Cost-efficiency - Finland

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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 30 17 17 18
Determined costs 31 18 19 20
Difference costs -1 -1 -2 -2
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 1.5% 1.6% 1.8%
Determined inflation index NA 105.7 107.4 109.3
Actual inflation rate NA 7.2% 4.3% 1.0%
Actual inflation index NA 112.4 117.3 118.4
Difference inflation index (p.p.) NA +6.7 +9.8 +9.1

AUC vs. DUC

In 2024, the terminal AUC was +8.1% (or +11.60 €2017) higher than the planned DUC. This results from the combination of significantly lower than planned TNSUs (-24.6%) and significantly lower than planned terminal costs in real terms (-18.5%, or -3.4 M€2017). It should be noted that the actual inflation index in 2024 was +9.1 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (-24.6%) 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 (see the main ANSP loss in Box 11).

Terminal costs by entity

Actual real terminal costs are -18.5% (-3.4 M€2017) lower than planned. This is the result of lower costs for the main ANSP, Fintraffic ANS (-19.4%, or -3.3 M€2017), the MET service provider (-6.1%, or -0.1 M€2017) while the NSA costs were in line with the plan.

Terminal costs for the main ANSP at charging zone level

Significantly lower than planned terminal costs in real terms for Fintraffic ANS in 2024 (-19.4%, or -3.3 M€2017) result from:
- Significantly lower staff costs (-23.6%), reflecting “lower head count (postponing recruitment), […] lower annual leave pay, lower pension and social security costs, lower bonuses and other savings in staff costs”,
- Significantly lower other operating costs (-14.4%), reported to reflect lower payments for Group services (HR, Accounting, ICT etc) and the airport (marketing & development, leasing costs),
- Higher depreciation costs (+4.5%) reflecting investments in Helsinki-Vantaa airport made by the airport operator Finavia for which Fintraffic ANS pays a leasing charge,
- Significantly higher cost of capital (+12.0%) reported to be mainly “due to higher working capital. Most of the cost of capital is included in the leasing costs (included in other operating costs).” The airport operator Finavia owns the ANS assets and Fintraffic ANS pays for their use.

RP3 summary

When considering the whole of RP3 (2020-2024) for Finland terminal charging zone , actual TNSUs are -19.5% lower than planned, while actual costs in real terms are -11.4% lower than the determined costs (some -9.5 M€2017). As a result, the weighted average actual unit cost over RP3 (207.58 €2017) is +10.0% higher than planned in the PP (188.65 €2017).

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

AUCU components (€/SU) – 2024
Components of the AUCU in 2024 €/SU
DUC 156.07
Inflation adjustment 16.90
Cost exempt from cost-sharing -2.85
Traffic risk sharing adjustment 39.09
Traffic adj. (costs not TRS) 3.38
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 56.52
AUCU 212.59
AUCU vs. DUC + 36.2%
Cost exempt from cost sharing by item - 2024 €'000 €/SU
New and existing investments -224.8 -2.31
Competent authorities and qualified entities costs 0.0 0.00
Eurocontrol costs 0.0 0.00
Pension costs -52.6 -0.54
Interest on loans 0.0 0.00
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing -277.3 -2.85

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2024 (212.59 €) is +36.2% higher than the nominal DUC (156.07 €). The difference between these two figures (+56.52 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+16.90 €/SU);
- the impact of adjustments resulting from the costs exempted from cost sharing mechanism (-2.85 €/SU);
- the addition of the traffic risk sharing adjustments (+39.09 €/SU); and
- the addition of the traffic adjustment (+3.38 €/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 14.9%.

Regulatory result (RR)

Fintraffic ANS net gain/loss on activity in the Finland terminal charging zone in the year 2024

Fintraffic ANS reported a net gain of +2.9 M€, as a combination of a gain of +3.7 M€ arising from the cost sharing mechanism, with a loss of -0.8 M€ arising from the traffic risk sharing mechanism.

Fintraffic ANS overall regulatory result (RR) for the terminal activity

Ex-post, the overall RR taking into account the net gain from the terminal activity mentioned above (+2.9 M€) and the actual RoE (+0.1 M€) amounts to +3.0 M€ (15.6% of the terminal revenues). The resulting ex-post rate of return on equity is 95.1%, which is higher than the 4.3% planned in the PP.

RP3 summary

When considering the whole of RP3 (2020-2024), Fintraffic ANS generated a cumulative gain in respect of cost sharing of +10.1 M€, as actual total costs for RP3 were lower than planned. The traffic risk sharing mechanism generated a loss of -1.5 M€. Adding the actual RoE (+0.7 M€ over RP3) leads to an overall regulatory result of +9.2 M€, which corresponds to an average ex-post rate of return on equity of 59.0% (compared to 4.3% initially planned in the PP).