RESTRICTEDWORLD TRADE
ORGANIZATIONS/C/W/188
7 February 2001
(01-0596)
Council for Trade in Services Original: English/
French/
Spanish
COMMUNICATION FROM THE INTERNATIONAL CIVIL AVIATION ORGANIZATION
ICAO's Policies on Charges for Airports and Air Navigation Services
At the second meeting of the review mandated under paragraph 5 of the Air Transport Annex
held on 4 December 2000, the ICAO representative indicated that the revision of the ICAO Council
statements on airports and air navigation charges described in document S/C/W/163/Add.1 in paragraphs129 and 168 and in S/C/W/163/Add.2 in paragraphs 90 to 113, had been finalized and undertook to make
available to Members the resulting document.  This document is hereby circulated for information.S/C/W/188
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Doc 9082/6
ICAO’S POLICIES ON CHARGES
FOR AIRPORTS AND
AIR NAVIGATION SERVICES
Sixth Edition - 2001
Approved by the Council and published by its decision
INTERNATIONAL CIVIL AVIATION ORGANIZATIONS/C/W/188
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ICAO’S POLICIES ON CHARGES
FOR AIRPORTS AND
AIR NAVIGATION SERVICES
Sixth Edition - 2001
Adopted by the Council on 22 June 1992,
at the 14th Meeting of its 136th Session,
and amended by it on 8 December 2000,
at the 18th Meeting of its 161st SessionS/C/W/188
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TABLE OF CONTENTS
FOREWORD....................................................................................................................... ................................6
I. INTRODUCTION................................................................................................................. ..............................8
FINANCIAL B ACKGROUND........................................................................................................... ...............8
SCOPE AND PROLIFERATIO N OF CHARGES ..........................................................................................8
ORGANIZATIONAL AND MANAGERIAL ISSUES....................................................................................8
AUTONOMY AND PRIVATIZATION ................................................................................................................8
INDEPENDENT MECHANISM FOR ECONOMIC REGULATION OF AIRPORTS AND AIR NAVIGATION
SERVICES ............................................................................................................................... .......................9
DEVELOPMENT AND APPLICATION OF PERFORMANCE PARAMETERS ........................................................9
BEST COMMERCIAL PRACTICES FOR AIRPORTS AND AIR NAVIGATION SERVICES ...................................10
JOINT CHARGES COLLECTION ...................................................................................................................10
OTHER FACTORS AFFECTING THE ECONOM IC SITUATION OF AIRPORTS AND AIR
NAVIGATION SERVICES ............................................................................................................ .................10
II. ICAO’S POLICIES ON AIRPORT CHARGES.......................................................................................... ..12
THE COST BASIS FOR AIRPORT CHARGES...........................................................................................12
AIRPORT CHARGING SYSTEMS ....................................................................................................... ........13
PRE-FUNDING OF PROJECTS........................................................................................................ .............14
CURRENCY I SSUES ................................................................................................................ .......................14
LANDING CHARGES ................................................................................................................ .....................14
PARKING AND HA NGAR CHARGES..................................................................................................... ....15
PASSENGER SERV ICE CHARGES...................................................................................................... ........15
SECURITY CH ARGES ............................................................................................................... ....................16
NOISE-RELATED CHARGES .......................................................................................................... .............16
CONSULTATION WITH USERS ........................................................................................................ ..........17
CHARGES ............................................................................................................................... .....................17
AIRPORT PLANNING ............................................................................................................................... ....17
“FIRST RESORT ” MECHANISM ...................................................................................................................18
DEVELOPMENT OF REVENUES FROM CONCE SSIONS, RENTAL OF PREMISES AND
“FREE ZONES”................................................................................................................... .............................18
FUEL CONCESSION FEES........................................................................................................... .................18
III. ICAO’S POLICIES ON CHARGES FOR AIR NAVIGATIO N SERVICES .............................................19
THE COST BASIS FOR AIR NAVI GATION SERVICES CHARGES......................................................19
ALLOCATION OF COSTS OF AIR NAVIGA TION SERVICES AMONG AERONAUTICAL
USERS.......................................................................................................................... ......................................20S/C/W/188
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AIR NAVIGATION SERVICES CHARGING SYSTEMS ..........................................................................20
PRE-FUNDING OF PROJECTS........................................................................................................ .............21
CURRENCY I SSUES ................................................................................................................ .......................21
APPROACH AND AERODROME CONTROL CHARGES .......................................................................22ROUTE AIR NAVIGATION SERVICES CHARGES .................................................................................22
CHARGES FOR AIR NAVIGATION SERVICES US ED BY AIRCRAFT WHEN NOT OVER THE
PROVIDER STATE ................................................................................................................. ........................23
CONSULTATION WITH USERS ........................................................................................................ ..........23
C
HARGES ............................................................................................................................... .....................23
AIR NAVIGATION SERVICES PLANNING .....................................................................................................24
“FIRST RESORT MECHANISM ” ...................................................................................................................24
APPENDIX 1
GUIDE TO THE FACILITIES AND SERVICES TO  BE TAKEN INTO ACCOUNT IN
DETERMINING AIRPORT COSTS .....................................................................................................2 5
APPENDIX 2
GUIDE TO THE FACILITIES AND SERVICES TO BE TAKEN  INTO ACCOUNT BY
PROVIDING AUTHORITIES  IN DETERMINING THE TOTA L COSTS OF AIR NAVIGATION
SERVICES ....................................................................................................................... .........................27
APPENDIX 3
GLOSSARY OF  TERMS.............................................................................................................. ...........29
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ICAO’S POLICIES ON CHARGES FOR AIRPORTS
AND AIR NAVIGATION SERVICES
FOREWORD
1. ICAO’s Policies on Charges for Airports and Air Navigation Services which follow contain
the recommendations and conclusions of the Council resulting from ICAO’s continuing study of
charges in relation to the economic situation of airports and air navigation services provided forinternational civil aviation. The Policies, which are intended for the guidance of Contracting States,
take into account the recommendations made in this field by the Conference on the Economics of
Airports and Air Navigation Services (ANSConf 2000), held in Montreal from 19 to 28 June 2000
(Doc 9764 - ANSConf 2000), and  supersede the policies contained in the Statements by the Council
to Contracting States on Charges for Airports and Air Navigation Services  (Doc 9082/5).
2. ICAO’s commitment in the fiel d of airport and air navigation services charges has its
principal origin in Article 15 – Airport and similar charges , of the Convention on International Civil
Aviation . This commitment has found further expression in the Organization’s Consolidated
Statement of Continuing ICAO Poli cies in the Air Transport Field , which is updated at each regular
Session of the Assembly; currently, in Resolution A32-17 , Appendix F – Airports and air navigation
services,  the Assembly inter alia  requests the Council to ensure that the guidance and advice
contained in Doc 9082 is current and responsive to the requirements of Contracting States.
