Consultation Paper No. 14/2023-24 In the matter of Determination of Tariff for Ground Handling Services for M/s Bird Airport Services (Chennai) Private Limited (BASCPL) at Chennai International Airport, Chennai for the First Control Period (FY 2023-24 to FY 2027-28).

फा.सं. ऐरा/20010/एमवाईटीपी/बीएएससीपीएल/जीएच/चै(cid:198) नई /सीपी-III/2023-28 F.N. AERA/20010/MYTP/BASCPL/GH/Chennai/CP-III/2023-28 परामश(cid:170) प(cid:253) स(cid:180)ं या 14/2023-24 Consultation Paper No. 14/2023-24 भारतीय िवमानप(cid:194) तन आिथ(cid:170)क िविनयामक (cid:255)ािधकरण Airports Economic Regulatory Authority of India मैसस(cid:170) बड(cid:170) एयरपोट(cid:170) सिव(cid:170)सेज (चै(cid:198) नई) (cid:255)ाइवेट िलिमटेड (बी.ए.एस.सी.पी.एल.) के संबंध म(cid:164) चै(cid:198) नई अंतरा(cid:170)(cid:213)(cid:367)ीय हवाईअड्डा, चै(cid:198) नई म(cid:164) (cid:255)थम िनयं(cid:253)ण अविध (िव(cid:194) त वष(cid:170) 2023-24 से िव(cid:194) त वष(cid:170) 2027-28) के िलए (cid:250)ाउंड ह(cid:167)डिलंग सेवाओ ंके िलए टै(cid:229)रफ िनधा(cid:170)रण के मामले म(cid:164) IN THE MATTER OF DETERMINATION OF TARIFF FOR GROUND HANDLING SERVICES FOR M/s BIRD AIRPORT SERVICES (CHENNAI) PRIVATE LIMITED (BASCPL) AT CHENNAI INTERNATIONAL AIRPORT, CHENNAI FOR THE FIRST CONTROL PERIOD (FY 2023-24 TO FY 2027-28) जारी करने क(cid:236) तारीख : 06.10.2023 Date of Issue: 06.10.2023 ऐरा भवन/ AERA Building (cid:255)शासिनक कॉ(cid:204) पल(cid:179)े स/ Administrative Complex सफदरजंग हवाईअड्डा/ Safdarjung Airport नई िद(cid:208) ली/ New Delhi– 110003 Consultation Paper No. 14/2023-24 Page 1 of 28STAKEHOLDERS’ COMMENTS The Authority has released this Consultation Paper, after considering various assumptions stipulated in the Multi-Year Tariff Proposal (‘MYTP’) submitted by the M/s Bird Airport Services (Chennai) Pvt. Ltd. in respect of 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. 14/2023-24 dated 06/10/2023 is 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. 14/2023-24 Page 2 of 28TABLE 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 (CAPEX)…………..…………………………………..…...12 CHAPTER 5: OPERATING EXPENDITURE AND PROJECTED PROFITABILITY……….………15 CHAPTER 6: ANNUAL TARIFF PROPOSAL………..…………………………….……….…………19 CHAPTER 7: SUMMARY OF AUTHORITY’S PROPOSALS……..………….……………................22 CHAPTER 8: STAKEHOLDERS' CONSULTATION………...………………………..………………23 ANNEXURE I: TARIFF RATE CARD FOR M/s BASCPL 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……………………………………………………….………...…..…24 ANNEXURE II: TARIFF RATE CARD FOR M/s BASCPL 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 ….........................................................................................................................................25 ANNEXURE III: ITEM WISE CHARGES FOR DOMESTIC AND INTERNATIONAL FLIGHTS FOR M/s BASCPL IN RESPECT OF GROUND HANDLING SERVICES AT CHENNAI INTERNATIONAL AIRPORT, CHENNAI, PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION.….……………………………………………...26 Consultation Paper No. 14/2023-24 Page 3 of 28LIST OF TABLES S. No. Particulars Page No. 1 Shareholding Structure of M/s BASCPL 6 Actual Aircraft Traffic handled at Chennai International Airport during FY 2 10 2018-19 to FY 2022-23 Projected Aircraft Traffic (Flights to be handled by ISP) submitted by M/s 3 10 BASCPL for the First Control Period (FY 2023-24 to FY 2027-28). Projected Capital Expenditure submitted by M/s BASCPL for the First Control 4 12 Period. Revenue, Operating Expenditure