Consultation Paper No. 13/2023-24 In the matter of Determination of Tariff for Ground Handling Services for Celebi Ground Services Chennai Private Limited (CGSCPL) at Chennai International Airport, Chennai for the First Control Period (FY 2023-24 to FY 2027-28)

फा.स.ं ऐरा /20010/एमवाईटीपी/ सलै ेबी/जीएच/ चन्ै नई /सीपी-III/2023-28 F.N. AERA/20010/ MYTP/Celebi/GH/Chennai/CP-III/2023-28 परामर्श पत्र संख् या 13/2023-24 Consultation Paper No. 13/2023-24 भारतीय विमानपत् तन रवथि श विवनयाम ्ावक र Airports Economic Regulatory Authority of India मैससश सैलेबी ग्राउंड सविशसेज चैन्न ई ्ाई िे वलवम े ससी.जी.एस.सी.पी.एल.) े सबं ंक में चैन् नई अंतराशष्ट्रीय हिाई अड्डा में ्थिम वनयंत्र अिवक सवित् त ि्श 2023-24 से वित्त ि्श 202 -28) े वलए ग्राउंड हैंडवलंग सेिाओ ं े वलए ैररफ वनकाशररत रने े मामले में IN THE MATTER OF DETERMINATION OF TARIFF FOR GROUND HANDLING SERVICES FOR CELEBI GROUND SERVICES CHENNAI PRIVATE LIMITED (CGSCPL) AT CHENNAI INTERNATIONAL AIRPORT, CHENNAI FOR THE FIRST CONTROL PERIOD (FY 2023-24 TO FY 2027-28) जारी रने ी तारीख : 06.10.2023 Date of Issue: 06.10.2023 ऐरा भवन / AERA Building प्रशासननक कॉम् पले्‍ स / Administrative Complex सफदरजंग हवाईअड्डा / Safdarjung Airport नई नदल् ली / New Delhi– 110003 Consultation Paper No. 13/2023-24 Page 1 of 29STAKEHOLDERS’ COMMENTS The Authority has released this Consultation Paper, after considering various assumptions stipulated in the Multi-Year Tariff Proposal (MYTP’) submitted by M/s Celebi Ground Services Chennai Private Limited (CGSCPL), in respect of the Ground Handling services, at Chennai International Airport, Chennai. Accordingly, the Authority’s proposals on the various aspects of the Tariff determination process have been explained in detail in this Consultation Paper. Thus, in accordance with the provisions of Section 13(4) of the AERA Act, the written comments on Consultation Paper No. 13/2023-24 dated 06/10/2023 are invited from the Stakeholders, preferably in electronic form, at the following address: Director (P&S, Tariff) Airports Economic Regulatory Authority of India (AERA), AERA Administrative Complex, Safdarjung Airport, New Delhi – 110003, India Email: satish.kr@aera.gov.in; prabhjot.marwah@nic.in Copy to: director-ps@aera.gov.in; secretary@aera.gov.in Last Date for submission of Stakeholders’ comments 27/10/2023 Last Date for submission of counter comments 06/11/2023 Comments will be posted on AERA’s website: www.aera.gov.in For any clarification/information, Director (P&S, Tariff) may be contacted at Telephone No. +91-11-24695048 Consultation Paper No. 13/2023-24 Page 2 of 29TABLE OF CONTENTS CHAPTER 1: INTRODUCTION ..................................................................................................................... 6 CHAPTER 2: PRINCIPLES FOR DETERMINATION OF TARIFF FOR THE AERONAUTICAL SERVICES ................................................................................................................................. 8 CHAPTER 3: AIRCRAFT TRAFFIC (FLIGHTS TO BE HANDLED)..................................................... 10 CHAPTER 4: CAPITAL EXPENDITURE ................................................................................................... 12 CHAPTER 5: OPERATING EXPENDITURE AND PROJECTED PROFITABILITY ........................... 15 CHAPTER 6: ANNUAL TARIFF PROPOSAL......................................................................................... 19 CHAPTER 7: SUMMARY OF AUTHORITY’S PROPOSALS ............................................................. 23 CHAPTER 8: STAKEHOLDERS' CONSULTATION………………………………………………….…...24 ANNEXURE I: TARIFF RATE CARD FOR M/s CGSCPL IN RESPECT OF DOMESTIC & INTERNATIONAL SCHEDULED FLIGHTS FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28) AT CHENNAI INTERNATIONAL AIRPORT, CHENNAI PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION…….....................….25 ANNEXURE II: TARIFF RATE CARD FOR M/s CGSCPL IN RESPECT OF INTERNATIONAL “NON- SCHEDULED & GENERAL AVIATION FLIGHTS” FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28) AT CHENNAI INTERNATIONAL AIRPORT, CHENNAI PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION…….......26 ANNEXURE III: ITEM WISE CHARGES FOR DOMESTIC AND INTERNATIONAL FLIGHTS FOR M/s CGSCPL IN RESPECT OF GROUND HANDLING SERVICES AT CHENNAI INTERNATIONAL AIRPORT, CHENNAI, PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION……………………………………………………...27 Consultation Paper No. 13/2023-24 Page 3 of 29LIST OF TABLES S. No. Particulars Page No. 1 Shareholding Structure of M/s CGSCPL 6 Actual Aircraft Traffic handled by Chennai International Airport during 2 10 FY 2018-19 to FY 2022-23 Projected Aircraft Traffic (Flights to be handled by the ISP) submitted by 3 10 CGSCPL for the First Control Period Projected Capital Expenditure submitted by M/s CGSCPL for the First Control 4 12 Period Breakup of the Capital Expenditure submitted by M/s CGSCPL for the First 5 12 Control Period Revenue, Operating Expenditure and Profitability projected by M/s CGSCPL 6 15 for the First Control Period Year-on-Year Percentage (%) increase in the Revenues and Operation & 7 16 Maintenance Expenditure during the First Control Period Proposed Tariff Rates for Scheduled Flights submitted by M/s CGSCPL for the 8 19 First Control Period Statement of Y-o-Y Percentage (%) Change in Tariff Rates in respect of 9 20 different categories of the Scheduled Flights for the First Control Period Proposed Tariff Rates for Non-Scheduled Flights submitted by M/s CGSCPL 10 20 for the First Control Period Consultation Paper No. 13/2023-24 Page 4 of 29List of Abbreviations: AERA / Authority Airports Economic Regulatory Authority of India AIASL AI Airport Services Limited ATM Air Traffic Movement ATP Annual Tariff Proposal CAPEX Capital Expenditure CGSCPL Celebi Ground Services Chennai Private Limited COD Commercial Operations Date CGF Cargo Facility, Ground Handling & Supply of Fuel to the Aircraft EBITDA Earnings Before Interest, Tax, Depreciation and Amortization GHA Ground Handling Agencies GHS Ground Handling Services INR/₹ Indian Rupees ISP Independent Service Provider LOIA Letter of Intent to Award MTOW Maximum Take Off Weight MYTP Multi-Year Tariff Proposal OPEX Operating Expenditure O&M Operation and Maintenance PAT Profit After Tax P&L Profit & Loss SPV Special Purpose Vehicle Y-o-Y Year on Year Consultation Paper No. 13/2023-24 Page 5 of 29CHAPTER 1: INTRODUCTION 1.1 M/s Celebi Airport Services India Private Limited (CASIPL) was awarded the Concession to provide Ground Handling Services at Chennai International Airport, Chennai by the Airports Authority of India (AAI), vide Letter of Intent to Award (LOIA) dated 18.11.2022. 1.2 As per the LOIA, a Special Purpose Vehicle (SPV) was required to be formed by the M/s CASIPL within 30 days from the date of LOIA, for implementation of Concession to provide Ground Handling Services at Chennai airport. In this regard, M/s Celebi Ground Services Chennai Private Limited (CGSCPL), which had been incorporated under the Companies Act, 2013 on 02.12.2022, has been considered as “Special Purpose Vehicle (SPV)” in terms of LOIA dated 18.11.2022. 1.3 The Airport Operator (AAI) and the Special Purpose Vehicle, i.e., M/s CGSCPL entered into a License Agreement dated 03.04.2023 for a provision of Ground Handling Services at Chennai Airport for a period of 10 years, from the Commercial Operations Date. As per the License Agreement, the concession term may be further extended by a year, at the sole discretion of AAI. 1.4 The shareholding structure of the M/s CGSCPL is tabulated as below: Table-1: Shareholding Structure of M/s CGSCPL: Name of Shareholder No. of Equity Shares M/s Celebi Airport Services India Private 62116 Limited Mr. Murali Ramachandran 1 Total 62117 1.5 Bureau of Civil Aviation Security has granted security clearance to CGSCPL on 21.03.2023, which is valid for a period of five years from the date of issue of security clearance. 