S.L. 499.19 Art. 4Functions of the Board.

(1) The Board shall, in the execution of its functions, seek to promote the following:

(a) the interests of airport users, and the Maltese economy; and

(b) the efficient, economic and profitable operation of the airport and the aerodrome.

(2) In considering the interests of users and of the Maltese economy, the Board shall seek to balance the application of the following principles:

(a) charges shall be reasonably related to costs, including depreciation and a return on capital employed;

(b) the Airport operator is to be encouraged to invest in airport facilities to meet demand;

(c) charges should be comparable to those levied at other airports which serve areas competing with Malta as a tourist destination;

(d) the achievement of service standards applicable internationally in the industry.

(3) In considering the need to promote the efficient and profitable operation of the airport, the Board shall seek to balance the application of the following principles:

(a) allow the Airport operator to benefit from any increase in aviation and non-aviation revenues and improvements in efficiency by permitting the Airport operator to enjoy above-average returns on capital employed by reference to the industry;

(b) allow the Airport operator experience below-average returns on capital employed that may result in the course of normal commercial operations of an airport while ensuring that the Airport operator has the minimum financial means to provide users with a safe and reliable service: For the purpose of this paragraph, the Board shall normally permit levels of return on capital, taking into account aviation and non-aviation revenues earned and the value of related assets located at the airport and aerodrome, within a range of one-half to one and a half times of the risk adjusted return on capital for the industry;

(c) any activities not existing on the entry into force of these regulations, including but not limited to, retail outlets, shall not be included in the calculations reckoned pursuant to those stipulated in paragraph (b). The Airport operator’s revenues, costs and assets associated with such activities will not be included in the calculations of the Airport operator’s return on capital employed.