and Profitability projected by M/s BASCPL for 5 15 the First Control Period. Y-o-Y Percentage (%) increase in the Revenue and Operation & Maintenance 6 16 Expenditure projected by the ISP during the First Control Period. Proposed Tariff Rates for Scheduled Flights submitted by M/s BASCPL for the 7 19 First Control Period. Y-o-Y Percentage (%) Change in the Proposed Tariff for the different 8 19 categories of Scheduled Flights for the First Control Period. Proposed Tariff Rates for Non-Scheduled Flights and General Aviation Operations 9 20 submitted by M/s BASCPL for the First Control Period. Consultation Paper No. 14/2023-24 Page 4 of 28List of Abbreviations: AERA / Authority Airports Economic Regulatory Authority of India BASCPL Bird Airport Services (Chennai) Private Limited AIASL AI Airport Services Limited CGSCPL Celebi Ground Services (Chennai) Private Limited ATM Air Traffic Movement ATP Annual Tariff Proposal CAPEX Capital Expenditure COD Commercial Operations Date CGF Cargo Facility, Ground Handling &Supply of Fuel to Aircraft EBITDA Earnings Before Interest, Tax, Depreciation and Amortization GGIPL Global Ground India Private Limited GHA Ground Handling Agencies GHS Ground Handling Services GSE Ground Support Equipment 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. 14/2023-24 Page 5 of 28CHAPTER 1: INTRODUCTION 1.1 Globe Ground India Private Limited (GGIPL) was awarded Concession to provide Ground Handling Services at Chennai International Airport, Chennai through Request for Proposal selection process, by the Airport Operator i.e., 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 GGIPL within 30 days from the date of issue of LOIA, for entering into the concession agreement with AAI and implementation of Concession to provide ground handling services at Chennai International Airport. Accordingly, SPV namely M/s Bird Airport Services (Chennai) Private Limited (BASCPL), was incorporated under the Indian Companies Act, 2013 on 20.01.2023, is considered as “Special Purpose Vehicle” in terms of LOIA dated 18.11.2022 1.3 The Airport Operator (AAI) and the Special Purpose Vehicle i.e., M/s BASCPL entered into Concession Agreement on 28.06.2023, for a provision of ground handling services at Chennai International Airport, Chennai for a period of 10 years from the “Commercial Operations Date (COD)”. The Concession term is further extendable for a period of one year at the sole discretion of AAI. 1.4 The shareholding structure of the M/s BASCPL is tabulated below. Table-1: Shareholding Structure of M/s BASCPL: Shareholding Name and Address No. of Shares (%) Globe Ground India Private Limited 5,100 51.00% Bird Worldwide Flight Services (India) Private Limited 2,900 29.00% Global Flight Handling Services Private Limited 1,000 10.00% Gokul Vinimay Private Limited 1,000 10.00% Total 10,000 100% 1.5 Bureau of Civil Aviation Security (BCAS) granted security clearance to M/s BASCPL on 15.05.2023, which is valid for a period of five years from the date of issue of security clearance. 1.6 The Authority, vide Order No. 12/2023-24 dated 11.07.2023 approved the Ad-hoc Tariff for M/s Bird Airport Services (Chennai) Private Limited, from commercial operation date (COD) up to 30.09.2023. 1.7 Subsequently the Authority, vide Order no. 20/2023-24 dated 27.09.2023, extended the prevailing Ad-hoc Tariff (as on 30.09.2023) for further period i.e., w.e.f. 01.10.2023 up to 31.03.2024 or till the determination of regular Tariff for the ISP, whichever is earlier. 