1.6 Upon receipt of request from M/s CGSCPL as per its letter dated 04.04.2023, the Authority vide its Order No. 02/2023-24 dated 20.04.2023 approved Ad-hoc Tariff for the M/s CGSCPL in respect of the Ground Handling Services, w.e.f. COD up to 30.09.2023. 1.7 Subsequently, the Authority vide order no. 20/2023-24 dated 27.09.2023, allowed extension of Ad-hoc Tariff (as on 30.09.2023) for M/s CGSCPL for the further period from 01.10.2023 up to 31.03.2024, or, till the determination of regular tariff for the Ground Handling Services in respect of the ISP, whichever is earlier. 1.8 M/s CGSCPL as per the provisions of the Airports Economic Regulatory Authority of India (Terms and Conditions for Determination of Tariff for Services provided for Cargo Facility, Ground Handling and supply of Fuel to the Aircraft) Guidelines, 2011 (CGF Guidelines), submitted its Multi Year Tariff Proposal (‘MYTP’) pertaining to the First Control Period on 15.05.2023. The Authority during the initial review of the MYTP observed some shortcomings/ information gaps; accordingly, various clarifications / additional details were sought from the ISP. After regular follow-up, based on the AERA observations, the ISP submitted the revised MYTP for the First Control Period (FY 2022-23 to FY 2026-27) on 04.10.2023. Consultation Paper No. 13/2023-24 Page 6 of 291.9 The Authority, after having examined the MYTP submission of the M/s CGSCPL in detail and taking into account the additional information/clarifications furnished by the ISP, from time to time, has issued this Consultation Paper for Stakeholders’ Consultation. Consultation Paper No. 13/2023-24 Page 7 of 29CHAPTER 2: PRINCIPLES FOR DETERMINATION OF TARIFF FOR THE AERONAUTICAL SERVICES 2.1 The Authority, vide its Order No. 12/2010-11 dated 10.01.2011 and Direction No. 04/ 2010-11 issued on 10.01.2011, finalized its approach in the matter of Regulatory Philosophy and Approach in Economic Regulation of the Services provided for Cargo Facility, Ground Handling and Supply of Fuel to the Aircraft at the Major Airports. Accordingly, the Authority issued the Airports Economic Regulatory Authority of India (Terms and Conditions for Determination of Tariff for Services provided for Cargo Facility, Ground Handling and supply of Fuel to the Aircraft) Guidelines, 2011 (“the Guidelines”). 2.2 In accordance with above mentioned AERA Guidelines and Directions, the following procedure is adopted for the determination of the Materiality Index of Regulated Service: STAGE I: MATERIALITY ASSESSMENT: 𝑰𝒏𝒕𝒍. 𝑨𝒊𝒓𝒄𝒓𝒂𝒇𝒕 𝑴𝒐𝒗𝒆𝒎𝒆𝒏𝒕𝒔 𝒂𝒕 𝑴𝒂𝒋𝒐𝒓 𝑨𝒊𝒓𝒑𝒐𝒓𝒕 Materiality Index (MI ) = 𝑿𝟏𝟎𝟎 G 𝑻𝒐𝒕𝒂𝒍 𝑰𝒏𝒕𝒍. 𝑨𝒊𝒓𝒄𝒓𝒂𝒇𝒕 𝑴𝒐𝒗𝒆𝒎𝒆𝒏𝒕𝒔 𝒂𝒕 𝑴𝒂𝒋𝒐𝒓 𝑨𝒊𝒓𝒑𝒐𝒓𝒕𝒔 The Materiality Index for Chennai Airport = 37768/420772 = 8.97% The percentage share of Chennai Airport in respect of the International Aircraft Movements for the FY 2019-20 (Pre-Covid normal Year) is 8.97%, which is more than 5% Materiality Index (MI ) for G the subject regulated service. Hence, the Regulated Service is deemed as ‘Material’ for the First Control Period of the ISP at Chennai Airport, as per clause 4.4 (ii) of the Guidelines. STAGE II: COMPETITION ASSESSMENT: 2.3 In accordance with clause 5 of the AERA CGF Guidelines, where a regulated service is being provided at a major airport by two or more Service Providers, it shall be deemed ‘competitive’ at that airport. As per the information furnished by M/s CGSCPL in Form F1 (b) on competition Assessment, two other service providers namely, M/s AI Air Services Ltd. and M/s Bird Airport Services (Chennai) Private Limited are also rendering similar services at Chennai Airport. Accordingly, the regulated service is deemed ‘Competitive’ for the First Control Period in respect of the ISP at the Chennai Airport. 2.4 As per Clause 3.2 (ii) of the Guidelines, wherever the Regulated Service provided is ‘Material but competitive’, the Authority shall determine Tariff(s) for Service Provider(s) based on a ‘Light Touch Approach’ for the duration of the Control Period, as per the provisions of Chapter V of the Guidelines. 2.5 As per clause 11.2 of the AERA (CGF) Guidelines 2011, the Annual Tariff Proposal (ATP) is required to be submitted in the manner and form provided in AI 8.2 of Appendix-I and the proposal shall be supported by the followings: a) Documented evidence that consultation with the stakeholders have been undertaken; b) Evidence of User Agreement(s), if any, between the Service Provider and the User of Regulated Service(s) clearly indicating the Tariff proposed by the Service Provider. Consultation Paper No. 13/2023-24 Page 8 of 292.6 The Authority notes that M/s CGSCPL has submitted the Annual Tariff Proposal (ATP) along with its MYTP. The ISP conducted stakeholders’ consultation meeting on 1st March 2023 and has submitted the minutes of meeting to the Authority on 14.08.2023. The Authority from minutes of meeting notes that the representatives of Saudi Arabian Airlines, M/s SpiceJet Ltd., Fly Dubai, Oman Air, Blue Dart Aviation, Singapore Airlines, Etihad, Malaysia Airlines, Air Aisa India, Air Asia Berhad, Vistara, Cathay Pacific, Air India, YTO Cargo Airlines, Lufthansa, Sri Lankan Airlines, Kuwait Airlines, British Airways, Air Arabia, Emirates, Air Austral, Gulf Air, Air France, CISF and Airport Operator (AAI) participated in the consultation meeting. The Authority observes from the minutes of the meeting that ISP during the consultation meeting gave brief introduction of their company and, inter-alia, discussed the matters relating to their operational readiness for ground handling services at Chennai airport, Ground Handling Equipment etc. From the minutes of meeting, it is observed that none of the participants raised any concern regarding the tariff proposed by the ISP in respect of the First Control Period. 2.7 Authority’s proposal regarding Methodology of Tariff Determination of M/s CGSCPL: Based on the material before it and its analysis, the Authority proposes to consider the Tariff determination exercise for M/s CGSCPL providing Ground Handling Services at Chennai International Airport under the ‘Light Touch Approach’ for the First Control Period, as the regulated service is deemed ‘Material but competitive’. Consultation Paper No. 13/2023-24 Page 9 of 29CHAPTER 3: AIRCRAFT TRAFFIC (FLIGHTS TO BE HANDLED) M/s CGSCPL submission on Projected Aircraft Traffic (Flights to be Handled) for the First Control Period 3.1 Actual Aircraft Traffic (Nos. of landings) handled at Chennai Airport, from FY 2018-19 to FY 2022-23 is given below: Table 2: Actual Aircraft Traffic handled by Chennai International Airport during FY 2018-19 to FY 2022-23. Total number of Landings at Chennai Y-o-Y % change Year Airport Domestic International Total Domestic International Total 2018-19 69458 19582 89040 - - 2019-20 65107 18884 83991 -6% -4% -6% 2020-21 26387 5909 32296 -59% -69% -62% 2021-22 36073 9728 45801 37% 65% 42% 2022-23 52857 15990 68847 47% 64% 50% 3.2 Projected Aircraft Traffic (flights to be handled by the ISP) for the First Control Period (FY 2023- 24 to FY 2027-28) submitted by M/s CGSCPL is given below in Table 3. Table 3: Projected Aircraft Traffic (Flights to be handled by the ISP) submitted by M/s CGSCPL for the First Control Period. Flights to be handled for the First Control Period Total Y-o-Y % increase Year Domestic International (No. of (No. of (No. of Landings) Domestic International Total Landings) Landings) 2023-24 (Oct, 2023 – 968 815 1783 - - - Mar, 2024) 2023-24* 1936 1630 3566 - - - (Annualized) 2024-25 2920 4847 7767 51% 197% 118% 2025-26 3066 5089 8155 5% 5% 5% 2026-27 3219 5344 8563 5% 5% 5% 2027-28 3380 5611 8991 5% 5% 5% TOTAL 12586 21706 34292 *Annualized traffic projections for the FY 2023-24 Authority’s Examination and Analysis: 3.3 The Authority notes that M/s CGSCPL is a new entrant at the Chennai Airport and is expected to commence its commercial operations at Chennai Airport from 1st October, 2023. Accordingly, ISP is expected to operate for around six months during its initial year of operations (FY 2023-24) at Chennai airport. Consider the above, the aircraft volume projected for FY 2023-24 by the ISP Consultation Paper No. 13/2023-24 Page 10 of 29appears reasonable. 