Annexure II - AERA

NERA
Economic Consulting
2.5. Germany: Frankfurt and Hamburg
The Frankfurt and Hamburg airports are under dual till regulation", Aeronautical
charges are determined by taking into account only those costs pertaining to the
aeronautical services IO.
In both these airports, non-aeronautical activities and, more specifically, real estate
activities are not included in the regulatory till.
2.6. Ireland: Dublin
The Dublin airport is under a single till regulation, where all non-aeronautical
activities are included in the regulatory till with a few exceptions related to its
subsidiaries. II
All other non-aeronautical activities Including real estate are integrated by the CAR in
the regulatory till: retail, car parks, property rents , ground handling, property
concessions, advertising and corporate.
2.7. Italy: major airports and all other airports
A dual till price cap regulation applies to the large airports with more than 8 min
passengers that are Rome, Milan and Venice airports and a hybrid till price cap
regulation applies in the other airports. 12
Where a dual till approach applies, aeronautical charges are determined by taking into
account only costs pertaining to the aeronautical services. Non-aeronautical activities
and therefore real estate activities are not included in the regulatory till.
Where a hybrid till approach applies, aeronautical charges are determined considering
50% of the commercial margin (difference between revenues and costs) of nonaeronautical
services carried out by the operator on the airport area under monopoly
or localization rents. All the other non-aeronautical services are excluded from the till
and do not contribute to the calculation of the conunercial margin.
2.8. New Zealand: Auckland, Christchurch, Wellington
The regulatory approach to set aeronautical charges in Auckland, Christchurch and
Wellington airports is an ex post regulation (also known as light handed regulationj'