1.8 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), M/s BASCPL submitted the Multi-Year Tariff Proposal (‘MYTP’) on 22.08.2023 in respect of the First Control Period (FY 2023-24 to FY 2027-28), for determination of Tariff pertaining to the Ground Handling Services being provided at Chennai International Airport, Chennai. Consultation Paper No. 14/2023-24 Page 6 of 281.9 The Authority, after having examined the MYTP submission of the M/s BASCPL in detail and taking into account the additional information/clarifications submitted by the ISP, from time to time has issued this Consultation Paper for stakeholders’ consultation. Consultation Paper No. 14/2023-24 Page 7 of 28CHAPTER2: 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 the above mentioned AERA Guidelines and Direction, the following procedure is adopted for the determination of the Materiality Index of the Regulated Service: STAGE I: MATERIALITY ASSESSMENT: 𝑰𝒏𝒕𝒍. 𝑨𝒊𝒓𝒄𝒓𝒂𝒇𝒕 𝑴𝒐𝒗𝒆𝒎𝒆𝒏𝒕𝒔 𝒂𝒕 (cid:3014)(cid:3028)(cid:3037)(cid:3042)(cid:3045) 𝑨𝒊𝒓𝒑𝒐𝒓𝒕 2.3 Materiality Index (MI ) = 𝑿𝟏𝟎𝟎 G 𝑻𝒐𝒕𝒂𝒍 𝑰𝒏𝒕𝒍. 𝑨𝒊𝒓𝒄𝒓𝒂𝒇𝒕 𝑴𝒐𝒗𝒆𝒎𝒆𝒏𝒕𝒔 𝒂𝒕 𝑴𝒂𝒋𝒐𝒓 𝑨𝒊𝒓𝒑𝒐𝒓𝒕𝒔 The Materiality Index for Chennai International Airport = 37768/420772 = 8.97% The percentage share of Chennai International Airport for FY 2019-20 (Pre Covid-Year) in respect of International Aircraft Movements is 8.97%, which is more than 5% Materiality Index (MI ) for the subject regulated service. Hence, the Regulated Service is deemed ‘Material’ in G respect of the ISP, for its First Control Period. Stage II: COMPETITION ASSESSMENT: 2.4 The Authority notes that as per the information furnished by M/s BASCPL in form F1(b) of the MYTP, in addition to the ISP, M/s AI Airport Services Limited (AIASL) and M/s Celebi Ground Services Chennai Pvt. Ltd (CGSCPL) are the other two service providers rendering similar services at Chennai International Airport, Chennai. Hence the Regulated Service is deemed as ‘Competitive’ in respect of the ISP, for the First Control Period. 2.5 As per Clause 3.2 (ii) of the Guidelines, wherever the Regulated Service is deemed as ‘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. 2.6 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 to the Guidelines and the proposal shall be supported by the following: 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(s) that are proposed by the Service Provider. Consultation Paper No. 14/2023-24 Page 8 of 282.7 The Authority notes that the M/s BASCPL has submitted the Annual Tariff Proposal (ATP) along with its MYTP and other requisite documents for the determination of Tariff for Ground Handling Services at Chennai International Airport, except the minutes of the Stakeholders’ consultation meeting. ISP is yet to conduct the Stakeholders’ Consultation meeting. The Authority, therefore, directs M/s BASCPL to conduct Stakeholders’ Consultation Meeting within the two weeks of the issuance of this Consultation Paper, in compliance to the CGF Guidelines, 2011. 2.8 Authority’s Proposal regarding Methodology of Tariff Determination of M/s BASCPL: Based on the material before it and its analysis, the Authority proposes to consider the Tariff determination exercise for M/s BASCPL, in respect of the Ground Handling Services provided by the ISP, 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. 