bound set maxi cer 97 item 2

ENLARGED COMMITTEE FOR ROUTE CHARGES COMIT ELARGI POUR LES REDEVANCES DE ROUTE

97th Session / 97e session 21-22 November 2012 / 21-22 novembre 2012

AGENDA ITEM 2:

Final data for the establishment of the cost bases and unit rates

POINT 2 DE LORDRE DU JOUR:

Donnes dfinitives pour ltablissement des assiettes de cots et des taux unitaires

Final data and reporting tables by charging zone in English alphabetical order / Donnes dfinitives et tableaux de dclaration par zone tarifaire dans lordre alphabtique anglais Albania / Albanie ............................................................................................................................................ 1 Armenia / Armnie........................................................................................................................................ 17 Austria / Autriche .......................................................................................................................................... 35 Belgium - Luxembourg / Belgique - Luxembourg ......................................................................................... 49 Belgrade ....................................................................................................................................................... 67 Bosnia and Herzegovina / Bosnie-Herzgovine........................................................................................... 87 Bulgaria / Bulgarie ...................................................................................................................................... 103 Croatia / Croatie ......................................................................................................................................... 123 Cyprus / Chypre ......................................................................................................................................... 139 Czech Republic / Rpublique tchque ....................................................................................................... 155 Denmark / Danemark ................................................................................................................................. 173 Finland / Finlande....................................................................................................................................... 193 France ........................................................................................................................................................ 211 FYROM / ERYM ......................................................................................................................................... 229 Germany / Allemagne................................................................................................................................. 243 Greece / Grce........................................................................................................................................... 265 Hungary / Hongrie ...................................................................................................................................... 281 Ireland / Irlande .......................................................................................................................................... 301 Italy / Italie .................................................................................................................................................. 319 Latvia / Lettonie .......................................................................................................................................... 339 Lithuania / Lituanie ..................................................................................................................................... 355 Malta / Malte............................................................................................................................................... 375 Moldova / Moldavie .................................................................................................................................... 395 The Netherlands / Pays-Bas ...................................................................................................................... 409 Norway / Norvge....................................................................................................................................... 433 Poland / Pologne ........................................................................................................................................ 451 Portugal Lisboa / Portugal Lisbonne .......................................................................................................... 481 Portugal Santa Maria.................................................................................................................................. 499 Romania / Roumanie.................................................................................................................................. 517 Slovak Republic / Rpublique slovaque ..................................................................................................... 533 Slovenia / Slovnie..................................................................................................................................... 553 Spain Canarias / Espagne Canaries .......................................................................................................... 569 Spain Continental / Espagne continentale ................................................................................................. 585 Sweden / Sude ......................................................................................................................................... 613 Switzerland / Suisse ................................................................................................................................... 635 Turkey / Turquie ......................................................................................................................................... 653 United Kingdom / Royaume-Uni................................................................................................................. 669 Reporting tables for EUROCONTROL / Tableaux de dclaration pour EUROCONTROL .................. 693 Regional administrative unit rate / Taux unitaire administratif rgional............................................. 699

ALBANIA

Table1TotalCosts Chargingzonename Consolidationallentities Albaniaroute 2013data

Costdetails 1.Detailbynature(innominalterms) 1.1Staff 1.2Otheroperatingcosts 1.3Depreciation 1.4Costofcapital 1.5Exceptionalitems 1.6Totalcosts Total%n/n1 Staff%n/n1 Otherop.%n/n1 2.Detailbyservice(innominalterms) 2.1AirTrafficManagement 2.2Communication 2.3Navigation 2.4Surveillance 2.5Searchandrescue 2.6AeronauticalInformation 2.7Meteorologicalservices 2.8Supervisioncosts 2.9OtherStatecosts 2.10Totalcosts Total%n/n1 ATM%n/n1 CNS%n/n1

2009A

2010A

2011A

2012

2013

2014

2015

2016

2017

361 986 378 313 0 2038 15.2% 17.0% 36.1%

555 1103 361 393 0 2412 18.3% 53.7% 11.9%

699 1149 473 365 0 2686 11.4% 25.8% 4.1%

773 1066 696 385 0 2919 8.7% 10.6% 7.3%

809 939 742 360 0 2849 2.4% 4.6% 11.9%

849 989 802 379 0 3020 6.0% 5.0% 5.3%

888 1051 769 364 0 3071 1.7% 4.5% 6.3%

922 1113 735 360 0 3130 1.9% 3.8% 5.9%

962 1208 694 319 0 3183 1.7% 4.3% 8.5%

884 239 164 378 31 116 33 72 122 2038 15.2% 0.4% 38.4%

1257 219 195 375 29 106 43 67 121 2412 18.3% 42.2% 1.1%

1582 240 157 310 52 93 51 85 116 2686 11.3% 25.9% 10.4%

1706 237 167 349 33 118 73 90 146 2919 8.7% 7.8% 6.5%

1571 274 187 323 31 147 66 100 150 2849 2.4% 7.9% 4.1%

1662 266 188 403 30 149 69 102 151 3020 6.0% 5.8% 9.4%

1652 265 187 439 27 168 74 103 156 3071 1.7% 0.6% 4.0%

1734 263 182 432 27 157 73 103 159 3130 1.9% 5.0% 1.6%

1795 248 193 389 45 177 77 102 157 3183 1.7% 3.5% 5.4%

3.Complementaryinformationonthecostofcapitalandonthecostofcommonprojects(innominalterms) Averageassetbase 3.1Netbookval.fixedassets 4085 5028 6644 8692 8789 8185 7752 3.2Adjustmentstotalassets 0 0 0 0 0 0 0 5819 4174 2626 2620 2609 2599 2589 3.3Netcurrentassets 3.4Totalassetbase 9904 9202 9270 11312 11398 10784 10341 Costofcapital% 3.5Costofcapitalpretaxrate 3.2% 4.3% 3.9% 3.4% 3.2% 3.5% 3.5% 3.6Returnonequity 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 8.86% 8.6% 7.7% 7.2% 7.1% 7.0% 7.5% 3.7Averageinterestondebts Costofcommonprojects 3.8CommonProject1 4.Complementaryinformationoninflationandontotalcostsinrealterms 4.1Inflation%(1) 5.5% 5.5% 4.5% 4.5% 4.2Priceindex(2) 100.0 104.5 109.2 4.3Totalcostsrealterms(3) 2038 2412 2570 2673 Total%n/n1 18.3% 6.6% 4.0% 5.DeductionofcostsallocatedtoexemptedVFRflights(innominalterms) 5.1Totalcosts 2038 2412 2686 2919 0.0 0.0 0.0 0.0 5.2CostsforexemptedVFRflights 5.3Totalcostsafterdeduction(4) 2038 2412 2686 2919

7677 0 2578 10255 3.5% 1.0% 7.5%

7480 0 2567 10047 3.2% 1.0% 7.9%

4.5% 114.1 2496 6.6%

4.5% 119.3 2532 1.4%

4.5% 124.6 2465 2.7%

4.5% 130.2 2363 4.1%

4.5% 136.1 2364 0.0%

2849 0.0 2849

3020 0.0 3020

3071 0.0 3071

3130 0.0 3130

3183 0.0 3183

Costsandassetbaseitemsin'000000ALLServiceunitsin'000000 (1)Actualinflationforecastinflationusedforestablishingtheforecastcosts (2)Priceindexbase100in2010 (3)ActualForecastcostsinrealtermsat2010prices (4)ActualcostsafterdeductionofVFRcostsForecastcostsafterdeductionofVFRcosts

Table1TotalCosts Chargingzonename ANSPName AlbaniaRoute NATA 2013data


2009A

2010A

2011A

2012

2013

2014

2015

2016

2017

352 969 377 312 0 2010 15.5% 17.7% 36.7%

537 1080 360 392 0 2368 17.8% 52.6% 11.5%

675 1099 472 364 0 2610 10.2% 25.7% 1.8%

745 1002 695 383 0 2825 8.2% 10.4% 8.8%

778 877 740 357 0 2752 2.6% 4.4% 12.5%

817 927 800 377 0 2921 6.2% 5.0% 5.7%

854 988 767 361 0 2970 1.7% 4.5% 6.6%

888 1050 733 358 0 3029 2.0% 4.0% 6.3%

928 1145 692 317 0 3082 1.7% 4.5% 9.0%

884 239 164 378 31 116 33 44 122 2010 15.4% 0.4% 38.4%

1257 219 195 375 29 106 43 24 121 2368 17.8% 42.2% 1.1%

1582 240 157 310 52 93 51 9 116 2610 10.2% 25.9% 10.4%

1706 237 167 349 33 118 73 2 140 2825 8.3% 7.8% 6.5%

1571 274 187 323 31 147 66 9 144 2752 2.6% 7.9% 4.1%

1662 266 188 403 30 149 69 9 145 2921 6.2% 5.8% 9.4%

1652 265 187 439 27 168 74 9 149 2970 1.7% 0.6% 4.0%

1734 263 182 432 27 157 73 9 152 3029 2.0% 5.0% 1.6%

1795 248 193 389 45 177 77 9 149 3082 1.7% 3.5% 5.4%

3.Complementaryinformationonthecostofcapitalandonthecostofcommonprojects(innominalterms) Averageassetbase 3.1Netbookval.fixedassets 4021 4950 6500 8527 8623 8020 7587 3.2Adjustmentstotalassets 3.3Netcurrentassets 5819 4157 2503 2493 2483 2473 2462 3.4Totalassetbase 9840 9107 9003 11020 11106 10492 10049 Costofcapital% 3.5Costofcapitalpretaxrate 3.2% 4.3% 4.0% 3.5% 3.2% 3.6% 3.6% 3.6Returnonequity 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 8.86% 8.6% 7.7% 7.2% 7.1% 7.0% 7.5% 3.7Averageinterestondebts Costofcommonprojects 3.8CommonProject1 4.Complementaryinformationoninflationandontotalcostsinrealterms 4.1Inflation%(1) 5.5% 5.5% 4.5% 4.5% 4.2Priceindex(2) 100.0 104.5 109.2 4.3Totalcostsrealterms(3) 2010 2368 2497 2587 Total%n/n1 9.4% 17.8% 5.4% 3.6% 5.DeductionofcostsallocatedtoexemptedVFRflights(innominalterms) 5.1Totalcosts 2010 2368 2610 2825 0 0 0 0 5.2CostsforexemptedVFRflights 5.3Totalcostsafterdeduction(4) 2010 2368 2610 2825