3. The Council wishes to draw attention to the di stinction between its policies and guidance on
charges contained in this document, the policies on customs duty in Article 24 of the Convention on
International Civil Aviation, and  the Council’s policies and guidance on taxation set out in ICAO’s
Policies on Taxation in the Field of International Air Transport  (Doc 8632), which address taxation
of fuel, lubricants and other consumable technical supplies, as well as taxation of income of
international air transport enterprises and aircraft and other moveable property; and taxes on the sale
and use of international air transport. As considered by the Council charges are levies to defray the
costs of providing facilities and services for civil aviation whereas taxes are levies to raise general
national and local government revenues that are applied for non-aviation purposes.
4. In developing these Policies the Council has noted with concern that the problems involved in
providing and maintaining the airport and air navigation facilities and services required by the
Regional Air Navigation Plans are particularly serious for the less advanced economies, principal
among these being the limited financial resources available for economic development in general, the
higher priority assigned to other sectors of th e economy whose needs are considered more urgent,
under-utilization of airports and air navigation services, the high cost of obtaining equipment from
other States and the difficulties in recruiting and retaining sufficient numbers of qualified personnel.
The Council will continue to take appropriate action towards obtaining more assistance for the States
concerned in planning and financing air navigation services as well as with regard to the provision of
adequate human resources.
5. A glossary of terms as used in the present Policies on Charges is contained in Appendix 3. To
assist States in the implementation of the Policies, the ICAO Secretariat has developed and maintainstwo manuals: the Airport Economics Manual  (Doc 9562) and the Manual on Air Navigation Services
Economics  (Doc 9161). Parallel Assembly and Council policy on the regulation of air carriers is
contained in Policy and Guidance Material on the Economic Regulation of International Air
Transport (Doc 9587), which is similarly complemented by a  Manual on the Regulation of
International Air Transport (Doc 9626). Information on the airport and air navigation services
charges actually levied in States is updated and published annually in the Tariffs for Airports and AirS/C/W/188
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Navigation Services (Doc 7100)*, while traffic and financial data for airports and air navigation are
published annually through ICAO Statistical Digests (series AT and AF); all these data are alsoavailable from ICAO in electronic form.
6. The present Policies were adopted by the Council on 8 December 2000, at the 18th Meeting
of its 161st Session.
_______________
                                                     
* Previously published under the title Manual of Airpor t and Air Navigation FacilityTariffs (Doc 7100)S/C/W/188
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I. INTRODUCTION
FINANCIAL BACKGROUND
7. The Council notes that the financial situation of airports as well as that of air navigation
services are in a stage of evolution, and the financial situation of their primary users, the scheduled
airlines, generally fluctuates with the performance of national, regional and global economies*.
SCOPE AND PROLIFERATION OF CHARGES
8. The Council recommends that States:
(i) Permit the imposition of charges only for services and functions which are provided
for, directly related to, or ultimately beneficial for civil aviation operations.
(ii) Refrain from imposing charges which discriminate against international civil aviation
in relation to other modes of international transport.
9. In this regard the Council is concerned over the proliferation of charges on air traffic and
notes that the imposition of charges in one jurisdiction can lead to the introduction of charges in
another jurisdiction.
ORGANIZATIONAL AND MANAGERIAL ISSUES
Autonomy and privatization
10. The Council observes that experience gained worldwide indicates that where airports and air
navigation services have been operated by autonomous entities their overall financial situation and
managerial efficiency have generally tended to improve. Nearly all the entities have been established
by governments although the operation of many such entities, in particular those operating airports,
has since been transferred partly or completely to private enterprise.
11. The Council therefore recommends that where this  is in the best interest of providers and
users, States consider establishing autonomous entities to operate their airports or air navigation
services, recognizing that in some circumstances a single entity may operate both airports and air
navigation services, and that the entity may be in the form of an autonomous civil aviation authority.
12. The Council also encourages international cooperation in the provision and operation of air
navigation services where this is beneficial for the providers and users concerned. (See also paragraph18 below addressing joint charges collection).
13. The Council emphasizes with regard to private involvement that States, when considering the
commercialization or privatization of airports and providers of air navigation services, bear in mind
that the State is ultimately responsible for safety, security, and, in view of the monopolistic nature of
airports and air navigation services, economic oversight of their operations.
14. The Council also wishes to stress that where an autonomous body or entity is established,
whether by a government or by private interests, to operate an airport(s) and/or air navigation
services, the State should stipulate as a condition for its approval of the new body or entity that it
observe all relevant obligations of the State specified in the Convention on International Civil
                                                     
*Historic trends and recent information on the financial situation of the various parties may be found in the
relevant ICAO Statistics Digests and Circulars published by the Organization from time to time.S/C/W/188
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Aviation  and its Annexes. The observance by autonomous bodies or entities of other ICAO policies
and practices, such as those contained in the present Policies on Charges, should be recommended or
required as necessary, by States.*
Independent mechanism for economic regulation of airports and air navigation services
15. The Council  notes that with the rapidly grow ing autonomy in the provision and operation of
airports and air navigation services many States may wish to establish an independent mechanism for
the economic regulation of airports and air navigation services.  Such a mechanism, the establishment
of which in such circumstances is recommended by the Council, would oversee economic,
commercial and financial practices and its objectives  could be drawn or adapted from, but need not be
limited to, the following:
(i) Ensure non-discrimination in the application of charges.
(ii) Ensure there is no overcharging or other anti-competitive practices or abuse of
dominant position.
(iii) Ensure transparency as well as the availability and presentation of all financial data
required to determine the basis for charges.
(iv) Assess and encourage efficiency and efficacy in the operation of providers.
(v) Establish and review standards, quality and level of services provided.
(vi) Monitor and encourage investments to meet future demand.
(vii) Ensure user views are adequately taken into account.
Development and application of performance parameters
16. The Council recommends that States encourage their airports and providers of air navigation
services to:
(i) Develop and collect data on performance in the provision of their services (such as
aspects related to safety, delay, predictability, flexibility, efficiency, availability,
access, environment, and cost of service).
(ii) Use these parameters to evaluate and improve the quality of services provided.
(iii) Take these parameters into account to help support their investment decisions.
(iv) Undertake consultations with users to achieve mutual understanding and consensus.
(v) Develop and maintain costing systems that permit users and providers to understand
the true costs of providing services.
                                                     
* Previously published under the title Manaual of airport and air Navigation Facility Tariffs
(Doc 7100)S/C/W/188
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Best commercial practices for airports and air navigation services
17. The Council endorses the application of principles of best commercial practice for airports
and air navigation services in order to promote transparency, efficiency and cost effectiveness in the
provision of an appropriate quality of services and facilities. The Council therefore recommends that
States apply best commercial practice in such areas as:
(i) Quality and timeliness of services.
