Singapore legislation

Regulation 7

of Civil Aviation Authority of Singapore (Price Control of Aeronautical Charges) Rules 2009

Regulation 7

Content of determinations

Amended byS 361/2012 wef 31/07/2012S 361/2012 wef 31/07/2012S 361/2012 wef 31/07/2012S 361/2012 wef 31/07/2012S 361/2012 wef 31/07/2012S 361/2012 wef 31/07/2012S 361/2012 wef 31/07/2012S 284/2010 wef 01/06/2010S 9/2018 wef 08/01/2018

Subregulation 1

Amended byS 361/2012 wef 31/07/2012S 361/2012 wef 31/07/2012S 361/2012 wef 31/07/2012S 361/2012 wef 31/07/2012S 361/2012 wef 31/07/2012S 361/2012 wef 31/07/2012S 361/2012 wef 31/07/2012

A determination for a regulatory period must include a direction about the pricing of aeronautical services and facilities provided by the airport licensee for an airport in any or all of the following terms:

(a)

a maximum price or both a minimum and maximum price for each aeronautical service or facility to be provided in that regulatory period;

(b)

a maximum total amount (revenue cap, revenue yield cap or otherwise) that may be earned by the airport licensee providing aeronautical services and facilities from the provision of those services and facilities in relation to that airport in that regulatory period;

(c)

the maximum rate of increase or the minimum rate of decrease in maximum price;

(d)

the average price or the average rate of increase or decrease in average price;

(e)

a tariff for the provision of aeronautical services and facilities, including the rate of increase or decrease in a tariff, a maximum tariff or maximum rate of increase or minimum rate of decrease in the maximum tariff or an average tariff or an average rate of increase or decrease in the average tariff;

(f)

the pricing policies or principles for fixing prices or tariffs;

(g)

by reference to a general price index or to quantity, location or period of provision of the aeronautical services and facilities, the class of persons to whom aeronautical services and facilities is provided;

(h)

such other terms as the Authority considers appropriate.

Subregulation 2

Amended byS 284/2010 wef 01/06/2010

A determination may include all or any of the following:

(a)

a price or an amount referred to in paragraph (1)(a) or (b) that is calculated according to the formula in rule 7A;

(b)

a method (for example, by reference to price indices) by which a price or an amount mentioned in paragraph (1) is to be ascertained;

(c)

a reference to the price variation triggers.

Subregulation 2A

Amended byS 9/2018 wef 08/01/2018

A determination for a regulatory period must specify the matters to be considered for the purposes of the mid‑term review under rule 30 for that regulatory period.

Subregulation 3

In making or amending or revoking any determination, the Authority must consider the following matters:

(a)

the cost of providing aeronautical services and facilities and non-aeronautical services and facilities at the airport concerned;

(b)

any international benchmark for prices, costs, revenues and return on assets in bodies providing a service similar to those aeronautical services and facilities and non-aeronautical services and facilities;

(c)

the principle that there is a need for a reasonable return on the assets of the airport licensee concerned;

(d)

the principle that there is a need for efficiency in the provision of the aeronautical services and facilities and non-aeronautical services and facilities for the purpose of benefiting the public interest;

(e)

the effects of inflation and deflation;

(f)

the principle that there is a need for the airport licensee concerned to be financially viable so far as the provision of airport services and facilities are concerned;

(g)

the impact on pricing policies of any borrowing, capital, dividend and taxation or tax equivalent obligations of the airport licensee concerned, including obligations to renew or increase assets;

(h)

the quality of the provision of those aeronautical services and facilities;

(i)

any cost (including capital expenditure) incurred by the airport licensee concerned at the direction of the Authority;

(j)

the public interest; and

(k)

any other matter the Authority considers relevant.