14/2023-24 Page 9 of 28CHAPTER 3: AIRCRAFT TRAFFIC (FLIGHTS TO BE HANDLED) M/s BASCPL submission on Projected Aircraft Traffic (Flights to be Handled) during First Control Period 3.1 Actual Aircraft Traffic (Nos. of landings) handled at the Chennai International Airport, from FY 2018-19 to FY 2022-23 is given below: Table 2: Actual Aircraft Traffic handled at Chennai International Airport during FY 2018-19 to FY 2022-23 Total number of Landings at Chennai Y-o-Y % increase International Airport Year Domestic International Total Domestic International Total 2018-19 69458 19582 89040 - - - 2019-20 65,107 18,884 83,991 -6% -4% -6% 2020-21 26,387 5,909 32,295 -59% -69% -62% 2021-22 36073 9,728 45,801 37% 65% 42% 2022-23 52857 15,990 68,847 47% 64% 50% 3.2 Projected Aircraft Traffic (Flights to be handled by ISP) for the First Control Period (FY 2023-24 to FY 2027-28) submitted by M/s BASCPL is given below in Table 3. Table3: Projected Aircraft Traffic (Flights to be handled by ISP) submitted by M/s BASCPL for the First Control Period (FY 2023-24 to FY 2027-28). 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- Mar 2024) 2890 1998 4868 2023-24* - - - (Annualized) 5,780 3,955 9,735 2024-25 6,069 4,152 10,221 5% 5% 5% 2025-26 6,373 4,358 10,731 5% 5% 5% 2026-27 6,691 4,577 11,268 5% 5% 5% 2027-28 7,025 4,805 11,830 5% 5% 5% Total 31,938 21,847 53,785 *Annualized traffic projections for the FY 2023-24 Consultation Paper No. 14/2023-24 Page 10 of 28Authority’s Examination of the Projected Aircraft Traffic (Flights to be handled by the ISP): 3.3 The Authority notes that M/s BASCPL is a new entrant at Chennai International Airport and is expected to commence its commercial operations at Chennai International Airport in October, 2023. The Authority, based on the aircraft traffic projection for the FY 2023-24, expects the service provider to have market share around 14% in FY 2023-24, based on the actual aircraft traffic movements in respect of Chennai airport for FY 2022-23, published by the AAI at its website. 3.4 The Authority further notes that M/s BASCPL has projected the modest growth rate of 5% on Y-o-Y basis for the aircraft traffic volume to be handled by the ISP for the First Control Period. 3.5 As per the statistics available at AAI website, the total Aircraft Traffic handled by Chennai International Airport in FY 2022-23 had reached to 82% of the actual Aircraft Traffic handled in the pre-Covid year i.e., FY 2019-20. 3.6 The Authority observes from the AAI statistics that the aircraft movements for the period from April, 2023 to July, 2023 in respect of the Chennai airport have increased by 10%, as compared to the corresponding period of FY 2022-23. 3.7 Considering that the service provider is new entrant at Chennai International Airport and taking into account the market competition among the three service providers at Chennai International Airport, aircraft traffic projected by the ISP for the First Control Period is reasonable. Accordingly, the Authority proposes to adopt Aircraft traffic projections (flights to be handled) as submitted by M/s BASCPL for the First Control Period (FY 2023-24 to 2027-28) as per the Table 3 above. 