(ii) Assessment of investment proposals.
(iii) Consultation process and dealing with users.
(iv) Accounting practices and transparency.
(v) Subsidization.
(vi) Development plans.
Joint charges collection
18. The Council recommends that States or their delegated service providers consider
participating in joint charges collection agencies whenever this is advantageous, taking into account
the following:
(i) The importance of States themselves controlling the collection of their charges.
(ii) The need for careful study of the terms under which the collection service is to be
provided.
(iii) Identification and description of the costs of the services for which they are being
charged.
(iv) That any administrative fee is included in the charge.
OTHER FACTORS AFFECTING THE ECONOMIC SITUATION OF AIRPORTS AND
AIR NAVIGATION SERVICES
19. The Council notes that a number of additional factors are likely to exert an important
influence on the organization and economic development of airports and air navigation services.
These include the growing liberalization of air serv ices,  air carrier concentration including mergers,
changes in approaches to financing with airports  (in particular) and providers of air navigation
services being expected to assume primary re sponsibility for financing investments in their
infrastructure requirements, capacity management, airport and airspace congestion, and environmentalconcerns. Also, the number of autonomous  entities operating airports or air navigation services is
expected to increase. This is resulting in more situations where an airport is operated by a different
entity from that providing air navigation services (both approach and aerodrome control and route air
navigation services). Also, additional resources will be required to deal with the problem of airport
and airspace congestion, and to implement satellite-based communications, navigation andsurveillance (CNS) and air traffic management (ATM) systems, as well as other multi-national
facilities and services, and other improvements in infrastructure.S/C/W/188
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20. The Council observes that under these circumstances many airports and providers of air
navigation services may find it necessary to increase their charges and in the case of airports place
greater emphasis on further developing revenues from non-aeronautical sources. However,
recognizing that users face restrictions with regard to their choice of particular airports and of routes
to be flown, the Council recommends that caution be exercised when attempting to compensate for
shortfalls in revenue and that account be taken of the effects of increased charges on air carriers whichmay need to adjust their tariffs to deal with increases in cost arising from higher charges. The Council
also considers that there should be a balance between the respective interests of airports and providers
of air navigation services on one hand and of air carriers on the other, in view of the importance of the
air transport system to States and its influence in fostering economic, cultural and social interchanges
between States. This applies particularly during periods of economic difficulty. The Council therefore
recommends that States encourage increased cooperation between airports and providers of air
navigation services and air carriers, to ensure that economic difficulties facing them all are shared in areasonable manner.
—————————S/C/W/188
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II. ICAO’S POLICIES ON AIRPORT CHARGES
THE COST BASIS FO R AIRPORT CHARGES
21. The Council considers that as a general principle it is desirable, where an airport is provided
for international use, that the users shall ultimate ly bear their full and fair share of the cost of
providing the airport. It is therefore important that airports maintain accounts which provide
information  adequate for the needs of both airports and users and that the facilities and services
related to airport charges be identified as precisely as possible. In determining and allocating the total
cost to be met by charges on international air services, the list in Appendix 1 may serve as a general
guide to the facilities and services (including sa tellite services) to be taken into account. Airports
should maintain accounts that provide a satisfactory  basis for determining and allocating the costs to
be recovered, should publish their financial statements on a regular basis and should provide adequatefinancial information to users in consultations.
* Moreover, the Council recommends that States
consider the application, where appropriate, of internationally accepted accounting standards for
airports.
22. The Council also states that in determining th e cost basis for airport charges the following
principles should be applied:
(i) The cost to be shared is the full cost of providing the airport and its essential ancillary
services, including appropriate amounts for cost of capital and depreciation of assets,
as well as the cost of maintenance and operation and management and administration
expenses, but allowing for all  aeronautical revenues plus contributions from  non-
aeronautical revenues accruing from the operation of the airport to its operators.
(ii) In general aircraft operators and other airport users should not be charged for
facilities and services they do not use, other than those provided for and implemented
under the Regional Air Navigation Plan.
(iii) Only the cost of those facilities and services in general use by international air
services should be included and the cost of facilities or premises exclusively leased oroccupied and charged for separately should be excluded.
(iv) An allocation of costs should be considered in respect of space or facilities utilized by
government authorities.
(v) The proportion of costs allocable to various categories of users, including State
aircraft, should be determined on an equitable basis, so that no users shall be
burdened with costs not properly allocable to them according to sound accounting
principles.
(vi) Costs related to the provision of approach and aerodrome control should be separately
identified. (Principles applicable to the recovery of such costs are addressed more
fully in the Policies on Charges for Air Navigation Services.)
(vii) Airports may produce sufficient revenues to exceed all direct and indirect operating
costs (including general administration, etc.) and so provide for a reasonable returnon assets  at a sufficient level to secure financing on favourable terms in capital
                                                     
*Guidance on accounting contained in the Airport Economics Manual  (Doc 9562) and the  Manual on Air
Navigation Services Economics  (Doc 9161) may be found useful in this general context, although there are
other approaches.S/C/W/188
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markets for the purpose of investing in new or expanded airport infrastructure and,
where relevant, to remunerate adequately holders of airport equity.
(viii) The capacity of users to pay should not be taken into account until all costs are fully
assessed and distributed on an objective basis. At that stage the contributing
capability of States and communities concerned should be taken into consideration, it
being understood that any State or charging authority may recover less than its fullcosts in recognition of local, regional, or national benefits received.
AIRPORT CHARGING SYSTEMS
23. The Council recommends that charging systems at international airports  be chosen in
accordance with the following principles:
(i) Any charging system should, so far as possible, be simple and suitable for general
application at international airports.
(ii) Charges should not be imposed in such a way as to discourage the use of facilities
and services necessary for safety.
(iii) Charges should be determined on the basis of sound accounting principles and may
reflect, as required, other economic principles, provided that these are in conformitywith Article 15 of the Convention on International Civil Aviation  and other principles
in the present Policies.
(iv) The charges must be non-discriminatory both between foreign users and those having
the nationality of the State  in which the airport is located and engaged in similar
international operations, and between two or more foreign users.
(v) Where any preferential charges, special rebates, or other kinds of reduction in the
charges normally payable in respect of airport facilities are extended to particular
categories of users, governments should ensure, so far as practicable, that any
resultant under-recovery of costs properly allocable to the users concerned is not
shouldered on to other users.
(vi) To avoid undue disruption to users, increases in charges should be introduced on a
gradual basis; however, it is recognized that in some circumstances a departure from
this approach may be necessary.
(vii) Where charges are levied by different authorities at an airport, they should, so far as
possible, be consolidated into a single charge or a very small number of different
charges, the combined revenues being distributed among the authorities concerned in
a suitable way.
(viii) Maximum flexibility should be maintained in the application of all charging methods
to permit introduction of improved techniques as they are developed.
