Key Benefits:
Decision of 7 July 2006 laying down rules for the operation of Schiphol airport (Schiphol operating airport decision)
We Beatrix, at the grace of God, Queen of the Netherlands, Princess of Orange-Nassau, etc. etc. etc.
On the nomination of the Secretary of State for Transport and Water State of 26 September 2005, No HDJZ/LUV/2005-1854, Principal Legal Affairs Department, done in accordance with our Minister of Economic Affairs;
Having regard to the Articles 8.25d, 12th Member , 8.25e, fourth member , 8.25f, seventh Member , 8.25g, fifth paragraph , and 8.29a, second member, of the Law Aviation Act ;
The Council of State heard (opinion of 25 November 2005, No. W09.05.0439/V)
Having regard to the further report of the Secretary of State for Transport and Water State of 6 July 2006, No HDJZ/LUV/2006-1029, Principal Legal Affairs Committee, delivered in accordance with Our Minister of Economic Affairs;
Have found good and understand:
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For the purpose of this Decision:
a. aeronautical activities: the Article 8.25d, first paragraph, of the Act activities referred to;
b. imputation system: the imputation system, intended in Article 8.25g, first paragraph, of the Act ;
c. airport: Schiphol airport;
d. Act: the Aviation Law ;
e. User: an air carrier, as well as any person or legal person who operates flights, other than an air carrier;
f. Consumer and Market Authority: Consumer and Market Authority, mentioned in Article 2, 1st paragraph, of the Incomposition Act Authority of Consumer and Market ;
g. unusization method: the method of depreciation of tangible fixed assets characterised by initial overcapacity (projected capacity minus the expected demand from airport air traffic, transport of passengers and freight, in such a way that this results in an equal amount of depreciation and capital costs per unit of use on the expected economic lifetime, as foreseen at the time of the investment decision);
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1 Aviation activities are the activities of the airport operator for the purposes of:
a. Take-off and landing of aircraft, including, in any event, the use by aircraft of taxi, start and landing lanes and platforms;
b. The parking of aircraft, including in any case the use by aircraft of parking facilities at the airport;
c. The handling of passengers of aircraft and their baggage, as well as cargo related to the taking-off and landing of aircraft, including in any case:
1 °. the use of the passenger terminal; and
2 °. the use of the pre-driving routes,
d. the execution of the security of passengers and their baggage, as well as of cargo, including the facilities for border control.
2 The in Article 8.25d, sixth paragraph, of the Act Those activities directly related to the aviation activities shall be as follows:
a. the provision of a concession for the supply of fuel for aircraft;
b. the provision of a concession for the catering of aircraft;
c. utility services,
d. Work carried out by or because of the operator of the airport charged to aviation activities and charged to third parties.
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1 Announcement of the fixing of rates and conditions as referred to in Article 8.25d, first paragraph, of the Act , it is done:
a. by the charging of the tariffs and conditions at, in any event, the establishment of the airport operator at the airport;
b. by notifying the fixing of rates and conditions in at least one day, week or news magazine or other appropriate means such that users are achieved as closely as possible; and
(c) forwarding of the rates and conditions determined at the request of the users to the address they have given.
2 In the notification referred to in paragraph 1 (b), the date on which the charges and conditions are set by the operator shall indicate the effective date of the rates and conditions, the period of time of the term and where and when rates and conditions can be inseen.
3 The rates and conditions shall not be earlier than five months after the notification, referred to in Article 8.25d, first paragraph, of the Act .
4 The operator of the airport shall ensure that, with effect from 1 April or 1 November, tariffs and conditions specified in: Article 8.25d, first paragraph, of the Act Let's go.
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1 Communication of a proposal for tariffs and conditions as referred to in Article 8.25e, first paragraph, of the Act , it is done by:
a. to address the proposal at, in any event, the establishment of the airport operator at the airport;
b. notification of the proposal in at least one day, week or news sheet or other appropriate means so as to ensure that users are reached as closely as possible; and
c. Transmission of the proposal at the request of users to the address they have given.
2 The notification shall state the period of time of the term and where and when the proposal for tariffs and conditions may be inobserved.
3 During the four weeks following the date on which the proposal for access to prices and conditions has been made available, the proposal may be considered. The period of terinzalegging does not begin earlier than on the day after the notification has taken place.
