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asset).
ICAO’s Policies on Charges for
28 Airports and Air Navigation Services
Differential charges. Any preferential charges, rebates, volume discounts or other reductions in the charges normally
payable for the use of airport and air navigation services and facilities.
Economic oversight. The function by which a State supervises commercial and operational practices of an airport or an
ANSP.
Economic regulation. Measures taken by a State with regard to legislation or rule-making, establishment of a
regulatory mechanism, etc., to perform its economic oversight functions.
Financial statements. These include the income statement and the balance sheet. The income statement summarizes
all revenues and expenses, with the difference between the two totals being either a profit or a loss. The balance
sheet summarizes assets and liabilities, with the difference between the two representing an increase or decrease
in net worth.
Fixed costs. Costs which in the short term remain unchanged regardless of whether or not the volume of services
provided increases or decreases.
Free zones. A defined area adjacent to or within the boundary of an international airport of a State where goods may be
imported, stored, processed and exported without being subject to any such import, export or transit duties and
taxes as may normally be applicable to goods moving to or from that State.
Fuel “throughput” charges. A concession fee levied by an airport on each litre or gallon (or other liquid measure) of
aviation fuel sold at the airport.
Global Air Navigation Plan. Strategic document that describes the methodology for global air navigation harmonization.
It contains guidance on the ATM improvements necessary to support a uniform transition to the ATM system
envisioned in the ICAO Global ATM Operational Concept.
Global Air Traffic Management (ATM) Operational Concept. A high-level description of the ICAO vision of an
integrated, harmonized and globally interoperable ATM system.
Great circle distance. The length of the shorter arc of the great circle joining two points. (Great circle. A circle on the
surface of the earth, the plane of which passes through the centre of the earth.)
Key performance areas (KPAs) . Key areas of performance corresponding to the expectations of providers, regulators,
users and other interested parties.
Local air quality (LAQ) emissions-related charges. Charges levied on aircraft with respect to aircraft engine
emissions that have effects on local air quality.
Modulated charges. Charges that are adjusted according to the time and/or situation of use of the facility or service
concerned (for example, peak/off-peak hours, air traffic congestion, noise and local air quality aspects).
Multinational facility or service. A facility/service established for the purpose of servicing international air navigation in
airspace extending beyond the airspace serviced by a single State. It could be operated by one State, a group of
States or an international operating agency. Guidance on the establishment of such a facility or service is included
in all regional air navigation plans.
Performance management. An interactive process through which the performance of providers is expected to improve
over time. This process consists of several steps, i.e. defining performance objectives, selecting performance
indicators and setting their targets, monitoring performance, and reporting and assessing performance.
Appendix 3 29
Pre-funding. Partial or complete financing of an airport or air navigation facility project through charges levied on users
prior to completion of the facility concerned.
Privatization. Transfer of full or majority ownership of facilities and services to the private sector.
Providers. In this document, refers to entities providing and operating airports or air navigation services.
Regional plan. The relevant ICAO Regional Air Navigation Plan.
Rental of premises. The right to occupy certain defined premises against payment of a fee.
Revenues from non-aeronautical sources. Any revenues received by an airport in consideration for the various
commercial arrangements it makes in relation to the granting of concessions, the rental or leasing of premises and
land, and free-zone operations, even though such arrangements may in fact apply to activities which may
themselves be considered to be of an aeronautical character (for example, concessions granted to oil companies
to supply aviation fuel and lubricants and the rental of terminal building space or premises to air carriers). Also
intended to be included are the gross revenues, less any sales tax or other taxes, earned by shops or services
operated by the airport itself.
Users. This term refers to aircraft operators as users of airports and air navigation facilities and services. The term “end
　
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