3.4 In respect of FY 2024-25, the ISP projected a growth of 118% in the total aircraft traffic volume as compared to the annualized fig. of FY 2023-24. From the FY 2025-26 onward, M/s CGSCPL has projected Y-o-Y increase of 5% in the total aircraft traffic volumes (Domestic & International). 3.5 As per the statistics available at AAI website, the total Aircraft Traffic at Chennai International Airport in the FY 2022-23 had reached to 77% of the actual Aircraft Traffic handled during the pre- Covid Year i.e., FY 2019-20. Further, the total Aircraft Traffic at Chennai Airport in the current financial year, for the period from April 2023 to August, 2023 has increased by 23% as compared to the corresponding period of FY 2022-23. 3.6 The Authority observes from the Table 2 & 3 that the based on the M/s CGSCPL’s projected level of operations during the FY 2023-24, as compared to actual number of total flights handled in FY 2022-23 at the Chennai airport, the ISP is expected to have market share of around 5% at the Airport. 3.7 Considering that the ISP is new entrant at the Chennai Airport and taking into account the competition between the three service providers, the aircraft traffic (Flights to be handled) projected by the ISP for the First Control Period appears reasonable. As per the Authority, it will take some time for the ISP to expand its business at the Chennai Airport. Accordingly, the Authority proposes to adopt the traffic projections (flights to be handled) as submitted by M/s CGSCPL for its First Control Period as per given in the Table 3 above. 3.8 Authority’s proposal regarding Aircraft Traffic Volume (Flights to be handled) for the First Control Period: Based on the material before it and its analysis, the Authority proposes to consider the Aircraft Traffic (Flights to be handled) for the First Control Period as per Table 3. Consultation Paper No. 13/2023-24 Page 11 of 29CHAPTER 4: CAPITAL EXPENDITURE M/s CGSCPL Submission on Capital Expenditure for the First Control Period 4.1 M/s CGSCPL, has projected a total Capital Expenditure (CAPEX) of ₹ 8393.16 lakhs for the First Control Period (FY 2023-24 to FY 2027-28). The details of year-wise & asset-wise CAPEX projected by the ISP is given below: Table 4: Projected Capital Expenditure submitted by M/s CGSCPL for the First Control Period (₹ in Lakhs) FY FY FY FY Particulars Total 2023-24 2024-25 2025-26 2026-27 Infrastructure 197.06 1539.90 - - 1,736.96 Improvement Ground Handling 5730.77 - - - 5730.77 Equipment Furniture & Fixtures 53.10 - - - 53.10 Vehicles 783.50 - - - 783.50 Office Equipment 2.48 - - - 2.48 Computers 27.32 - - - 27.32 Intangible Assets – 59.02 - - - 59.02 Computer Software Total 6853.26 1539.90 - - 8,393.16 4.2 The ISP has further submitted detailed bifurcation of the proposed CAPEX, including Quantity & Rate in respect of the Equipment etc., proposed to be procured during the Control Period as under: Table 5: Breakup of the Capital Expenditure submitted by M/s CGSCPL for the First Control Period. (₹ in Lakhs) Year Particulars Qty. Rate/ Unit Amount Asset Class Air Conditioning Unit 1 190.25 190.25 Air Starter Unit 1 265.68 265.68 Ground Power Unit (90 kW) 1 143.20 143.20 Ground Power Unit (140 1 160.98 160.98 kW) Ambulift 1 64.50 64.50 Baggage Cart 80 1.32 105.54 Pallet Dolly (10 Feet) 200 2.38 475.87 Container Dolly 46 1.39 64.04 Container Lazy Dolly 51 0.99 50.39 Diesel Baggage Tractor 3 61.54 184.63 FY Engineering Trestle 2 0.48 0.96 Ground Handling Equipment 2023-24 Forklift 1 25.00 25.00 Fuel Bowzer 1 3.00 3.00 High Loader - Lower Deck 4 294.61 1,178.44 High Loader - Main Deck 2 433.36 866.73 Pallet Dolly (20 Feet) 5 7.00 35.00 PAX Stairs ( Electric Semi- 8 29.82 238.56 Motorized) Conveyer Belt (Towable 8 15.18 121.44 Electric) Push Back (Narrow Body) 1 213.84 213.84 (Electric) Consultation Paper No. 13/2023-24 Page 12 of 29Year Particulars Qty. Rate/ Unit Amount Asset Class Push-Back (Wide Body) 1 472.82 472.82 Tail Jack 1 35.00 35.00 Toilet Cart (Towable) 1 7.80 7.80 Toilet Cart (Motorized) 1 129.75 129.75 Tow Bar 8 9.01 72.09 Water Cart (Motorized) 1 115.51 115.51 Lithium Charger - Apron Bus 1 21.79 21.79 Electric Baggage Tractor 13 35.00 455.00 Lithium Charger - Electric 11 2.58 28.40 Baggage Tractor Porta Cabin 2 2.28 4.56 TOTAL 5730.77 Apron Bus (Electric) 5 144.70 723.50 Apron Car (Electric) 2 16.08 32.17 Motor Vehicles Pick UP Van 1 7.77 7.77 Mini Bus 1 20.07 20.06 TOTAL 783.50 Furniture 1 53.10 53.10 Furniture & Fixtures TOTAL 53.10 WAN switch 1 0.50 0.50 Punching machine 4 0.37 1.48 Office Equipment KIOSK 2 0.25 0.50 TOTAL 2.48 Laptop/Desktop 36 0.76 27.32 Computers TOTAL 27.32 Inform (Resource Planning) 1 41.10 41.10 Computer Software SAP 1 17.92 17.92 TOTAL 59.02 Electrical Infrastructure 1 197.06 197.06 Infrastructure Improvement TOTAL 197.06 SUB TOTAL 6853.26 FY Ground Services Equipment 1 1539.90 1539.90 Infrastructure Improvement 2024-25 (GSE) Workshop GRAND TOTAL FOR THE CONTROL PERIOD 8393.16 Authority’s Examination and Analysis: 4.3 The Authority notes that out of the total projected CAPEX (₹ 8393.16 lakhs) for the Control Period the ISP has proposed the major portion of the CAPEX amounting to ₹ 6853.26 lakhs (i.e. approx. 82% of total CAPEX) in the first tariff year (FY 2023-24). In support of the CAPEX planned for the FY 2023-24, the ISP vide email 19.09.2023 furnished copies of Purchase Orders (POs) in respect of the proposed CAPEX. The Authority notes that the ISP submitted copies of POs amounting to ₹ 4533 lakhs, which is approx. 66% of total CAPEX proposed during the current financial year. 4.4 The Authority notes that M/s CGSCPL has projected a significant CAPEX of ₹8393.16 lakhs for the First Control Period. Out of the total projected CAPEX, Rs. 5730 lakhs have been earmarked by the ISP for the Ground Handling Equipment and an amount of Rs. 1737 lakhs have been projected in respect of the infrastructure improvements (leasehold improvements). In this regard, the Authority sought the justifications/ basis of the proposed CAPEX, from the ISP. In response to Authority’s query, the ISP, vide email dated 23.08.2023 submitted that “Celebi will be providing ground handling services at Chennai Airport for the first time. Company didn’t have any presence and operations in this airport before this. So, company has to incur capex on all the Consultation Paper No. 13/2023-24 Page 13 of 29equipment, vehicles, office equipment, IT assets, furniture etc. to set up this station. Considering the level of operations with domestic, international and non-scheduled flights, we need to buy all kind of equipment. From last few years, we are preferring to invest in electrical equipment and vehicles wherever it is possible and feasible.” 