4 The proposal referred to in the first paragraph:
a. includes an underpinnings of the proposed tariffs, having regard to the Article 8.25d of the Act the tariffs, and indicate the time at which the rates and conditions will be applied,
b. provides a specification of the proceeds from operations, referred to in Article 8.25d, sixth paragraph, of the Act ,
c. shall indicate, in accordance with the imputation system, the physical fixed assets to which extent they are used for aviation activities and the costs to be incurred by air operations to which extent,
d. includes for the aeronautical activities:
1 °. a forecast of the volume of airport air traffic, the transport of air passengers and the transport of freight in the coming financial year, and the current financial year and the planned investments for the next financial year financial year, in relation to the current financial year,
2 °. a forecast of the change in the use of the tangible assets referred to in Article 8 (6) , corresponding to the forecast referred to in 1 (1) and planned investments in relation to the current financial year,
3 °. a forecast of the change in total yield, with a specification of yields from different rates, as well as the total cost, with a further specification of cost structure for the coming financial year compared to the current financial year,
4 °. a forecast of the efficiency gains to be achieved in the next financial year in relation to the current financial year,
5 °, on the basis of 8.25d, tenth paragraph, of the Act difference to be converted,
6 °. a forecast of return for the coming financial year, compared with the current financial year, calculated taking into account the Article 13 Referred to Annex to this Decision,
7 °. A forecast of the change in the possible public financing of the aviation activities to which the tariffs relate for the coming financial year compared to the current financial year,
e. includes the amount of any contribution by the airport operator from activities other than aviation activities, referred to in 8.25d, eighth paragraph, of the Act , which the operator of the airport will take into account in fixing the rates for the next period, compared to the current financial year,
f. includes a forecast of expected quality development for the coming financial year, on the basis of the Article 7 established indicators, in relation to the current financial year.
5 In respect of a proposal referred to in paragraph 1, relating to the charges for the security of passengers and their baggage, as well as of cargo, the fourth paragraph shall apply mutatis mutandis.
6 The proposal, referred to in paragraph 1, shall also contain:
a. A traffic and transport forecast, as well as the related capacity development plan and investment programme, for the first period of five years;
b. Information on investment in aviation important infrastructure facilities as included in the long-term airport development plan.
7 Within four weeks of the date of notification of the proposal for tariffs and conditions, users may make known their views on the proposal for tariffs and conditions to the operator of the airport.
8 During the period referred to in the seventh paragraph, the applicant shall be asked to give an oral statement of views to the parties.
9 The operator shall consult the users on the long-term airport development plan and on the capacity development plan for the first five years. This consultation shall take place prior to the consultation as referred to in Article 8.25e, second paragraph .
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Prior to the communication and for the purpose of the proposal for rates and conditions, as referred to in Article 8.25e, first paragraph, of the Act , the users shall provide the operator of the airport with information about:
(a) forecasts of the volume of traffic and transport;
b. the projections of the composition and planned use of their fleet;
c. their development projects at the airport;
d. Their needs at the airport.
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1 By way of derogation from the Articles 3 and 4 The following provisions shall apply if our Minister of Justice has a special designation as referred to in Article 3 (1). Article 37ac, 2nd paragraph, of the Aviation Act provided that the operator of the airport has taken measures, in so far as these measures concern the security of passengers and their baggage, as well as cargo.
2 If, on a request from a foreign State or an alliance, or on its own initiative, our Minister of Justice determines that a temporary measure taken in connection with the special designation is to be converted into a structural measure, it shall notify the operator of the airport, the users of the airport and at the same time to our Minister of Transport and Water State.
3 The costs arising from a structural measure shall be borne by the operator of the airport as from the date of entry into force of the tariffs and conditions in accordance with the fourth paragraph.
4 If our Minister of Justice gives application to the second member, the airport operator modifies the tariff for the security of passengers and their luggage, as well as cargo for the purpose of the structural measure costs, taking into account the following:
a. the corresponding change in the fee for the security of passengers and their baggage, as well as of cargo may enter into force only with effect from 1 April or 1 November;
b. Our Minister of Justice makes a announcement of the need to convert a temporary measure into a structural measure at least 21 weeks prior to 1 April and 1 November respectively, which is 7 November and 7 June respectively;
c. Within three weeks of the notice referred to in subparagraph (b), the operator of the airport shall make the corresponding increase in the fee for the security of passengers and their baggage, as well as of cargo known to the users;
d. Within a period of two weeks after the operator of the airport has issued the notice referred to in subparagraph (c), the operator shall consult the users;
e. For the purposes of the consultation provided for in subparagraph (d), the operator of the airport provides the users with adequate information about the expected development in the volume of passenger and freight traffic, an estimate of the additional the costs arising from the structural measure, an estimate of the revenue and the revenue required for the next financial year;
f. Within a period of two weeks after the consultation, referred to in subparagraph (d), the operator of the airport shall determine the change in the tariff for the protection of passengers and their baggage, as well as of cargo;
g. the change in the fee for the security of passengers and their baggage, as well as of cargo is not earlier than three months after the notice, intended Article 8.25d, first paragraph, of the Act .
