Cost-efficiency - France

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Terminal charging zone - France Zone 2

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 392 194 198 208
Determined costs 382 190 191 192
Difference costs 10 4 7 16
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 +9.7% (or +30.95 €2017) higher than the planned DUC. This results from the combination of significantly lower than planned TNSUs (-9.9%) and lower than planned terminal costs in real terms (-1.2%, or -2.2 M€2017). 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 (-9.9%) 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 -1.2% (-2.2 M€2017) lower than planned. This is the result of lower costs for the MET service provider (-15.2%, or -2.3 M€2017) and the main ANSP, DSNA (-0.1%, or -0.1 M€2017) and higher costs for the NSA (+18.6%, or +0.2 M€2017).

Terminal costs for the main ANSP at charging zone level

Consistent with planned terminal costs in real terms for DSNA in 2024 (-0.1%, or -0.1 M€2017), and higher in nominal terms (+9.7% or 16.9M€), result from:
- Lower staff 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%, mainly from past wage increases, bonuses, and the 2024 social agreement introducing a more flexible rostering,
- Slightly lower other operating costs (-2.0% in real and +9.0% in nominal terms), “due to the post-crisis inflation (energy prices)”,
- Lower depreciation (-4.0%),
- Significantly higher cost of capital (+26.0%) due to a significantly higher total asset base (+13.2%)
- Significantly lower deduction for VFR exempted flights (-42.9%).
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 2, actual TNSUs are -6.6% lower than planned, while actual costs in real terms are -0.9% lower than the determined costs (some -8.0 M€2017). As a result, the weighted average actual unit cost over RP3 (446.44 €2017) is +6.1% higher than planned in the PP (420.68 €2017).

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

AUCU components (€/SU) – 2024
Components of the AUCU in 2024 €/SU
DUC 344.79
Inflation adjustment 37.19
Cost exempt from cost-sharing 2.70
Traffic risk sharing adjustment 19.39
Traffic adj. (costs not TRS) 3.39
Finantial incentives -1.39
Modulation of charges 0.00
Cross-financing -89.94
Other revenues -107.24
Application of lower unit rate 0.00
Total adjustments -135.89
AUCU 208.90
AUCU vs. DUC -39.4%
Cost exempt from cost sharing by item - 2024 €'000 €/SU
New and existing investments 745.5 1.49
Competent authorities and qualified entities costs 201.1 0.40
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 409.0 0.82
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing 1,355.5 2.70

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2024 (208.90 €) is -39.4% lower than the nominal DUC (344.79 €). The difference between these two figures (-135.89 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+37.19 €/SU);
- the impact of adjustments resulting from the costs exempted from cost sharing mechanism (+2.70 €/SU);
- the addition of the traffic risk sharing adjustments (+19.39 €/SU);
- the addition of the traffic adjustment (+3.39 €/SU) for the costs not subject to traffic risk sharing;
- financial incentives (-1.39 €/SU);
- cross-financing between terminal charging zones 1 and 2 (-89.94 €/SU); and
- the deduction of other revenues (-107.24 €/SU).
The share of the regulatory result (see items 10 to 14) in the AUCU (before the deduction of other revenues) is 0.4%.

Regulatory result (RR)

DSNA net gain/loss on activity in the France terminal charging zone 2 in the year 2024

DSNA reported a net loss of -6.9 M€, as a combination of a gain of +1.4 M€ arising from the cost sharing mechanism, with a loss of -7.7 M€ arising from the traffic risk sharing mechanism and a loss of -0.7 M€ relating to financial incentives.

DSNA overall regulatory result (RR) for the activity in terminal charging zone 2

Ex-post, the overall RR taking into account the net loss from the terminal activity mentioned above (-6.9 M€) and the actual RoE (+4.6 M€) amounts to -2.4 M€ (-1.3% of the terminal revenues). The resulting ex-post rate of return on equity is negative (-6.1%).

RP3 summary

When considering the whole of RP3 (2020-2024), DSNA generated a cumulative gain in respect of cost sharing of +4.0 M€, as actual total costs for RP3 were lower than planned. The traffic risk sharing mechanism generated a loss of -20.0 M€. Adding the loss of -1.4 M€ to be retained by the ATSP in respect of financial incentives and the actual RoE (+20.0 M€ over RP3) leads to an overall regulatory result of +2.7 M€, which corresponds to an average ex-post rate of return on equity of 2.0% (compared to 14.8% initially planned in the PP).