Airport Economic (Amendment) Regulations, 2011

L.N. 132 of 2011

AUTHORITY FOR TRANSPORT IN MALTA ACT

(CAP. 499)

Airport Economic (Amendment) Regulations, 2011

IN exercise of the powers conferred by article 43 of

the Authority for Transport in Malta Act, the Minister for

Infrastructure, Transport and Communications, after consultation

with the Authority for Transport in Malta, has made the following

regulations

The title of these regulations is the Airport Economic

(Amendment) Regulations, 2011, and they shall be read and

construed as one with the Airport Economic Regulations, 2001,

hereinafter referred to as “the principal regulations”.

Regulation 2 of the principal regulations shall be

amended as follows

(a)

the definition “agreed service levels” shall be

deleted;

(b)

the definition “airport” shall be substituted as

follows

“ “airport” means any land area specifically

adapted for the landing, taking-off and manoeuvring of

aircraft, including the ancillary installations which these

operations may involve for the requirements of aircraft

traffic and services, including the installations needed to

assist commercial air services;”;

(c) the definition “airport charges” shall be substituted

as follows

“ “airport charge” means a levy collected for the

benefit of the airport managing body and paid by the

airport users for the use of facilities and services, which

are exclusively provided by the airport managing body

and which are related to landing, take-off, lighting and

parking of aircraft, and processing of passengers and

freight;”;

(d) immediately after the definition “airport facility

charges” there shall be inserted the following new definition

“ “airport managing body” means a body that has

as its objective the administration and management of

the airport infrastructure, and the co-ordination and

control of the activities of the different operations

present in the airport.”;

(e) the definition “Airport operator” shall be substituted

as follows

“ “Airport operator” means the airport managing

body;”;

(f) immediately after the definition ”Airport operator”,

there shall be inserted the following new definition

“ “airport user” means any natural or legal person

responsible for the carriage of passengers, mail and/or

freight by air to or from the airport concerned;”;

(g) immediately after the new definition “airport user”,

there shall be inserted the following new definition

“ “AUC” means the Airport Users Committee

which is set up at the airport representing airport users;”;

(h) immediately after the new definition “AUC”, there

shall be inserted the following new definition

“ “the Directive” means Directive 2009/12/EC

of the European Parliament and of the Council of 11

March 2009 on airport charges;”;

(i) the definition “rate of inflation” shall be deleted;

(j) immediately after the definition “Minister”, there

shall be inserted the following new definition

“ “the Authority” means the Authority for Transport

in Malta established by article 5 of the Authority for

Transport in Malta Act, 2009.”.

For regulation 3 of the principal regulations there shall be

substituted the following

“3. (1) The determination, review and regulation

of airport charges as well as the quality of service provided

shall be the responsibility of the board established by this

regulation.

(2) (a) There shall be established a board, to be

known as the Airport Charges Regulatory Board, hereinafter

referred to as “the Board”, which shall meet once a year,

unless agreed otherwise in the latest meeting of the Board.

(b) The Board shall be chaired by a person

of recognised standing and experience in economics, who

shall be appointed by the Minister.

(c) The Chairman shall hold office for a

period not exceeding three years, which may be renewed for

a further period or periods of three years each.

(d) The Board shall, apart from the

Chairman, be composed also of the following members

(i) one representative from the Civil Aviation

Directorate within the Authority for Transport in Malta;

(ii) one representative of the AUC;

(iii) one representative of the Airport operator.

(e) The members and the Chairman of the

Board shall each have one vote. The Chairman shall have a

casting vote in the case of an equality of votes.

(3) The quorum for meetings of the Board shall

be of two members and the Chairman.

(4) (a) The Airport operator shall be entitled

to propose an adjustment in the level of airport charges, or a

modification of the system or structure of airport charges in

accordance with this sub-regulation.

(b) The Airport operator shall communicate its

proposal, together with the reasons for the proposed changes,

to the AUC, for consultation, at least four months before the

proposals are expected to enter into force, unless there are

exceptional circumstances which need to be justified to airport

users.

(c) Prior to each consultation with the AUC, the

Airport operator shall provide the AUC with information on

the components serving as a basis for determining the system

or the level of all airport charges, which information shall

include

(i) a list of the various services and infrastructure

provided in return for the airport charge levied;

(ii)

the methodology used for setting airport

charges;

(iii) the overall cost structure with regard to the

facilities and services which airport charges relate to;

(iv) the revenue of the different charges and the

total cost of the services covered by them;

(v) any financing from public authorities of the

facilities and services which airport charges relate to;

(vi) forecasts of the situation at the airport

as regards the charges, traffic growth and proposed

investments;

(vii) the actual use of airport infrastructure and

equipment over a given period;

(viii) the predicted outcome of any major

proposed investments in terms of their effects on airport

capacity; and

(ix) plans for new infrastructure projects before

these plans are finalised.