7511 7314 2452 2441 9963 9755 3.6% 1.0% 7.5% 3.2% 1.0% 7.9%

4.5% 114.1 2411 6.8%

4.5% 119.3 2449 1.6%

4.5% 124.6 2383 2.7%

4.5% 130.2 2326 2.4%

4.5% 136.1 2265 2.6%

2752 0 2752

2921 0 2921

2970 0 2970

3029 0 3029

3082 0 3082


Table1TotalCosts Chargingzonename METprovidername Albania 2013data


2009A

2010A

2011A

2012

2013

2014

2015

2016

2017

3.Complementaryinformationonthecostofcapitalandonthecostofcommonprojects(innominalterms) Averageassetbase 3.1Netbookval.fixedassets 3.2Adjustmentstotalassets 3.3Netcurrentassets 3.4Totalassetbase Costofcapital% 3.5Costofcapitalpretaxrate 3.6Returnonequity 3.7Averageinterestondebts Costofcommonprojects 3.8CommonProject1 4.Complementaryinformationoninflationandontotalcostsinrealterms 4.1Inflation%(1) 4.2Priceindex(2) 4.3Totalcostsrealterms(3) Total%n/n1 5.DeductionofcostsallocatedtoexemptedVFRflights(innominalterms) 5.1Totalcosts 5.2CostsforexemptedVFRflights 5.3Totalcostsafterdeduction(4) Costsandassetbaseitemsin'000000ALLServiceunitsin'000000 (1)Actualinflationforecastinflationusedforestablishingtheforecastcosts (2)Priceindexbase100in2010 (3)ActualForecastcostsinrealtermsat2010prices (4)ActualcostsafterdeductionofVFRcostsForecastcostsafterdeductionofVFRcosts

Table1TotalCosts Chargingzonename CAANSA Albania 2013data


2009A

2010A

2011A

2012

2013

2014

2015

2016

2017

9 17 1 1 0 28 2.2% 5.5% 8.3%

18 23 1 1 0 44 55.2% 95.9% 40.1%

24 50 1 1 0 76 73.9% 28.8% 114.0%

28 64 1 2 0 94 23.8% 17.4% 27.1%

31 62 2 3 0 97 3.3% 10.0% 2.4%

32 62 2 2 0 99 1.4% 5.0% 0.0%

34 63 2 3 0 101 2.6% 5.0% 1.6%

34 63 2 2 0 101 0.2% 0.0% 0.0%

34 63 2 2 0 101 0.0% 0.0% 0.0%

0 0 0 0 0 0 0 28 28 2.2%

0 0 0 0 0 0 0 44 44 55.2%

0 0 0 0 0 0 0 76 76 73.9%

0 0 0 0 0 0 0 88 6 94 23.8%

0 0 0 0 0 0 0 91 6 97 3.3%

0 0 0 0 0 0 0 93 6 99 1.4%

0 0 0 0 0 0 0 94 7 101 2.6%

0 0 0 0 0 0 0 94 7 101 0.2%

0 0 0 0 0 0 0 93 8 101 0.0%

3.Complementaryinformationonthecostofcapitalandonthecostofcommonprojects(innominalterms) Averageassetbase 3.1Netbookval.fixedassets 64 79 144 165 165 165 165 3.2Adjustmentstotalassets 3.3Netcurrentassets 0 17 123 127 126 127 126 3.4Totalassetbase 64 95 268 292 292 292 292 Costofcapital% 3.5Costofcapitalpretaxrate 1.6% 1.0% 0.5% 0.5% 0.9% 0.9% 0.9% 3.6Returnonequity 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 8.86% 8.6% 7.7% 7.2% 7.1% 7.0% 7.5% 3.7Averageinterestondebts Costofcommonprojects 3.8CommonProject1 4.Complementaryinformationoninflationandontotalcostsinrealterms 4.1Inflation%(1) 5.5% 5.5% 4.5% 4.5% 4.2Priceindex(2) 100.0 104.5 109.2 4.3Totalcostsrealterms(3) 28.2 43.8 72.9 86.3 Total%n/n1 3.2% 55.2% 66.4% 18.4% 5.DeductionofcostsallocatedtoexemptedVFRflights(innominalterms) 5.1Totalcosts 28 44 76 94 0 0 0 0 5.2CostsforexemptedVFRflights 5.3Totalcostsafterdeduction(4) 28 44 76 94

165 126 292 0.8% 1.0% 7.5%

165 126 292 0.8% 1.0% 7.9%

4.5% 114.1 85.3 1.2%

4.5% 119.3 82.8 3.0%

4.5% 124.6 81.3 1.8%

4.5% 130.2 77.7 4.5%

4.5% 136.1 74.3 4.3%

97 0 97

99 0 99

101 0 101

101 0 101

101 0 101


Table2Unitratecalculation Chargingzonename Consolidationallentities Unitratecalculation Albania 2013data

2009

2010

2011

2012

2013

2014

2015

2016

2017

1.Calculationofthenationalunitrate(Finaldatauntil2012datafrom2013inALL) 1.1Totalcostspriortoded.ofVFRcosts(1) 1790 2290 2522 2926 1.2CostsofexemptedVFRflighst(1) 0 0 0 0 20 22 19 18 1.3CostsofexemptedIFRflights 1.4Amountscarriedovertoyearn 2 11 45 15 1.5Incomefromothersources 0 0 0 0 1.6Chargeablecoststotal 1772 2257 2548 2923 %n/n1 7.2% 27.4% 12.9% 14.7% 1.7Totalserviceunits 0.321 0.387 0.431 0.486 1.8Chargeableserviceunits 0.318 0.383 0.427 0.483 1.9Unitratenat.currency1.6/1.8 5582 5897 5961 6054 %n/n1 2.8% 5.6% 1.1% 1.6% 1.10Exchangerate(Septembern1) 122.54 133.25 136.58 139.84 1.11Basicnationalrateineuro 45.56 44.25 43.65 43.29 %n/n1 3.6% 2.9% 1.4% 0.8% 2.Actual/forecastserviceunits(in'000000serviceunits) 2.1Totalserviceunits 0.355 %n/n1 9.1% 2.2Chargeableserviceunits 0.352 %n/n1 9.4%

2849 0 18 66 0 2897 0.9% 0.469 0.466 6211 2.6% 138.50 44.84 3.6%

3020 0 19 0 0 3001 3.6% 0.484 0.481 6239 0.5% 138.50 45.05 0.5%

3071 0 18 0 0 3053 1.7% 0.501 0.498 6130 1.7% 138.50 44.26 1.7%

3130 0 18 0 0 3112 1.9% 0.520 0.517 6019 1.8% 138.50 43.46 1.8%

3183 0 12 0 0 3171 1.9% 0.541 0.539 5884 2.3% 138.50 42.48 2.3%

0.404 13.9% 0.401 14.1%

0.448 10.8% 0.445 10.9%

0.486 8.5% 0.483 8.4%

0.469 3.4% 0.466 3.4%

0.484 3.1% 0.481 3.1%

0.501 3.5% 0.498 3.5%

0.520 3.8% 0.517 3.8%

0.541 4.0% 0.539 4.3%

3.Over()orunder(+)recoveriestobecarriedover('000000ineuro) Chargesbilledtousers 1980 2373 2651 3.1Chargesbilledtousers Netactualcostschargeabletousers 3.2Totalcostspriorded.ofVFRcosts(2) 2038 2412 2686 3.3CostofexemptedVFRflights(2) 0 0 0 3.4CostsofexemptedIFRflights 15 14 13 3.5Amountscarriedovertoyearn 2 11 45 3.6Incomefromothersources 3.7Chargeablecoststotal 2025 2387 2717 Over()orunder(+)recovery 45 15 66 3.8Balancetobecarriedover 4.Carryoverofover()orunder(+)recoveries('000000ineuro) 4.1Balanceyear2003 4.2Balanceyear2004 38 4.3Balanceyear2005 91 4.4Balanceyear2006 11 4.5Balanceyear2007 2 2 4.6Balanceyear2008 11 11 4.7Balanceyear2009 45 4.8Balanceyear2010 15 4.9Balanceyear2011 66 4.10Balanceyear2012(3) 4.11Amountcarriedovertoyearn 2 11

2923 2919 0 18 15 2916 7

2897 2849 0 18 66 2897 0

3001 3020 0 19 0 3001 0

3053 3071 0 18 0 3053 0

3112 3130 0 18 0 3112 0

3171 3183 0 12 0 3171 0

45 15 66 45 15 66

5.Unitcost(TotalcostsafterdeductionofVFRcosts/Totalserviceunitsinnationalcurrency) 5.1Totalcosts3.2/Serviceunits2.1 5748 5973 6001 6009 6069 5.2ANSPcomponentoftheunitcost 5669 5865 5830 5815 5862 5.3METcomponentoftheunitcost 0 0 0 0 0 80 108 170 194 207 5.4NSAStatecomponentoftheunitcost %n/n1 5.6% 3.9% 0.5% 0.1% 1.0%

6239 6035 0 204 2.8%

6130 5928 0 202 1.7%

6019 5825 0 194 1.8%

5884 5697 0 187 2.3%

Costsandassetbaseitemsin'000000ALLServiceunitsin'000000 (1)TotalcostsafterdeductionofVFRcostsForecastcostsusedtocalculateunitratesforecastfromNarereportedfromTable1 (2)TotalcostsafterdeductionofVFRcostsCostdatareportedfromTable1 (3)Estimatedbalancefor2012

Additional Information Table-1 Charging zone: Albania Year: 20131. Description of the methodology used for allocating costs of facilities or services between different air navigation services based on the list of facilities and services listed in the relevant ICAO Regional Air Navigation Plan, (Doc 7754) and a description of the methodology used for allocating those costs between different en route charging zones;

Costs are allocated between en route and terminal according to activity and service. These are regularly reviewed. In certain cases where joint services are involved cost allocations are based on published ICAO Guidance. Costs have been reported according to the latest requirements of the Eurocontrol Principles for Establishing the Cost Base for En Route Charges which take into account the reporting requirements established in the Commission Regulation (EC) No 1794/2006, as amended. In line with these reporting requirements Albania has prepared separate tables for NATA its air navigation services provider and its regulator the Civil Aviation Authority (CAA); and in addition a consolidated schedule covering Albania as a whole has been prepared. The amounts for the CAA are relatively small and in the main cover regulatory supervision; as a result the comments below principally refer to the air navigation services provider NATA. It also should be noted that since MET services applicable to civil aviation are provided by NATA a separate table is not included. Instead a breakdown of the cost of providing these MET services is shown in section 6 below together with a commentary. Albania currently adopts the full cost recovery method as set out in the Eurocontrol Principles for establishing the cost base for en route charges and the calculation of the unit rates.

2. Description of the costs incurred by the Contracting States (Other State costs);

These are incurred solely by the Civil Aviation Authority (CAA) acting as the NSA; the ANSP (NATA) does not incur any. These costs refer mainly to membership of international organisations such as ICAO and ECAC; they are included as part of the CAA-NSA supervisory service and are cost allocated on the basis of 60% en route and 40% terminal.