(ix) Airport charges levied on international general aviation should be assessed in a
reasonable manner, having regard to the cost of the facilities needed and used and the
goal of promoting the sound development of international civil aviation as a whole.S/C/W/188
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PRE-FUNDING OF PROJECTS
24. The Council considers, notwithstanding the principles of cost-relatedness for charges and of
the protection of users from being charged for facilities that do not exist or are not provided (currently
or in the future) that, after having allowed for possible contributions from non-aeronautical revenues,pre-funding of projects may be accepted in specific circumstances where this is the most appropriate
means of financing long-term, large-scale investment, provided that strict safeguards are in place,
including the following:
(i) Effective and transparent economic regulation of user charges and the related
provision of services, including performance auditing and “benchmarking”
(comparison of productivity criteria against other similar enterprises).
(ii) Comprehensive and transparent accounting, with assurances that all aviation user
charges are, and will remain, earmarked for civil aviation services or projects.
(iii) Advance, transparent and substantive consultation by providers and, to the greatest
extent possible, agreement with users regarding significant projects.
(iv) Application for a limited period of time with  users benefiting from lower charges and
from smoother transition in changes to charges than would otherwise have been the
case once new facilities or infrastructure are in place.
CURRENCY ISSUES
25. The Council recommends:
(i) That under normal circumstances, user charges should be expressed and payable in
the local currency of the State concerned.
(ii) That under special circumstances, for example where economic conditions are not
stable, when a State proposes, or allows, denomination of user charges in other than
local currency,  air carriers could apply the same currency of denomination, using the
same exchange rate, for their local ticket sales.
(iii) That every effort be made to remove obstacles preventing an air carrier  based in one
State from transferring in convertible currency its net income from sales in anotherState
*.
LANDING CHARGES
26. The Council recommends that the following prin ciples be taken into account when landing
charges are established:
(i) Landing charges should be based on the weight formula, using the maximum
permissible take-off weight as indicated in the certificate of airworthiness (or other
prescribed document) as the basis for assessment. However, allowance should be
made for the use of a fixed charge per aircraft or a combination of a fixed charge with
a weight related element, in certain circumstances such as at congested airports and
during peak periods.
                                                     
*Further aspects of currency conversi on, remittance of earnings  and payment of local expenses are contained
in Policy and Guidance Material on the Economic Regulation of International Air Transport (Doc 9587).S/C/W/188
Page 15
(ii) The landing charge scale should be based on a constant rate per 1 000 kilograms or
pounds in weight, but the rate may be varied at a certain level or levels of weight if
considered necessary.
(iii) Where charges for approach and aerodrome control are levied as part of the landing
charge or separately, they could take aircraft weight into account but less than in
direct proportion. (Principles applicable to such charges are addressed more fully inthe Policies on Charges for Air Navigation Services.)
(iv) No differentiation in rates should be applied for flights because of the stage length
flown.
(v) A single charge should be applied for costs of as many as possible of airport-provided
facilities and services for normal landing and take-off of aircraft (generally excluding
hangars and certain terminal-building and other facilities as are normally handled by
leases or other usual commercial practices).
(vi) Where restrictions on aircraft payload are imposed by airport limitations,
consideration should be given locally to adjusting the landing charge indicated by the
weight scale in cases where the restrictions are of a severe and long-lasting nature.
(vii) The ordinary landing charge should cover the use of lights and special radio aids for
landing where these are required, since it is in the interest of safety that aircraftoperators should not be discouraged from utilizing aids by the imposition of separate
charges for their use. If separate charges are made for facilities of this kind, they
should not be levied on the basis of optional use but should be uniformly imposed on
all landings occurring during periods established by the airport operators.
PARKING AND HANGAR CHARGES
27. The Council recommends that the following princi ples be applied in establishing parking and
hangar charges:
(i) For the determination of charges associated with use of parking, hangar and
long-term storage of aircraft, maximum pe rmissible take-off weight and/or aircraft
dimensions (area occupied) and length of stay  should be used so far as possible as the
basis.
(ii) The period of free parking time for aircraft immediately following landing should be
determined locally by considering aircraft scheduling, space availability and other
pertinent factors.
PASSENGER SERVICE CHARGES
28. The Council recognizes that the revenue accrued from passenger service charges is essential
to the economy of a significant number of airports. There are, however, frequently major facilitation
problems arising from the collection of such charges directly from the passenger, especially at largeairports, and these problems will potentially c ontinue to mount with the continuing growth of
passenger traffic and the increasing number of high-capacity aircraft operated, especially at busy
terminal buildings during peak hours. The Council therefore recommends that States endeavour to
ensure that the levying of passenger service charges does not create additional queueing and delays at
airports, if appropriate by avoiding the collection of these charges directly and separately from thepassenger at the airport. More specifically, the Council recommends that where the collection of aS/C/W/188
Page 16
passenger service charge directly from passengers at an airport gives rise to facilitation problems, this
charge should be levied instead on the  air carriers where practicable. The Council also emphasizes
the need for consultations between airport authorities and air carriers at the local level, with a view to
alleviating collection problems.
SECURITY CHARGES
29. The Council notes that States are responsible for ensuring the implementation of adequate
security measures at airports pursuant to the provisions of ICAO Annex 17 – Security  to the
Convention on International Civil Aviation  and that they may delegate the task of providing
individual security functions to such agencies as airport authorities, air carriers and local police. The
Council also notes that States may determine in which circumstances and the extent to which the costs
involved in providing security facilities and serv ices should be borne by the State, the airport
authorities or other responsible agencies. With refe rence to the recovery of security costs from the
users, the Council recommends that the following general principles be applied:
(i) Consultations should take place before any security costs are to be assumed by
airports, air carriers or other entities.
(ii) The authorities concerned may recover the costs of security measures at airports from
the users in a fair and equitable manner, subject to consultation.
(iii) Any charges or transfers of security costs should be directly related to the costs of
providing the security services concerned and should be designed to recover no more
than the relevant costs involved.
(iv) No discrimination should be exercised between the various categories of users when
charging for the level of security provided. Additional costs incurred for extra levels
of security provided regularly on request to certain users may also be charged to these
users.
(v) When the costs of security at airports are recovered through charges the method used
should be discretionary, but such charges should be based either on the number ofpassengers or on aircraft weight, or a combination of both factors. Security costs
allocable to airport tenants may be recovered through rentals or other charges.
(vi) Charges may be levied either as additions to other existing charges or in the form of
separate charges but should be subject to separate identification of costs and
appropriate explanation.