3.8 Authority’s Proposal regarding Aircraft Traffic Volume 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 by the ISP) for the First Control Period as per Table 3. Consultation Paper No. 14/2023-24 Page 11 of 28CHAPTER 4: CAPITAL EXPENDITURE (CAPEX) M/s BASCPL Submission on Capital Expenditure for the First Control Period 4.1 M/s BASCPL has projected a total Capital Expenditure (CAPEX) of ₹ 5890.49 lakhs for the First Control Period (FY 2023-24 to FY 2027-28). The year-wise & asset-wise Capital Expenditure projected by M/s BASCPL is given below: Table 4: Projected Capital Expenditure submitted by M/s BASCPL for the First Control Period. (₹ in Lakhs) Particulars 2023-24 2024-25 2025-26 2026-27 2027-28 Total Ground Handling 4424.01 647.24 - 38.77 - 5110.02 Equipment Office 15.07 - - - - 15.07 Equipment Motor 765.40 - - - - 765.40 Vehicles Total 5204.48 647.24 - 38.77 - 5890.49 4.2 The ISP provided the further details of the proposed CAPEX for the First Control Period as under: (₹ in Lakhs) Financial Particulars Qty. Rate Amount Asset Class Year Push Back Tractor - TT110 2 55.79 111.59 Towbar Universal 8 5.20 41.60 Passenger Step - 2200-5300mm 4 9.55 38.20 height Passenger Step Ladder Non- 2 5.55 11.10 motorized Baggage Conveyor Belt - Electric 4 8.05 32.20 Ambulift - Lift 2000-4400mm 1 30.05 30.05 GPU-140 KVA Single cable 1 56.38 56.38 Diesel Baggage Tractor - 25T 7 32.55 227.86 Ground Handling 2023-24 Tow Capacity Equipment Push back tractors Wide Body 2 308.81 617.63 TMX 450-50 Passenger Step Ladder motorized 4 23.30 93.20 Baggage Conveyor Belt - 9 M 2 8.05 16.10 Boom Length Main Deck Loader-15T Capacity 1 379.24 379.24 for wide body freighters only 1 184.22 184.22 Lower Deck Loader-7T Capacity for wide body freighters only Universal Loader 2 243.81 487.63 Consultation Paper No. 14/2023-24 Page 12 of 28Financial Particulars Qty. Rate Amount Asset Class Year Toilet servicing Cart - Lift 3 14.05 42.15 pressure 0.25-0.35 Mpa, Flow rate 120L/min Water Servicing Cart - Lift 3 12.55 37.65 pressure 0.25-0.35 Mpa, Flow rate 120L/min Ambulift - Universal 1 45.55 45.55 Air Conditioning Unit-Cooling 2 323.36 646.72 capacity 110T Air flow 300 ppm JET START UNIT-400 PPM 1 392.69 392.69 Single hose GPU-180 KVA Single cable 1 62.68 62.68 Ground Handling EBT 15 32.55 488.28 Equipment Baggage trolleys 75 0.85 63.75 Pallet Dollies - 10 Feet 75 2.05 153.75 Container Dollies 50 1.25 62.50 Fuel Bowser 900 L - towable 3 7.21 21.64 Wheel chairs 100 0.125 12.50 Chocks (12), Marshalling torches (10 pairs*5), Head set (2), By Pass pin for A320/B737 (2), 5 5.20 26.00 Safety cones (12), Vacuum cleaners (3), Firex (2) Laser jet Black & White Printer 2 0.20 0.40 Laser jet MFP Color Printer 2 0.12 0.24 Laptop 20 0.55 11.00 Desktop 20 0.40 8.00 Office Equipment Mobile Phone 15 0.10 1.50 Office New Cabins Set Up / 1 35.00 35.00 Modification Vehicle for GA Operations 2 62.55 125.10 Vehicle GSE Maintenance 2 7.55 15.10 Vehicles Coaches - Electric 5 125.05 625.25 Total for FY 2023-24 5204.49 Passenger Step - 2200-5300mm 5 30.05 150.25 height Push Back Tractor - Draw Pull 2 55.79 111.59 Bar of 12000 DaN 2024-25 B Ba og og ma g Le e C ngo tn hv eyor Belt - 5 M 20 8.05 161.00 Gro Eu qn ud i pH ma en nd tl ing Diesel Baggage Tractor - 25T 71.90 Tow Capacity 3 23.96 Container Dollies 84 1.25 105.00 Baggage trolleys 50 0.95 47.50 Total for FY 2024-25 647.24 Consultation Paper No. 14/2023-24 Page 13 of 28Financial Particulars Qty. Rate Amount Asset Class Year Baggage Conveyor Belt - 5 M 1 5.77 5.77 Boom Length Ground Handling 2026-27 Container Dollies 20 1.25 25.00 Equipment Wheel chairs 64 0.125 8.00 Total for FY 2026-27 38.77 Grand Total 5890.49 Authority’s Examination and Analysis: 4.3 The Authority observes that M/s BASCPL, out of the proposed total CAPEX of ₹ 5890.49 lakhs, has proposed a major portion of the CAPEX on the procurement of Ground Handling Equipment and allied infrastructure etc., in the first three years of the Control Period, for the smooth commencement of operations and to provide quality services to the Users. 