Annexure II - AERA
Annexure II - AERA
Annexure II - AERA
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NERA<br />
Ecol1omi c Consulung<br />
• A dual till price cap regulation in Rome, Milan and Venice airports (i.e. airports with annual<br />
traffic higher than 8 million passengers);<br />
• A hybrid till price cap regulation in the other airports.<br />
Where a dual till approach applies (i.e. Rome, Milan and Venice), aeronautical charges are<br />
dete rmined by taking into account only costs pertaining aeronautical services. In these airports,<br />
revenues from airport's commercial activities are not considered in tariff calculation.<br />
Where a partial single till approach applies (i.e. the other airports), aeronautical charges are<br />
determined by taking into account:<br />
(i) costs pertaining aeronautical services; and<br />
(ii) 50% of commercial margin, calculated as difference between costs and revenues pertaining<br />
commercial activities included in the regulatory till.<br />
The regulatory till does not include all corrunercial activities. Currently, commercial activities<br />
that are included in the regulatory till (i.e. activities that contribute to defray aeronautical<br />
charges) are those activities in which airport may reap benefits form monopoly or locational<br />
rents .<br />
B.10.Malta<br />
The regulatory approach to set aeronautical charges in Malta International airport is a dual till<br />
price cap regulation. Hence, aeronautical charges are determined by taking into account only<br />
costs pertaining aeronautical services. Revenues from airport's commercial activities are not<br />
considered in tariff calculation.<br />
B.11. New Zealand<br />
The regulatory approach to set aeronautical charges in Auckland, Christchurch and Wellington<br />
airports is an ex post regulation (also known as light handed regulation).<br />
Monitored airports are free to set their own charges, and users have recourse to litigation where<br />
they believe charges to be unreasonable. Despite the lack of formal price controls, New Zealand<br />
airports have undergone several reviews since privatization was introduced.<br />
Furthermore, the Government reserves the right to re-introduce explicit price regulation at<br />
airports if it is deemed necessary.<br />
<strong>Annexure</strong> <strong>II</strong>-B<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 35 of 51<br />
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