5 Our Minister of Justice may provide for a structural measure to be withdrawn as from a date to be determined by him. Our Minister of Justice makes a communication to the airport operator and simultaneously to the users and our Minister of Transport and Water.
6 The operator of the airport shall terminate the implementation of the relevant structural measure with effect from the date referred to in paragraph 5, with the result that the costs involved are also due to lapse.
7 If our Minister of Justice gives application to the fifth member, the operator of Schiphol airport shall re-establish the tariff for the protection of passengers and their baggage, as well as of cargo. The fourth paragraph shall apply mutatis mutandis.
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1 An application as referred to in Article 8.25f, first paragraph, of the Act :
a. is written and signed;
b. includes at least the user's day drawing, the name, address, telephone number and fax number of the user; if the user is represented by an authorised representative, the application shall also contain the information of that authorised representative;
c. can be done in Dutch or English languages,
d. contains the grounds for the user ' s judgment that the tariffs and conditions are contrary to rules laid down or under the law;
e. specifies the specific rates and conditions laid down by the airport operator to indicate which of the specific rates and conditions laid down by the airport operator; and
f. includes, where applicable, the indication of other bodies to which it has been requested to express its opinion on the rates and conditions.
2 The fixing of the rates and conditions referred to in Article 8.25f, third paragraph, of the Act , shall take place within three weeks of the decision of the Consumer and Market Authority.
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Indicators for the quality level of services provided by the airport operator with regard to the use of the airport, intended Article 8.25e, fourth paragraph, part c, of the Act , at least:
a. The annual capacity and peak capacity of the available job system, measured in the number of aircraft movements;
b. The number of adjustment seats for passenger and cargo aeroplanes and the number of buffer sites;
c. the total area of the terminals for the purpose of aeronautical activities and the number of seats in the terminals, broken down into square metres for departure hall, arrival hall, and accommodation and lodging facilities;
d. the piers, measured in numbers of piers and gates, broken down by categories and size,
e. the annual capacity and peak baggage capacity of the baggage system, measured in packages and the number of reclaimers,
f. The number of buses on the air side,
g. the number of check-in facilities and by type (counters, self service or otherwise),
h. The number of crossing points relating to the security of passengers and baggage, as well as cargo, the deployment of the number of security officers deployed by the airport operator, and the capacity per year and the Peak energy levels in passenger numbers,
i. the number of pre-driving and the capacity per year and the peak capacity,
j. the availability of the services mentioned in parts a to i during the financial year of the operator of the airport, where possible expressed in percentage terms, and related to the development of the volume of Airport air traffic, passenger transport and freight transport.
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1 The costs of the aviation activities are allocated as follows:
a. All the costs of the aviation activities, with the exception of the cost of interest-bearing debt, shall be allocated to those activities;
b. the costs of inputs used solely for the aviation activities are allocated entirely to those activities,
c. the costs of inputs that are not used at all for the aviation activities are not allocated to those activities;
d. the cost of inputs which are partly used for air operations and partly for other activities shall be allocated in accordance with the actual use of those means of production for the purposes of the aviation activities.
2 The imputation system shall define the principles on which to determine the extent to which the means of production are used for the aviation activities.
3 The tangible fixed assets that are in use for the aviation activities shall be divided into assets used exclusively for those activities and assets which are used in part for those activities and in accordance with those to be allocated. Tangible fixed assets are only used for aviation activities after the time of entry into service for that purpose.
4 Goodwill is not understood under tangible fixed assets as referred to in the third paragraph.
5 The physical fixed assets, which are in use partly for the aeronautical activities, shall be allocated on the basis of the distribution keys adapted to such activities and included in the imputation system.
6 Of the material fixed assets allocated to the aeronautical activities under the third paragraph, the value is determined on the basis of historical cost and using the depreciation method indicated by the operator, according to the following: Acceptable business economics principles.
