Cost-efficiency - Austria

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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 77 49 51 55
Determined costs 78 45 43 43
Difference costs -1 4 8 12
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 2.5% 2.0% 2.0%
Determined inflation index NA 110.3 112.5 114.8
Actual inflation rate NA 8.6% 7.7% 2.9%
Actual inflation index NA 117.3 126.3 130
Difference inflation index (p.p.) NA +7 +13.8 +15.3

AUC vs. DUC

In 2024, the terminal AUC was +24.9% (or +44.49 €2017) higher than the planned DUC. This results from the combination of significantly higher than planned terminal costs in real terms (+13.7%, or +5.3 M€2017) and significantly lower than planned TNSUs (-8.9%). It should be noted that the actual inflation index in 2024 was +15.3 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (-8.9%) 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 (see the main ANSP loss in Box 11).

Terminal costs by entity

Actual real terminal costs are +13.7% (+5.3 M€2017) higher than planned. This is the result of higher costs for the main ANSP, Austro Control (+15.5%, or +5.4 M€2017) and the NSA (+0.9%) and lower costs for the MET service provider (-4.0%, 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 Austro Control in 2024 (+15.5%, or +5.4 M€2017) result from:
- Significantly higher staff costs (+26.3% or +43.1% in nominal terms), “impacted by inflation and pension costs which were much higher than determined. A cost cutting due account for lower traffic has been hampered by the opening-times of the airports and could not bring substantial savings under the assumption that staff shall be retained”,
- Significantly higher other operating costs (+8.8% or +23.3% in nominal terms), “due to local circumstances at units and including inflation effects”,
- Significantly lower depreciation (-7.2%) reflecting delays in investments due to COVID,
- Significantly lower cost of capital (-24.3%), “due to the short-term financing conditions of the Republic of Austria, the average net working capital was subject to interest at 0% in 2024”,
- Significantly lower exceptional costs (-11.7%), due to the inflation index (+15,3 p.p.) since in nominal terms the actual costs are equal to planned.

RP3 summary

When considering the whole of RP3 (2020-2024) for Austria terminal charging zone , actual TNSUs are -7.8% lower than planned, while actual costs in real terms are +4.0% higher than the determined costs (some +7.8 M€2017). As a result, the weighted average actual unit cost over RP3 (279.20 €2017) is +12.9% higher than planned in the PP (247.33 €2017).

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

AUCU components (€/SU) – 2024
Components of the AUCU in 2024 €/SU
DUC 200.12
Inflation adjustment 23.97
Cost exempt from cost-sharing 22.09
Traffic risk sharing adjustment 9.65
Traffic adj. (costs not TRS) 1.84
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 57.56
AUCU 257.67
AUCU vs. DUC + 28.8%
Cost exempt from cost sharing by item - 2024 €'000 €/SU
New and existing investments -748.1 -3.82
Competent authorities and qualified entities costs 1.7 0.01
Eurocontrol costs 0.0 0.00
Pension costs 5,078.2 25.90
Interest on loans 0.0 0.00
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing 4,331.8 22.09

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2024 (257.67 €) is +28.8% higher than the nominal DUC (200.12 €). The difference between these two figures (+57.56 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+23.97 €/SU);
- the impact of adjustments resulting from the costs exempted from cost sharing mechanism (+22.09 €/SU);
- the addition of the traffic risk sharing adjustments (+9.65 €/SU); and
- the addition of the traffic adjustment (+1.84 €/SU) for the costs not subject to traffic risk sharing.
The share of the regulatory result (see items 10 to 14) in the AUCU (before the deduction of other revenues) is -8.0%.

Regulatory result (RR)

Austro Control net gain/loss on activity in the Austria terminal charging zone in the year 2024

Austro Control reported a net loss of -4.5 M€, as a combination of a loss of -2.9 M€ arising from the cost sharing mechanism, with a loss of -1.6 M€ arising from the traffic risk sharing mechanism.

Austro Control overall regulatory result (RR) for the terminal activity

Ex-post, the overall RR taking into account the net loss from the terminal activity mentioned above (-4.5 M€) and the actual RoE (+0.3 M€) amounts to -4.2 M€ (-9.1% of the terminal revenues). The resulting ex-post rate of return on equity is -105.6%, which is lower than the 7.3% planned in the PP.

RP3 summary

When considering the whole of RP3 (2020-2024), Austro Control generated a cumulative loss in respect of cost sharing of -2.9 M€, as actual total costs for RP3 were higher than planned. The traffic risk sharing mechanism generated a loss of -5.6 M€. Adding the gain of +0.2 M€ to be retained by the ATSP in respect of financial incentives and the actual RoE (+1.5 M€ over RP3) leads to an overall regulatory result of -6.8 M€, which corresponds to an average ex-post rate of return on equity of -33.0% (compared to 7.3% initially planned in the PP).

Note 1: The analysis presented in items 11 to 13 excludes MET services of Austro Control since MET data are disclosed separately in en route and terminal reporting tables. The regulatory result of Austro Control’s MET services is shown in item 14.
Note 2: Ex-ante and ex-post RoE are computed based on the notional gearing of 85% debt used in the Performance Plan for RP3. The actual gearing of Austro Control should be reported.