Annexure II - AERA

NERA
Economic Consulting
South Africa. The airport is disputing such approach and is asking to benefit from the
sale revenues of land related to non-aeronautical activities and to include in the till
only the sale revenues of aeronautical land.
3.10. The Netherlands: Amsterdam
In Netherland, some non-aeronautical activities (car parking, shopping areas, hotel
space) are included in the till and related land is evaluated at historic cost and
included in the RAB.
Our understanding is that no clear answers currently are available 011 the treatment of
land disposals.
3.11. UK: Heathrow, Gatwick and Stansted
In UK, 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.
Airports can sell land non related to aeronautical activities. In case land is included in
the regulatory rerimeter of the till, the value of the sale is taken out of the RAB at
market value .I In case land, included in the regulatory perimeter, is sub-leased, the
revenues are included in the regulatory perimeter while the value of the asset in the
RAB does not change.
In case land is excluded from the regulatory perimeter of the till, the value of the sale
will have no effect on the RAS. The same principle applies in case of sub-lease.
Regulated airports are now required to consult with airlines prior to disposal of some
RAB assets.
IR See: Heathrow and Gatwick quinquennial review, 2007 , CC - Final Report, paragraph 4.50: " Disposals of
assets from within the RAB require a reduction Irom the RAB. As discussed In Appendix E, we agree asset
disposals should for that purpose generally be valued at market value rather than the written down book
value." Stansted price control review, 2008, CC - Final Report , appendix D, paragraphs 28-32: "The
alternative ways to account for disposals In Q4 when rolling forward the RAB are to subtract either the net
book value (NBV) or the proceeds. (...j We concluded that the exlstlug policy {ofusing the value of the
proceeds rather than the NBVj should continue. {...j users should be entitled to the ga ins arising Itom the
sale of airport assets."
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Annexure II-B
CP No. 9/2013-14/T-12023(14)/1/2012- Tariff- Vol - III Annexure II-B Page 49 of 51