4.4 During the Control period, out of total CAPEX the ISP proposed to incur ₹ 5110.02 lakhs (86%) on the procurement of Ground Handling Equipment, ₹15.07 lakhs (0.2%) on office equipment and ₹765.40 lakhs (13.8%) on vehicles. 4.5 The Authority, from the submission of the ISP (Email dated 27.09.2023) observes that the ISP has already issued purchase orders amounting to ₹ 3308 lakhs approx. (63.5%) against the total CAPEX proposed for FY 2023-24. The ISP also informed that the remaining CAPEX in respect of the FY 2023-24 will be incurred during the remaining period of the current financial year. 4.6 The Authority also notes that M/s BASCPL being a new entrant at the Chennai International Airport is required to make provision for the necessary Ground Support Equipment (GSE) / Allied infrastructure during initial years of the Control Period, for smooth commencement of its commercial operations. 4.7 Authority observed that ISP is spending major portion of CAPEX towards the procurement of Ground Handling Equipment, where GST ITC is available. Accordingly, Authority sought clarification from the ISP regarding the treatment of GST component for capitalization of the assets. The ISP vide Email dated 11.09.2023 informed the Authority that the Proposed Capex relating to the Ground Handling equipment excludes GST component. 4.8 The Authority, notes that the ISP has proposed CAPEX of ₹ 5890.49 lakhs for the First Control Period and the proposed CAPEX mainly pertains to the Ground Handling Equipment & allied infrastructures, which is essential for the commencement of Ground Handling operations by the new entrant at the Chennai International airport. Hence, the Authority proposes to consider CAPEX for the First Control Period as submitted by the M/s BASCPL 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. 14/2023-24 Page 14 of 28CHAPTER 5: OPERATING EXPENDITURE AND PROJECTED PROFITABILITY M/s BASCPL 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 BASCPL for its Ground Handling operations at Chennai International Airport have been broadly categorized as under: a) Payroll Costs; b) Admin and General Expenses; c) Concession Fees; d) Repairs and Maintenance Expenses and e) Utilities & Outsourcing Costs 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 5: Revenue, Operating Expenditure and Profitability projected by M/s BASCPL for the First Control Period. (₹ in lakhs) First Control Period FY Particulars 2023-24 FY FY FY FY FY TOTAL (Oct. 2023- 2023-24* 2024-25 2025-26 2026-27 2027-28 Mar. 2024) Revenue from Regulated 3,381.65 6763.30 7,597.73 8,533.56 9,589.49 10,772.04 39,874.47 Services (A) Revenue from Non-Regulated - - - - - - - Services (B) Total Revenue from Services 3,381.65 6763.30 7,597.73 8,533.56 9,589.49 10,772.04 39,874.47 (A+B) = C Operating Expenditure i. Payroll Cost 1352.66 2,705.32 2,980.17 3,287.80 3,629.15 4,004.62 15254.39 ii. Administrative and General 492.91 985.82 1,052.97 1,125.29 1,203.37 1,287.51 5162.06 Expenditure iii. Concession Fees 1550.00 3100.00 3100.00 3100.00 