Annexure II - AERA

NERA
Economic Consulting
• sub-concession;
• real estate activities (except hotels).
Conversely, non-aeronautical activities that are excluded from the perimeter of the
regulatory till are:
• retail activities (such as profits accrued by World Duty Free);
• real estate activities (only hotels run by BAA).
3. Evaluation and sale of surplus land
We have examined how surplus land - i.e. land in excess of what is needed for
aeronautical use - is treated in the following countries: Australia, Belgium, Denmark,
France, Germany, Ireland, Italy, New Zealand, South Africa, The Netherlands and
UK.
For each country we have detected:
• How surplus land is evaluated (e.g. current cost or historic cost) if it is included in
the till;
• Whether the surplus land can be sold and, if this is the case, whether such
revenues will be included in the regulatory till.
The results of our analysis can be summarized as follows:
• In cases where surplus land (i.e. land used for non-aeronautical activities) is
included in the till, it can be evaluated either at current cost (Ireland, Italy, UK) or
at historic cost (Belgium, Denmark, South Africa, The Netherlands). None of the
considered airports include such land in the RAB at market price.
• Surplus land can be sold in some countries (Australia, Belgium, Ireland, Germany,
New Zealand, South Africa, UK). In general, sale revenues follow the same rule
which applies to non-aeronautical real estate revenues. In Italy surplus land cannot
be sold but it can be subleased at the same conditions which apply to nonaeronautical
real estate revenues. In some other countries (France, Denmark,
Sweden) there are no clear rules on the matter. In most instances there have not
been precedents.
The following paragraphs illustrate our analysis of the treatment of surplus land in the
different jurisdictions.
3.1. Australia: Adelaide, Brisbane, Melbourne, Perth and Sydney
In Australia, only a price monitoring applies, therefore land used for non aeronautical
activities is not evaluated in order to calculate aeronautical charges.
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Annexure II-B
CP No. 9/2013-14/T-12023(14)/1/2012- Tariff- Vol - III Annexure II-B Page 46 of 51