7 By way of derogation from paragraph 6, the tangible fixed assets shared by the third member to the aeronautical business, with a value of more than € 100,000,000,-of which the manufacturing period lasts more than one year, and at the same time the value of the assets At the time of the investment decision, initial overcapacity is expected to occur after putting into service, the value determined on the basis of historical cost, with the usual economic life being written off on the basis of the unuidation method.
The amount of depreciation and capital charges shall be applied for four years after the date of entry into force of the Regulation. Articles 8.25d to 8.25h of the Act and, by the same means, the operator of the airport has once again been established after five years.
8 Of the tangible fixed assets classified under the third paragraph to the aeronautical activities, which for the entry into force of the Articles 8.25d to 8.25j of the Act have been put into service, the seventh member shall apply mutatis mutandis to the assets relating to the fifth job. In doing so, depreciation is determined on the basis of the book value at 1 January of the financial year for which the rates and conditions are set at the applicable capital cost base (WACC), the expected initial overcapacity and the inflation. The period of economic life envisaged at the time of the investment decision shall be a given.
9 The value of the tangible fixed assets of the aviation activities referred to in the third paragraph shall be designated as Regulatory Asset Base.
10 The allocation keys, referred to in paragraph 5, and the distribution keys of other means of production shall be used for the allocation of costs to the aeronautical operations, where:
a. that the costs are allocated directly or when this is not possible, as far as possible, directly with the distribution keys based on the relevant activities, taking into account the principles of proportionality and market conformity; and
(b) that the costs which cannot be attributed to a particular activity under subparagraph (a) are allocated proportionately on the basis of the proportion of the costs of the aviation activities in total costs.
11 As revenues from aviation activities are allocated the revenues from aviation activities and the revenues from the in Article 8.25d, sixth paragraph, of the Act activities directly related to the aviation activities.
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On the cost of carrying out the security of passengers and their baggage, as well as of cargo as intended Article 2, first paragraph, part d , is Article 8 applicable mutatis mutandis.
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1 In drawing up financial accounts, Article 8.25g, third paragraph, of the Act , it shall be Article 8.25g, first paragraph of the law Imputed imputation system applied.
2 The Explanatory Notes Article 8.25g, third paragraph, of the Act , it shall contain:
a. an overview of the categories of tangible fixed assets, with an indication of the allocation keys in accordance with Article 8 have been applied, and of the extent to which they have been used for aviation activities;
b. A specified summary of the costs and revenues related to the aviation activities, with an indication of the distribution keys in accordance with Article 8 have been applied,
c. a specification of the difference between the estimated and actual revenues from the tariffs, or the costs relating to the financial year preceding the fixing of charges for the purposes of forecasting and the realisation of the volume of airport air traffic, the carriage of passengers and the carriage of cargo and the execution of the transport of passengers, Investments,
d. a specification of the contribution, intended in Article 8.25d, seventh paragraph, of the Act , taken into account in the last financial year at the time of fixing the rates,
e. a specification of the investments carried out in the last financial year; and
f. A specification of the efficiency gains achieved over the past financial year.
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On the implementation of the security of passengers and their baggage, as well as of cargo, as intended Article 2, first paragraph, part d , is Article 10 applicable mutatis mutandis.
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The Consumer and Market Authority gives effect on the entry into force of the Articles 8.25d to 8.25j of the Act approval of the imputation system for a maximum period of four years and thereafter for a maximum period of five years.
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In determining the fares for aviation activities according to Article 8.25d, second to eighth paragraphs , it is used as a measure that the projected return on the Regulatory Asset Base is intended Article 8, ninth paragraph , and calculated taking into account the formula that is included in the Annex to this Decision, no more than the weighted average capital costs calculated in accordance with the formula set out in the Annex to this Decision.
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Charges for the implementation of the security of passengers and their baggage, as well as of cargo, shall be fixed at the latest. Article 12 applicable mutatis mutandis.
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1 In adopting and prior notification of a proposal for tariffs and conditions for a common transparent system of tariffs, as intended Article 8.25da, second and third paragraphs, of the Act , for the airport, this decision is as a whole and for any other civilian airport that exceeds the threshold of five million passenger movements, as referred to in Article 8.25da, fifth paragraph, and for the participating other civil airports, which apply a common, transparent system of tariffs, the Article 2, first paragraph , 3 , 4, first, second, third, fourth member, part a, seventh and eighth member , and 6 applicable mutatis mutandis.
