Swiss Economics conducted an independent review of the regulatory weighted average cost of capital (WACC) for an international airport. The engagement focused on several key components of the WACC calculation, including:

• the selection of an appropriate peer group of airports for beta estimation, including an assessment of the comparability of existing and potential peers based on regulatory and liquidity characteristics;
• a forward-looking assessment of beta developments, taking into account current market conditions and expected trends in both global capital markets and the air travel sector; and
• the debt premium used in the calculation of the cost of debt, applying a credit-rating-based framework and assessing the sensitivity of the results to alternative credit-rating assumptions.

The analysis provides an independent basis for assessing the airport's regulatory cost of capital and is intended to inform the next round of regulatory negotiations between the airport and airlines.