3. Description and explanation of the method adopted for the calculation of depreciation costs: historic costs or current costs. When current cost accounting is adopted, provision of comparable historic cost data;

The straight line method is used and this is applied to the historic cost of the asset. The depreciation methods are in line with the Eurocontrol Principles and ICAO Guidance with 10 years being adopted for communications, navigation and surveillance equipment.

4. Justification for the cost of capital, including the components of the asset base, the possible adjustments to total assets and the return on equity;

Capital employed is calculated by taking net fixed assets plus current assets and deducting current liabilities. The equity capital employed has been calculated by subtracting the long term debt from the total capital employed.

Additional Information Table-1 Charging zone: Albania Year: 2013Average interest on debt used for the cost of capital is 7.1%. This is derived from the published national interest rate on government bonds and represents a small reduction on the rate originally forecast. The return on equity recognises the importance of the capital asset pricing model; but, we would question its relevance to state owned organisations whose equity is not funded by financial instruments dealt in the securities markets. We therefore believe that because of the low risk resulting from a full cost recovery system and lack of market comparators the equity return should be very low and 1% is currently estimated. The NAMP and other major projects are debt financed. The combination of debt at around 7.1% and an equity return of approximately 1% generate an overall cost of capital of 3.2%.

5. Definition of the criteria used to allocate costs between terminal and en route services;

As stated above costs are allocated between terminal and en route services according to activity and service. Joint costs are allocated in accordance with ICAO Guidance.

6. Breakdown of the meteorological costs between direct costs and MET core costs defined as the costs of supporting meteorological facilities and services that also serve meteorological requirements in general. These include general analysis and forecasting, weather radar and satellite observations, surface and upper-air observation networks, meteorological communication systems, data-processing centres and supporting core research, training and administration;

These refer solely to the cost of MET staff employed by NATA and associated MET costs incurred by NATA; no costs are included in the cost base from any outside MET Authority. Civil Aviation Met Costs are currently allocated between En Route and Tower on a 75% to 25% basis in line with ICAO Guidance. En Route Met Costs for 2013 are broken down as follows: Per 1000 LEK Staff Other operating Depreciation Interest Supervision Total 35.2 12.2 6.5 3.0 8.7 65.6

7. Description of the methodology used for allocating total MET costs and MET core costs to civil aviation and between en route charging zones;

The description of the methodology used for allocating total MET costs and MET core costs to civil aviation and between charging zones does not apply. As stated above, all MET costs are currently shared on the basis of 75% to en route and 25% to terminal (aerodrome).

Additional Information Table-1 Charging zone: Albania Year: 20138. Description and explanation of the differences between planned and actual figures for year n - 1;

2011 Year N-1 Costs remain in line with the outturn forecast made last November. Costs are partially offset by increased receipts generated from the continued strong growth in traffic; and an over recovery brought forward from 2009. The over recovery to be carried forward will be taken into account in the unit rate calculation for 2013. Depreciation and cost of capital remain in line with the November forecast. 2012 Year N For a number of years traffic has increased significantly principally as a result of improvements to the air navigation system. But the current economic environment in Europe has led to a major fall in traffic this year with some negative growth being experienced in some instances. The economic situation remains extremely uncertain. It is recognised that economic variables play an important role in the development of traffic forecasts and with the economic situation continuing to give concern we believe that traffic is likely to be lower for 2012 than forecast for the preliminary unit rate.In cost terms the current forecast is in line with the forecast made last November. The forecast for staff costs is almost unchanged. Depreciation and cost of capital are now forecast to be lower than originally predicted; but, this is offset by an increase in other operating costs due to costs associated with the implementation of the NAMP and increased utilities costs. In summary the situation remains extremely volatile and while every effort will be made to control costs the further reduction in traffic may lead to an under recovery which could put pressure on the 2014 unit rate. 2013 Year N + 1 Total chargeable costs in national currency for 2013 are 4.4% lower than forecast in November 2011 and 4.3% lower than forecast for the preliminary unit rate; it is also lower than the forecast cost base used for calculating the 2012 published unit rate; and this is after having to make an adjustment to the cost base for a prior year under recovery. This has been achieved by deferring some expenditure and also making savings. For example, reductions have been made in travel and training expenditure and staff costs. Cost of capital is also lower as a result of a reduction in the bond rates. Savings have also been made in insurance expenses and by delaying the implementation of some projects. Nevertheless the NAMP Programme continues to make good progress, investments include a new ACC building and staff offices. Staff costs take into account a number of factors. First, air traffic controller salaries have been increased to take account of the continued competition for their services. Second, the cost base also takes into account the full effect of establishing the retirement fund. Third, the staff structure is being changed in order to put a greater emphasis on technical and operational staff; it is planned to increase the number of qualified engineering staff. Fourth, staff salaries are to be increased as a result of a Government decision to take account of the effect of inflation. Finally, a number of trainee controllers have been taken on and allowance has been made for an increase in staff costs when these controllers become fully validated. The cost is now lower than originally predicted since the number has been reduced from twenty nine to twenty four. In addition depreciation cost takes into account increases in NATA assets as part of the NAMP Programme although this is now lower than previously forecast. The cost base also takes into account CAA-NSA costs. These are shown on a separate table and principally refer to the establishment of a CAA and the National Supervisory Authority (NSA); these now show some small reductions over the forecasts made last November. The main increases to Albanias cost base result from the development and implementation of the NAMP and without this Albania would not have been in a position to handle the current levels of traffic which as can be seen from the tables have increased significantly in recent years. However, as stated above Albania is currently experiencing a

Additional Information Table-1 Charging zone: Albania Year: 2013reduction in traffic growth and the current economic uncertainties make forecasting service units extremely unpredictable. The latest STATFOR forecasts now show further reduction in chargeable service units for 2013. We have therefore further reduced the forecast made last November of 507,000 chargeable service units (CSUs) and we are now forecasting 466,000 CSUs which is a reduction of 3.5% on the forecast given for the preliminary unit rate. Clearly this reduction is a critical factor but, offsetting this against the planned savings, the final unit rate will be actually lower than predicted for the preliminary unit rate. The above results in a final unit rate for 2013 of 44.84 which is 3.6% higher than the current published unit rate. It is recognised that this does represent an increase but this is mainly due to the fall in traffic currently forecast and with inflation currently at 4.5% it still represents a decrease in real terms. Unfortunately the current estimated fall in traffic and the uncertain economic situation gives us little room to manoeuvre at this stage. However, the reduction in the cost base has led to a lower unit rate than originally predicted for the preliminary unit rate.

9. Description and explanation of the five-year planned costs based on the business plan;

The main cost driver over the five year period is the planned implementation of the NAMP the cost of which is reflected in the depreciation and cost of capital and the continued improvements to the system to enable us further to develop our services for the benefit of our customers We are now assuming an average interest on debt of 7.5.% for the period 2014 to 2017 with the interest rate ranging from 7.0% in 2014 to 7.9% in 2017.The successful implementation of the NAMP is seen as crucial to the continued improvement in air navigation services. It is noted that the current economic uncertainty has led to some downturns in the traffic. However, the STATFOR Medium Term Forecast predicts further traffic growth over this five year period and it is important that allowance is made for further increases in the traffic to be handled. It should also be noted that, even with this continued improvement in services, over the five year period to 2017 both unit costs in national currency and the unit rate are forecast to reduce. This emphasises the overall cost effectiveness of the services as well as providing the level of service our customers demand. The unit rate is currently forecast to increase for 2014, and as mentioned above, because of the traffic shortfall in 2012 there is likely to be an under recovery to be taken into account. However, over the remainder of the five year period (2015-2017) we are forecasting a steady reduction in the unit rate.

Additional Information Table-2 Charging zone: Albania Year: 2013

1. Description and rationale for the establishment of the different en route charging zones;

The consolidated final unit rate for 2013 proposed is 44.84 per chargeable service unit (CSU). This represents an increase of 3.6% over the published unit rate for 2012 of 43.29.This increase reflects the negative traffic growth currently being experienced during 2012 and given the current uncertain economic situation necessitates taking a cautious approach in line with the latest STATFOR Forecasts. Even so with inflation predicted to be 4.5% it represents a reduction in real terms. This comes at a difficult time with the NAMP programme currently being implemented. But the development and implementation of the NAMP has enabled Albania to handle much greater volumes of traffic than it was previously able to do. Albania makes a distinction between services provided for terminal and en route air navigation services. There is currently only one en route charging zone. Costs are allocated on the basis of activity and services provided. In addition the allocation system uses where appropriate standard cost sharing keys such as controller positions and radio channels. This is in line with current ICAO Guidance and the Eurocontrol Principles.

2. Description and explanation on the calculation of the forecast chargeable service units;

The publication of the final unit rate last November showed a further increase in traffic. In November we forecast that chargeable service units (CSUs) would increase to 507,000 CSUs for 2013.. However, as stated above the uncertainties generated by the current economic situation has seriously affected traffic flying through Albanian airspace. Traffic has declined in 2012 and STATFOR has had to revise its base case forecast. We are now forecasting 466,000 CSUs for 2013 which represents an 8% reduction on what was predicted in November last year and a 3.5% reduction on what we were predicting for the preliminary unit rate. Our latest forecast is derived from the latest STATFOR Medium Term Forecast. As already stated the current economic situation remains extremely uncertain. Nevertheless STATFOR is forecasting some growth over the five year period 2013 to 2017; this currently averages around 3.5% per annum.

3. Description of the policy on exemptions and a description of the financing means to cover the related costs;

These mostly refer to State flights. The costs are deducted from the cost base in line with the Eurocontrol Principles and are funded by the State. The costs of handling military flights are excluded from the cost base where applicable.

4. Description of the income from other sources when they exist;

None

Additional Information Table-2 Charging zone: Albania Year: 2013

5. Description and explanation of incentives applied on air navigation service providers and, in particular, the modalities to be applied in setting regulatory conditions on the level of unit rates. Description and explanation of the objectives in terms of performance and on the modalities to take them into account in the setting of maximum unit rates;

At this stage this is not applicable. As already indicated Albania continues to use the full cost recovery method.

