Cost-efficiency - Greece

Download Report

Terminal charging zone

Unit cost (KPI#1)

Actual and determined data
Total costs - nominal (M€) 2020-2021 2022 2023 2024
Actual costs 30 21 24 26
Determined costs 35 21 25 29
Difference costs -4 0 -1 -2
Inflation assumptions 2020-2021 2022 2023 2024
Determined inflation rate NA 4.5% 1.3% 1.6%
Determined inflation index NA 106.5 107.9 109.7
Actual inflation rate NA 9.3% 4.2% 3.0%
Actual inflation index NA 111.4 116.1 119.6
Difference inflation index (p.p.) NA +4.9 +8.2 +9.9

AUC vs. DUC

In 2024, the terminal AUC was -30.6% (or -60.88 €2017) lower than the planned DUC. This results from the combination of significantly higher than planned TNSUs (+21.0%) and significantly lower than planned terminal costs in real terms (-16.0%, or -4.2 M€2017). It should be noted that the actual inflation index in 2024 was +9.9 p.p. higher than planned.

Terminal service units

The difference between 2024 actual and planned TNSUs (+21.0%) falls outside 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 (see the main ANSP gain in Box 11).

Terminal costs by entity

The 2024 actual real terminal costs are -16.0% (-4.2 M€2017) lower than planned. This is the result of lower than planned costs for the main ANSP, HASP (-14.6%, or -3.6 M€2017), the NSA (-29.8%, or -0.4 M€2017) and the MET service provider (-52.4%, or -0.2 M€2017).

Terminal costs for the main ANSP at charging zone level

Significantly lower than planned terminal costs in real terms for HASP in 2024 (-14.6%, or -3.6 M€2017) result from:
- Significantly lower than planned staff costs (-13.8%),
- Significantly lower than planned other operating costs (-7.0%),
- Significantly lower than planned depreciation (-58.9%), reflecting “delay in the implementation of the project “APP RELOCATION at AIA Airport (NEW VCRS & 14 CWPs)”,
- Significantly lower than planned cost of capital (-57.9%),
- Exceptional costs which reflect a reporting of negative amount (-0.9 M€ in nominal terms) in 2024 determined costs for HASP to correct for the difference between planned and actual costs in 2021 resulting from resubmission of the RP3 PP.
- Significantly higher than planned deduction for VFR exempted flights (+30.5%).

RP3 summary

When considering the whole of RP3 (2020-2024) for Greece terminal charging zone, actual TNSUs are +7.4% higher than planned, while actual costs in real terms are -11.7% lower than the determined costs (some -12.1 M€2017). As a result, the weighted average actual unit cost over RP3 (159.81 €2017) is -17.7% lower than planned in the PP (194.30 €2017).

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

AUCU components (€/SU) – 2024
Components of the AUCU in 2024 €/SU
DUC 215.34
Inflation adjustment 13.88
Cost exempt from cost-sharing -11.61
Traffic risk sharing adjustment -27.54
Traffic adj. (costs not TRS) -2.52
Finantial incentives -2.49
Modulation of charges 0.00
Cross-financing 0.00
Other revenues -3.60
Application of lower unit rate -34.20
Total adjustments -68.08
AUCU 147.25
AUCU vs. DUC -31.6%
Cost exempt from cost sharing by item - 2024 €'000 €/SU
New and existing investments -1,443.9 -8.97
Competent authorities and qualified entities costs -425.1 -2.64
Eurocontrol costs 0.0 0.00
Pension costs 0.0 0.00
Interest on loans 0.0 0.00
Changes in law 0.0 0.00
Total cost exempt from cost risk sharing -1,869.1 -11.61

The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2024 (147.25 €) is -31.6% lower than the nominal DUC (215.34 €). The difference between these two figures (-68.08 €/SU) is due to:
- the positive inflation adjustment resulting from higher than planned inflation (+13.88 €/SU);
- the impact of adjustments resulting from the costs exempted from cost sharing mechanism (-11.61 €/SU);
- the deduction of the traffic risk sharing adjustments (-27.54 €/SU);
- the deduction of the traffic adjustment (-2.52 €/SU) for the costs not subject to traffic risk sharing;
- the financial incentives (-2.49 €/SU);
- the deduction of other revenues (-3.60 €/SU); and
- the application of a lower unit rate as foreseen in Art. 29(6) in year 2024 (-34.20 €/SU);
The share of the regulatory result (see items 10 to 14) in the AUCU (before the deduction of other revenues) is 15.9%.

Regulatory result (RR)

HASP net gain on activity in the Greece terminal charging zone in the year 2024

HASP reported a net gain of +3.3 M€, as a combination of a gain of +2.5 M€ arising from the cost sharing mechanism, with a gain of +1.2 M€ arising from the traffic risk sharing mechanism and a loss of -0.4 M€ relating to financial incentives.

HASP 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 (+3.3 M€) and the actual RoE (+0.3 M€) amounts to +3.6 M€ (12.7% of the terminal revenues). The resulting ex-post rate of return on equity is 65.1%, which is higher than the 4.6% planned in the PP (see also Note 2 and Note 3 in Box 10 above).

RP3 summary

When considering the whole of RP3 (2020-2024), HASP generated a cumulative gain in respect of cost sharing of +9.1 M€, as actual total costs for RP3 were lower than planned. The traffic risk sharing mechanism generated a gain of +2.0 M€. Adding the loss of -0.9 M€ to be retained by the ATSP in respect of financial incentives and the actual RoE (+0.5 M€ over RP3) leads to an overall regulatory result of +10.7 M€, which corresponds to an average ex-post rate of return on equity of 107.6% (compared to 4.8% initially planned in the PP) (see also Note 2 and Note 3 in Box 10 above).

Note 2: Ex-post RR does not take into account the application of the lower unit rate as per Art. 29.6 (loss of revenue of -2.7 M€ in 2020/21, -3.6 M€ in 2022, and -5.0 M€ in 2023 and -5.1 M€ in 2024).
Note 3: Ex-post RoE cannot be correctly calculated due to a very low total asset base, due to: 1) the exclusion of net current assets from the calculation of the total asset base starting from 2021; 2) a very low net book value of fixed assets (as these are nearly fully depreciated).