAIRE, and with a view that only the final approach costs are actually recovered via terminal unit rate, not the aerodrome ones, the amount of this contract for each year represents a subtraction of the cost base for the calculation of the unit rate under the form of other revenues;
- the positive inflation adjustment resulting from higher than planned inflation (+11.00 €/SU);
- the impact of adjustments resulting from the costs exempted from cost-sharing mechanism (-1.21 €/SU);
- the deduction of the traffic risk sharing adjustments (-2.93 €/SU) and traffic adjustment (-0.28 €/SU) for the costs not subject to traffic risk sharing;
- financial incentives (-0.03 €/SU); and
- application of a lower unit rate as foreseen in Art. 29(6) in year 2023 (-5.74 €/SU).
The share of the regulatory result in the AUCU (before the deduction of other revenues) is 7.8%.

Regulatory result (RR)

ENAIRE net gain on activity in the Spain terminal charging zone in the year 2023

ENAIRE reported a net gain of +7.1 M€, as a combination of a gain of +3.9 M€ arising from the cost sharing mechanism, with a gain of +3.2 M€ arising from the traffic risk sharing mechanism; however, as mentioned in Box 9, it is recalled that only the part related to final approach will be recovered from airspace users.

ENAIRE 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 (+7.1 M€) and the actual RoE (+1.4 M€) amounts to +8.5 M€ (7.6% of the terminal revenues). The resulting ex-post rate of return on equity is 49.8%, which is higher than the 8.2% planned in the PP.

Note 1: It is noted that only a smaller portion of terminal determined costs (≈22% in 2023) is charged to airspace users through terminal charges, while the rest is financed through the income relating to the service agreement with the airport operator (see also box 9), which is “for somewhat fixed amount independent from the traffic levels”. This should be taken into consideration when interpreting the regulatory result for Spain TCZ.
Note 2: Ex-post RR does not take into account the application of the lower unit rate as per Art. 29.6 (loss in revenues corresponds to -5.3 M€ for 2023).