Policy on disbursement of grants and incentives to support the flying activity of the Cuneo Airport Management Company
The policy related to the provision of contributions to volitional activity that GEAC plans to activate during the 20 21 and subsequent tariff period, in compliance with the principles and criteria in this regard established by current regulations national and European regulations, is declined along the following lines:
Type of incentives
Foreword
GEAC Società per la Gestione Aeroporto Cuneo S.p.A.’s main objective is to stimulate the development of air traffic by incentivizing carriers to operate new routes and enhance existing ones, in order to implement a continuous development of the airport and foster economic growth of the Piedmont Region and neighboring areas. GEAC, with the aim of pursuing the objectives described above, intends to make use of an Incentive Policy based on incentives directly proportional to the investment that carriers will make on the airport, differentiated according to priority of objectives and with transparent selection criteria depending on the air services, in consideration of free entrepreneurial initiative and subject to compliance with the principle of the good entrepreneur operating in a market economy (MEO), enshrined in the Community Guidelines on State Aid to Airports and Airlines (EC Law EC No. 2014/c 93/03) and the Guidelines of the Ministry of Infrastructure and Transport. GEAC S.p.A. will prepare a profit and loss statement for each proposal that demonstrates through analysis that the airport/airline agreement will result in an incremental increase in profits for the airport.
The policy will be applied to carriers that commit to implementing strategies to develop and increase area activities at the airport to achieve the goals. The development program, by way of example but not limited to, must contain an indication of the destination, the start-up date, the schedule and number of scheduled frequencies, the type of aircraft, the profitability of the line by indicating the number of passengers upon reaching which the line becomes profitable, evidence of profitability for a congruous period after the termination of the incentive, and any other indication deemed by the carrier to be significant for the purpose of evaluation by GEAC S.p.A.
Parameters for Determining the Contribution
The amount of the contribution will be determined proportionally to the number of passengers carried (paying departing passengers with distinction between adult
The extent of the same will depend on:
- commercial effectiveness of the proposal and the impact on the profitability of the Airport;
- volumes of traffic generated;
- Strategic relevance of the destination;
- period of operation (seasonal or on an annual basis);
- Type of destination (European/extra-European);
- Number of frequencies operated;
The duration of incentive agreements may vary from a minimum of 1 year to a maximum of 5 years depending on the strategic assessment of the operation; Support will also be temporary in nature, in case of multi-year duration it will be decreasing over time. Proposals may be made either by individual airlines or by strategic groupings (alliances) and may cover single routes or a multiplicity of routes. This Policy will be applied to carriers who commit to implementing strategies to develop and increase area activities at the airport to achieve the objectives.
These strategies are defined in development plans by carriers that include:
A. The opening of new destinations
B. The increase in operations on existing destinations;
C .Multi-year traffic development plans for major volumes of passenger traffic;
D. Charter connections with major tour operators specializing in the markets.
Program entry requirements:
- hold certificates issued by the competent authorities, all requirements to conduct aviation activities, including traffic rights where necessary;
- Not having integrated contractual violations of any kind with GEAC S.p.A.
Duration of Incentives:
Depending on the type of traffic to be encouraged, which is better described in the following points, the overall duration may be:
- Ad Hoc related to individual operation;
- Annual;
- Interim or seasonal;
- 1 year to 5 years;
- Multi-year.
Grants, subsidies and other forms of emoluments or economic benefits granted to incentives:
With respect to scheduled passenger flights, the incentive shall not be less than €1.00 (euro one/00) per adult paying passenger departed provided that the Carrier has achieved the minimum number of scheduled frequencies in the calendar year agreed with the operator.
The multi-year incentive agreements will have an overall duration tied to the strategic evaluation of the operation.
In the exercise of the free entrepreneurial initiative it has in the field of incentive programs, GEAC Spa also reserves the right to evaluate and provide additional forms of incentives and co-marketing including, for example, additional contributions (so-called one off) in favor of those Carriers committed to investing in Cuneo Airport with connections deemed particularly strategic for the airport.
To be eligible for the multi-year incentive program, Carriers must email direzione@cuneoairport.com a Development Program containing, but not limited to, new routes to destinations of that they intend to activate from the relevant IATA season, and/or routes already operated.
Recipients of grants:
The Policy will be applied to carriers who commit to implementing strategies to develop and increase area activities at the airport to achieve the objectives.
These strategies are defined in development plans by passenger carriers for all types of airplanes both scheduled and chartered and mixed passenger/cargo as well as cargo-only and providing for:
A. The opening of new destinations
B. The increase in operations on existing destinations;
C .Multi-year traffic development plans for major volumes of passenger traffic;
D. Charter connections with major tour operators specializing in the markets.
Opening a new route
A new route opening is defined as a destination not served by scheduled flights. The size of the contribution will be evaluated according to the parameters given above, more specifically it is required: to operate the new connection with a minimum of 2 weekly frequencies for a period of not less than 20 continuous weeks;
to ensure regularity and continuity for users by limiting operational cancellations to 10 of the entire schedule.
Increase in international destinations served
Any destinations already operated by a carrier, but only on a seasonal basis, for which a carrier plans to operate on a year-round basis, will fall under the type of strategic value for opening new destinations.
The amount of the contribution will be determined according to the parameters in the previous point and guaranteed on incremental traffic. The duration of the incentive is 1 year, extendable up to 5 years.
Multi-year traffic development plans
Multi-year traffic development plans are defined as agreements with carriers that can guarantee operations for
multiple fiscal years and that show the ability to contribute to the effective growth of airport volumes. Such plans
must be modulated to minimum volume thresholds of more than 150,000 annual departing passengers and that
simultaneously ensure the presence of multiple destinations characterized by point-to-point traffic.
point on an annual basis and with a duration of not less than three years. The duration of the incentive ranges from 3 to 5 years.
Charter connections with major tour operators
GEAC S.p.A. is interested in boosting incoming charter traffic by collaborating with major Tour
Operators willing to invest in the airport with their own flight schedules, marketed through
tourism supply.