6. Description of the plans of air navigation service providers in order to meet projected demand and performance objectives;

As previously stated for the past nine years Albania has been developing its National Airspace Modernisation Program (NAMP). The NAMP has taken into account recommendations from Eurocontrol; and Lockheed Martin and UK NATS have provided project management and advice. In addition a contract has been agreed with Eurocontrol for the provision of technical advice. The principle aim has been to implement a fully modernised air navigation service to improve service provision and handle the increase in traffic forecast for the area. It was clear that without this level of investment it would not be possible to open up Albanias airspace and handle the significant increases in traffic and the more efficient routings demanded by the airspace users. It is important to understand that in 2003 the maximum capacity was 16 aircraft per hour; by 2007 this has nearly tripled to 44 aircraft per hour. At the request of customers capacity was further increased for 2009. As a result of the introduction of a 24 hour radar service from April 2008 capacity increased to 50 aircraft per hour and then to over 60 aircraft per hour. This will now increase to 80 aircraft per hour. We are currently operating with three sectors, however, with the introduction of the new air traffic control centre we shall have additional capacity to increase to up to six sectors to allow for further increases in traffic. We are currently in the process of training 24 new controllers which will enable a fourth sector to be opened. In summary, during this nine year period traffic has increased significantly and airspace users have been able to agree routings over Albanian airspace specifically suited to their requirements Despite the current economic uncertainties we are still planning for .traffic to double between 2005 and the end of the current five year period (2017) In order to handle this level of traffic growth, and continue to provide the high level of service demanded by our customers, the NAMP must be fully implemented. This is planned to be achieved with a unit rate which is currently forecast to reduce over the next five year period. We are keen to consult with our customers and to date representatives from IACA have visited Tirana twice to review progress on the project.

7. Description and explanation of incentives applied on users of en route services;

This is not applicable at this stage.

Additional Information Table-2 Charging zone: Albania Year: 20138. Description and explanation of the methodology used with respect to the recovery of the balance resulting from over or under recovery of previous years;

The method used by Albania is fully in line with the method detailed in the Eurocontrol Principles.

ARMENIA

Table1TotalCosts Chargingzonename Consolidationallentities Armenia 2013data

Costdetails

2009A

2010A

2011A

2012

2013

2014

2015

2016

2017

1.Detailbynature(innominalterms) 804 1.1Staff 1.2Otheroperatingcosts 515 1.3Depreciation 179 1.4Costofcapital 257 1.5Exceptionalitems 0 1.6Totalcosts 1754 Total%n/n1 Staff%n/n1 Otherop.%n/n1 2.Detailbyservice(innominalterms) 2.1AirTrafficManagement 876 2.2Communication 238 2.3Navigation 208 2.4Surveillance 175 2.5Searchandrescue 0 2.6AeronauticalInformation 123 2.7Meteorologicalservices 0 2.8Supervisioncosts 0 2.9OtherStatecosts 135 2.10Totalcosts 1754 Total%n/n1 ATM%n/n1 CNS%n/n1

923 537 179 319 63 2020 15.1% 14.8% 4.3%

1101 579 181 294 0 2154 6.6% 19.3% 7.9%

1219 632 248 324 0 2423 12.5% 10.8% 9.1%

1221 551 310 408 0 2490 2.7% 0.1% 12.8%

1282 616 349 413 0 2659 6.8% 5.0% 11.8%

1346 687 357 433 0 2822 6.1% 5.0% 11.4%

1413 689 365 471 0 2938 4.1% 5.0% 0.3%

1484 676 414 508 0 3082 4.9% 5.0% 1.8%

974 276 242 249 0 139 0 0 140 2020 15.1% 11.2% 23.6%

1052 298 261 270 0 150 0 0 123 2154 6.6% 8.1% 8.1%

1180 334 293 302 0 169 0 0 145 2423 12.5% 12.2% 12.2%

1213 343 301 311 0 173 0 0 149 2490 2.7% 2.7% 2.7%

1300 368 323 333 0 186 0 0 150 2659 6.8% 7.2% 7.2%

1382 391 343 354 0 197 0 0 154 2822 6.1% 6.3% 6.3%

1441 408 358 369 0 206 0 0 157 2938 4.1% 4.2% 4.2%

1517 430 377 389 0 217 0 0 154 3082 4.9% 5.3% 5.3%

3.Complementaryinformationonthecostofcapitalandonthecostofcommonprojects(innominalterms) Averageassetbase 3.1Netbookval.fixedassets 1433 1510 1794 2064 2761 2822 2977 3.2Adjustmentstotalassets 0 0 0 0 0 0 0 3.3Netcurrentassets 402 581 653 637 636 616 632 3.4Totalassetbase 1835 2091 2447 2702 3396 3438 3609 Costofcapital% 3.5Costofcapitalpretaxrate 14.0% 15.2% 12.0% 12.0% 12.0% 12.0% 12.0% 3.6Returnonequity 14.0% 15.7% 12.0% 12.0% 12.0% 12.0% 12.0% 3.7Averageinterestondebts 0.0% 12.0% 12.0% 12.0% 0.0% 0.0% 0.0% Costofcommonprojects 3.8CommonProject1 4.Complementaryinformationoninflationandontotalcostsinrealterms 4.1Inflation%(1) 3.4% 9.4% 4.7% 4.0% 4.2Priceindex(2) 100 105 109 4.3Totalcostsrealterms(3) 1754 2020 2057 2226 Total%n/n1 15.1% 1.9% 8.2% 5.DeductionofcostsallocatedtoexemptedVFRflights(innominalterms) 5.1Totalcosts 1754 2020 2154 2423 0 0 0 0 5.2CostsforexemptedVFRflights 5.3Totalcostsafterdeduction(4) 1754 2020 2154 2423

3297 0 630 3927 12.0% 12.0% 0.0%

3605 0 630 4235 12.0% 12.0% 0.0%

4.0% 113 2199 1.2%

4.0% 118 2258 2.7%

4.0% 122 2304 2.0%

4.0% 127 2363 2.6%

4.0% 132 2364 0.0%

2490 0 2490

2659 0 2659

2822 0 2822

2938 0 2938

3082 0 3082

Costsandassetbaseitemsin'000000AMDServiceunitsin'000000 (1)Actualinflationforecastinflationusedforestablishingtheforecastcosts (2)Priceindexbase100in2010 (3)ActualForecastcostsinrealtermsat2010prices (4)ActualcostsafterdeductionofVFRcostsForecastcostsafterdeductionofVFRcosts

Table1TotalCosts Chargingzonename ANSPName Armenia ARMATS 2013data

Costdetails

2009A

2010A

2011A

2012

2013

2014

2015

2016

2017

1.Detailbynature(innominalterms) 804 1.1Staff 1.2Otheroperatingcosts 379 1.3Depreciation 179 1.4Costofcapital 257 1.5Exceptionalitems 0 1.6Totalcosts 1619 Total%n/n1 Staff%n/n1 Otherop.%n/n1 2.Detailbyservice(innominalterms) 2.1AirTrafficManagement 876 2.2Communication 238 2.3Navigation 208 2.4Surveillance 175 2.5Searchandrescue 0 2.6AeronauticalInformation 123 2.7Meteorologicalservices 0 2.8Supervisioncosts 0 2.9OtherStatecosts 0 2.10Totalcosts 1619 Total%n/n1 ATM%n/n1 CNS%n/n1

923 396 179 319 63 1880 16.1% 14.8% 4.5%

1101 456 181 294 0 2031 8.1% 19.3% 15.1%

1219 487 248 324 0 2279 12.2% 10.8% 6.8%

1221 403 310 408 0 2341 2.7% 0.1% 17.4%

1282 466 349 413 0 2509 7.2% 5.0% 15.8%

1346 533 357 433 0 2668 6.3% 5.0% 14.3%

1413 532 365 471 0 2781 4.2% 5.0% 0.3%

1484 522 414 508 0 2928 5.3% 5.0% 1.9%

974 276 242 249 0 139 0 0 0 1880 16.1% 11.2% 23.6%

1052 298 261 270 0 150 0 0 0 2031 8.1% 8.1% 8.1%

1180 334 293 302 0 169 0 0 0 2279 12.2% 12.2% 12.2%

1213 343 301 311 0 173 0 0 0 2341 2.7% 2.7% 2.7%

1300 368 323 333 0 186 0 0 0 2509 7.2% 7.2% 7.2%

1382 391 343 354 0 197 0 0 0 2668 6.3% 6.3% 6.3%

1441 408 358 369 0 206 0 0 0 2781 4.2% 4.2% 4.2%

1517 430 377 389 0 217 0 0 0 2928 5.3% 5.3% 5.3%

3.Complementaryinformationonthecostofcapitalandonthecostofcommonprojects(innominalterms) Averageassetbase 3.1Netbookval.fixedassets 1433 1510 1794 2064 2761 2822 2977 3.2Adjustmentstotalassets 0 0 0 0 0 0 0 3.3Netcurrentassets 402 581 653 637 636 616 632 3.4Totalassetbase 1835 2091 2447 2702 3396 3438 3609 Costofcapital% 3.5Costofcapitalpretaxrate 14.0% 15.2% 12.0% 12.0% 12.0% 12.0% 12.0% 3.6Returnonequity 14.0% 15.7% 12.0% 12.0% 12.0% 12.0% 12.0% 3.7Averageinterestondebts 0.0% 12.0% 12.0% 12.0% 0.0% 0.0% 0.0% Costofcommonprojects 0 0 0 0 0 0 0 3.8CommonProject1 4.Complementaryinformationoninflationandontotalcostsinrealterms 4.1Inflation%(1) 3.4% 9.4% 4.7% 4.0% 4.2Priceindex(2) 100 105 109 4.3Totalcostsrealterms(3) 1619 1880 1940 2093 Total%n/n1 16.1% 3.2% 7.9% 5.DeductionofcostsallocatedtoexemptedVFRflights(innominalterms) 5.1Totalcosts 1619 1880 2031 2279 0 0 0 0 5.2CostsforexemptedVFRflights 5.3Totalcostsafterdeduction(4) 1619 1880 2031 2279

3297 0 630 3927 12.0% 12.0% 0.0% 0

3605 0 630 4235 12.0% 12.0% 0.0% 0

4.0% 113 2067 1.2%

4.0% 118 2131 3.1%

4.0% 122 2179 2.3%

4.0% 127 2184 0.2%

4.0% 132 2210 1.2%

2341 0 2341

2509 0 2509

2668 0 2668

2781 0 2781

2928 0 2928


Table1TotalCosts Chargingzonename Armenia MET 2013data

Costdetails

2009A

2010A

2011A

2012

2013

2014

2015

2016

2017

1.Detailbynature(innominalterms) 1.1Staff 1.2Otheroperatingcosts 1.3Depreciation 1.4Costofcapital 1.5Exceptionalitems 1.6Totalcosts Total%n/n1 Staff%n/n1 Otherop.%n/n1 2.Detailbyservice(innominalterms) 2.1AirTrafficManagement 2.2Communication 2.3Navigation 2.4Surveillance 2.5Searchandrescue 2.6AeronauticalInformation 2.7Meteorologicalservices 2.8Supervisioncosts 2.9OtherStatecosts 2.10Totalcosts Total%n/n1 ATM%n/n1 CNS%n/n1 3.Complementaryinformationonthecostofcapitalandonthecostofcommonprojects(innominalterms) Averageassetbase 3.1Netbookval.fixedassets 3.2Adjustmentstotalassets 3.3Netcurrentassets 3.4Totalassetbase Costofcapital% 3.5Costofcapitalpretaxrate 3.6Returnonequity 3.7Averageinterestondebts Costofcommonprojects 3.8CommonProject1 4.Complementaryinformationoninflationandontotalcostsinrealterms 4.1Inflation%(1) 4.2Priceindex(2) 4.3Totalcostsrealterms(3) Total%n/n1 5.DeductionofcostsallocatedtoexemptedVFRflights(innominalterms) 5.1Totalcosts 5.2CostsforexemptedVFRflights 5.3Totalcostsafterdeduction(4) Costsandassetbaseitemsin'000000AMDServiceunitsin'000000 (1)Actualinflationforecastinflationusedforestablishingtheforecastcosts (2)Priceindexbase100in2010 (3)ActualForecastcostsinrealtermsat2010prices (4)ActualcostsafterdeductionofVFRcostsForecastcostsafterdeductionofVFRcosts

