Annexure II - AERA

NERA
Economic Consulting
Airports can sell land developed for non -aeronautical purposes (e.g. commercial
activities) and in general surplus land. They retain all revenues associated to the sale.
3.2. Belgium: Bruxelles
In Belgium, land connected to aeronautical activities is evaluated at historic cost and
included in the RAB.
All other land is not included in the regulatory till and, in principle, can be sold,
although there are no precedents. Price will be set by the market and the airport will
keep all sale revenues.
3.3. Denmark: Copenhagen
In Denmark aeronautical charges are calculated on costs of aeronautical services
reduced by a percentage of the difference between revenues and costs of all nonaeronautical
activities. Land is evaluated at historic cost.
The regulation does not explicitly mentions whether land in excess of the land needed
for aeronautical purposes (i.e, surplus land) can be sold and how this should be
treated. We understand that, in case the airport sells such land revenues will be
included in the till in a percentage corresponding to the one which applies to the
difference between revenues and costs of non-aeronautical activities.
3.4. France: Paris
In France, the land of non-aeronautical activities included in the till (car parking and
aeronautical real estate activities) is evaluated at historic cost in the RAB.
Our understanding is that the regulation is unclear whether land used for nonaeronautical
activities and, in general, surplus land can be sold. There are also no
precedents on the matter.
3.5. Germany: Hamburg
In Germany, in the case of the Hamburg airport non-aeronautical activities are outside
the regulated till. Land used for non-aeronautical activities is not evaluated in order
to calculate aeronautical charges.
Our understanding is that the land used for non-aeronautical activities, and more
generally surplus land, can be sold. In such cases prices are set by the market and the
airport will keep all the sale revenues.
3.6. Ireland: Dublin
In Ireland, the land of non-aeronautical activities is included in the RAB at current
cost, i.e. historical book values are expressed at current value by using a price index.
In recent discussions related to the development of Dublin airport city, a high-density
development announced by the DAA in 2008, to include commercial offices, retail,
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Annexure II-B
CP No. 9/2013-14/T-12023(14)/1/2012- Tariff- Vol - III Annexure II-B Page 47 of 51