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        • Unit cost
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        • Regulatory Result

    Cost-efficiency - Ireland

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    Terminal charging zone

    Unit cost

    Actual and determined data
    Total costs - nominal (M€) 2025 2026 2027 2028 2029
    Determined costs 35.1 37.1 38.6 40.1 42.2
    Actual costs 33.3 NA NA NA NA
    Difference costs -1.9 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
    NoteFocus on unit cost

    AUC vs. DUC

    In 2025, the terminal AUC was -1.9% (or -2.97 €2022) lower than the planned DUC. This results from the combination of significantly lower than planned terminal costs in real terms (-5.6%, or -1.9 M€2022) and lower than planned TNSUs (-3.7%).

    Terminal service units

    The difference between actual and planned TNSUs (-3.7%) 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 regulatory result).

    Terminal costs by entity

    Actual real terminal costs are -5.6% (-1.9 M€2022) lower than planned. This is the result of lower costs for the main ANSP, AirNav Ireland (-6.4%, or -1.9 M€2022) and higher costs for the NSA (+0.2%, or +0.003 M€2022), the MET service provider (+1.4%, or +0.03 M€2022).

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

    Based on the additional information to the terminal reporting tables, the significantly lower than planned terminal costs in real terms for AirNav Ireland in 2025 (-6.4%, or -1.9 M€2022) result from:

    • Slightly higher than planned staff costs (+0.8%).

    • Significantly lower than planned other operating costs (-9.7%), 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 (-14.4%), mainly reflecting “a shortfall in technical and operational resources necessary to deliver capital projects.”

    • Significantly lower than planned cost of capital (-12.9%), mainly “due to delays in project completions as outlined above.”

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

    “The actual unit cost was 1.9% below forecast. Total nominal terminal costs for 2025 were 5.3% below the forecast level, and the real total terminal cost was 5.6% below the level forecast in the Performance Plan. The lower total real costs were mitigated by a 3.7% reduction in TNSUs but still resulted in a DUC outperformance of 1.9%.”

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

    “The ANSP's total operating costs were 9.5% lower than forecast. This comprises training, systems and equipment maintenance, telecommunications, spares, power and administration costs including rent and rates, insurance, security, building repairs and maintenance. Depreciation costs for ANI and the NSA were below determined. For the NSA this relates to a later than expected capitalisation of the largest investment. For AirNav Ireland, actual capital costs of both depreciation and cost of capital were lower than determined due to delays in project completions.”

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

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

    AirNav Ireland reports the implementation of the following actions:

    “The ANSP will return any costs associated with unspent capex to users in RP5.”

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

    AUCU components (€/SU) – 2025
    €/SU
    DUC 163.55
    Inflation adjustment 0.22
    Cost exempt from cost sharing -5.90
    Traffic risk sharing adjustment 1.86
    Traffic adjustment (costs not TRS) 0.67
    Financial incentives 0.00
    Modulation of charges 0.00
    Cross-financing 0.00
    Other revenues -3.87
    Application of lower unit rate 0.00
    Total adjustments -7.01
    AUCU 156.54
    AUCU vs. DUC -4.3%
    Cost exempt from cost sharing by item - 2025 €'000 €/SU
    New and existing investments -1,223.4 -5.92
    Competent authorities and qualified entities costs 3.2 0.02
    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 -1,220.1 -5.90
    NoteFocus on AUCU

    Terminal AUCU monitoring at charging zone level

    The actual terminal unit cost incurred by airspace users (AUCU) in respect of activities performed in 2025 (156.54 €) is -4.3% lower than the nominal DUC (163.55 €) which includes DUC initially charged: 167.39 €, and DUC to be charged retroactively: -3.85 €. The difference between the AUCU and the nominal DUC (-7.01 €/SU) is due to:

    • the positive inflation adjustment resulting from higher than planned inflation (+0.22 €/SU);

    • the impact of adjustments resulting from the costs exempted from cost sharing mechanism (-5.90 €/SU);

    • the addition of the traffic risk sharing adjustments (+1.86 €/SU);

    • the addition of the traffic adjustment (+0.67 €/SU) for the costs not subject to traffic risk sharing; and,

    • the deduction of other revenues (-3.87 €/SU).

    The share of the regulatory result (see next sub-section) in the AUCU (before the deduction of other revenues) is 10.7%.

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

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

    Regulatory result (RR)

    NoteFocus on regulatory result

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

    AirNav Ireland reported a net loss of -0.1 M€, as a combination of a gain of +0.7 M€ arising from the cost sharing mechanism, with a loss of -0.8 M€ arising from the traffic risk sharing mechanism.

    AirNav Ireland overall regulatory result (RR) for the terminal activity

    Ex-post, the overall RR, taking into account the net loss from the terminal activity mentioned above (-0.1 M€) and the actual RoE (+3.7 M€), amounts to +3.6 M€ (12.2% of the terminal revenues). The resulting ex-post rate of return on equity is 6.1%, which is slightly lower than the 6.3% planned in the PP.

     
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