genda Item 2 ICO s Policies on irport and ir avigation ervices Charges How It tarted Chicago Convention (Doc 7300) rticle 44 Objectives of ICO rticle 15 irport and similar charges pplication of uniform conditions on discrimination o charge solely for the right to overfly, enter or exit eed for Policies? Guidance to tates ncourage tates to establish financially independent entities fficiency and cost-effectiveness on-discrimination, cost-relatedness, transparency and consultations with users 1
History tudy of international airport charges (154) irport Charges Conference (156) tatements on airport charges and route facility charges (157, 158) 167, 173, 181, 11, 00, 08 Conf 00 and ICO s policies on charges Doc 082 (8 th dition) tructure: Foreword General Policies on irport Charges Policies on Charges for ir avigation ervices ppendices upplement Foreword Definition of charge and tax Charge to recover the costs of providing facilities and services for aviation Doc 082 Tax to raise national or local government revenue, usually not for aviation Doc 8632 2
General Financial situation [ 8] cope and proliferation of charges [ -10] Organizational and managerial issues [ 11-17] conomic oversight [ 18-21] conomic performance and minimum reporting requirements [ 22] Consultation with users [ 23-26] Other factors affecting the economic situation [ 27-28] Financial situation [ 8] Fluctuation with performance of economies cope/proliferation of charges [ -10] Permit imposition of charges only for services and functions provided for civil aviation operations Refrain from charges that discriminate against international civil aviation Organizational/managerial issues [ 11-14] utonomy and privatization stablishment of autonomous entities where economically viable and best for providers and users tate s ultimate responsibility for safety, security and economic oversight Observance of Chicago Convention, nnexes and policies on charges 3
International cooperation [ 15] doption of a regional approach Facilitation of the implementation of the ICO Global TM Operational Concept Best practices [ 16] pplication of best practices of good corporate governance by providers Charges collection [ 17] Use of joint charges collection agencies conomic oversight [ 18-21] eparation of regulatory and operational functions tate s responsibility and objectives election of an appropriate form doption of a regional approach conomic performance [ 22] Development of appropriate performance management systems election of KPs, objectives and indicators, and minimum reporting requirements Consultation with users [ 23-26] stablishment of a clearly defined, regular consultation process Other factors [ 27-28] Balance of interest between providers and users Increased cooperation to share economic difficulties 4
Policies on Charges irport Charges Cost basis for charges [ 2-30] irport charging systems [ 31] Pre-funding of projects [ 32] Currency issues [ 33] Landing charges [ 34] Parking and hangar charges [ 35] Passenger service charges [ 36] Policies on Charges (cont.) irport Charges (cont.) ecurity charges [ 37] oise-related charges [ 38] missions-related aircraft charges (local air quality problems) [ 3] Development of revenues from concessions, rental of premises and free zones [ 40] Fuel concession fees [ 41] Policies on Charges (cont.) ir avigation ervices Charges Cost basis for charges [ 42-45] llocation of costs among [ 46] aeronautical users Charging systems [ 47] Pre-funding of projects [ 48] Currency issues [ 4] 5
Policies on Charges (cont.) ir avigation ervices Charges (cont.) pproach and aerodrome control charges [ 50] Route air navigation services charges [ 51-52] Charges for air navigation services used by aircraft when not over the provider tate [ 53] ppendices 1. Guide to the facilities and services to be taken into account in determining airport costs 2. Guide to the facilities and services to be taken into account in determining the total costs of air navigation services 3. Glossary of terms upplement Follow-up of Conf 00 Information on tates implementation practices nalysis of tates responses to a questionnaire on their policies on charges 6
Recommendation by C Incorporation of main principles into national legislation and air services agreements: non-discrimination, costrelatedness, transparency and user consultation Other Policy Material ssembly Resolutions: Consolidated tatements of Continuing ICO Policies (36-15 ppendix F, ir Transport & 36-22 ppendix L, nvironmental Protection ) Council Resolution on nvironmental Charges and Taxes (16) Provisional policy on allocation of incremental costs of more advanced G services (07) xercises Key principles Chicago Convention ICO s policies on charges dherence to ICO s policies 7
XRCI O GD ITM 2 IDIVIDUL Q1. The Chicago Convention does not provide much detail on user charges, except for three basic principles that are included in rticle 15. hich of the four following principles is not embodied in rticle 15? (a) (b) (c) (d) Uniform conditions shall apply to aircraft of all other Contracting tates. o difference in charges based on the carrier nationality. o charge for the sole right of transit over, entry into or exit from a territory. Charges shall be cost-based. Q2. hich are the most important principles of ICO s policy on charges (indicate at least four principles)? Q3. The foreign international airlines operating into tate X have complained about the method of levying landing charges on international flights, claiming that tate X does not follow ICO s principles by giving charges discounts to its national airline. In response, tate X claims it is free to do so as a sovereign tate. tate your opinion on this issue. OP/GROUP Q4. How can we improve the adherence to ICO s policies on charges by airports and Ps?