4.5 The ISP, with regard to the CAPEX pertaining to infrastructure improvements (leasehold improvements) further submitted that “We are investing in electric equipment and vehicles. To operate them we have to set up charging station for which some investment is required to be on electrical cabling. The investment of Rs. 1.97 cr. in FY 23-24 is towards this electrical infrastructure set up. In FY 24-25, we are going to construct GSE Workshop facility to repair and maintain our equipment”. 4.6 The Authority, further sought the justification in respect of the projected CAPEX of Rs. 1540 lakhs on the construction of infrastructure for the Ground Support Equipment (GSE) Workshop during the 2nd tariff year i.e., FY 2024-25, the ISP responded vide email dated 06.09.2023 and submitted that “In reference to the CAPEX of INR 15.40 cr. (₹ 1540 lakhs) (including GST) presented in MYTP towards the construction of GSE Workshop in FY 2024-25. This will include complete work such as:  Structural, civil & finishing, plumbing, sanitization, electrical, fire protection, elevator.  Workshop tools like crane, hydraulic jacks, compressors, washing & painting facility etc.  Store room racks The total planned construction will be of 1666 sq mtr. as presented below: Description Sq. Mtr. Ground Floor 1000 1St Floor 333 2nd Floor 333 Total 1666 4.7 In respect of the proposed construction of GSE workshop, the Authority observes that the ISP has projected a significant cost in respect of the GSE Workshop, which appears to be on the higher side. Therefore, the Authority advises the ISP to bring in efficiency in the cost of the GSE Workshop, in overall interest of all the stakeholders. 4.8 Considering the CAPEX submission/ clarifications submitted by M/s CGSCPL as discussed in para 4.4 to 4.6 above, the Authority notes that the most of the CAPEX planned by the ISP for the First Control Period is towards the purchase of Ground Handling Equipment and construction of GSE Workshop, which are essential requirements for the smooth ground handling operations at the Airport. Further, the Authority, notes that the ISP is a new entrant at the Chennai Airport, hence is required to invest in all kinds of GSE in the initial years of operations so as to provide Ground Handling Services as per the requirements of its custom airlines & concession agreement. In view of the above, the Authority proposes to consider CAPEX for the First Control Period as submitted by the ISP, as per Table 4. Authority’s proposal regarding CAPEX for the First Control Period 4.9 Based on the material before it and its analysis, the Authority proposes to consider the CAPEX for the First Control Period as per Table 4. Consultation Paper No. 13/2023-24 Page 14 of 29CHAPTER 5: OPERATING EXPENDITURE AND PROJECTED PROFITABILITY M/s CGSCPL submission on Operating Expenditure for the First Control Period 5.1 As provided in Clause 9.4 of the Guidelines mentioned in Direction No.04/2010-11, the Operation and Maintenance (O&M) Expenditure shall include all expenditures incurred by the Service Provider(s) including expenditure incurred on security operating costs, other mandated operating costs and statutory operating costs. 5.2 Operation and Maintenance expenditures of M/s CGSCPL for its Ground Handling Operations at Chennai Airport have been broadly categorized as under: a) Payroll Costs; b) Admin and General Expenses; c) Utilities & Outsourcing costs; d) Concession fee; e) License fee and f) Repair & Maintenance Expenses 5.3 As per the MYTP submission, Revenue, Operating Expenditure (OPEX) and Profitability projected by the ISP for the First Control Period (FY 2023-24 to FY 2027-28) is as under: Table 6: Revenue, Operating Expenditure and Profitability projected by M/s CGSCPL for the First Control Period. (₹ in lakhs) FY FY FY FY FY TOTAL Particulars 2023-24 2024-25 2025-26 2026-27 2027-28 Revenue from Regulated Services 1,254.73 7,436.17 8,065.89 8,749.72 9,492.39 34,998.90 (A) Revenue from Non-Regulated - - - - - - Services (B) Total Revenue from Services 1,254.73 7,436.17 8,065.89 8,749.72 9,492.39 34,998.90 (A+B = C) Operating Expenditure i. Payroll Cost 608.27 2,326.20 2,527.41 2,746.03 2,983.56 11,191.48 ii. Administrative and General 138.92 226.25 238.79 252.44 262.03 1,118.44 Expenditure iii. Utilities & Outsourcing Costs 72.68 266.27 291.07 318.32 348.28 1,296.62 iv. Concession fee 1,808.33 3,100.00 3,100.00 3,100.00 3,100.00 14,208.33 v. License fee 216.89 340.86 366.43 393.91 423.46 1741.56 vi. Repairs & Maintenance 22.80 26.06 29.31 32.57 35.83 146.57 Expenses Total OPEX 2,867.90 6,285.65 6,553.01 6,843.28 7,153.16 29,703.00 (i+ii+iii+iv+v+vi) = (D) Earnings Before Interest, Tax, Depreciation and Amortization - 1,613.17 1,150.52 1,512.88 1,906.45 2,339.23 5,295.90 (EBITDA) (C-D) Depreciation and Amortization 392.46 881.18 958.80 951.97 949.70 4,134.11 EBIT - 2,005.63 269.34 554.07 954.48 1,389.53 1,161.79 Interest & Finance Charges 828.36 1,167.91 1,176.00 1,122.91 1,021.47 5,316.65 Profit/Loss Before Tax (PBT) - 2,833.99 - 898.57 - 621.92 - 168.44 368.06 - 4,154.86 Provision for Tax* - - - - - - Profit After Tax (PAT) - 2,833.99 - 898.57 - 621.92 - 168.44 368.06 - 4,154.86 *Nil Tax Provision due to anticipated losses in first four tariff years. Consultation Paper No. 13/2023-24 Page 15 of 29Authority’s Examination and Analysis: 5.4 The Authority has analyzed the Operating Expenditure provided in Form F3 (P&L) of the MYTP for the First Control Period and observes that the ISP has projected low OPEX for its first tariff year i.e., FY 2023-24 as compared with the succeeding tariff year i.e., FY 2024-25, due to partial operations in the FY 2023-24, as M/s CGSCPL is expected to commence its commercial operations from October, 2023 (i.e., Operation expected for six months only). The Authority observes that the ISP has considered the Y-o-Y% increase in Revenues & OPEX from 2nd tariff year onward of the Control Period as per Table 7 below: Table 7: Year-on-Year Percentage (%) increase in the Revenues and Operation & Maintenance Expenditure during the First Control Period. FY FY FY Particulars 2025-26 2026-27 2027-28 Revenue from Regulated Services 8% 8% 8% Payroll Cost 9% 9% 9% Administrative and General Expenditure 6% 6% 4% Utilities and Outsourcing costs 9% 9% 9% Concession fee 0% 0% 0% License fee 7.5% 7.5% 7.5% Repairs and Maintenance costs 13% 11% 10% 5.5 The Table 7 above shows Y-o-Y % change in Revenue & OPEX from FY 2025-26 onwards, as the financial figures pertaining to the FY 2023-24 (first tariff year), where ISP is expected to operate partially only, are not comparable with the FY 2024-25, having commercial operations throughout the year. The Authority’s examination of Y-o-Y % growth in the OPEX considered by the M/s CGSCPL from FY 2025-26 onward is given in the following sections: a) Payroll Cost: The Authority notes that the ISP is proposing a Y-o-Y increase of 9% in payroll costs from FY 2025-26 onward. The Authority observes that M/s CGSCPL has considered 5% Y-o-Y increase in projected aircraft traffic volume from FY 2025-26 onward, has considered additional 3% increase in manpower numbers. The Authority notes that projected increase in payroll expenses considered by the M/s CGCSPL is commensurate with the projected increase in aircraft traffic & revenues, and, it factors-in the impact of additional manpower required to meet the projected growth in aircraft traffic. Further, considering the impact of periodic increase in minimum wages & annual salary increments and related