NOISE-RELATED CHARGES
30. The Council recognizes that although reductions are being achieved in aircraft noise at
source, many airports will need to continue the application of noise alleviation or prevention
measures. The Council considers that the costs incurr ed in implementing such measures may, at the
discretion of States, be attributed to airports and recovered from the users and that States have theflexibility to decide on the method of cost recovery and charging to be used in the light of local
circumstances. In the event that noise-related charges are to be levied the Council recommends that
consultations should take place on any items of expenditure to be recovered from users and that the
following principles be applied:S/C/W/188
Page 17
(i) Noise-related charges should be levied only at airports experiencing noise problems
and should be designed to recover no more than the costs applied to their alleviation
or prevention.
(ii) Any noise-related charges should be associated with the landing fee, possibly by
means of surcharges or rebates, and should  take into account the noise certification
provisions of ICAO Annex 16 – Environmental Protection  to the Convention on
International Civil Aviation  in respect of aircraft noise levels.
(iii) Noise-related charges should be non-discriminatory between users and not be
established at such levels as to be prohibitively high for the operation of certain
aircraft.
CONSULTATION WITH USERS
Charges
31. The Council emphasizes the importance of consultation with airport users before changes in
charging systems or levels of charges are introduced. The purpose of consultation is to ensure that the
provider gives sufficient information to users relating to the proposed change and gives proper
consideration to the views of users and the effect the charges will have on them. The aim should bethat, wherever possible, changes should be made in agreement between users and providers. Failing
such agreement airports would continue to be free to impose the charges concerned subject to users
having the right of appeal to a body independent of the airport, where available, but the appeals
process used should be consistent with the regulatory regime in the State concerned (see also
paragraph 33). It is not possible to lay down a specific procedure for consultations of this kind owingto the diversity in the administrative, financial and legal frameworks within which airports function;
the procedures at individual airports will also need to take account of the size and scale of the
airport’s activities. However, subject to thes e considerations, the Council recommends that:
(i) When a revision of charges or the imposition of new charges is contemplated by an
airport operator or other competent authority, appropriate notice should normally begiven to users or their representative bodies at least four months in advance, in
accordance with the regulations applicable in each State.
(ii) In any such revision of charges or imposition of new charges the users should be
given the opportunity to submit their views and consult with the airport operator or
competent authority. For this purpose the users should be provided with transparent
and adequate financial operational and other information to allow them to make
informed comments.
(iii) Reasonable advance notice of the final decision on any revision of charges or
imposition of new charges should be given to the users.
Airport planning
32. The Council also considers it important in the lig ht of the very high and ever-increasing cost
of new airports and major developments at existing airports that users or their representative
organizations be consulted before the finalization of plans for projects. The purpose of such
consultation is to ensure that, wherever possible, the developments concerned meet the needs of users
and that users are aware of the financial implications in terms of the charges that would be paid by
them. Equally, in order that airport authorities may better plan their future financial requirements,airport users, particularly air carriers, should for their part provide advance planning data to individual
airport authorities on a 5 to 10-year forecast basis relating to future types, characteristics, and numbersS/C/W/188
Page 18
of aircraft expected to be used; the anticipated growth of passengers and cargo to be handled; the
special facilities which the airport users desire; and other relevant matters. Such planning could best
be accomplished by two-way discussions between airports and air carriers, either directly or through
their respective representative organizations.*
“First resort” mechanism
33. The Council considers, with regard to charges in particular, that with the rapid growth in the
number of airports that are independent from direct government control, there may in the interest of
the airports and their users, be a need for a neutral party at the local level to preempt and resolve
disputes before they enter the international arena (a “first resort” mechanism). The mechanism should
be flexible  and its focus should be on conciliation or mediation but could range to full arbitration if
the State concerned so decides. Such a function might be included in the terms of reference of an
independent body with the much broader responsibilities of overseeing the operations of theautonomous service providers, referred to in paragraph 15 above, or it might be separately established.
DEVELOPMENT OF REVENUES FROM CONCESSI ONS, RENTAL OF PREMISES AND “FREE
ZONES”
34. The Council recognizes the continuing importance to airports of income derived from such
sources as concessions, rental of premises, and “free zones”. The Council recommends that, with the
exception of concessions that are directly associated with the operation of air transport services, such
as fuel, in-flight catering and ground handling, the full development of revenues of this kind be
encouraged having regard to the need for moderation in prices to the public, the requirements ofpassengers, and the need for terminal efficiency. All possibilities for developing airport concession
revenues should be studied and ICAO should be kept informed of practices and conclusions in this
regard so that the benefit of experience may be made available to all.
*
FUEL CONCESSION FEES
35. The Council recommends that where fuel “throughput” charges are imposed they should be
recognized by airport authorities as being concession charges of an aeronautical nature and that fuelconcessionaires should not add them automatically to the price of fuel to aircraft operators, although
they may properly include them as a component of their costs in negotiating fuel supply prices with
aircraft operators. The level of fuel “throughput” charges may reflect the value of the concessions
granted to fuel suppliers and should be related to the cost of the facilities provided, if any.
Alternatively, consideration may be given, where feasible, to replacing fuel “throughput charges” byfixed concession fees reflecting the value of the concession and related to the costs of the facilities
provided, if any. The Council also recommends that any such charges or fees where imposed should
be assessed by airport operators in such a manner as to avoid discriminatory effects, either direct or
indirect, for both fuel suppliers and aircraft operat ors and to avoid their becoming an obstacle to the
progress of civil aviation.
—————————
                                                     
*Extensive guidance on airport planning may be found in the Airport Planning Manual  (Doc 9184).
*In the development and determination of the fees for concessions directly associated with the operation of air
transport services, reference might be made to the relevant guidance contained in the Airport Economics
Manual  (Doc 9562) and to the model clause on ground handling for optional application in air services
agreements in Policy and Guidance Material on the Economic Regulation of International Air Transport
(Doc 9587).S/C/W/188
Page 19
III. ICAO’S POLICIES ON CHARGES FOR AIR NAVIGATION SERVICES
THE COST BASIS FOR AIR NAVIGATION SERVICES CHARGES
36. The Council considers that as a general principle, where air navigation services are provided
for international use, the providers may require the users to pay their share of the related costs; at thesame time international civil aviation should not be asked to meet costs which are not properly
allocable to it. The Council therefore encourages States to maintain accounts for the air navigation
services they provide in a manner which ensures that air navigation services charges levied on
international civil aviation are properly cost based.
37. The Council considers that an equitable cost recovery system could proceed from an
accounting of total air navigation services costs incurred on behalf of aeronautical users, to an
allocation of these costs among categories of users, and finally to the development of a charging orpricing policy system. In determining the total cost s to be paid for by charges on international air
services, the list in Appendix 2 may serve as a genera l guide to the facilities and services to be taken
into account.
* Moreover, the Council specifically recommends that States consider the application,
where appropriate, of internationally accepted accounting standards for providers of air navigation
services, which maintain separate accounts.
