Division The Netherlands

Suggestions for corrective measures:

1. 1..

   Traffic: In July 2015, compared to the information provided in the initial performance plan, the Netherlands did not revise the traffic growth planned over RP2, which was based on the Statfor February 2015 low scenario. Based on the actual 2015 traffic and the latest forecast provided by Statfor (February 2016), it is suggested that the planned traffic be revised upwards to reflect the latest available information.

2. 2..

   Interest rate on debt: The Netherlands assumed an interest rate on debts of 3,2 % for 2019 for its ANSP (LVNL). However, the monetary conditions have significantly evolved. Currently, long term interest rates for the Netherlands are historically low and, based on the European Central Bank data, the harmonised long-term rate is well below 1 %. It is therefore suggested that the Netherlands use a marginally lower interest rate to compute LVNL cost of capital.

Adjusting the planned traffic for 2018 and 2019 and capping the interest rate on debt, for example, at 3,0 % for the year 2019 would result in an en route determined unit cost trend over the second reference period of – 2,5 % per year which is closer to the Union-wide trend (– 3,3 % per year) and an en route determined unit cost trend over the combined period of the first and the second reference period of – 1,5 % per year which is closer to the Union-wide target (– 1,7 % per year).