(d) Prior to each consultation with the Airport

operator, the AUC shall provide to the Airport operator the

following information in respect of each airport user

(i)

forecasts as regards traffic;

(ii) forecasts as to the composition and envisaged

use of their fleet;

(iii) each airport user’s development projects at

the airport concerned;

(iv) each airport user’s requirements at the airport

concerned.

(e) The information provided in terms of this

sub-regulation shall be considered as confidential and

economically sensitive and shall be handled accordingly. Any

applicable stock exchange legislation shall be complied with.

(5) After communicating its proposals to the AUC,

the Airport operator shall submit its proposals to the Board,

taking into account, insofar as is reasonably possible, any

views put forward by the AUC.

(6) (a) As part of the consultation process, the

Airport operator and the AUC may enter into negotiations

with a view to concluding a service level agreement.

(b) Any such service level agreement shall

determine the level of the service to be provided by the

Airport operator which takes into account the actual system or

the level of airport charges and the level of service to which

airport users are entitled in return for airport charges.

(7) In determining, reviewing, regulating or

investigating an increase in the level of airport charges or

the modification of the system or structure of airport charges,

in terms of sub-regulation (5) of this regulation, the Board

shall have access to necessary information from the Airport

operator, the AUC and any other parties concerned.

(8) The Board shall issue its decision not later than

three months of the proposal being submitted to it by the

Airport operator.

(9) In addition to airport charges, the Airport operator

shall be entitled to recover from airport users, whether through

increases in airport charges or otherwise, the increase in costs

or loss of revenue resulting from exceptional or unforeseeable

events including, but not limited to, discriminatory changes

in taxation or similar levies, Government measures which

impose additional costs in respect of aviation security or the

protection of the environment.”.

Regulations 9 and 10 of the principal regulations shall be

Immediately after regulation 8 of the principal

regulations, there shall be added the following new regulations

The Authority shall ensure the correct

“Authority for

application of the measures taken to comply with

ensure correct the Directive and that the procedure, conditions and

of measures. criteria applied by it shall be relevant, objective, non-

discriminatory and transparent.

In the event of disagreement between the

disagreement.

members of the Board over a decision on airport

charges, every member may seek the intervention of

the Authority which shall examine the justifications for

the modification of the system or the level of airport

charges.

(1) A modification of the system or the

level of airport charges decided upon by the Board shall

not, if brought before the Authority, take effect until the

Authority has examined the matter.

(2) The Authority shall, within four weeks

of the matter being brought before it, take an interim

decision on the entry into force of the modification of

airport charges, unless the final decision can be taken

within the same deadline.

(3) Without prejudice to sub-regulation

(2) hereof, the Authority shall issue a final decision as

soon as possible, and in any case within four months of

the matter being brought before it. This period may be

extended by two months in exceptional and duly justified

cases.

(4) The decisions of the Authority shall,

subject to review in accordance with the provisions

of article 469A of the Code of Organization and Civil

Procedure, be binding on the Airport operator and

airport users.

(5) The Authority shall publish an annual

report concerning its activities.

When determining or regulating airport

charges or undertaking any review or investigation into

the justification for any increase in the level of airport

charges or the modification of the system or structure

of airport charges, the Board or the Authority shall be

permitted to levy a charge on the Airport operator and

the AUC to cover its reasonable costs, including the

costs of engaging appropriate consultants and experts as

may be necessary to carry out its functions in a proper

manner.

(1) Any person who fails to provide the

Airport Charges Regulatory Board or the Authority with

the relevant information requested within a reasonable

time specified in a written notice shall be guilty of an

offence.

(2) Any person who knowingly provides

false information to the Board or the Authority shall be

guilty of an offence.

(1) A person who commits an offence

under regulation 13(1) shall be liable, on conviction, to

a fine (multa) not exceeding two thousand five hundred

euro (€2,500), and in case of a second or subsequent

conviction, to a fine (multa) not exceeding five thousand

euro (€5,000).

(2) A person who commits an offence under

regulation 13(2) shall be liable, on conviction, to a fine

(multa) not exceeding ten thousand euro (€10,000) or to

imprisonment for a term not exceeding six months, or to

both such fine and imprisonment.”.

B

€0.72