38. The Council recommends that when establishing the cost basis for air navigation services
charges, the following principles should be applied:
(i) The cost to be shared is the full cost of providing the air navigation services,
including appropriate amounts for cost of capital and depreciation of assets, as well as
the costs of maintenance, operation, management and administration.
(ii) The costs to be taken into account should be those assessed in relation to the facilities
and services, including satellite services, provided for and implemented under the
ICAO Regional Air Navigation Plan(s), supplemented where necessary pursuant to
recommendations made by the relevant ICAO Regional Air Navigation Meeting, as
approved by the Council. Any other facilities and services, unless provided at therequest of operators, should be excluded, as should the cost of facilities or services
provided on contract or by the carriers themselves, as well as any excessive
construction, operation, or maintenance expenditures.
(iii) The costs of air navigation services provided during the approach and aerodrome
phase of aircraft operations should be identified separately, and so should when
possible the costs of providing aeronautical meteorological service.
(iv) Air navigation services may produce sufficient revenues to exceed all direct and
indirect operating costs and so provide for a return on assets (before tax and cost of
capital) to contribute towards necessary capital improvements.
39. The Council observes that in determining the costs to be recovered from users:
(i) Governments may choose to recover less than full costs in recognition of local,
regional, or national benefits.
                                                     
*Guidance on accounting contained in the Airport Economics Manual  (Doc 9562) and the  Manual on Air
Navigation Services Economics  (Doc 9161) may be found useful in this general context.S/C/W/188
Page 20
(ii) It is for each State to decide for itself whether, when, and at what level any air
navigation services charges should be imposed, and it is recognized that States in
developing regions of the world, where financing the installation and maintenance of
air navigation services is difficult, are particularly justified in asking the international
air carriers to contribute through user charges towards bearing a fair share of the cost
of the services.
(iii) The approach towards the recovery of full costs should be a gradual progression.
ALLOCATION OF COSTS OF AIR NAVIGATION SERVICES AMONG
AERONAUTICAL USERS
40. The Council recommends that the allocation of the costs of air navigation services among
aeronautical users be carried out in a manner equitable to all users. The proportions of cost
attributable to international civil aviation and other utilization of the facilities and services (including
domestic civil aviation, State or other exempted aircraft, and non-aeronautical users) should be
determined in such a way as to ensure that no us ers are burdened with costs not properly allocable to
them according to sound accounting principles. The Council also recommends that States shouldacquire basic utilization data in respect of air navigation services, including the number of flights by
category of user (i.e. air transport, general aviation, and other) in both domestic and international
operations, and other data such as the distance flown and aircraft type or weight, where such
information is relevant to the allocation of costs and the cost recovery system.
*
AIR NAVIGATION SERVICES CHARGING SYSTEMS
41. The Council recommends that States should ensure that systems used for charging for air
navigation services are established in accordance with the following principles:
(i) Any charging system should, so far as possible, be simple, equitable and, with regard
to route air navigation services charges, suitable for general application at least on a
regional basis. The administrative cost of collecting charges should not exceed a
reasonable proportion of the charges collected.
(ii) The charges should not be imposed in such a way as to discourage the use of facilities
and services necessary for safety or the introduction of new aids and techniques. The
facilities or services provided for in the ICAO Regional Air Navigation Plan(s) or in
any recommendations of the relevant ICAO Regional Air Navigation Meeting as areapproved by the Council, are, however, considered to be necessary for general safety
and efficiency.
(iii) Charges should be determined on the basis of sound accounting principles and may
reflect, as required, other economic principles, provided that these are in conformity
with Article 15 of the Convention on International Civil Aviation  and other principles
in the present Policies.
(iv) The system of charges must be non-discriminatory both between foreign users and
those having the nationality of the State or States responsible for providing the air
                                                     
* Guidance on cost allocation is contained in the Manual on Air Navigation Services Economics  (Doc 9161),
and the Airport Economics Manual  (Doc 9562), although States use any accounting approach they consider
meets their particular requirements.S/C/W/188
Page 21
navigation services and engaged in simila r international operations, and between two
or more foreign users.
(v) Where any preferential charges, special rebates, or other kinds of reduction in charges
normally payable in respect of air navigation services are extended to particular
categories of users, governments should ensure, so far as practicable, that any
resultant under-recovery of costs properly allocable to the users concerned is notshouldered on to other users.
(vi) Any charging system should take into account the cost of providing air navigation
services and the effectiveness of the services rendered. The charging system should
be introduced in such fashion as to take account of the economic and financial
situation of the users directly affected, on the one hand, and that of the provider State
or States, on the other.
(vii) Charges should be levied in such a way that no facility or service is charged for twice
with respect to the same utilization. In cases where certain facilities or services have a
dual utilization (e.g. approach and aerodrome control as well as en route air traffic
control), their cost should be equitably distributed in the charges concerned.
(viii) The charges levied on international general aviation should be assessed in a
reasonable manner, having regard to the cost of the facilities needed and used and thegoal of promoting the sound development of international civil aviation as a whole.
PRE-FUNDING OF PROJECTS
42. The Council considers, notwithstanding the principles of cost-relatedness for charges and of
the protection of users from being charged for facilities that do not exist or are not provided (currently
or in the future) that, after having allowed for contributions from non-aeronautical revenues, pre-
funding of projects may be accepted in specific circumstances where this is the most appropriate
means of financing long-term, large-scale investment, provided that strict safeguards are in place,
including the following:
(i) Effective and transparent economic regulation of user charges and the related
provision of services, including performance auditing and “benchmarking”
(comparison of productivity criteria against other similar enterprises).
(ii) Comprehensive and transparent accounting, with assurances that all aviation user
charges are, and will remain, earmarked for civil aviation services or projects.
(iii) Advance, transparent and substantive consultation by providers and, to the greatest
extent possible, agreement with users regarding significant projects.
(iv) Application for a limited period of time with  users benefiting from lower charges and
from smoother transition in changes to charges than would otherwise have been the
case once new facilities or infrastructure are in place.
CURRENCY ISSUES
43. The Council:
(i) Recommends that under normal circumstances, user charges should be expressed and
payable in the local currency of the State concerned.S/C/W/188
Page 22
(ii) Recommends that under special circumstances, for example where economic
conditions are not stable, when a State proposes, or allows, denomination of user
charges in other than local currency,  air carriers could apply the same currency of
denomination, using the same exchange rate, for their local ticket sales.
(iii) Recommends that every effort be made to remove obstacles preventing an  air carrier
based in one State from transferring in convertible currency its net income from salesin another State.
(iv) Recognizes that when route air navigation services charges are billed on a regional
basis (i.e. on behalf of several States or by a jointly operated agency), it may be
advantageous to both users and providers to denominate and pay charges in a single
convertible currency.
