Incentive measures

Incentive measures
Calvi Airport wishes to set up an attractive fare policy in order to
reinforce annual and seasonal air traffic and to develop the existing
one.
We would like to encourage the air mobility of our clients and
to make the destination more accessible for a greater number of
French and foreign visitors all year long.
Each airline company that would aim at setting new regular
airlines, either annual or seasonal, or aim at increasing their
programme either on one existing line or more than one existing
line will be encouraged to.
They will benefit from a reduction of any operation charges in link
to the airline setting and from an important marketing support for
any increase in seat offer.
These incentive measures are completely transparent, an
annual detailed report is to be presented at the meeting of the
Consulting Committee gathering together the members of the
COCOECO representing airline companies.
These incentive measures are not discriminatory, applicable in
a completely transparent way and limited in time.
CREATION OF A NEW FLIGHT
Preamble
Any creation of a new regular or charter flight from or to Calvi meeting the criteria mentioned below can
benefit of new incentive measures.
However, a prior agreement between the company and the airport of a new destination is necessary. In
fact, the obligation made by Calvi airport to control the vast financial balances of its management
structure aims at verifying the profitability for the airport generated by a new flight creation.
In case of disagreement, the company has to bring the elements of its studies, report on its market
potential, and proofs on the non competitive character of its operation in the departure/arrival area as
well as any other element proving that creation of new traffic doesn’t affect another already existing
airline.
If after examination the disagreement remains, the company is allowed to create the considered flight,
but it won’t benefit of the incentive measures proposed by the airport.
Terms of eligibility
Is considered as eligible any creation of regular or charter annual or seasonal flight connecting a new
airport with Calvi.
Type of flight : regular, charter with no stop over
Planning : fixed hours and days
Frequency : minimum 1 weekly rotation
Period : minimum 18 weeks
Minimal annual capacity of offered seats : 1350 seats both ways (675 one way)
Geographic area : a new flight should connect Calvi with an airport of the European Union that doesn’t
propose direct scheduled flights for the destination at the moment of flight creation. A new annual scheduled flight
can’t be created from/or to one of the airports integrated in the airport system* (according to n°2408/92 CEE regulation
of the Council, July 23, 1992) in order to be transferred after towards another airport of the same system if the flight
hasn’t been suspended for a period of at least 24 months.
Preliminary Period : without constraint, however, the same company or another company belonging to the same
group (direct share holding or indirect majority share holding) can’t take advantage of the launching of the new flight if it
wasn’t used previously by one of the society of the group and if it hasn’t been suspended for a period of at least 24
months.
Conditions :
A tax allowance calculated according to the amount of “landing” and “passenger” taxes is added to
the benefits of the company. The 3 year duration term of this agreement is not compulsory and can
be renewed from one year to another.
Year
1
2
3
Tax allowance
« Landing » tax
75%
50%
25%
Tax allowance
“PASSENGER” tax
60%
40%
20%
At the end of the 3d year, a normal tariff in force will be applied to all the taxes.
The amount of the tax allowance owed to the company will be returned in a form of a credit note after
the presentation of the invoice with effect from the 2d month of the flight launching.
The company will lose the benefit of the incentive measures and will be obliged to pay taxes from
which it has been exonerated as if it doesn’t respect the programme of the announced flights – except
force major (weather conditions, strikes…).
If the regularity of a flight is inferior to 95% it will lead to the suspension of the measures.
These incentive measures do not concern flights operating within the obligations of Public
Service.
MARKETING SUPPORT TO THE CREATION AND DEVELOPMENT OF AIRLINES FACILITIES
Preconditions
Each regular or charter airline company that will set a new airline or increase the offer in
seat of an existing line at the departure and arrival of Calvi, can benefit from a marketing
support through a refund of promotional and advertisement costs by Calvi airport for and on
behalf of a company or a Tour operator.
Nevertheless, an agreement must necessarily be previously signed between the company or the T/O and
the airport that will set the terms of the agreement.
Indeed, Calvi airport must manage the financial balance of its operations what means checking the real
positive effects of the increasing number of passengers for the platform and verifying that it would not
supply a deficit in traffic of any other existing line managed by the same operator.
If a failure of agreement shall arise, the company will have to give evidence of the facts by written proof.
If the parties fail to remedy the disagreement, the company will be entitled to set any provisional
programme evolution but will not be eligible to benefit form the incentive measures set by the airport.
Terms of eligibility
Each regular or charter airline company setting a new airline or increasing its offer in comparison to
the best of its previous years either by increasing flight frequencies or setting an extra capacity offer
that will imply specific marketing and promotion costs, will be granted a refund according to the
following criteria :
Flight type : regular, direct charter with no stop over
Geographical area : destination in link with an airport of the European Union
Precondition period : not compulsory
Details of implementation
As concerns the creation of a new line, participation to marketing and promotional costs is granted
to the company or Tour operator such as follows:
4€ by passenger at departure year N
As concerns the development of an existing line, participation to marketing and promotion costs is
granted following to the completion of an increase rate in seat offer either by a rise of flight
frequencies or by an extra capacity offer duly confirmed before the starting line of the programme.
Marketing support can be coupled with the measure “creation of a new airline”.
Participation will be granted according to any new transported passenger in comparison to the
increase rate in seat offer:
New seat offer capacity
From
From
From
From
Participation for each additional passenger
15 to 40 %
41 to 60 %
61 to 90 %
91% and more
2€
4€
6€
8€
Participation of Calvi airport is granted according to the following criteria:
•
The participation to any promotional and advertisement costs will be completed at the end of the IATA
concerned season.
•
According to the number of transported passengers
•
On written proof of the settlements ( advertisement and marketing)
•
And not exceeding more than 50% of the total expenses of the year.
•
Cannot exceed 100 000 euros (VAT included) over the 3 years.
The carrier or the Tour operator will benefit of the measure in spite of an increase remaining below the
threshold of targeted figures for any event related to:
Acts of God (weather conditions, strikes…)
That would be proven to have affected the completion of the provisional programme.
Airlines complying with OSP regulations (obligation of public service) are not concerned by these incentive measures.