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ENAV Group Consolidated Financial Statements
than the costs incurred, an increase in revenues would be recognised together with
a “re-charge” receivable for a positive balance (under recovery). In accordance with
the cost recovery principle, the “balance amount” was the result of the correcting
mechanism used to adjust revenues to the actual amount of the costs incurred
and subject charge billing. The effects of this mechanism were included for charge
purposes starting from the second year following that of the reference year and
accounted for in profit or loss with a sign opposite to that of their recognition.
As from 1 January 2015, this cost recovery mechanism is applied only to the third
category terminal charge.
Starting in 2012, and as the result of the introduction of the en-route air navigation
services system, a new management system was introduced in accordance with EU
Single European Sky legislation that is based on measuring and optimizing operating
and economic performance, with the resulting decision to abandon the full cost
recovery system. The means for implementing the service scheme is the National
Performance Plan approved for the three-year period 2015–2019 which sets out
the actions and targets to be achieved during the reference period. The efficiency
targets provide for the introduction of risk elements to be borne by the provider, thus
ENAV, relating to both traffic and costs. More specifically, the traffic risk mechanism
envisages the sharing of the traffic risk between providers and users of the air space,
for which variations, positive and negative, of up to 2% of actual traffic compared
to plan are fully borne by the providers, while variations between 2% and 10% are
shared, with 70% of these being borne by the airline companies and 30% by the
providers. The cost recovery methodology applies to variations above 10%. Any
positive or negative shifts referring to the traffic risk, results in revenues for the route
being adjusted according to the rules detailed above, using the caption Balance for
the year.
As far as the cost risk is concerned, the possibility of passing on to air space users the
full amount of any differences between the budgeted amounts and the actual costs
incurred at the end of the year has been eliminated. These variations, either negative
or positive, are still borne by the providers in their financial statements.
From 2015, these EU regulations also apply to terminal services, which fall under
the performance plan based on different methods, according to the charge category.
Terminal charges are broken down over three categories:
• category 1 refers to airports with over 225,000 movements annually, subject to
cost risk and traffic risk such as en-route services;
• category 2 refers to airports with between 225,000 and 70,000 movements
annually, where there is only a cost risk;
• category 3 refers to airports with less than 70,000 movements annually excluded
from the EU Performance Plan, and where the cost recovery mechanism is
applicable.
Any positive or negative shifts results in an adjustment to terminal revenue according
to the rules detailed above, using the caption Balance for the year.
The Balance for the year is not included in the charge charge until two years later,
while in the current year the balance asset or liability recognized customarily in the
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