increase in statutory component like EPF etc. In view of the above, the Authority considers the Y-o-Y increase projected in Payroll expenses by the ISP for the First Control Period as reasonable. b) Administrative & General Expenditure: The Authority observes that the Administrative & General Expenditure is expected to increase on Y-o-Y basis, ranging between 4% to 6%, during the Control Period. The Authority, taking into account the projected increase in the aircraft traffic and the impact of general inflation, considers the Y-o-Y increase proposed in respect of Administrative and Consultation Paper No. 13/2023-24 Page 16 of 29General Expenses by ISP for the First Control Period as reasonable c) Concession Fee: The Authority notes from the clause 7.1.1 of the concession agreement executed between AAI and M/s CGSCPL, the Revenue Share payable to the airport operator (AAI) to be calculated as under: i) 3% of the Actual Gross Revenue from the scheduled Domestic Passenger Flights. ii) 15% of the Actual Gross Revenue from users other than “scheduled Domestic Passenger Flights and RCS flights”. iii) 0% for RCS flights. The Authority further notes from the clause 7.1.2 of above said agreement, that every year the ISP shall pay ‘Premium’, which is maximum of “Minimum Annual Guarantee” (MAG) and the ‘Revenue Share’, calculated as per the clause 7.1.1 of the concession agreement. Further MAG will be escalated at 20% on completion of five years. The ISP, further clarified that they are expecting that the amount of revenue share (payable to airport operator) will be less than the MAG in all the Tariff Years of the Control Period; accordingly, there will be the fixed amount of Concession Fee (Amount of MAG) payable to the AAI during the Control Period. Considering the clause 7.1.2 of the concession agreement and clarification furnished by the ISP, the Authority proposes to consider the concession fee (premium) payable to the Airport Operator as projected by ISP, for the First Control Period. d) License fees: The Authority observes from the clause no. 7.2 of concession agreement with the Airport Operator (AAI) that ISP is required to execute a separate space and land agreement. As per the supplementary Space and Land Agreement, the Authority observes that the License Fee is escalated @ 7.5% on Y-o-Y basis. e) Repairs and Maintenance Costs: The Authority, notes that the ISP has proposed annual escalations in R&M Expenses ranging between 10% to 13%, from FY 2025-26 onward. The Authority notes that the overall repair and maintenance costs as a % of Opening RAB is nominal in all the tariff years of the Control Period, as tabulated hereunder: FY FY FY FY FY Particulars 2023-24 2024-25 2025-26 2026-27 2027-28 Opening RAB (₹ in lakhs) NIL 6460.80 7119.53 6160.72 5208.75 Repair and Maintenance Costs 22.80 26.05 29.31 32.57 35.82 % of Opening RAB - 0.40% 0.41% 0.53% 0.69% In view of the above and taking into account the impact of annual general inflation, the Authority considers the projected R&M Expenses for the First Control Period as reasonable. f) Utilities and Outsourcing Costs: The Authority notes that M/s CGSCPL proposed Y-o-Y increase of 9% in the Utilities and Outsourcing Costs from FY 2025-26 onward. The Authority observes that Utility & Outsourcing Costs consist of mainly fuel cost and electricity expenses. Further, these expenses are directly linked with the number of flights to be handled by the service provider. Consultation Paper No. 13/2023-24 Page 17 of 29The Authority notes that Y-o-Y increase projected in Utility & Outsourcing Costs is commensurate with the projected increase in the aircraft traffic and unit rates of Electricity, Fuel cost etc. Considering the above, the Utility and Outsourcing Costs projected for the control period as reasonable. 5.6 Accordingly, the Authority proposes to consider the projected Revenue, OPEX and Profitability for the First Control Period, as submitted by the ISP. Authority’s proposal regarding Operation and Maintenance Expenses for the First Control Period: 5.7 Based on material before it and its analysis, the Authority proposes to consider the OPEX for the First Control Period as per Table 6. Consultation Paper No. 13/2023-24 Page 18 of 29CHAPTER 6: ANNUAL TARIFF PROPOSAL M/s CGSCPL Submissions on Annual Tariff Proposal for the First Control Period 6.1 M/s CGSCPL submitted a Tariff proposal for the Ground Handling Services in respect of Scheduled Flights at Chennai International Airport, Chennai, for the First Control Period (FY 2023-24 to FY 2027-28) as given in Table below: Table 8: Proposed Tariff Rates for Scheduled Flights submitted by M/s CGSCPL for the First Control Period. (Rates in ₹) FY 2023-24 FY 2024-25 FY 2025-26 2026-27 2027-28 Full Full Full Full Full Pax Ramp Pax Ramp Pax Ramp Pax Ramp Pax Ramp Services Services Services Services Services (A) Passenger Flights Domestic Passenger Flight Below 4,437 13,313 17,750 4,660 13,980 18,640 4,890 14,680 19,570 5,130 15,410 20,540 5,390 16,180 21,570 Code B Code B 8,325 19,425 27,750 8,740 20,400 29,140 9,180 21,420 30,600 9,640 22,490 32,130 10,120 23,610 33,730 Code C 9,975 29,925 39,900 10,470 31,420 41,890 10,990 32,990 43,980 11,540 34,640 46,180 12,120 36,370 48,490 Code D 22,325 66,975 89,300 23,440 70,320 93,760 24,610 73,840 98,450 25,840 77,530 103,370 27,130 81,410 108,540 Code E 30,225 90,675 120,900 31,740 95,210 126,950 33,330 99,970 133,300 35,000 104,970 139,970 36,750 110,220 146,970 Code F 35,000 105,000 140,000 36,750 110,250 147,000 38,590 115,760 154,350 40,520 121,550 162,070 42,550 127,630 170,180 International Passenger Flight Code B 31,795 74,188 105,983 33,380 77,900 111,280 35,050 81,800 116,850 36,800 85,890 122,690 38,640 90,180 128,820 Code C 42,825 128,475 171,300 44,970 134,900 179,870 47,220 141,650 188,870 49,580 148,730 198,310 52,060 156,170 208,230 Code D 57,352 172,056 229,408 60,220 180,660 240,880 63,230 189,690 252,920 66,390 199,170 265,560 69,710 209,130 278,840 Code E 80,293 240,878 321,171 84,310 252,920 337,230 88,530 265,570 354,100 92,960 278,850 371,810 97,610 292,790 390,400 Code F 100,366 301,099 401,465 105,380 316,150 421,530 110,650 331,960 442,610 116,180 348,560 464,740 121,990 365,990 487,980 (B) Cargo Flights Domestic Cargo Flight Code B NA 35,000 NA NA 36,750 NA NA 38,590 NA NA 40,520 NA NA 42,550 NA Code C NA 65,000 NA NA 68,250 NA NA 71,660 NA NA 75,240 NA NA 79,000 NA Code D NA 135,000 NA NA 141,750 NA NA 148,840 NA NA 156,280 NA NA 164,090 NA Code E NA 160,000 NA NA 168,000 NA NA 176,400 NA NA 185,220 NA NA 194,480 NA Code F NA 220,000 NA NA 231,000 NA NA 242,550 NA NA 254,680 NA NA 267,410 NA International Cargo Flight Code B NA 90,000 NA NA 94,500 NA NA 99,230 NA NA 104,190 NA NA 109,400 NA Code C NA 150,000 NA NA 157,500 NA NA 165,380 NA NA 173,650 NA NA 182,330 NA Code D NA 225,000 NA NA 236,250 NA NA 248,060 NA NA 260,460 NA NA 273,480 NA Code E NA 310,000 NA NA 325,500 NA NA 341,780 NA NA 358,870 NA NA 376,810 NA Code F NA 390,000 NA NA 409,500 NA NA 429,980 NA NA 451,480 NA NA 474,050 NA Note: Above prices are excluding applicable taxes. 