Cost-efficiency - Ireland

PRB monitoring

The en route 2025 actual unit cost of Ireland was 26.64€2022, -6.5% lower than the determined unit cost (28.49€2022). The terminal 2025 actual unit cost was 151.50€2022, -1.9% lower than the determined unit cost (154.47€2022).
The en route 2025 actual service units (5.2M) were in line with the determined service units (5.2M).
The en route 2025 actual total costs were -9.8M€2022 (-6.6%) lower than determined, with all cost categories registering lower-than-planned costs, except exceptional items. This decrease is mainly driven by the costs of AirNav Ireland. The largest difference for AirNav Ireland was in staff costs (-4.0M€2022, or -5.2%). The NSA attributed this decrease to the timing of recruitment and the 2025 pension in payment.
A deviation from the criteria to achieve capacity targets was considered justified for Ireland. Actual costs for the measures necessary to achieve those targets were lower than determined (-5.4M€2022, or -41.9%), mainly due to lower staff costs (-4.7M€2022, or -51.8%) than planned.
AirNav Ireland spent 16.3M€2022 in 2025 related to costs of investments for both en route and terminal charging zones, -19.4% less than determined (20.2M€2022). According to the NSA, this reduction is due to delays in project completions reflecting a shortfall in technical and operational resources.
The en route actual unit cost incurred by users in 2025 was 28.89€ (-5.2% below the 2025 DUC), while the terminal actual unit cost incurred by users was 156.54€ (-4.3% below the 2025 DUC). The difference between the AUCU and the DUC is mainly driven by the investment costs in cost exempt from cost sharing for both terminal and en route charging zones, as well as financial incentives for the en route charging zone.

En route charging zone

Unit cost (KPI#1)

Total costs - nominal (M€)	2025	2026	2027	2028	2029
Actual and determined data
Determined costs	157.6	168.0	173.0	179.6	187.0
Actual costs	147.5	NA	NA	NA	NA
Difference costs	-10.1	NA	NA	NA	NA

Inflation assumptions	2025	2026	2027	2028	2029
Determined inflation rate	1.9%	1.7%	1.8%	1.9%	2.0%
Determined inflation index*	108.6	110.4	112.4	114.5	116.9
Actual inflation rate	2.1%	NA	NA	NA	NA
Actual inflation index*	108.8	NA	NA	NA	NA
Difference inflation index (p.p.)	+0.2	NA	NA	NA	NA
*100 = 2022

Focus on unit cost

AUC vs. DUC

In 2025, the en route AUC was -6.5% (or -1.85 €2022) lower than the planned DUC. This results from the combination of significantly lower than planned en route costs in real terms (-6.6%, or -9.8 M€2022) and slightly lower than planned TSUs (-0.1%).

En route service units

The difference between actual and planned TSUs (-0.1%) falls inside the ±2% dead-band. Hence, the loss of en route revenues is borne by the ANSPs.

En route costs by entity

Actual real en route costs are -6.6% (-9.8 M€2022) lower than planned. This is the result of lower costs for the main ANSP, AirNav Ireland (-7.8%, or -9.5 M€2022), the NSA/EUROCONTROL (-1.4%, or -0.3 M€2022) and the MET service provider (-0.2%, or -0.02 M€2022).

En route costs for the main ANSP (AirNav Ireland) at charging zone level

Based on the additional information to the en route reporting tables, the significantly lower than planned en route costs in real terms for AirNav Ireland in 2025 (-7.8%, or -9.5 M€2022) result from:

Significantly lower than planned staff costs (-5.2%), mainly due to the timing of recruitment and the timing of the 2025 pension payment. In line with the RP4 decision, a headcount rebate applies when actual ATCO and engineering headcount is below forecast. For 2025, this payroll rebate amounts to 3.7 M€ (nominal terms) and will be returned to airspace users in 2027 through a reduction in the en route unit rate.
Significantly lower than planned other operating costs (-8.4%), where “other operating costs comprise training, systems and equipment maintenance, telecommunications, spares, power and administration costs including rent and rates, insurance, security, building repairs and maintenance.”
Significantly lower than planned depreciation (-21.0%), mainly reflecting “a shortfall in technical and operational resources necessary to deliver capital projects.”
Significantly lower than planned cost of capital (-29.8%), mainly “due to delays in project completions as outlined above.”
Slightly lower than planned deduction for VFR exempted flights (-0.2%).

