Annexure II - AERA

NERA
Economic Consulting
industrial, hotels and car parking, the regulator has clarified that some ofthe land is
included in the RAB of the airport.
In such instance, the land will be subtracted from the RAB at market value and
revenues and costs ofthe real estate developments will be excluded by the regulatory
till. The land which is not included in the RAB will not be subtracted.
3.7. Italy: major airports and all other airports
In Italy, in the case of the major airports non-aeronautical activities are outside the
regulated till. Land used for non aeronautical activities is not evaluated in order to
calculate aeronautical charges. In the case ofall other airports the land ofnonaeronautical
activities is included in the RAB at current cost, i.e. historical book
values are expressed at current value by using a price index.
Airports are not allowed to sell land used for non aeronautical activities, and more in
general surplus land, according to their Concession Agreements. However, airports
can sublease land. Revenues of sublease are:
• Out of the perimeter of the regulatory till in case of large airports;
• In the margin ofcommercial activities if such land benefits of monopoly or
locational rents, and outside the regulatory till in absence of monopoly or
locational rents .
3.8. New Zealand: Auckland, Christchurch, Wellington
In New Zealand, only a price monitoring applies, therefore land used for nonaeronautical
activities is not evaluated in order to calculate aeronautical charges.
Airports can sell land developed for non-aeronautical purposes (e.g. commercial
activities) arid in general surplus land. They retain all revenues associated to the sale .
3.9. South Africa: all regulated airports
In South Africa, the land used for non-aeronautical activities is included in the RAB
at histori c cost. 17
That land not currently in use for airport operations and which the company is
permitted to dispose, shall be excluded from the RAB and the associated income and
expenditure ring-fenced out of the single till.
Our understanding is that this currently applies to the land of the old Durban airport
which is not any more in operation. The estimated market sale value of the land seems
to have been subtracted by aeronautical costs as a single till regulation applies in
17 As underlined by the regulating committee, the valuation of land cost "is highly subjective, complex,
uncertain and results ill a wide range of values. Historic cost has the advantage ofbeing readily quanti fiable.
certain and less subjective. "Article 8 .2.3.2.3, Approach to the 2010111 to 201411 5 permissions, April 2009,
Regulating Committee to ACSA and ATNS
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Annexure II-B
CP No. 9/2013-14/T-12023(14)/1/2012- Tariff- Vol - III Annexure II-B Page 48 of 51