2 The underpinnings of the proposed tariffs referred to in Article 4 (a) (a) , shall also include at least the following elements:
1. a list of the various services and infrastructure made available in exchange for the airport charges;
2 °, the methodology used for determining airport charges;
3 °. the general cost structure of the facilities and services covered by the airport charges;
4. revenue from the different airport charges and the total cost of the services covered by the airport charges;
5 °. any public financing of the facilities and services to which the airport charges relate;
6 °, forecasts of airport situation with regard to airport charges, developments in traffic and transport and planned investments;
7 °. the actual use of the airport infrastructure and equipment during a given period; and
8 °. the predicted results of any significant planned investments in terms of their impact on the airport's capacity.
3 Users provide the operator of an other civilian airport that exceeds the threshold of five million passenger movements and from the participating other civil airports, which have a common, transparent system of tariffs in particular, prior to each consultation, information on, in particular:
(a) forecasts of the volume of traffic and transport;
b. the projections of the composition and planned use of their fleet;
c. their development projects at the airport concerned; and
d. their needs at the airport concerned.
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1 The capacity development of facilities available to the operator for the execution of Article 8.29a of the Act report, subject:
a. the jobs system, measured in number of traffic movements per year;
b. The aircraft adjustment positions, measured in number of places,
c. The terminals, measured in square metres of space available for aeronautical activities, broken down into square metres for departure hall, arrival hall, and accommodation and lodging spaces,
d. piers, measured in numbers of piers and gates, broken down by size and border status categories,
e. the baggage system, measured in number of packages per year,
f. The pre-driving routes, measured in numbers of vehicles per year.
2 Per provision as referred to in paragraph 1 shall be reported in the report on:
(a) existing capacity at 31 December of the last financial year;
(b) the derogation in relation to the changes in the capacity of a facility provided for in the preceding report;
c. the changes in capacity foreseen in the next five years, the moment of change and the magnitude of the change in capacity,
d. the forecast of traffic and transport resulting from a change in the capacity of the product;
e. the investments made during the last five years,
f. the anticipated investment in the next five years,
g. the users ' views on the capacity of a facility and the forecast traffic and transport forecasts for the reporting period.
3 The operator of the airport reports in the report on the users ' responses to the information referred to in the first and second paragraph.
4 The report is attached to the financial responsibility referred to in Article 8.25g, third paragraph, of the Act and shall be provided by the operator to the users who so request.
5 The first report is attached to the first financial accountability established by the application of Article 8.25g of the Act . The report is then continuously released three years after an earlier report, unless Our Minister of Transport and Water State applies. Article 8.29a, first sentence, of the Act communicate to the operator, in writing and before 1 November of the current financial year, a report for the future financial accountability of the operator.
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If: royal message of 31 October 2001 submitted proposal of the law amending the aviation law on the operation of Schiphol airport (Chamber Pieces II, 2001-2002, 28 074, No. 1-2), after it is elevated to law, enters into force, this decision shall enter into force at the same time.
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This decision is referred to as: Airport Schiphol Airport.
Charges and orders that this Decision will be placed in the Official Journal by means of the note of explanatory note accompanying it.
' s-Gravenhage, 7 July 2006
Beatrix
The Secretary of State for Transport and Water,
M. H. Schultz van Haegen-Maas Geesteranus
Issued the eighteenth of July 2006The Minister of Justice,
J. P. H. Donner
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The forecast rate of return (as%) for the next financial year should never be higher than the WACC (excluding years of netting).
Section A of the Annex indicates how the rate of return for the total of the NVLS ' s aviation activities is determined.
Part B deals with the individual yield of security activities.
Section C of this Annex specifies how the WACC is to be determined.
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The yield at the Regulatory Asset Base ("RAB") after tax in financial year t is calculated by dividing the result to be charged to the aeronautical operations in financial year t on the value of the Regulatory Asset Base for that year. In order to make this calculation, the following steps are described.
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Total revenue (AR) = total income rates (a) + other aviation business proceeds (b) + non-aviation activities (c)
(a) total yield rates include income from tariffs for countries, takeoff, parking, handling of passengers, baggage and cargo, as well as security (rate per unit of use × number of use units);
(b) Other aeronautical revenues include all proceeds from operations of the airport operator directly related to aviation activities, as indicated in Article 2 (2) ;
(c) contribution from commercial non-aeronautical activities.
