NB
M
10
4.3 Impact of Appropriating the Accumulated Cash Balance and Applying a Future Target Rate of Return of 16.5% on ANFA Employed
4.3.1 The projected rates of return on ANFA at existing
charge levels are given in Table 3 below.
TABLE 3
1987/88 1988/89 1989/90 1990/91
ANFA ($M)
1,595.4
1,858.0 2,089.5 2,233.4
Projected Post-Tax Operating Surplus ($M)
291.7
308.8
289.3
291.0
Return on ANFA (%)
18.3
16.6
13.8
13.0
4.3.2
The annual rate of increase in major aeronautical
charges needed to generate an average annual return
of 16.5% on ANFA over the period 1987/88 to 1990/91
is set out in Table 4 below.
TABLE 4
Increases
w.e.f.
1987/88
Increases
w.e.f.
1988/89
D
5.5
9.5
Increases
w.e.f.
1989/90
10
21.5
It is assumed that increases take effect from 1 October in each year to allow sufficient time to undertake the necessary consultation with IATA User Charges Committee and afford users a reasonable notice period of determined adjustments in charge levels.
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