The present study is concerned with a highly topical issue in air transportation, namely the regulation of charges for airport services provided by sole airport operators. In 2005 the Italian parliament passed Law 248/05 concerning the reform of airport services regulation. This law envisages that maximum increases in airport charges shall be regulated by a mixed single till price cap mechanism. With this scheme, known as shared till, a quota of no less than half of the additional profit margin shall contribute to reducing aviation operations costs to be remunerated through airport charges. The regulatory framework envisaged by Law 248/05 was definitively approved in June 2007. In this paper the regulations applied in Italy will be described in detail, analysing in particular the implementation guidelines issued by the regulator ENAC. Based on these guidelines calculation algorithms will be derived and constructed for implementing an application able to provide the operator with the prices of the regulated services, according to the mechanisms envisaged by law.. The creation of a model of this type is all the more necessary because prices are reviewed every four years (length of the regulatory period).
“Airport charges regulation: a model for tariff calculation”
DEVOTO, ROBERTO;Rassu N.
2012-01-01
Abstract
The present study is concerned with a highly topical issue in air transportation, namely the regulation of charges for airport services provided by sole airport operators. In 2005 the Italian parliament passed Law 248/05 concerning the reform of airport services regulation. This law envisages that maximum increases in airport charges shall be regulated by a mixed single till price cap mechanism. With this scheme, known as shared till, a quota of no less than half of the additional profit margin shall contribute to reducing aviation operations costs to be remunerated through airport charges. The regulatory framework envisaged by Law 248/05 was definitively approved in June 2007. In this paper the regulations applied in Italy will be described in detail, analysing in particular the implementation guidelines issued by the regulator ENAC. Based on these guidelines calculation algorithms will be derived and constructed for implementing an application able to provide the operator with the prices of the regulated services, according to the mechanisms envisaged by law.. The creation of a model of this type is all the more necessary because prices are reviewed every four years (length of the regulatory period).
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