6.2 M/s CGSCPL has proposed the following % increase in the Tariff rates on Y-o-Y basis for the Scheduled Flights at Chennai International Airport as stated in the table below: Consultation Paper No. 13/2023-24 Page 19 of 29Table 9: Statement of Y-o-Y Percentage (%) Change in Tariff Rates in respect of different categories of the Scheduled Flights for the First Control Period. FY 2023-24 FY 2024-25 FY 2025-26 2026-27 2027-28 Full Full Full Full Full Pax Ramp Pax Ramp Pax Ramp Pax Ramp Pax Ramp Services Services Services Services Services (A) Passenger Flights Domestic Passenger Flight Below 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code B Code B 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code C 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code D 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code E 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code F 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% International Passenger Flight Code B 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code C 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code D 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code E 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code F 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% (B) Cargo Flights Domestic Cargo Flight Code B NA 5% NA NA 5% NA NA 5% NA NA 5% NA NA 5% NA Code C NA 5% NA NA 5% NA NA 5% NA NA 5% NA NA 5% NA Code D NA 5% NA NA 5% NA NA 5% NA NA 5% NA NA 5% NA Code E NA 5% NA NA 5% NA NA 5% NA NA 5% NA NA 5% NA Code F NA 5% NA NA 5% NA NA 5% NA NA 5% NA NA 5% NA International Cargo Flight Code B NA 5% NA NA 5% NA NA 5% NA NA 5% NA NA 5% NA Code C NA 5% NA NA 5% NA NA 5% NA NA 5% NA NA 5% NA Code D NA 5% NA NA 5% NA NA 5% NA NA 5% NA NA 5% NA Code E NA 5% NA NA 5% NA NA 5% NA NA 5% NA NA 5% NA Code F NA 5% NA NA 5% NA NA 5% NA NA 5% NA NA 5% NA 6.3 M/s CGSCPL has also submitted separate Tariff Rate Card for Non-Scheduled and General Aviation Operation(s) as per the table given below: - Table 10: Proposed Tariff Rates for Non-Scheduled Flights submitted by M/s CGSCPL for the First Control Period. (Rates in ₹) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 A/C Category Domestic Intl. Domestic Intl. Domestic Intl. Domestic Intl. Domestic Intl. Maximum Take Off Weight (MTOW) 0-5000 24,310 47,380 25,530 49,750 26,810 52,240 28,150 54,850 29,560 57,590 5001-10000 31,615 83,275 33,200 87,440 34,860 91,810 36,600 96,400 38,430 101,220 10001- 20000 38,160 133,930 40,070 140,630 42,070 147,660 44,170 155,040 46,380 162,790 20001- 30000 63,740 152,885 66,930 160,530 70,280 168,560 73,790 176,990 77,480 185,840 30001- 40000 65,175 170,330 68,430 178,850 71,850 187,790 75,440 197,180 79,210 207,040 40001- 50000 64,475 191,475 67,700 201,050 71,090 211,100 74,640 221,660 78,370 232,740 50001- 100000 87,720 248,270 92,110 260,680 96,720 273,710 101,560 287,400 106,640 301,770 100001 – 200000 209,000 344,390 219,450 361,610 230,420 379,690 241,940 398,670 254,040 418,600 Above 200000 260,750 408,831 273,790 429,270 287,480 450,730 301,850 473,270 316,940 496,930 Note: The above rates are exclusive of GST and any other applicable Government taxes. Consultation Paper No. 13/2023-24 Page 20 of 29Authority’s Examination and Analysis: 6.4 The Authority observes that in the case of Scheduled Flights (Domestic & International), the ISP has proposed 5% Y-o-Y increase in Tariff Rates from FY 2024-25 onward. 6.5 The Authority also observes that M/s CGSCPL has proposed a separate Tariff Rate card for Non- Scheduled Flights and just like scheduled flights, ISP has proposed an increase of 5% Y-o-Y basis from FY 2024-25 onward. (Table 9) 6.6 Considering the Aircraft Traffic projected (Flights to be handled) by the ISP for the Control Period & projected increase in Operating Expenditure, due to factors like increase in number of manpower, annual increase in salary & wages, general inflation etc., ISP requires adequate revenues to cover up the Operating Costs and get reasonable return on its investments. Thus the 5% increase in Tariff Rates considered by the ISP on Y-o-Y basis from FY 2024-25 onward appears reasonable. 6.7 The Authority also observes that as per the projected profitability statement for the First Control Period (Table no. 6), M/s CGSCPL is likely to suffer losses during first four tariff years of the Control Period, however the ISP is expecting to generate surplus in the last tariff year. 6.8 The Authority is of the view that the Tariff for Domestic ‘Non-Scheduled and General Aviation Operations’, should not be more than the Tariff of relevant Domestic Scheduled Flights for a similar class of Aircraft(s). However, the Authority proposes to consider the separate Tariff Rate Card in case of the International ‘Non-Scheduled & General Aviation Operations’ as per Annexure-II. 6.9 The Authority proposes that in case of payment in foreign currency, the RBI conversion rate as on the last day of the previous month will be applicable for the first fortnight and the rate as on the 15th of the month will be applicable for the second fortnight. 6.10 Further, M/s CGSCPL should ensure compliance towards Standardization of Ground Handling Equipment at Chennai International Airport, Chennai in accordance with the directives issued by the Ministry of Civil Aviation vide its letter no. AV-24011/10/2021-AAI-MOCA dated 27.10.2022. Authority’s proposals regarding Tariff for Ground Handling Services for the First Control Period: Based on material before it and its analysis, the Authority proposes the following Tariff structure and Annual Tariff Proposal for the First Control Period: 6.11 To consider the Tariff Rates for the Ground Handling Services provided by M/s CGSCPL at Chennai airport in respect of Scheduled Flights, International ‘Non-Scheduled & General Aviation Flights’ and Item-wise charges for the Scheduled & Non-Scheduled Flights, for the First Control Period as per Annexures (I, II & III). 6.12 The Tariff for Domestic ‘Non-Scheduled and General Aviation Operations’, shall not exceed the approved Tariff(s) for relevant Domestic Scheduled Flights for similar class of Aircraft(s). 6.13 In case of payment in foreign currency, the RBI conversion rate as on the last day of the previous month will be applicable for the first fortnight and the rate prevailing as on the 15th of the month will be applicable for the second fortnight. 6.14 The Tariff Rates indicated in Annexures (I, II & III) shall be maximum charges to be levied. No other charges are to be levied over and above the approved Tariff Rates. Consultation Paper No. 13/2023-24 Page 21 of 296.15 M/s CGSCPL shall ensure compliance towards Standardization of Ground Handling Equipment at Chennai International Airport, Chennai in accordance with the directives issued by Ministry of Civil Aviation vide its letter no. AV-24011/10/2021-AAI-MOCA dated 27.10.2022. Consultation Paper No. 13/2023-24 Page 22 of 29CHAPTER 7: SUMMARY OF THE AUTHORITY’S PROPOSALS The below-mentioned summary provides the Authority's proposals relating to relevant chapters regarding the Tariff determination for M/s CGSCPL, in respect of the Ground Handling Services at Chennai International Airport, Chennai, for Stakeholders’ Consultation purpose: Chapter Para Summary of the Authority’s Proposals Page No. The Authority proposes to consider the Tariff determination exercise for M/s Chapter 2.7 CGSCPL providing Ground Handling Services at Chennai International 9 No.2 Airport under the ‘Light Touch Approach’ for the First Control Period, as the regulated service is deemed ‘Material but Competitive’. Chapter 3.8 The Authority proposes to consider the Aircraft Traffic (Flights to be 11 No. 3 handled) for the First Control Period as per Table 3. Chapter 4.9 The Authority proposes to consider the CAPEX for the First Control Period 14 No. 4 as per Table 4. Chapter 5.7 The Authority proposes to consider the OPEX for the First Control Period as 18 No. 5 per Table 6. The Authority proposes to consider the Tariff Rates for Ground Handling Services provided by M/s CGSCPL at Chennai