*
APPROACH AND AERODROME  CONTROL CHARGES
44. The Council recommends that where charges for approach and aerodrome control are levied,
whether as part of the landing charge or separately, the charge should, so far as possible, be a single
element of the landing charge or a single charge per flight and could take aircraft weight into account
but less than in direct proportion.
ROUTE AIR NAVIGATION SERVICES CHARGES
45. The Council recommends that the charge for route air navigation services should, so far as
possible, be a single charge per flight; that is to say, it should constitute a single charge for all routeair navigation services provided by a State or group of States for the airspace to which the charge
applies. The charge should be based essentially on:
(i) The distance flown within a defined area.
(ii) The aircraft weight.
The element of distance flown, taken as one of the acceptable measures of the service rendered,
should be applied by means of a distance scale using great circle distances or other commonly agreed
distances. The element of aircraft weight should be applied by means of a weight scale using broad
intervals which should be standardized so far as possible. This weight scale should take into account,
less than proportionately, the relative productive capacities of the different aircraft types concerned.
46. The Council recognizes, however, without prejudice to the guidelines provided above, which
constitute a charging system for general application, that:
(i) The characteristics of a given airspace will determine the most appropriate charging
method for that airspace, having regard to the type of traffic, the distances flown, and
the characteristics of the aircraft in that airspace.
(ii) When the distance flown and/or the aircraft types are reasonably homogeneous, the
distance and weight elements may be separately or jointly neglected as the case may
be.
                                                     
*Further aspects of currency conversi on, remittance of earnings and paymen t of local expenses are contained
in Policy and Guidance Material on the Economic Regulation of International Air Transport (Doc 9587).S/C/W/188
Page 23
(iii) In some circumstances, it may be considered appropriate to use a combination of a
flat charge per flight and a charge based on the parameters recommended above in
recognition of there being an element of fi xed costs in providing air traffic services.
CHARGES FOR AIR NAVIGATION SERVICES US ED BY AIRCRAFT WHEN NOT OVER THE
PROVIDER STATE
47. The Council observes that the providers of air navigation services for international use may
require all users to pay their share of the cost of providing them regardless of whether or not the
utilization takes place over the territory of the provider State. Accordingly, wherever a State has
accepted the responsibility for providing route air navigation services over another State, over the
high seas or in an airspace of undetermined sovereignty (in accordance with the provisions of ICAOAnnex 11 – Air Traffic Services  to the Convention on International Civil Aviation and Regional Air
Navigation Agreements approved by the Council), the State concerned may levy charges on all users
for the services provided. A State may delegate to another State or to an organization the authority to
levy such charges on its behalf.
48. The Council also notes that the collection of air navigation services charges in cases where
the aircraft does not fly over the provider State poses difficult and complex problems. It is for the
States to find the appropriate kind of machinery on a bilateral or regional basis for meetings between
provider States and those of the users, aiming to reach as much agreement as possible concerning the
facilities and services provided, the charges to be levied and the methods of collecting these charges.
CONSULTATION WITH USERS
Charges
49. The Council emphasizes the importance of consultation with users of air navigation services
before changes in charging systems or levels of charges are introduced. The purpose of consultation isto ensure that the provider gives sufficient inform ation to users relating to the proposed change and
gives proper consideration to the views of users and the effect the charges will have on them. The aim
should be that, wherever possible, changes should be made in agreement between users and providers.
Failing such agreement providers of air navigation services would continue to be free to impose the
charges concerned subject to users having the right of appeal to a body independent of the provider of
air navigation services, where available, but the appeals procedure should be consistent with the
regulatory regime in the State concerned (see also paragraph 51). It is not possible to lay down aspecific procedure for consultations of this kind ow ing to the diversity in the administrative, financial
and legal frameworks within which providers of ai r navigation services function. The procedures with
regard to individual providers of air navigation services will also need to take account of the size and
scale of the provider’s activities. However, subject to these considerations, the Council recommends
that:
(i) When a revision of charges or the imposition of new charges is contemplated by a
provider of air navigation services or other competent authority, appropriate notice
should normally be given to users or their representative bodies at least four months
in advance, in accordance with the regulations applicable in each State.
(ii) In any such revision of charges or imposition of new charges the users should be
given the opportunity to submit their views and consult with the provider of air
navigation services or competent authority. For this purpose the users should be
provided with transparent and adequate financial, operational and other information
to allow them to make informed comments.S/C/W/188
Page 24
(iii) Reasonable advance notice of the final decision on any revision of charges or
imposition of new charges should be given to the users.
Air navigation services planning
50. The Council also considers it important in the light of the high and ever-increasing cost of
providing new or expanded air navigation services that users or their representative organizations be
consulted before the finalization of plans for such projects. The purpose of such consultation is toensure that, wherever possible, the developments c oncerned meet the needs of users and that users are
aware of the financial implications in terms of the charges that would be paid by them. Equally, in
order that providers of air navigation services may better plan their future financial requirements, the
Council considers that users, particularly air ca rriers, should either directly or through their
representative bodies, provide advance planning data relating to future types, characteristics andnumbers of aircraft expected to be used; the special facilities which the users desire; and other
relevant matters, to the extent possible on a 5 to 10-year forecast basis.
“First resort mechanism”
51. The Council considers, with regard to charges in  particular, that with the accelerating growth
in the number of instances where provision of air navigation services is independent from directgovernment control, there may in the interest of the providers of air navigation services and their
users, be a need for a neutral party at the local level to preempt and resolve disputes before they enter
the international arena (a “first resort” mechanism). The mechanism should be flexible and its focus
should be on conciliation or mediation but it could range to full arbitration if the State concerned so
decides. Such a function might be included in th e terms of reference of an independent body with
much broader responsibilities of overseeing the operations of the autonomous service providers,
referred to in paragraph 15 above, or it might be separately established.
—————————S/C/W/188
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APPENDIX 1
GUIDE TO THE FACILITIES AND SERVICES TO
BE TAKEN INTO ACCOUNT IN DETERMINING AIRPORT COSTS
Approach, landing and take-off facilities and services
Landing area with cleared approaches and taxiways with necessary drainage, fencing, etc. Also,
lights for approach, landing, taxiing and take-off, as well as communications and other special aidsfor approach, landing and take-off (sometimes provided by other than the airport operator).
Approach and aerodrome control: air traffic control for approach, landing, taxiing and take-off with
necessary communications, navigation and surveillance supporting services. (Approach andaerodrome control is sometimes partly or wholly provided by other than the airport operator. Seealso Appendix 2).
Meteorological services (frequently provided by an entity other than the airport operator). (See also
Appendix 2 as to when an allocation of the costs of these services, proportional to their utilizationfor airport operations, should be considered).
Fire and ambulance service in attendance.Terminals, aircraft parking space, hangars and other facilities and services provided for aircraft
operators
Passenger and public waiting rooms and concourses with necessary heating, lighting, janitor
service, approach roads, etc.
