Cost-efficiency - France

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Terminal charging zone - France Zone 1

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 110 53 57 60
Determined costs 114 59 60 62
Difference costs -5 -6 -3 -2
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 1.2% 1.3% 1.4%
Determined inflation index NA 106.3 107.7 109.3
Actual inflation rate NA 5.9% 5.7% 2.3%
Actual inflation index NA 112.4 118.8 121.5
Difference inflation index (p.p.) NA +6.1 +11.1 +12.3

AUC vs. DUC

In 2024, the terminal AUC was -9.2% (or -9.00 €2017) lower than the planned DUC. This results from the combination of significantly lower than planned terminal costs in real terms (-11.0%, or -6.4 M€2017) and lower than planned TNSUs (-2.0%). It should be noted that the actual inflation index in 2024 was +12.3 p.p. higher than planned.

Terminal service units

The difference between actual and planned TNSUs (-2.0%) falls inside the ±2% dead-band. Hence, the loss of terminal revenues is borne by the ANSPs (see items 10 to 14).

Terminal costs by entity

Actual real terminal costs are -11.0% (-6.4 M€2017) lower than planned. This is the result of lower costs for the main ANSP, DSNA (-11.4%, or -6.2 M€2017), the MET service provider (-4.3%, or -0.1 M€2017) and the NSA (-1.5%).

Terminal costs for the main ANSP at charging zone level

Significantly lower than planned terminal costs in real terms for DSNA in 2024 (-11.4%, or -6.2 M€2017) result from:
- Slightly higher staff costs (+1.6% in real and +13.0% in nominal terms), mainly from past wage increases, bonuses, and the 2024 social agreement introducing a more flexible rostering,
- Lower other operating costs (-4.7%), mainly due to the inflation index impact (+12.3 p.p.) since in nominal terms the costs are higher than planned by +6.0%, “due to the post-crisis inflation (energy prices)”,
- Significantly lower depreciation (-35.1%), ”mainly due to delays on Sysat implementation (new ATC system for Paris approaches)”,
- Significantly lower cost of capital (-32.2%), due to a significantly lower total asset base (-30,7%)
- Significantly lower deduction for VFR exempted flights (-52.3%).
Note: It is understood that DSNA operating costs include costs of investments that are not capitalised (T3 TECH).

RP3 summary

When considering the whole of RP3 (2020-2024) for France terminal charging zone 1, actual TNSUs are +1.3% higher than planned, while actual costs in real terms are -9.4% lower than the determined costs (some -26.6 M€2017). As a result, the weighted average actual unit cost over RP3 (113.18 €2017) is -10.6% lower than planned in the PP (126.62 €2017).

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

AUCU components (€/SU) – 2024
Components of the AUCU in 2024 €/SU
DUC 104.01
Inflation adjustment 8.37
Cost exempt from cost-sharing -9.50
Traffic risk sharing adjustment 0.00
Traffic adj. (costs not TRS) 0.12
Finantial incentives -0.80
Modulation of charges 0.00
Cross-financing 77.74
Other revenues -4.18
Application of lower unit rate 0.00
Total adjustments 71.76
AUCU 175.77
AUCU vs. DUC + 69.0%
Cost exempt from cost sharing by item - 2024 €'000 €/SU
New and existing investments -5,826.8 -10.04
Competent authorities and qualified entities costs -4.4 -0.01
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 316.4 0.55
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing -5,514.7 -9.50

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2024 (175.77 €) is +69.0% higher than the nominal DUC (104.01 €). The difference between these two figures (+71.76 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+8.37 €/SU);
- the impact of adjustments resulting from the costs exempted from cost sharing mechanism (-9.50 €/SU);
- the addition of the traffic adjustment (+0.12 €/SU) for the costs not subject to traffic risk sharing;
- financial incentives (-0.80 €/SU);
- cross-financing between terminal charging zones 1 and 2 (+77.74 €/SU); and
- the deduction of other revenues (-4.18 €/SU).
The share of the regulatory result (see items 10 to 14) in the AUCU (before the deduction of other revenues) is 0.9%.

Regulatory result (RR)

DSNA net gain/loss on activity in the France terminal charging zone 1 in the year 2024

DSNA reported a net loss of -0.8 M€, as a combination of a gain of +0.8 M€ arising from the cost sharing mechanism, with a loss of -1.1 M€ arising from the traffic risk sharing mechanism and a loss of -0.5 M€ relating to financial incentives.

DSNA overall regulatory result (RR) for the activity in terminal charging zone 1

Ex-post, the overall RR taking into account the net loss from the terminal activity mentioned above (-0.8 M€) and the actual RoE (+1.5 M€) amounts to +0.7 M€ (1.2% of the terminal revenues). The resulting ex-post rate of return on equity is 5.4%, which is lower than the 11.9% planned in the PP.

RP3 summary

When considering the whole of RP3 (2020-2024), DSNA generated a cumulative gain in respect of cost sharing of +8.5 M€, as actual total costs for RP3 were lower than planned. The traffic risk sharing mechanism generated a gain of +3.0 M€. Adding the loss of -0.9 M€ to be retained by the ATSP in respect of financial incentives and the actual RoE (+7.9 M€ over RP3) leads to an overall regulatory result of +18.5 M€, which corresponds to an average ex-post rate of return on equity of 35.2% (compared to 14.5% initially planned in the PP).