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