Table1TotalCosts Chargingzonename CAANSA Armenia ANSCRRegulatoryactivities 2013data

Costdetails

2009A

2010A

2011A

2012

2013

2014

2015

2016

2017

1.Detailbynature(innominalterms) 1.1Staff 1.2Otheroperatingcosts 1.3Depreciation 1.4Costofcapital 1.5Exceptionalitems 1.6Totalcosts Total%n/n1 Staff%n/n1 Otherop.%n/n1 2.Detailbyservice(innominalterms) 2.1AirTrafficManagement 2.2Communication 2.3Navigation 2.4Surveillance 2.5Searchandrescue 2.6AeronauticalInformation 2.7Meteorologicalservices 2.8Supervisioncosts 2.9OtherStatecosts 2.10Totalcosts Total%n/n1 ATM%n/n1 CNS%n/n1

135

140

123

145

149

150

154

157

154

135

140 3.6% 3.6%

123 12.3% 12.3%

145 17.7% 17.7%

149 2.6% 2.6%

150 1.1% 1.1%

154 2.4% 2.4%

157 2.0% 2.0%

154 1.7% 1.7%

135 135

140 140 3.6%

123 123 12.3%

145 145 17.7%

149 149 2.6%

150 150 1.1%

154 154 2.4%

157 157 2.0%

154 154 1.7%

3.Complementaryinformationonthecostofcapitalandonthecostofcommonprojects(innominalterms) Averageassetbase 3.1Netbookval.fixedassets 3.2Adjustmentstotalassets 3.3Netcurrentassets 3.4Totalassetbase Costofcapital% 3.5Costofcapitalpretaxrate 3.6Returnonequity 3.7Averageinterestondebts Costofcommonprojects 3.8CommonProject1 4.Complementaryinformationoninflationandontotalcostsinrealterms 4.1Inflation%(1) 3.4% 9.4% 4.7% 4.0% 4.2Priceindex(2) 100 105 109 4.3Totalcostsrealterms(3) 135 140 117 133 Total%n/n1 3.6% 16.3% 13.2% 5.DeductionofcostsallocatedtoexemptedVFRflights(innominalterms) 5.1Totalcosts 135 140 123 145 5.2CostsforexemptedVFRflights 5.3Totalcostsafterdeduction(4) 135 140 123 145

4.0% 113 131 1.3%

4.0% 118 127 2.8%

4.0% 122 126 1.5%

4.0% 127 123 1.9%

4.0% 132 116 5.5%

149 149

150 150

154 154

157 157

154 154


Table2Unitratecalculation Chargingzonename Consolidationallentities Unitratecalculation Armenia 2013data

2009

2010

2011

2012

2013

2014

2015

2016

2017

1.Calculationofthenationalunitrate(Finaldatauntil2012Preliminarydatafrom2013inAMD) 1.1Totalcostspriortoded.ofVFRcosts(1) 1798 1937 1970 2529 2490 2659 1.2CostsofexemptedVFRflights(1) 0 0 0 0 0 0 2 2 4 4 3 3 1.3CostsofexemptedIFRflights 1.4Amountscarriedovertoyearn 0 0 0 108 43 46 1.5Incomefromothersources 0 0 0 0 0 0 1.6Chargeablecoststotal 1796 1935 1966 2417 2444 2702 %n/n1 7.7% 1.6% 22.9% 1.1% 10.6% 1.7Totalserviceunits 0.156 0.127 0.153 0.175 0.160 0.171 0.155 0.126 0.153 0.175 0.160 0.171 1.8Chargeableserviceunits 1.9Unitratenat.currency1.6/1.8 11555 15305 12843 13835 15295 15822 %n/n1 32.5% 16.1% 7.7% 10.6% 3.4% 1.10Exchangerate(Septembern1) 432.64 551.07 474.09 509.60 524.77 524.77 1.11Basicnationalrateineuro 26.71 27.77 27.09 27.15 29.15 30.15 %n/n1 4.0% 2.5% 0.2% 7.4% 3.4% 2.Actual/forecastserviceunits(in'000000serviceunits) 2.1Totalserviceunits 0.133 %n/n1 2.2Chargeableserviceunits 0.133 %n/n1

2822 0 4 46 0 2865 6.0% 0.183 0.183 15674 0.9% 524.77 29.87 0.9%

2938 0 4 46 0 2981 4.1% 0.195 0.195 15306 2.4% 524.77 29.17 2.4%

3082 0 4 46 0 3125 4.8% 0.209 0.209 14970 2.2% 524.77 28.53 2.2%

0.146 9.6% 0.146 9.6%

0.170 16.1% 0.169 16.1%

0.153 9.7% 0.153 9.7%

0.160 4.5% 0.160 4.5%

0.171 6.9% 0.171 6.9%

0.183 7.0% 0.183 7.0%

0.195 6.6% 0.195 6.6%

0.209 7.2% 0.209 7.2%

3.Over()orunder(+)recoveriestobecarriedover('000000inAMD) Chargesbilledtousers 1546 2214 2194 3.1Chargesbilledtousers Netactualcostschargeabletousers 3.2Totalcostspriorded.ofVFRcosts(2) 1754 2020 2154 3.3CostofexemptedVFRflights(2) 0 0 0 3.4CostsofexemptedIFRflights 3 3 3 3.5Amountscarriedovertoyearn 0 0 0 3.6Incomefromothersources 116 3.7Chargeablecoststotal 1636 2017 2151 Over()orunder(+)recovery 90 197 43 3.8Balancetobecarriedover 4.Carryoverofover()orunder(+)recoveries('000000inAMD) 4.1Balanceyear2003 4.2Balanceyear2004 4.3Balanceyear2005 4.4Balanceyear2006 4.5Balanceyear2007 0 4.6Balanceyear2008 0 4.7Balanceyear2009 90 4.8Balanceyear2010 197 4.9Balanceyear2011 43 4.10Balanceyear2012(3) 185 4.11Amountcarriedovertoyearn 0 0

2128 2423 0 3 108 2313 185

2444 2490 0 3 43 2444 0

2702 2659 0 3 46 2702 0

2865 2822 0 4 46 2865 0

2981 2938 0 4 46 2981 0

3125 3082 0 4 46 3125 0

90 197 43 0 108 43 46 46 46 46 46 46 46 46

5.Unitcost(TotalcostsafterdeductionofVFRcosts/Totalserviceunitsinnationalcurrency) 5.1Totalcosts3.2/Serviceunits2.1 13164 13828 12701 15821 15561 5.2ANSPcomponentoftheunitcost 12149 12868 11977 14876 14633 0 0 0 0 0 5.3METcomponentoftheunitcost 5.4NSAStatecomponentoftheunitcost 1015 960 725 945 928 %n/n1 5.0% 8.1% 24.6% 1.6%

15552 14674 0 878 0.1%

15422 14582 0 840 0.8%

15069 14264 0 805 2.3%

14748 14010 0 738 2.1%

Costsandassetbaseitemsin'000000AMDServiceunitsin'000000 (1)TotalcostsafterdeductionofVFRcostsForecastcostsusedtocalculateunitratesforecastfromNarereportedfromTable1 (2)TotalcostsafterdeductionofVFRcostsCostdatareportedfromTable1 (3)Estimatedbalancefor2012

Additional Information Table-1 Charging zone: Armenia Year: 20131.Description of the methodology used for allocating costs of facilities or services between different air navigation services based on the list of facilities and services listed in the relevant ICAO Regional Air Navigation Plan, (Doc 7754) and a description of the methodology used for allocating those costs between different en route charging zones;

Taking into consideration that the national ANSP (ARMATS CJSC) doesnt operate any internal accounting system allowing allocation of costs between air navigation services, the allocation keys described in ICAO documents and Eurocontrol Principles are used for allocation of the overall costs between different air navigation services (en-route, terminal and other). For performing this task overall costs of the company are classified by nature and form 5 main groups: staff costs, other operating costs, amortization (depreciation), cost of capital and exceptional items. The costs of facilities and services, which serve only en-route or terminal services, are allocated 100% either to en-route or to terminal services. The costs of facilities and services, which serve both en-route or terminal services, are allocated by using the allocation keys described in Eurocontrol Principles (i.e. in proportion of the number of personnel, in proportion of the staff costs on ATCOs, in proportion of the used equipment, in proportion to the average distance flown, etc.). When the allocation keys are not applicable for some costs, the allocation of the costs was done with the following proportion: 75%-25%, 50%-50% or 25%-75%, or by using the resulting average allocation percentage. Taking into consideration that ARMATS CJSC doesnt operate any internal accounting system allowing allocation of costs by services /ATM, CNS, AIS, etc./, with the only exception of staff costs and Other State costs (Eurocontrol costs), the allocation of overall costs by services was done in proportion of the ARMATS CJSCs staff costs. Taking into consideration that the Republic of Armenia has established one en-route charging zone, the allocation of the costs between different en route charging zones isnt applicable.

2. Description of the costs incurred by the Contracting States (Other State costs);

Reasoning that the General Department of Civil Aviation at the Government of the Republic of Armenia (regulatory authority for ANS) is financed from the state budget and therefore doesnt establish any costs for its regulatory function, the State costs of the regulatory authority are not included in the air navigation cost-bases. Therefore the only costs incurred by the Contracting States (Other State costs) correspond to costs of the Eurocontrol contribution paid by the Republic of Armenia, which are as follows:

Additional Information Table-1 Charging zone: Armenia Year: 2013

3. Description and explanation of the method adopted for the calculation of depreciation costs: historic costs or current costs. When current cost accounting is adopted, provision of comparable historic cost data;

For calculation of the depreciation costs ARMATS CJSC applies the depreciation periods described in the Principles for establishing the cost-base for en-route charges and the calculation of the unit rates since 01.01.2007. Depreciation costs are calculated applying straight-line method, i.e. historic costs minus depreciation calculated from the expected date of entry into operation over the expected operating life. Depreciation costs are calculated for fixed assets in use (registered in balance sheet as of 31/12/2011) and for CAPEX planned after 31/12/2011 (basing on the dates of entry into operation), taking due account of assets under construction and of advance payments for them (registered in the balance sheet as of 31/12/2011).

