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Annexure II - AERA

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NERA<br />

Economic (0f1\UI <strong>II</strong>f' 9<br />

B.2. Belgium<br />

The regulatory approach to set aeronautical charges in Brussels airport is an single till price cap<br />

regulation. Hence, aeronautical charges are determined by taking into account:<br />

(i) costs pertaining aeronautical services; and<br />

(ii) costs and revenues pertaining commercial activities included in the regulatory till.<br />

The regulatory till does not include all commercial activities.<br />

Currently, commercial activities that are included in the regulatory till (i.e. activities that<br />

contribute to defray aeronautical charges) are:<br />

• Retail activities;<br />

• Car parking;<br />

• Advertising;<br />

• Airport-related real estate activities.<br />

On the contrary, commercial activities that are excluded from the regulatory till are:<br />

• No airport-related real estate activities.<br />

Regulation (which was implemented in 2005) prescribes that contribution from commercial<br />

revenues towards aeronautical charges shall decline linearly in the course ofyears, and be<br />

completely removed within, at maximum, four regulatory periods. At that time, the single till<br />

approach will be replaced by a dual till approach.<br />

B.3. Denmark<br />

The regulatory approach to set aeronautic al charges in Copenhagen airport is a hybrid till grice<br />

cap regulation. 22 Hence, aeronautical charges are determined by taking into account<br />

(i) costs pertaining aeronautical services; and<br />

22<br />

<strong>Annexure</strong> <strong>II</strong>-B<br />

For some airports, distinction between single till and dual till is not clear cut. Copenhagen airport, for example, is purported<br />

to operate under a dual till sys tem; however, comme rcial inco me doe s make a contribut ion to reducin g ae ronautical charges.<br />

CP No. 9/2013-14/T-12023(14)/1/2012- Tariff- Vol - <strong>II</strong>I <strong>Annexure</strong> <strong>II</strong>-B Page 31 of 51<br />

14

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