Accommodation for air carrier offices, traffic counters and air crews, and for the handling of
passengers and cargo.
Assistance in handling passengers and cargo, and necessary equipment.Special servicing of aircraft (air conditioning, cleaning, etc.).Towing and other handling of aircraft.Space for parking and long-term storage of aircraft.
Hangar, workshop, stores, garage and other technical accommodation.
Land leased to aircraft operators for various purposes.Provision of aircraft fuel (usually via concessions) and other technical supplies, and also of
maintenance and repairs for aircraft.
Communication facilities (aircraft operating agency messages - Class B).Common services such as the provision of light, heat, power and heating fuel.S/C/W/188
Page 26
Security measures, equipment, facilities and personnel for the following functions:
Inspection/screening of passengers and cabin baggage.Security in departure/arrival lounges, including transfer/transit lounges and other terminal areas.Security of airside areas.Security of landside areas.Accommodation for other than aircraft operatorsAccommodation for shops, hotels, restaurants, ground transport providers, banks/money exchanges,
post office, telegraph office, etc.
Facilities paid for directly by the public (car parking, sightseeing, etc.).Accommodation for necessary government activities, customs, immigration, public health,
agricultural quarantine, etc.
Land rented to other than aircraft operators (including grazing rights, etc.).Noise alleviation and preventionNoise monitoring systems, noise suppressing equipment and noise barriers.Land or property acquired around airports.Soundproofing of buildings near airports and other noise alleviation measures arising from legal or
governmental requirements.
—————————S/C/W/188
Page 27
APPENDIX 2
GUIDE TO THE FACILITIES AND SERVICES TO BE TAKEN
INTO ACCOUNT BY PROVIDING AUTHORITIES
IN DETERMINING THE TOTAL COSTS OF AIR NAVIGATION SERVICES
Air traffic management
Air traffic management (ATM) is divided into air traffic services (ATS), air traffic flow
management (ATFM) and airspace management (ASM), with ATS being the primary component.
ATS, including flight information services and alerting services, may be provided by an approach
control office and an aerodrome control tower, and for aircraft en route, by an area control centreor a flight information centre.
These services may be defined as follows:
Approach control service:  Air traffic control service for arriving or departing controlled flights.
This includes services provided in a terminal control area which is a control area normallyestablished at the confluence of ATS routes in the vicinity of one or more major aerodromes.
Aerodrome control service:  Air traffic control service for aerodrome traffic.Area control service :  Air traffic control service for controlled flights in control areas (en route).
ATFM is typically organized with a centralized flow management unit (CFMU). A flow
management unit (or flow management cell) is established in each participating area control centre.
Communication, navigation and surveillance systemsGround and/or satellite-based aeronautical communications (both air-ground and ground-ground),
navigation and surveillance systems necessary for safety and regularity of flights. Major elements ofthese systems are:
Communications: Ground and/or satellite-based facilities supporting aeronautical fixed service
(AFS), aeronautical mobile service (AMS) and aeronautical broadcast service.
Navigation: Conventional ground-based radio and visual aids to navigation, global navigation
satellite system (GNSS) and its associated augmentation systems in support of all phases of flight.
Surveillance: Primary/secondary surveillance radars and other ground/satellite-based facilities
supporting the automatic dependent surveillance (ADS) and/or ADS-Broadcast (ADS-B).
Meteorological servicesAll that part of the meteorological service allocable to civil aviation, including in particular, among
the facilities and services whose costs are to be so allocated, those that furnish civil aviation withmeteorological forecasts, briefs and observations, as well as SIGMET information, VOLMETbroadcasting material and any other meteorological data provided by States for the use of civilaviation. The costs of all meteorological services provided to civil aviation should, whereS/C/W/188
Page 28
appropriate, be allocated between air traffic services provided for airports and air traffic services
provided en route. In States where more than one international airport is involved, considerationcould be given, where possible, to allocating the costs attributable to airport utilization between theairports concerned.
Other ancillary aviation servicesAll that part of the services allocable to civil aviation of any permanent civil establishment of
equipment and personnel maintained for the purposes of providing such services as search andrescue, accident investigation, aeronautical charts and information services.
—————————S/C/W/188
Page 29
APPENDIX 3
GLOSSARY OF TERMS
The following terms are described as they apply in the context of these Policies.
Aerodrome control service . Air traffic control service for aerodrome traffic.
Air navigation services . This term includes air traffic management (ATM, see Appendix 2),
communication, navigation and surveillance systems (CNS), meteorological services for airnavigation (MET), search and rescue (SAR) and aeronautical information services (AIS). Theseservices are provided to air traffic during all phases of operations (approach, aerodrome control anden route).
Approach control service . Air traffic control service for arriving or departing controlled flights.
This includes services provided in a terminal control area which is a control area normallyestablished at the confluence of ATS routes in the vicinity of one or more major aerodromes.
Autonomous authority . An independent entity established for the purpose of operating and
managing one or more airports and/or air navigation services, which is empowered to manage anduse the revenues it generates to cover its costs.
Annex 11 . Refers to ICAO Annex 11 – Air Traffic Services – to the Convention on International
Civil Aviation .
Annex 16 . Refers to ICAO Annex 16 – Environmental Protection – to the Convention on
International Civil Aviation .
Annex 17 . Refers to ICAO Annex 17 – Security – Safeguarding International Civil Aviation
Against Acts of Unlawful Interference – to the Convention on International Civil Aviation .
Concession . The right to operate a certain commercial activity at an airport, commonly on an
exclusive basis and usually at a specified location.
Council . The Council of ICAO.
Depreciation of assets . The decrease in the value of an asset due to wear and tear through use,
action of the elements, inadequacy or obsolescence normally over a predetermined period of time(depreciation period/book life of the asset).
Financial statements . This includes the profit and loss statement and the balance sheet. The profit
and loss statement summarizes all revenues and expenses with the difference between the two totalsbeing either a profit or a loss. The balance sheet summarizes assets and liabilities with thedifference 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 suchS/C/W/188
Page 30
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.
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.)
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. Itcould be operated by one State, a group of States or an international operating agency.
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.
Regional plan . The relevant ICAO Regional Air Navigation Plan.
Rental of premises . The right to occupy certain defined premises against payment of a fee.
Representative user organizations . These include the International Air Carrier Association (IACA),
the International Air Transport Association (IATA), the International Business Aviation Council(IBAC), and the International Council of Aircraft Owner and Pilot Associations (IAOPA).
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 rentalor leasing of premises and land, and free-zone operations, even though such arrangements may infact apply to activities which may themselves be considered to be of an aeronautical character (e.g.concessions granted to oil companies to supply aviation fuel and lubricants and the rental of terminalbuilding space or premises to air carriers). Also intended to be included are the gross revenues, lessany sales tax or other taxes, earned by shops or services operated by the airport itself.
__________