4. Justification for the cost of capital, including the components of the asset base, the possible adjustments to total assets and the return on equity;

For calculation of the cost of capital ARMATS CJSC used weighted average interest rate calculated basing on the interest rate of the debts (loans) and return on equity (which corresponds to the lowest rate of the State long-term bonds yields pronounced by the Ministry of the Finance of the Republic of Armenia in its letter to ARMATS CJSC). In the result of the calculation the weighted average interest rates constituted 12,0% for 2011A-2017F. These rates were applied to the overall capital employed, i.e. to the average NBV of the long-term assets and of net current assets (working capital). The average NBV of the long-term assets was calculated separately for main assets in use (registered in the Balance Sheet as of 31/12/2011) and for CAPEX planned after 31/12/2011 (basing on the dates of payments and date of entry into operation), taking due account of assets under construction and of advance payments for them (registered in the balance sheet as of 31/12/2011). The average NBV of net current assets (working capital) was calculated basing on the dynamics of the estimated growth of the volumes of the forecasted revenues and costs.

5. Definition of the criteria used to allocate costs between terminal and en route services;

As it was mentioned in point 1, the allocation of costs between terminal and en-route air navigation services is made by using the allocation keys described in ICAO documents and Eurocontrol Principles. For performing this task overall costs of the company were classified by nature and form 5 main groups: staff costs, other operating costs, amortization (depreciation), cost of capital and exceptional items. Different allocation keys were used for the allocation of each group of the costs. 1. Allocation of Staff costs Due to the significant changes in the staff organizational structure in the end of year 2010, the allocation of the staff costs for 2011A and 2012F-2017F is as follows:


a) Allocation of the staff costs of ATCOs in OPS: Staff costs of ACC ATCOs 100% to en-route and 0% to terminal; Staff costs of TWR ATCOs - 0% to en-route and 100% to terminal; - Staff costs of APP ATCOs-70,0% to en-route and 30,0% to terminal (calculated with the average distances of handing the aircrafts within aerodrome 20 km radius area by APP and TWR ATCOs). With these allocation keys the average allocation percentage for the staff costs of ATCOs in OPS for 2011A constituted 54.62 % to en-route and 45.38 % to terminal services, which was calculated as follows and applied for allocation of these costs in 2012F-2017F:

Staff costs of ATCOs, '000 AMD ATCO in ops -Yerevan ACC centre -Yerevan approach -Yerevan Tower -Gyumri approach -Gyumri Tower -Stepanavan Tower ATCOs ER: ACC +70% APP ATCOs Terminal: TWR +30%APP Total ATCOs in operation % ATCOs En route % ATCOs Terminal % Total ATCOs in operation

2011A 674 326 213 266 199 048 199 048 62 964 368 340 305 986 674 326 54,62% 45,38% 100%

b) Staff costs of Other ATCOs, Assistants and other supporting personnel, as well as of technical support staff are allocated in the same proportion as the staff costs of ATCOs in OPS (i.e. 54.62% to enroute and 45.38% to terminal); c) Staff costs of ancillary services (AIS, Meteo and SAR) for 2011A and the forthcoming years are allocated as follows:

i.e. 48.10% to en-route and 51.90% to terminal services. d) Staff costs of administrative and other staff for 2011A and 2012F-2017F are allocated using the resulting average allocation percentage, which constituted 54,19% to en-route and 45,81% to terminal services.

Additional Information Table-1 Charging zone: Armenia Year: 20132. Allocation of other operating costs a) Other operating costs of the post warranty service, flight-testing, invoice preparation services, lease of communication channels, current repair costs and costs of rent are allocated to en-route and terminal services directly. b) Other operating costs attributable to personnel, such as training and traveling costs, communication and postal services, compulsory medical examination, water and heating costs, costs of transport, insurance costs and entertainment costs, are allocated in proportion of total number of personnel (FTE), as follows:

i.e. 51,51% to en-route and 48,49% to terminal services. c) Other operating costs related to assets, such as costs on material purchases, costs of fuelling and energy supply costs are allocated in proportion of amortization (depreciation) and therefore their allocation will be changeable due to actual investments made in 2011A and CAPEX forecasted in 2012F-2017F, as follows: - in 2011A` 51,00% to en-route and 49,00% to terminal services; - in 2012F` 55,41% to en-route and 44,59% to terminal services; - in 2013F` 56,82% to en-route and 43,18% to terminal services; - in 2014F` 59,23% to en-route and 40,77% to terminal services; - in 2015F` 60,95% to en-route and 39,05% to terminal services; - in 2016F` 61,90% to en-route and 38,10% to terminal services; - in 2017F` 60,06% to en-route and 39,94% to terminal services. d) The remaining other operating costs, such as taxes and duties, banking services, auditing services costs, provision for doubtful debts and write-offs, as well as other costs are allocated using the resulting average percentage as follows: - in 2011A` 51,70% to en-route and 48,30% to terminal services; - in 2012F` 53,39% to en-route and 46,61% to terminal services; - in 2013F` 52,77% to en-route and 47,23% to terminal services; - in 2014F` 51,93% to en-route and 48,07% to terminal services; - in 2015F` 54,84% to en-route and 45,16% to terminal services; - in 2016F` 54,47% to en-route and 45,53% to terminal services; - in 2017F` 53,02% to en-route and 46,98% to terminal services. 3. Allocation of amortization (depreciation) costs Amortization (depreciation) generated by the non-current assets in use registered in Balance Sheet as of 31/12/2011 is allocated in proportion of TOP 90 assets in use (51,0% to en-route and 49,0% to terminal services). The allocation of depreciation generated by non-current assets to be purchased and entered into operation after 31/12/2011 is made by using the allocation percentages established for each item of CAPEX (100%-0%; 75%-25%, 50%-50% or contrary). On the basis of the 2012F2017F CAPEX, the allocation of the depreciation costs for the following years is as follows: - in 2012F` 55,41% to en-route and 44,59% to terminal services; - in 2013F` 56,82% to en-route and 43,18% to terminal services;

Additional Information Table-1 Charging zone: Armenia Year: 2013- in 2014F` 59,23% to en-route and 40,77% to terminal services; - in 2015F` 60,95% to en-route and 39,05% to terminal services; - in 2016F` 61,90% to en-route and 38,10% to terminal services; - in 2017F` 60,06% to en-route and 39,94% to terminal services. 4. Allocation of cost of capital Cost of capital generated by the non-current assets in use registered in Balance Sheet as of 31/12/2011 is allocated in proportion of TOP 90 assets in use (51,0% to en-route and 49,0% to terminal services). The allocation of cost of capital generated by non-current assets in construction as of 31/12/2011 or to be purchased and entered into operation after that date is made by using the allocation percentages established for each item of CAPEX (100%-0%; 75%-25%, 50%-50% or contrary), due to which the allocation of the cost of capital for 2011A-2017F is as follows: - in 2011A` 54,46% to en-route and 45,54% to terminal services; - in 2012F` 56,79% to en-route and 43,21% to terminal services; - in 2013F` 59,92 to en-route and 40,08% to terminal services; - in 2014F` 61,62% to en-route and 38,38% to terminal services; - in 2015F` 62,18% to en-route and 37,82% to terminal services; - in 2016F` 62,17% to en-route and 37,83% to terminal services; - in 2017F` 59,90% to en-route and 40,10% to terminal services. The same allocation was used for the allocation of the 2011A-2017F current assets (working capital). 5. Allocation of exceptional items In case of existence of any exceptional items, they will be allocated to en-route and terminal services directly. It should be mentioned that no exceptional items attributable to en-route existed in 2011A and they are not foreseen in 2012F-2017F.

6. Breakdown of the meteorological costs between direct costs and MET core costs defined as the costs of supporting meteorological facilities and services that also serve meteorological requirements in general. These include general analysis and forecasting, weather radar and satellite observations, surface and upper-air observation networks, meteorological communication systems, data-processing centres and supporting core research, training and administration;

The meteorological services are provided by Zvartnots air meteorological center CJSC, which is a separate self-financing enterprise under the jurisdiction of the Ministry of Nature Protection of the Republic of Armenia. Reasoning this, meteorological service costs are not included into air navigation cost-bases.

7. Description of the methodology used for allocating total MET costs and MET core costs to civil aviation and between en route charging zones;

See point 6.


8. Description and explanation of the differences between planned and actual figures for year n - 1;

1. Revenues: The Republic of Armenia integrated into the Route Charges System from 01 March 2009 and starting from that date the billing and collection of the route charges on behalf of the Republic of Armenia is performed by Eurocontrol CRCO. Therefore the forecasted en-route revenue is calculated in line with Eurocontrol Principles and corresponds to en-route costs (national costs + Eurocontrol costs). The actual figure of route charges billed to users by Eurocontrol CRCO in 2011 constituted 2193,8 mln. AMD, which is 227,5 mln. AMD higher than the forecasted figure (1966,3 mln. AMD).This was mainly due to increase of flights, which, in its turn, have resulted to 10,6% increase of Service Units (actual number of chargeable SU constituted 169373 instead of forecasted 153100). 2. Costs: The 2011 actual chargeable en-route costs constituted 2151,3 mln. AMD, which is 185,0 mln. AMD higher than the forecasted figure (1966,3 mln. AMD). The table below shows the details of 2011 forecasted and actual costs by cost nature:Total en-route costs Staff costs Other operating costs /incl. Eurocontrol costs/ Depreciation Cost of capital Exceptional items Total in mln. AMDCost of exempted flights

Total chargeable costs in mln. AMD

2011F 923,7 600,8 178,7 267,0 0,0 1970,2 3,9 1966,3

2011A 1100,6 579,2 180,7 293,6 0,0 2154,1 2,8 2151,3

Difference /+,-/ 176,9 -21,6 2,0 26,6 0,0 183,9 -1,1 185,0

The increase of staff costs is due to revision of the conditions of remuneration of labor. The decrease of other operating costs is due to the cost containment measures applied by the company, as well as due to the postponement of the dates of performance of some costs. The increase of amortization (depreciation) and of cost of capital is due to the pressing need of making some additional investments /mainly due to existing emergency situations/. As evident from the aforesaid, the difference between actual revenues and costs have resulted to an over-recovery of 42,5 mln. AMD (2193,8 - 2151,3) in 2011, which, according to the Eurocontrol adjustment mechanism is a subject to carry-forward and will be returned to the airspace users in 2013.