Airport in respect of 6.11 Scheduled Flights, International “Non-Scheduled & General Aviation Flights” and Item-wise charges for Scheduled & Non-Scheduled Flights, for the First Control Period as per Annexures (I, II & III). The Authority proposes that the Tariff for Domestic Non-Scheduled and 6.12 General Aviation Operations, shall not exceed the approved Tariff(s) for 21 relevant Domestic Scheduled Flights for similar class of Aircraft(s). The Authority proposes that in case of payment in foreign currency, the RBI Chapter 6.13 conversion rate as on the last day of the previous month will be applicable for No. 6 the first fortnight and the rate prevailing as on the 15th of the month will be applicable for the second fortnight. The Authority proposes that the Tariff Rates indicated in Annexures (I, II & 6.14 III) shall be maximum charges to be levied. No other charges are to be levied over and above the approved Tariff Rates. The Authority proposes that M/s CGSCPL shall ensure compliance towards Standardization of Ground Handling Equipment at Chennai International 6.15 22 Airport, Chennai in accordance with the directives issued by Ministry of Civil Aviation vide its letter no. AV-24011/10/2021-AAI-MOCA dated 27.10.2022. Consultation Paper No. 13/2023-24 Page 23 of 29CHAPTER 8: STAKEHOLDERS’ CONSULTATION 8.1 In accordance with the provisions of Section 13(4) of the AERA Act, the Authority’s proposals contained in Chapter 7 above are hereby put forth for Stakeholders’ consultation. To assist the Stakeholders in making their submissions in a meaningful and constructive manner, necessary annexures are enclosed to the Consultation Paper (Annexures-I, II& III). 8.2 For removal of doubts, it is clarified that the contents of this Consultation Paper may not be construed as any Order or Direction of this Authority. The Authority shall pass an Order, in the matter, only after considering the submissions of the Stakeholders in response hereto and by making such decision fully documented and explained in the tariff order in terms of the provisions of the Act. 8.3 The Authority welcomes written evidence-based feedback, comments and suggestions from Stakeholders on the proposals made in Chapter7 above, latest by 27/10/2023. Secretary, Airports Economic Regulatory Authority of India, AERA Building, Administrative Complex, Safdarjung Airport, New Delhi -110003 Tel: 011-24695044-47, Fax: 011-24695048 (Chairperson) Consultation Paper No. 13/2023-24 Page 24 of 29ANNEXURE I TARIFF RATE CARD FOR M/s CELEBI GROUND SERVICES CHENNAI PRIVATE LIMITED IN RESPECT OF DOMESTIC*& INTERNATIONAL SCHEDULED FLIGHTS FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28) PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Proposed Tariff Rates for Ground Handling Services (Rates in ₹) FY 2023-24 FY 2024-25 FY 2025-26 2026-27 2027-28 Full Full Full Full Full Pax Ramp Pax Ramp Pax Ramp Pax Ramp Pax Ramp Services Services Services Services Services (A) Passenger Flights Domestic Passenger Flight Below 4,437 13,313 17,750 4,660 13,980 18,640 4,890 14,680 19,570 5,130 15,410 20,540 5,390 16,180 21,570 Code B Code B 8,325 19,425 27,750 8,740 20,400 29,140 9,180 21,420 30,600 9,640 22,490 32,130 10,120 23,610 33,730 Code C 9,975 29,925 39,900 10,470 31,420 41,890 10,990 32,990 43,980 11,540 34,640 46,180 12,120 36,370 48,490 Code D 22,325 66,975 89,300 23,440 70,320 93,760 24,610 73,840 98,450 25,840 77,530 103,370 27,130 81,410 108,540 Code E 30,225 90,675 120,900 31,740 95,210 126,950 33,330 99,970 133,300 35,000 104,970 139,970 36,750 110,220 146,970 Code F 35,000 105,000 140,000 36,750 110,250 147,000 38,590 115,760 154,350 40,520 121,550 162,070 42,550 127,630 170,180 International Passenger Flight Code B 31,795 74,188 105,983 33,380 77,900 111,280 35,050 81,800 116,850 36,800 85,890 122,690 38,640 90,180 128,820 Code C 42,825 128,475 171,300 44,970 134,900 179,870 47,220 141,650 188,870 49,580 148,730 198,310 52,060 156,170 208,230 Code D 57,352 172,056 229,408 60,220 180,660 240,880 63,230 189,690 252,920 66,390 199,170 265,560 69,710 209,130 278,840 Code E 80,293 240,878 321,171 84,310 252,920 337,230 88,530 265,570 354,100 92,960 278,850 371,810 97,610 292,790 390,400 Code F 100,366 301,099 401,465 105,380 316,150 421,530 110,650 331,960 442,610 116,180 348,560 464,740 121,990 365,990 487,980 (B) Cargo Flights Domestic Cargo Flight Ramp Services Ramp Services Ramp Services Ramp Services Ramp Services Code B 35,000 36,750 38,590 40,520 42,550 Code C 65,000 68,250 71,660 75,240 79,000 Code D 135,000 141,750 148,840 156,280 164,090 Code E 160,000 168,000 176,400 185,220 194,480 Code F 220,000 231,000 242,550 254,680 267,410 International Cargo Flight Code B 90,000 94,500 99,230 104,190 109,400 Code C 150,000 157,500 165,380 173,650 182,330 Code D 225,000 236,250 248,060 260,460 273,480 Code E 310,000 325,500 341,780 358,870 376,810 Code F 390,000 409,500 429,980 451,480 474,050 *Tariff for Domestic Scheduled Flights is also applicable to Domestic” Non-Scheduled Flights & General Aviation Operations” Notes:  Above Tariff Rates are excluding all applicable taxes.  Tariff indicated above shall be the maximum Tariff to be charged. No other charge is to be levied over and above the approved Tariff Rates.  For payment in foreign currency, the RBI conversion rate as on the last day of the previous month will be applicable for the first fortnight and the rate as on 15th of the month will be applicable for the second fortnight. Consultation Paper No. 13/2023-24 Page 25 of 29ANNEXURE II TARIFF RATE CARD FOR M/s CELEBI GROUND SERVICES CHENNAI PRIVATE LIMITED IN RESPECT OF INTERNATIONAL ‘NON-SCHEDULED & GENERAL AVIATION’ FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28) PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Proposed Tariff Rates for Ground Handling Services (Rates in ₹) A/C Category FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Maximum Take Off Weight (MTOW) 0-5000 47,380 49,750 52,240 54,850 57,590 5001-10000 83,275 87,440 91,810 96,400 101,220 10001- 20000 133,930 140,630 147,660 155,040 162,790 20001- 30000 152,885 160,530 168,560 176,990 185,840 30001- 40000 170,330 178,850 187,790 197,180 207,040 40001- 50000 191,475 201,050 211,100 221,660 232,740 50001- 100000 248,270 260,680 273,710 287,400 301,770 100001 – 200000 344,390 361,610 379,690 398,670 418,600 Above 200000 408,831 429,270 450,730 473,270 496,930 Notes:  Above Tariff Rates are excluding all applicable taxes.  Tariff indicated above shall be the maximum Tariff to be charged. No other charge is to be levied over and above the approved Tariff Rates.  For payment in foreign currency, the RBI conversion rate as on the last day of the previous month will be applicable for the first fortnight and the rate as on 15th of the month will be applicable for the second fortnight. Consultation Paper No. 13/2023-24 Page 26 of 29ANNEXURE III ITEM-WISE CHARGES FOR M/S CGSCPL IN RESPECT OF GROUND HANDLING SERVICES AT CHENNAI INTERNATIONAL AIRPORT, CHENNAI, PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Maximum Item-wise Charges in respect of Domestic* & International Flights for the First Control Period (FY 2023-24 to FY 2027-28) (Rates in ₹) Sl. FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 SERVICES UNIT No. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Air Cooling Unit 1 Per Hour 24265 37330 25478 39197 26752 41156 28089 43214 29494 45375 per hour usage 2 Air Starter Unit Per Start 15089 23214 15844 24375 16636 25593 17468 26873 18341 28217 Aircraft Per 3 Disinfection - 4875 7500 5119 7875 5375 8269 5643 8682 5926 9116 service Freighter A/Cs Aircraft Per 4 Disinfection - Pax 7943 12220 8340 12831 8757 13473 9195 14146 9655 14853 service A/C Code C Aircraft Per 5 Disinfection - Pax 14999 23075 15749 24229 16536 25440 17363 26712 18231 28048 service A/C Code D/E Aircraft Per 6 Disinfection - Pax 23384 35975 24553 37774 25781 39662 27070 41646 28423 43728 service A/C Code F Per 7 Aircraft marshalling 2000 4075 2100 4279 2205 4493 2315 4717 2431 4953 service Per flight 8 Ambulift 6000 10000 6300 10500 6615 11025 6946 11576 7293 12155 leg Apron Transport 9 Per Trip 2000 5000 2100 5250 2205 5513 2315 5788 2431 6078 (Passenger) Arrange non- 10 scheduled Crew Per flight 1294 1990 1358 2090 1426 2194 1497 2304 1572 2419 HOTAC ATC payment 11 Per flight 3000 8000 3150 8400 3308 8820 3473 9261 3647 9724 services Per 12 Baggage ID 3000 4000 3150 4200 3308 4410 3473 4631 3647 4862 Service 13 Baggage/Cargo cart Per Hour 1500 3530 1575 3707 1654 3892 1736 4086 1823 4291 Per refill- 14 Ballast Bags refill 1287 1980 1351 2079 1419 2183 1490 2292 1564 2407 per bag Per staff 15 Blue collar staff 2262 3480 2375 3654 2494 3837 2619 4029 2749 4230 per hour Brake Cooling 16 Per flight 22061 33940 23164 35637 24322 37419 25538 39290 26815 41254 Service Cabin 17 loading/unloading Per hour 14118 21720 14824 22806 15565 23946 16343 25144 17161 26401 NB Cabin 18 loading/unloading Per hour 17648 27150 18530 28508 19456 29933 20429 31430 21451 33001 WB Cargo / Apron 19 Per Flight 6500 10000 6825 10500 7166 11025 7525 11576 7901 12155 Transport on Apron Cargo Supervision 20 Per flight 10108 15550 10613 16328 11144 17144 11701 18001 12286 18901 services CHOCKS for 21 Per Hour 4875 7500 5119 7875 5375 8269 5643 8682 5926 9116 narrow body aircraft CHOCKS for wide 22 Per hour 5850 9000 6143 9450 6450 9923 6772 10419 7111 10940 body aircraft 23 CONES for narrow Per Hour 4875 7500 5119 7875 5375 8269 5643 8682 5926 9116 Consultation Paper No. 13/2023-24 Page 27 of 29Sl. FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 SERVICES UNIT No. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. body aircraft CONES for wide 24 Per Hour 5850 9000 6143 9450 6450 9923 6772 10419 7111 10940 body aircraft Container/Pallet 25 Per Hour 1500 4345 1575 4562 1654 4790 1736 5030 1823 5281 Dolly Container/Pallet 26 Per Hour 2000 8690 2100 9125 2205 9581 2315 10060 2431 10563 Dolly 20 FT 27 Conveyor belt Per Hour 5000 10095 5250 10600 5513 11130 5788 11686 6078 12271 28 Crew Transport Per Trip 1800 5000 1890 5250 1985 5513 2084 5788 2188 6078 Deportee/INAD Per 29 4225 6500 4436 6825 4658 7166 4891 7525 5136 7901 handling Passenger Direct crew through Per 30 1000 4090 1050 4295 1103 4509 1158 4735 1216 4971 airport facilities Service Excess Baggage Fee As per 31 15% 15% 16% 16% 17% 17% 17% 17% 18% 18% (% of collection) collection Exterior Cleaning - Per 32 21900 31755 22995 33343 24145 35010 25352 36760 26620 38598 NB Service Exterior Cleaning - Per 33 58000 84100 60900 88305 63945 92720 67142 97356 70499 102224 WB Service Fire Extinguisher 34 equipment on ramp Per Flight 1625 2500 1706 2625 1792 2756 1881 2894 1975 3039 (standalone) 35 Forklift Per Hour 7413 11405 7784 11975 8173 12574 8582 13203 9011 13863 36 Full body suit PPE Per suit 1333 2050 1399 2153 1469 2260 1543 2373 1620 2492 37 Ground Power Unit Per Hour 5000 15000 5250 15750 5513 16538 5788 17364 6078 18233 38 Headset service Per Flight 2500 5000 2625 5250 2756 5513 2894 5788 3039 6078 Interior Deep Per 39 8000 19220 8400 20181 8820 21190 9261 22250 9724 23362 Cleaning - NB Service Interior Deep Per 40 15000 33895 15750 35590 16538 37369 17364 39238 18233 41200 Cleaning - WB Service Interior Turn Per 41 8000 16700 8400 17535 8820 18412 9261 19332 9724 20299 Cleaning - NB Service Interior Turn Per 42 15000 27000 15750 28350 16538 29768 17364 31256 18233 32819 Cleaning - WB Service 43 LDL Per hour 23329 35890 24495 37685 25720 39569 27006 41547 28356 43625 44 Load Control Per Flight 9750 15000 10238 15750 10749 16538 11287 17364 11851 18233 Loading Of 45 Baggage Into ULD PER BAG 325 500 341 525 358 551 376 579 395 608 Or Aircraft Per 46 Manual Check-In 133 205 140 215 147 226 154 237 162 249 Passenger 47 MDL Per hour 27622 42495 29003 44620 30453 46851 31976 49193 33574 51653 48 MHB Handling Per Bag 585 900 614 945 645 992 677 1042 711 1094 Offloading Of 49 Baggage From ULD PER BAG 325 500 341 525 358 551 376 579 395 608 Or Aircraft Operational Flight Per 50 600 4075 630 4279 662 4493 695 4717 729 4953 Plan Print Out service Oversized Baggage 51 Per Bag 455 700 478 735 502 772 527 810 553 851 Handling Passenger Step 52 Per Hour 1500 7195 1575 7555 1654 7932 1736 8329 1823 8746 (mobile) Pushback for 53 Per Push 12000 20000 12600 21000 13230 22050 13892 23153 14586 24310 narrow body aircraft Pushback for wide 54 Per Push 16000 24000 16800 25200 17640 26460 18522 27783 19448 29172 body aircraft Station 55 Per flight 9750 15000 10238 15750 10749 16538 11287 17364 11851 18233 Management Consultation Paper No. 13/2023-24 Page 28 of 29Sl. FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 SERVICES UNIT No. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Stationary 56 (Boarding card & Per Flight 7059 10860 7412 11403 7783 11973 8172 12572 8580 13200 Tags) Supervision & 57 Administration Per flight 5850 9000 6143 9450 6450 9923 6772 10419 7111 10940 Services 58 Tail stand Per Hour 10000 15000 10500 15750 11025 16538 11576 17364 12155 18233 Per 59 Toilet truck 3000 14255 3150 14968 3308 15716 3473 16502 3647 17327 Service 60 Towbar Per Use 2000 7195 2100 7555 2205 7932 2315 8329 2431 8746 Towing of narrow 61 Per Tow 14000 22000 14700 23100 15435 24255 16207 25468 17017 26741 body aircraft Towing of wide 62 Per Tow 24000 29000 25200 30450 26460 31973 27783 33571 29172 35250 body aircraft Per 63 Transit w/o visa pax 4225 6500 4436 6825 4658 7166 4891 7525 5136 7901 Passenger Trestle (standard 64 Per Hour 1000 2000 1050 2100 1103 2205 1158 2315 1216 2431 size - 4ft) 65 Tugs Per Hour 3000 11405 3150 11975 3308 12574 3473 13203 3647 13863 Per 66 ULD Storage ULD/per 1000 2695 1050 2830 1103 2971 1158 3120 1216 3276 day 67 ULD WASHING PER ULD 2925 4500 3071 4725 3225 4961 3386 5209 3555 5470 68 UM Handling Per UM 4225 6500 4436 6825 4658 7166 4891 7525 5136 7901 69 Vacuum Cleaner Per Hour 1853 2850 1945 2993 2042 3142 2145 3299 2252 3464 VIP Vehicle 70 Per trip 6000 9500 6300 9975 6615 10474 6946 10997 7293 11547 (Innova Range) VIP Vehicle (Luxury - Mercedes/ 71 Per trip 6000 9500 6300 9975 6615 10474 6946 10997 7293 11547 BMW / AUDI range) Per 72 VIPs 4225 6500 4436 6825 4658 7166 4891 7525 5136 7901 Passenger Per 73 Water truck 3000 14255 3150 14968 3308 15716 3473 16502 3647 17327 Service 74 Water Uplift Per Ltr. 5 15 5 16 6 17 6 17 6 18 75 Weight Cart Facility Per Hour 9750 15000 10238 15750 10749 16538 11287 17364 11851 18233 Per 76 Wheel Chair 1000 2500 1050 2625 1103 2756 1158 2894 1216 3039 Service Per staff 77 White collar staff 3221 4955 3382 5203 3551 5463 3728 5736 3915 6023 per hour Dom. = Domestic; Intl. = International *Tariff for Domestic Flights is also applicable to Domestic General Operation Flights. Notes:  Above Tariff Rates are excluding of all applicable taxes, if any.  Tariff indicated above shall be the maximum Tariff to be charged No other charge is to be levied over and above the approved Tariff Rates.  For payment in foreign currency, the RBI conversion rate as on the last day of the previous month will be applicable for the first fortnight and the rate as on the 15th of the month will be applicable for the second fortnight. Consultation Paper No. 13/2023-24 Page 29 of 29