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Total cost of air operations (AC) = cost (1) + large investment costs (2)
excluding capital and corporation tax
where,
1. cost = operating costs (d) and depreciation (e)
(d) operational costs include, inter alia, personnel costs, equipment and outsourced services, maintenance and cleaning services, inter-company supplies and other costs;
(e) depreciation of tangible fixed assets, net of depreciation, large investments;
The costs shall be determined and allocated to the aviation activities on the basis of acceptable business economics principles. Depreciation shall be based on historical costs.
2. large investment costs (f) = the total amount of depreciation for large investments (g)
(f) large investments (capacity-increasing) investments of more than € 100,000,000,-which are expected to occur after putting into service initial overcapacity, as forecast at the time of the investment decision, and the fifth job at the time of the entry into force of the Articles 8.25d to 8.25j of the Act has already been put into service.
(g) depreciation for large investments is calculated according to the method of unuteeation. This means that depreciation is determined each year in such a way that depreciation plus capital costs in each year of service life amounts to a constant amount of c per unit of use, taking into account the initial excess capacity, as foreseen at the time of the investment decision. In the case of the fifth job, depreciation according to the unuidation method will be determined on the basis of the book value at 1 January of the financial year for which the rates and conditions are determined, at the applicable rate of investment costs (WACC), Initial overcapacity and inflation expectations. The economic lifetime foreseen at the time of the investment decision shall be a given.
This amount shall be determined by means of the following formulae:
Starting point is real constant costs (depreciation and capital charges) per unit (c)
or w = c × CAP
The amount of the above is calculated as follows:
where:
c = real constant costs (depreciation and capital charges) per unit;
CAP = number of transport units and units at maximum capacity, respectively;
I0 = the present value of the major investment at the time of the investment decision including construction interest during the manufacturing period;
w = real constant amount of depreciation costs and capital costs per year at full capacity utilisation;
1-x = forecast utilisation (as%) of capacity in year t, where initial overcapacity is x = a, b, etc.
D = discount rate: nominal WACC (after tax) at the time of the investment decision;
t = economic lifetime from the time of entry into service (years 1 to n), as provided at the time of the investment decision;
T = the current rate of corporation tax (as a%) at the time of the investment decision;
p = projected annual inflation rate based on the consumer price index estimated by the CPB (source: CPB, Macro-Economic Verials).
The above calculation of w is carried out at the time of the investment decision, or for existing, large assets with initial excess capacity, i.e. the fifth job, the moment of entry into force of the Act, and is reimplemented at the time of the investment decision. time of first evaluation of the law after four years (and then after five years). The (remaining) economic life span is derived as provided at the time of the investment decision.
After the determination of w (real constant amount of depreciation and capital costs per year at full capacity utilisation), the annual depreciation (in nominal terms) can be calculated using the formula below.
where:
AF = depreciation of large investments in nominal terms; AF is the amount to be filled in in the formula for costs imputable to aviation under 2 (g);
BW = carrying amount of large investment in nominal terms in RAB (from the moment the investment is put into service).
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After going through the above steps, the return (r in%) can be found at the Regulatory Asset Base ("RAB") in year t shall be calculated by the result to be attributable to the aviation activities (R) to be parts of the value of the Regulatory Asset Base for the financial year:
where R is given by:
R = EBIT × (1-T) = (AR-AC) × (1-T)
where:
Earnings Before Interest and Taxes (EBIT) = result before interest and taxes in year t;
Aviation Revenues (AR) = total revenues from aviation activities;
Aviation Costs (AC) = total cost of aviation activities (excluding power costs);
Regulatory Asset Base (RAB) = the average carrying amount of tangible fixed assets attributable to the aviation business, according to acceptable business economics principles and on the basis of historical cost. In determining this book value, the average value of RAB shall be taken from 1 January in year t and from the forecast (forecast) or realised (for accountability) of the RAB as at 31 December in year t. Tangible fixed assets are activated first at the time they are put into service, plus construction interest.
RABTotal = RABasset + RABlarge investments '
where:
RABassets = the average book value (as of 1 January and 31 December respectively) of tangible fixed assets attributable to the aviation activities (excluding carrying amount of large investments);
RABlarge investments = the average book value (from 1 January and 31 December respectively) of the large investments attributable to the aviation activities;
Construction rate = cost base of interest-bearing debts calculated annually on average capital invested (as of 1 January and 31 December respectively) in tangible fixed assets not yet in use. It is the risk-free return (as a%), equal to the yield to maturity on a Dutch government bond with a residual maturity equal to the average berth of the relevant tangible fixed assets. It shall be increased by a credit store of 65 bp.
