S.L. 499.19 Art. 3Airport Charges Regulatory Board.

(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), 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.