9. Description and explanation of the five-year planned costs based on the business plan;

Reasoning that the General Department of Civil Aviation at the Government of the Republic of Armenia (regulatory authority for ANS) is financed from the state budget and therefore doesnt establish any enroute costs for its regulatory function, the costs filled in the appropriate Table of State costs correspond to the costs of Eurocontrol contribution paid by the Republic of Armenia /filled as Other State costs/. It should be noted that according to the Government Decision N 1247-A dated 25.10.2007, these costs are incurred by the national ANSP, i.e. ARMATS CJSC. Taking into consideration that the meteorological services are provided by self-financing enterprise namely Zvartnots air meteorological center CJSC and therefore are not included into air navigation cost-bases, the figures provided in the consolidated table correspond to the sum of en-route costs of ARMATS CJSC and of Eurocontrol contribution State costs.


1. Economical background - The information on the inflation rate was provided by the official letter of the Central Bank of the Republic of Armenia dated 03 May 2012, according to which actual inflation in the Republic of Armenia in 2011 constituted 4,7% and its objective for the years 2012-2017 is forecasted at 4,0%. - For calculation of the cost of capital ARMATS CJSC used weighted average interest rate calculated basing on the interest rate of the debts (loans) and return on equity. Interest on debts (loans): For the modernization of its en-route radar TRLK-11 ARMATS CJSC received a 3-year loan from the State budget in amount of 1 MEUR and at interest rate of 12%. According to the payment schedule the first payment was made on the 15 April 2011 and the last one was scheduled on 25 December 2013. However, taking into consideration the financial situation of the Company at the beginning of the year 2012, the loan has been repaid in advance in June 2012. Return on equity: According to the Eurocontrol Principles the government long-term bond rate may be taken as a guide for the rate of return on equity. The information on this rate was provided by the official letter of the Ministry of the Finance of the Republic of Armenia dated 03 May 2012, according to which the actual yield of the Government long-term bonds in 2011 constituted 12,0% and for 20122017 it may fluctuate between 12%-13%. Taking into consideration this assumption, ARMATS CJSC has applied the rate of 12% for the calculation of the return on equity in the years 2012-2017. In the result of application of the above-mentioned interest rates, the weighted average interest rate constituted 12,0% in 2011A-2017F. - According to Eurocontrol Principles for the calculation of en-route unit rates the following average exchange rates published by Reuters for 1 EUR were applied: 2011 actual exchange rate constituted 517,542 AMD; the exchange rate applied for the calculation of 2012 basic unit rate corresponds to the average exchange rate for September 2011, i.e. 509,595 AMD; and the exchange rate applied for the calculation of 2013-2017 basic unit rates corresponds to the average exchange rate for September 2012, i.e. 524,768 AMD. 2. Description and explanation of the five-year planned costs - Staff costs include wages and remuneration costs, as well as costs to social fund contributions. Wages and remuneration costs include basic salaries as well as additional payments relating to special working conditions such as shift work, work in harmful conditions, work during holidays and weekends, bonuses, etc., which are calculated in accordance with the Labor Law of the Republic of Armenia. Taking into consideration the forecasted volumes of the en-route traffic in 2013F, the Company has decided temporarily freeze the growth of its staff costs, due to which it is expected that the staff costs allocated to en-route services will remain at the 2012F level in 2013F and constitute 1220,7 mln. AMD. In case of materialization of the forecasted en-route traffic in 2014F-2017F, it is foreseen that the annual growth of the en-route staff costs of ARMATS CJSC will be at the level of inflation forecasted for these years, which is 4-5% per year. - Other operating costs include all costs incurred through the purchase of goods and services, in particular communication services, external consultants and audit, material, energy, utilities, rental, maintenance, post warranty (global support), insurance costs, traveling and personnel training expenses, as well as Eurocontrol contribution costs (which are filled as Other state costs in Reporting Table 1) and provision for bad debts and write-offs (which is calculated basing on the assumption that CRCO may not recover approx. 0,3% of the charges billed). Taking into consideration the forecasted volumes of the en-route traffic in 2013F, the Company has decided to postpone procurement of some goods and cut down volumes of purchase of some services, due to which it is expected that the en-route other operating costs will decrease by some 12.8% against the 2012F and constitute about 551.3 mln. AMD in 2013F.

Additional Information Table-1 Charging zone: Armenia Year: 2013Taking into consideration the expected increase of the costs on the post warranty (global support) services, which is connected with the acquisition and/or modernization of the equipment, it is foreseen that en-route other operating costs will increase by some 12% in 2014F-2017F against 2013F figure, which, however, is subject to revision depending on the actual dynamics of the en-route traffic. - Amortization (depreciation) costs are calculated for fixed assets in use (registered in balance sheet as of 31/12/2011) and for CAPEX planned after 31/12/2011 (basing on the dates of entry into operation) and taking due account of assets under construction and of advance payments for them (registered in the balance sheet as of 31/12/2011). No depreciation is calculated for land and for the assets, which were temporarily out of operation as of 31/12/2011. Due to the completion of modernization of the en-route radar TRLK-11 in January 2012, the estimated en-route depreciation costs for 2012 will increase by 37.3% against the 2011A figure and constitute about 248,1 mln. AMD. It should be mentioned that reasoning the forecasted volumes of the en-route traffic in 2013F, the Company has postponed some investment programs set in its 5-year business-plan, due to which the main forecasted CAPEX to be made in 2013 will be the modernization of the ATC center, which, according to the already signed contracts, will amount to about 1,2 billion AMD. The modernization of the ATC center includes acquisition of new ATC and VCCS systems, which pressing need is mainly stipulated by the new requirements of ICAO, particularly change of format of FPL in November 2012, new ADEXP format of CFMU messages, ensuring the 2-nd level of the Safety Nets, etc. Taking into consideration the fact, that it is foreseen to complete the modernization of ATC center in the middle of 2013, it is expected that the en-route depreciation costs will increase by 25.0% against 2012F figure and constitute about 310,1 mln. AMD in 2013F. For the rest period of 2014F-2017F it is foreseen that the depreciation costs will change depending on the volumes of new CAPEX, the dates of entry into operation, as well as on their allocation to en-route and terminal services. - Cost of capital: The calculated weighted average interest rate (see above explanation) was applied to the overall capital employed, i.e. to the average NBV of the long-term assets and of net current assets (working capital). The average NBV of the long-term assets was calculated separately for main assets in use (registered in the Balance Sheet as of 31/12/2011) and for CAPEX planned after 31/12/2011 (basing on the dates of payments and date of entry into operation), taking due account of assets under construction and of advance payments for them (registered in the balance sheet as of 31/12/2011). The average NBV of net current assets (working capital) was calculated basing on the dynamics of the estimated growth of the volumes of the forecasted revenues and costs. Due to the completion of modernization of the en-route radar TRLK-11 in January 2012, it is foreseen that the cost of capital attributable to en-route services will increase by 10.4% against the 2011A figure and constitute about 324,2 mln. AMD in 2012F. As it was mentioned above, due to the forecasted volumes of the en-route traffic in 2013 the Company has postponed some investment programs set in its 5-year business-plan. Nevertheless, considering the expected completion of modernization of ATC center in the middle of 2013, it is foreseen that the 2013F en-route cost of capital will increase by some 25,7% against the 2012 estimated figure and constitute 407,6 mln, AMD. For the forthcoming period of 2014F-2017F the cost of capital will be relatively stable and will vary depending on the dates of payment and of entry into operation, operating life of new CAPEX, their allocation to en-route and terminal services, etc. The Companys main capital expenditures for the years 2012F-2017F are shown in the table below:


It should be mentioned that reasoning priority and expedience, the capital expenditures forecasted for 2014F-2017F are subject to update in the end of each preceding year. - Exceptional items : As it was already mentioned no exceptional items attributable to en-route services and facilities are foreseen in 2012F-2017F. TOTAL EN-ROUTE COSTS: As a result of the above-mentioned it is foreseen that the total forecasted en-route costs in AMD terms will increase in 2013F by some 2.7% against the 2012 estimated figure, thus constituting about 2489,7 mln. AMD, which is stipulated by 12,8% decrease of other operating costs and total increase of 25,5% of depreciation and cost of capital, which is owed to expected new CAPEX. For the further period of 2014F-2017F the yearly average increase of the forecasted total en-route costs will fluctuate between 4% and 7%.


1. Description and rationale for the establishment of the different en route charging zones;

The Republic of Armenia has established one en-route charging zone.

2. Description and explanation on the calculation of the forecast chargeable service units;

According to the Companys expectation, the estimated number of service units in 2012 will not exceed 153174. The number of total service units established for the calculation of the 2013 en-route unit rate corresponds to the figure published by Eurocontrol CRCO and STATFOR, which, according to the their forecast, will constitute 159451 units in 2013. This figure was rounded up to 160000 units by the Company. The forecasted number of the total service units for 2014F-2017F was established basing on the following sources: data contained in EUROCONTROL 7-year Forecast: IFR Flight Movements 20122018 Report published by STATFOR in September 2012 and actual average SU per flight recorded in 2011-2012. The number of the chargeable service units for the period 2013F-2017F was calculated by applying the actual proportion of 2011 (99,87% of the forecasted number of the total service units is chargeable and the rest 0.13% of the forecasted number of the total service units is exempted). It should be mentioned that neither VFR nor internal flights are foreseen to be operated in the airspace of the Republic of Armenia in 2013F-2017F, and that the en-route cost-bases for these years have been accordingly reduced by the costs of the exempted flights.

3. Description of the policy on exemptions and a description of the financing means to cover the related costs;

According to Eurocontrol Principles and the Government Decision N 2074-N dated 13.12.2002, the following flights are exempted from the payment of en-route charges: a) Flights performed by aircraft of which the maximum take-off weight authorized is less than two (2) metric tons; b) Flights performed exclusively for the transport, on official mission, of the reigning Monarch and his/her immediate family, Heads of State, Heads of Government, and Government Ministers. c) Search and rescue flights authorized by the competent body. d) Training flights performed exclusively for the purpose of obtaining a license, or a rating in the case of cockpit flight crew. e) Flights performed exclusively for the purpose of checking or testing equipment used or intended to be used as ground aids to air navigation, excluding positioning flights by the aircraft concerned. Costs related to the flights exempted under points from a) to c) are submitted and paid by the Government of the Republic of Armenia. Taking into consideration that the flights exempted under points d) and e) related to provision of safety of the flights in the Republic of Armenia, the costs of these flights are covered from the financial sources of ARMATS CJSC.


4. Description of the income from other sources when they exist;

According to the 2012 estimated and 2013F-2017F forecasted figures no income from other sources is planned.