Compliant Article 13 shall be used as a measure of the maximum allowable return the WACC shall use. In doing so, the settlement of revenues and costs from previous years should not be included in the determination of return.
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The calculation of the return on security activities shall be done in an analogous way as the calculation of return on the total activities described in Part A, except that:
-Tariff revenues only on the basis of security service charge;
-No other aviation products in the security operations;
-any contribution to non-aeronautical activities in proportion to the cost of the security activities in the total of the aviation activities;
-Only cost of security activities (including the cost of crime prevention and public order);
-Only about the RAB of the security activities.
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Weighted average cost of capital (Weighted Average Cost of Capital), also referred to as WACC, is based on the so-called Capital Asset Pricing Model and, taking into account taxes, is given by:
WACC = g × Kd × (1-T) + (1-g) × (Rf + (EMRP × Equity Beta))
The parameters in the formula are as follows:
WACC = Weighted Average Cost of Capital, the weighted average power cost (as%);
g = flatrate value of interest-bearing debts attributable to the financing of Regulatory Asset Base divided by the value of the Regulatory Asset Base; g is 0,4;
Rf = risk-free return (as%), equal to the yield to maturity on a Dutch government bond with residual maturity of 10 years, at the time the rates are fixed;
Kd = cost base of interest-bearing debt (as%); Kd-Rf credit store is set at 65bp;
T = the current statutory rate of corporation tax (as a%), at the time the rates are fixed. If, at the time of fixing the rates, it is established that, as of 1 January of the financial year for which tariff rates are fixed, an amended statutory rate for corporation tax is applicable, the latter rate shall be applied;
EMRP = Equity market risk premium, equity risk premium (as%); this is the risk-free return that wealth providers demand for the so-called market portfolio of shares worldwide, set at 4.0%;
Equity Beta = the measure of market risk (systematic risk) of own funds attributable to the financing of the Regulatory Asset Base. It is therefore the so-called 'levered Equity Beta' which is a measure of the sensitivity of the value of own funds for a change in the value of the market portfolio of shares, taking into account the asset structure (g). The equity beta to be used in the WACC formula shall be determined at the time of fixing the rates and shall be determined using the following formula, after the Asset Beta, Debt Beta and G are determined.
The formula for Equity Beta is:
Asset Beta + (Asset Beta-Debt Beta) × g/(1-g) × (1-T),
where:
Debt beta = the measure of market risk (systematic risk) of interest-bearing debts attributable to the financing of the regulatory asset base. The credit spread (Kd-Rf) consists partly of a compensation for the systematic risk; another part concerns a liquidity premium and a storage for bankruptcy-related losses. The formula for Debt Beta is: 0,5 × (Kd-Rf)/EMRP;
and
Asset Beta = the measure of market risk (systematic risk) linked to the activities for which the operator's Regulatory Asset Base is at the service of. Asset Beta is determined as follows:
1. As large as possible (and at any time at least four) as many representative listed listed airports as far as possible within the EU, from a point of view of comparability with the airport operations of the operator at Schiphol, it will be selected. Clearly not comparable airports are not part of this group. At any time, at the airport Schiphol airport, it is part of the selected airports;
2. From each of the selected airports, the Equity Beta is retraced from the price returns of these airports measured over a period of five recent years. These are calculated on the basis of the average of two common data sources. If data are available for a shorter period of time, this may be permitted provided that the data allows a reliable estimate of the Equity Beta.
3. For each of these airports, the Asset Beta is determined by applying the above-mentioned Equity Beta formula (and Debt Beta formula). In addition, for each of these calculations, the actual capital ratios of the relevant airport (g), where the carrying amount of interest-bearing debts of the company is shared on the total of the carrying amount of the company's interest rate interest-bearing debts plus market value of own funds. Furthermore, it is based on the applicable statutory tax rate of the country of establishment of the relevant airport (T) and the estimated cost base and the risk of foreign assets of the airport (Kd, Debt Beta).
The unweighted average of the Asset Beta's of the different airports is calculated. This result is the result of the Asset Beta which is used in the WACC formula to calculate the operator's weighted average power costs at Schiphol airport.
