Airport Regulation

We have provided regulatory advice to both Airports and Government. We are trusted for our knowledge of regulatory regimes in markets around the world and in particular the United Kingdom and European markets. We have in-house models replicating the various regimes including single, hybrid and dual tills, with all the appropriate treatment of inputs. We also have models for the development and recommendation of market specific weighted average costs of capital (WACC).

We leverage our knowledge and models to develop aeronautical revenue forecasts for airports, as part of transactions, negotiation between airports and end users and in developing and advising on the appropriate regulatory regime for Governments.

  • Aeronautical revenue forecasting
  • Single, Hybrid, Dual Till development
  • WACC development
  • Negotiation with Regulators
  • Negotiation with Airlines
  • Advice to Government
  • Regulatory Framework development
  • Regulatory framework impact assessment
  • Airport tariff setting
  • Benchmarking

Related Case Studies

Client: Confidential

Assignment: Due diligence of the regulatory system in Bulgaria and implications to aeronautical revenue forecasting.

The due diligence program included a thorough investigation of the regulatory policies in place including a review of the European Union Directive, the Civil Aviation Act of Bulgaria, the Ordinance on Airport Pricing, the ICAO Airport Economics Manual, and other relevant airport specific documentation and Regulator determinations.

The due diligence included the development of a dual-till regulatory model including the development and recommendation of an appropriate Weighted Average Cost of Capital (WACC). As a consequence of the dual till forecast yield profile result we also recommended a holistic strategy for airport pricing including the approach to take with the regulator and with airlines users.

Zurich International Airport / CPPIB Consortium

Assignment: Due diligence of the regulatory system in France and implications to aeronautical revenue forecasting.

The due diligence program included a thorough investigation of the regulatory policies in place including the development of a hybrid-till regulatory model and the implications on the yield forecast because of improved operational efficiency, the forecast capital program and the nature of a depreciating fixed term concession period.

Client: Confidential

Assignment: Due diligence of the regulatory system in Belgium and implications to aeronautical revenue forecasting.

The due diligence program included a thorough investigation of the regulatory policies in place including the development of a dual-till regulatory model and the implications on the yield forecast because of quinquennial resets, an improving operational efficiency, the planned forecast capital program and the likely return profile (WACC) position taken by the Regulator.

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Airport Regulation

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