5. Description and explanation of incentives applied on air navigation service providers and, in particular, the modalities to be applied in setting regulatory conditions on the level of unit rates. Description and explanation of the objectives in terms of performance and on the modalities to take them into account in the setting of maximum unit rates;

N/A

6. Description of the plans of air navigation service providers in order to meet projected demand and performance objectives;

The main objective of ARMATS CJSC is to ensure high level of the safety of the flights and provide high quality air navigation services. It should be mentioned that for achieving performance of this goal ARMATS CJSC annually makes necessary capital investments and costs, but at the same time aims to keep and improve the level of cost-effectiveness. It should be added that from the point of view of the safety of flights the Republic of Armenia takes up a leading position in the region, but at the same the enroute unit rate of the Republic of Armenia continues to stay one of the lowest in the Eurocontrol area /i.e. among the Eurocontrol Member States/.

7. Description and explanation of incentives applied on users of en route services;

N/A

8. Description and explanation of the methodology used with respect to the recovery of the balance resulting from over or under recovery of previous years;

As it was mentioned above, the difference between the Companys actual en-route charges billed to users (2193,8 mln. AMD) and en-route chargeable costs (2151,3 mln. AMD) have resulted to an overrecovery of 42,5 mln. AMD in 2011, which, according to the Eurocontrol adjustment mechanism, will be carried forward and returned to the airspace Users in year n+1, i.e. in 2013. According to the estimated data for 2012, it is expected that the difference between the Companys en-route charges billed to users (estimated to constitute 2128,0 mln. AMD) and en-route chargeable costs (estimated to constitute 2312,6 mln. AMD) will result to an under-recovery of 184,6 mln. AMD, which, however, is just an anticipation and will be revised on the basis of the actual financial statements for the year 2012. According to the Eurocontrol adjustment mechanism, the amount of the under-recovery should be carried forward and returned by the airspace Users in year n+1, i.e. in 2014. Nevertheless, for the reasons of limitation of the growth of the en-route unit rate, it was decided to split the amount to be carried forward evenly to the period from n+1 to n+4(i.e. 2014-2017).

AUSTRIA

Table1TotalCosts Chargingzonename Consolidationallentities Austria Periodofreference:20122014

ForecastCosts* Costdetails 2010F* 2011F*

DeterminedCosts 2012 2013 2014 2010 2011

Actualcosts 2012 2013 2014

1.Detailbynature(innominalterms) 1.1Staff 1.2Otheroperatingcosts 1.3Depreciation 1.4Costofcapital 1.5Exceptionalitems 1.6Totalcosts Total%n/n1 Staff%n/n1 Otherop.%n/n1 2.Detailbyservice(innominalterms) 2.1AirTrafficManagement 2.2Communication 2.3Navigation 2.4Surveillance 2.5Searchandrescue 2.6AeronauticalInformation 2.7Meteorologicalservices 2.8Supervisioncosts 2.9OtherStatecosts 2.10Totalcosts Total%n/n1 ATM%n/n1 CNS%n/n1 101.5 11.4 5.3 13.9 1.1 5.7 16.4 0.0 11.6 166.9 109.8 12.3 5.7 14.8 1.1 6.1 15.8 0.4 9.7 175.7 5.3% 8.2% 7.4% 116.7 13.1 6.1 15.8 1.2 6.5 15.7 0.5 11.5 186.9 6.3% 6.2% 6.2% 122.6 13.7 6.3 16.5 1.2 6.7 15.7 0.6 11.7 195.0 4.3% 5.1% 4.7% 124.5 14.0 6.5 16.9 1.3 6.9 15.7 0.7 11.9 198.2 1.7% 1.5% 2.2% 101.1 11.2 4.9 12.6 0.9 6.2 15.0 0.0 11.5 163.6 109.2 10.9 5.0 14.1 1.0 6.1 16.2 0.4 9.7 172.6 5.5% 8.0% 4.0% 115.4 31.3 16.5 3.7 0.0 166.9 122.3 32.5 17.2 3.7 0.0 175.7 5.3% 6.0% 3.7% 129.1 36.1 17.8 3.9 0.0 186.9 6.3% 5.5% 11.0% 132.6 35.6 22.0 4.9 0.0 195.0 4.3% 2.7% 1.5% 135.0 35.7 22.4 5.2 0.0 198.2 1.7% 1.8% 0.3% 115.5 30.5 15.7 2.0 0.0 163.6 122.8 31.2 16.2 2.4 0.0 172.6 5.5% 6.3% 2.4%

3.Complementaryinformationonthecostofcapitalandonthecostofcommonprojects(innominalterms) Averageassetbase 3.1Netbookval.fixedassets 92.3 92.5 86.7 108.9 115.6 78.9 92.5 3.2Adjustmentstotalassets 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.3Netcurrentassets 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.4Totalassetbase 92.3 92.5 86.7 108.9 115.6 78.9 92.5 Costofcapital% 3.5Costofcapitalpretaxrate 4.0% 4.0% 4.5% 4.5% 4.5% 2.48% 2.64% 3.6Returnonequity 3.7Averageinterestondebts 4.5% 4.5% 5.0% 5.0% 5.0% 4.50% 4.50% Costofcommonprojects 3.8CommonProject1 4.Complementaryinformationoninflationandontotalcostsinrealterms 4.1Inflation%(1) 1.9% 2.0% 2.5% 2.5% 4.2Priceindex(2) 101.9 103.9 106.5 109.2 4.3Totalcostsrealterms(3) 163.8 169.1 175.4 178.5 Total%n/n1 3.3% 3.7% 1.8% 5.DeductionofcostsallocatedtoexemptedVFRflights(innominalterms) 5.1Totalcosts 166.9 175.7 186.9 195.0 5.2CostsforexemptedVFRflights 1.9 1.8 1.8 1.8 5.3Totalcostsafterdeduction(4) 165.0 173.9 185.1 193.2

2.5% 111.9 177.1 0.8%

1.9% 101.9 160.5

3.6% 105.6

198.2 1.8 196.4

163.6 1.8 161.8

172.598 1.8 170.805

Costsandassetbaseitemsin'000000EuroServiceunitsin'000000 (1)Actual/forecastinflationusedforestablishingthedeterminedcostsinnominaltermsactual/revisedforecastinflation (2)Priceindexbase100inyearN3 (3)Determinedcosts(performanceplan)inrealtermsactual/revisedforecastcostsatN3prices (4)DeterminedcostsafterdeductionofVFRcostsactual/revisedforecastcosts *Forecastdatausedforthecalculationofthecorrespondingunitrates(i.e.November2009datafor2010F;November2010datafor2011F)

Table1TotalCosts Chargingzonename ANSPName Austria AustroControl Forecastcosts* Costdetails 1.Detailbynature(innominalterms) 1.1Staff 1.2Otheroperatingcosts 1.3Depreciation 1.4Costofcapital 1.5Exceptionalitems 1.6Totalcosts Total%n/n1 Staff%n/n1 Otherop.%n/n1 2.Detailbyservice(innominalterms) 2.1AirTrafficManagement 2.2Communication 2.3Navigation 2.4Surveillance 2.5Searchandrescue 2.6AeronauticalInformation 2.7Meteorologicalservices 2.8Supervisioncosts 2.9OtherStatecosts 2.10Totalcosts Total%n/n1 ATM%n/n1 CNS%n/n1 2010F* 2011F* DeterminedCosts 2012 2013 2014 2010 2011 Periodofreference:20122014

Actualcosts 2012 2013 2014

102.8 17.5 15.2 3.4 0.0 138.8

110.2 20.4 15.9 3.4 0.0 149.9 8.0% 7.2% 16.8%

116.9 22.3 16.5 3.6 0.0 159.2 6.2% 6.1% 9.0%

120.3 21.4 20.6 4.5 0.0 167.0 4.9% 3.0% 3.8%

122.7 21.3 21.0 4.8 0.0 169.8 1.7% 1.9% 0.6%

104.0 16.8 14.5 1.8 0.0 137.0

109.9 19.3 14.9 2.2 0.0 146.3 6.7% 5.7% 15.0%

101.5 11.4 5.3 13.9 1.1 5.7 0.0 0.0 0.00 138.8

109.8 12.3 5.7 14.8 1.1 6.1 0.0 0.0 0.0 149.9 8.0% 8.2% 7.4%

116.7 13.1 6.1 15.8 1.2 6.5 0.0 0.0 0.0 159.2 6.2% 6.2% 6.2%

122.6 13.7 6.3 16.5 1.2 6.7 0.0 0.0 0.0 167.0 4.9% 5.1% 4.7%

124.5 14.0 6.5 16.9 1.3 6.9 0.0 0.0 0.0 169.8 1.7% 1.5% 2.2%

101.1 11.2 4.9 12.6 0.9 6.2 0.0 0.0 0.0 137.0

109.2 10.9 5.0 14.1 1.0 6.1 0.0 0.0 0.0 146.3 6.7% 8.0% 4.0%

3.Complementaryinformationonthecostofcapitalandonthecostofcommonprojects(innominalterms) Averageassetbase 3.1Netbookval.fixedassets 84.1 84.1 79.1 101.0 107.6 70.8 83.5 3.2Adjustmentstotalassets 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.3Netcurrentassets 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.4Totalassetbase 84.1 84.1 79.1 101.0 107.6 70.8 83.5 Costofcapital% 3.5Costofcapitalpretaxrate 4.0% 4.0% 4.5% 4.5% 4.5% 2.48% 2.64% 3.6Returnonequity 3.7Averageinterestondebts 4.5% 4.5% 5.0% 5.0% 5.0% 4.50% 4.50% Costofcommonprojects 3.8CommonProject1 4.Complementaryinformationoninflationandontotalcostsinrealterms 4.1Inflation%(1) 1.9% 2.0% 2.5% 4.2Priceindex(2) 101.9 103.9 106.5 4.3Totalcostsrealterms(3) 136.3 144.2 149.4 Total%n/n1 5.8% 3.6%

2.5% 109.2 152.9 2.3%

2.5% 111.9 151.7 0.8%

1.9% 101.9 134.5

3.6% 105.6 138.6 3.0%

5.DeductionofcostsallocatedtoexemptedVFRflights(innominalterms) 5.1Totalcosts 138.8 149.9 159.2 167.0 5.2CostsforexemptedVFRflights 1.9 1.8 1.8 1.8 5.3Totalcostsafterdeduction(4) 136.9 148.1 157.4 165.2

169.8 1.8 168.0

137.0 1.8 135.2

146.3 1.8 144.5

Costsandassetbaseitemsin'000000EuroServiceunitsin'000000 (1)Actual/forecastinflationusedforestablishingthedeterminedcostsinnominaltermsactual/revisedforecastinflation (2)Priceindexbase100inyearN3 (3)Determinedcosts(performanceplan)inrealtermsactual/revisedforecastcostsatN3prices (4)DeterminedcostsafterdeductionofVFRcostsactual/revisedforecastcosts *Forecastdatausedforthecalculationofthecorrespo

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