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NMa approves Schiphol's cost allocation system

The Netherlands Competition Authority (NMa) has definitively approved the system for allocating costs and revenues proposed by NV Luchthaven Schiphol; the approval is valid for the next four years.

On the basis of this allocation system, Schiphol can determine which revenues it may generate from the tariffs it charges for its aviation activities, such as landing fees and the tariffs for passenger and baggage handling. These are the tariffs which the airport charges airline companies.

In July 2006, the new system for regulating Schiphol's tariffs and conditions, set out in the Aviation Act [Wet Luchtvaart], came into force. The tariffs which Schiphol sets for its aviation activities must be based on an allocation system approved by NMa. For this purpose, the NMa subjected the allocation system developed by Schiphol for the allocation of the costs and revenues of its aviation activities to a legal examination. The central question in this assessment is whether Schiphol allocates costs and revenues according to correct business-economic principles. Before taking its final decision, the NMa consulted the sector, including the airline companies which use Schiphol. Partly on the basis of this consultation and the NMa's research, Schiphol made a number of amendments to the allocation system. In the NMa's opinion, the system, including the amendments, now meets the statutory requirements.

The allocation system relates to the allocation of costs amounting to more than € 600 million. The level of aviation tariffs themselves is not determined in the allocation system.

The NMa decision is available on the NMa's website.