Assessment of the actual performance in the charging zone reported by the NSA

The NSA of Ireland provides the following overall assessment of the actual performance in 2025 at charging zone level:

“The actual unit cost in real terms was 6.5% lower than forecast. Total En Route costs in nominal terms were 6% below the forecast level included in the RP4 Performance Plan. Nominal costs were lower than forecast for each of AirNav Ireland, MET and the NSA, including lower than determined Eurocontrol costs. Total En Route costs in real terms were 6.6% below the forecast level, together with service units close to forecast this led to an outperformance of the DUC by 6.5%.”

Explanation of the differences between actual and determined costs at charging zone level reported by the NSA

The NSA provides the following explanation for the differences between actual and determined costs in the charging zone:

“The lower than determined level of costs was driven by AirNav Ireland's delay in recruitment. The challenges faced by AirNav Ireland in recruiting engineers and ATCOs had a negative knock-on impact to it delivering its proposed capital investment programme. Under the RP4 decision, where actual ATCO and engineering headcount is below forecast, a headcount rebate applies. For 2025, this payroll rebate amounts to €3.7 million and will be returned to airspace users in 2027 through a reduction in the en route unit rate.”

Recommendations formulated by the NSA to the ANSP (AirNav Ireland) to rectify the situation and actions taken by the ANSP

The NSA 2025 monitoring report indicates the following recommendations formulated by the NSA:

“Continue efforts to hire engineers and ATCOs. This will allow AirNav to allocate resources to its capex programme.”

AirNav Ireland reports the implementation of the following actions:

“The ANSP will return any unspent capex to users in RP5. The Unit rate will also be adjusted downwards in 2027 to account for the under delivery of ATCOs and engineers in 2025.”

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

	€/SU
AUCU components (€/SU) – 2025
DUC	30.46
Inflation adjustment	0.05
Cost exempt from cost sharing	-0.57
Traffic risk sharing adjustment	0.00
Traffic adjustment (costs not TRS)	0.01
Financial incentives	-0.71
Modulation of charges	0.00
Cross-financing	0.00
Other revenues	-0.35
Application of lower unit rate	0.00
Total adjustments	-1.57
AUCU	28.89
AUCU vs. DUC	-5.2%

Cost exempt from cost sharing by item - 2025	€'000	€/SU
New and existing investments	-2,675.6	-0.52
Competent authorities and qualified entities costs	-154.4	-0.03
Eurocontrol costs	-94.4	-0.02
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	-2,924.4	-0.57

Focus on AUCU

En route AUCU monitoring at charging zone level

The actual en route unit cost incurred by airspace users (AUCU) in respect of activities performed in 2025 (28.89 €) is -5.2% lower than the nominal DUC (30.46 €) which includes DUC initially charged: 30.86 €, and DUC to be charged retroactively: -0.40 €. The difference between the AUCU and the nominal DUC (-1.57 €/SU) is due to:

the positive inflation adjustment resulting from higher than planned inflation (+0.05 €/SU);
the impact of adjustments resulting from the costs exempted from cost sharing mechanism (-0.57 €/SU);
the addition of the traffic adjustment (+0.01 €/SU) for the costs not subject to traffic risk sharing;
the impact of financial incentives (-0.71 €/SU); and,
the deduction of other revenues (-0.35 €/SU).

The share of the regulatory result (see next sub-section) in the AUCU (before the deduction of other revenues) is 4.1%.

Initiatives implemented or planned that will improve this PI reported by the NSA

The NSA of Ireland provides the following information regarding the initiatives:

“These adjustments, as outlined above, are as per the Regulation. Their correct application will continue to be monitored by the NSA.”

Regulatory result (RR)

Focus on regulatory result

AirNav Ireland net gain/loss on activity in the Ireland en route charging zone in 2025

AirNav Ireland reported a net gain of +3.6 M€, as a combination of a gain of +7.4 M€ arising from the cost sharing mechanism, with a loss of -0.2 M€ arising from the traffic risk sharing mechanism and a loss of -3.7 M€ relating to financial incentives.

AirNav Ireland overall regulatory result (RR) for the en route activity

Ex-post, the overall RR, taking into account the net gain from the en route activity mentioned above (+3.6 M€) and the actual RoE (+2.6 M€), amounts to +6.2 M€ (5.0% of the en route revenues). The resulting ex-post rate of return on equity is 14.7%, which is higher than the 6.3% planned in the PP.