Annexure II - AERA
Annexure II - AERA
Annexure II - AERA
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NERA<br />
Economic Con sulting<br />
2. Inclusion of the land used of commercial<br />
purposes on the perimeter of the till<br />
We have examined how airport regulation treats land used for non-aeronautical<br />
activities in the following countries: Australia, Belgium, Denmark, France, Germany,<br />
Ireland, Italy , New Zealand, South Africa, The Netherlands and UK.<br />
For each country we have detected whether and to what extent revenues of nonaeronautical<br />
activities contribute to cover costs ofaeronautical activities. We have<br />
then made specific reference to revenues of land used for non-aeronautical activities.<br />
The results of our analysis are the following:<br />
• Under dual till regulation non-aeronautical activities are out of the scope of the<br />
regulated till; real estate is excluded in Germany at Frankfurt and Hamburg, in<br />
Italy at the major airports and in Netherlands at Amsterdam (with the exception of<br />
hotels);<br />
• In general, there is no pure single till regulation. Selected non aeronautical<br />
activities, where no general rule applies, are excluded from the regulatory till.<br />
More specifically, real estate is outside the regulatory till in France at ADP and in<br />
Belgium at Bruxelles airport. Real estate is included in Ireland at Dublin airport,<br />
at South African Airports, in UK at Heathrow, Gatwick and Stansted (but hotels<br />
are outside).<br />
• Where a hybrid till applies, non-aeronautical activities are partially included in the<br />
regulatory till. This is the case of Denmark, as at Copenhagen, where between<br />
10% and 50% of the margin of non-aeronautical activities is used to remunerate<br />
costs of aeronautical activities, and of Italy, at all airports but the large ones,<br />
where it is used 50% of the margin of non-aeronautical activities, but only if such<br />
activities are provided under monopoly or locational rent. The same principles<br />
apply to real estate in both countries.<br />
• Finally, where ex post monitoring applies, as in the case of major Australian and<br />
New Zealand, non aeronautical activities, including real estate, are excluded by<br />
any regulatory till.<br />
Table 2.1 summarizes the international evidence examined.<br />
3<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 41 of 51