3100.00 3100.00 13950.00 iv. Repairs & Maintenance 23.26 46.52 48.85 51.29 53.86 56.55 233.82 Expenses v. Utilities & Outsourcing Costs 138.63 277.26 305.44 336.48 370.77 408.49 1,559.82 Total OPEX (i+ii+iii+iv+v) 3557.46 7114.92 7487.43 7900.86 8357.15 8857.17 36,160.10 = (D) Consultation Paper No. 14/2023-24 Page 15 of 28First Control Period FY Particulars 2023-24 FY FY FY FY FY TOTAL (Oct. 2023- 2023-24* 2024-25 2025-26 2026-27 2027-28 Mar. 2024) Earnings Before Interest, Tax, Depreciation and Amortization -175.81 -351.62 110.30 632.70 1,232.34 1,914.87 3,714.38 (EBITDA) (C-D) = E Depreciation and Amortization 185.87 371.73 410.55 417.87 420.40 420.40 1,855.08 = (F) Interest and Finance Charges 291.23 582.46 541.67 457.28 368.89 276.04 1,935.12 = (G) Profit Before Tax (PBT) -652.91 -1305.81 -841.92 -242.45 443.05 1218.43 -75.82 (E-F-G) = H Provision for Tax = (I)# - - - - - - - Profit After Tax (PAT) (H-I) -652.91 -1305.81 -841.92 -242.45 443.05 1218.43 -75.82 * Annualized figures of Revenue, Operating and Maintenance expenses for FY 2023-24 # Nil Tax provision due to anticipated losses in first three tariff years. Authority’s Examination and Analysis: 5.4 The Authority has analyzed the Operating Expenditure of the ISP, as provided in Form F3 (P&L) of the MYTP for the First Control Period and observes following Y-o-Y% increase in Revenue & OPEX considered by the ISP as per Table 6 below: Table 6: Y-o-Y Percentage (%) increase in the Revenue and Operation & Maintenance Expenditure projected by the ISP during the First Control Period First Control Period Particulars FY* FY FY FY 2024-25 2025-26 2026-27 2027-28 Revenue 12.3% 12.3% 12.3% 12.3% Payroll Expenses 10.3% 10.3% 10.3% 10.3% Administrative and General Expenses 7% 7% 7% 7% Concession Fees 0% 0% 0% 0% Repairs and Maintenance Expenses 5% 5% 5% 5% Utilities and Outsourcing Expenses 10% 10% 10% 10% *Percentage increase is after comparing the annualized figures of FY 2023-24 with FY 2024-25. The Authority’s examination of Y-o-Y % growth considered by the M/s BASCPL for projected OPEX from FY 2023-24 onward is given in the following sections: a) Payroll Expenses: The Authority notes that M/s BASCPL has considered Y-o-Y increase in the Payroll Expenses @ 10.3% p.a. from FY 2024-25 onward, during the First Control Period. It is further noted that the ISP has considered 3% increase in manpower strength on a Y-o-Y basis. Considering the periodic increase in minimum wages & annual salary increments and related Consultation Paper No. 14/2023-24 Page 16 of 28increase in statutory component like EPF etc., impact of additional manpower to cater to the projected growth in aircraft traffic (flights to be handled by the ISP), the Y-o-Y increase considered by the ISP in Payroll expenses for the First Control Period is reasonable. b) Administrative & General Expenses: The Authority notes that the Y-o-Y increase considered by M/s BASCPL in the Administrative and General Expenses for the Control period is 7%. The Authority’s examination regarding Administrative & General expenses is as under: b.1 Equipment Hire Expenses: The Authority notes that M/s BASCPL has also proposed an Equipment Hire expense which forms around 25% of the total Admin & General Expenses. Further, the Authority observes that the Y-o-Y increase in Equipment Hire Expense is 7% from 2024-25 onwards. In this regard, the Authority observes that the ISP has already proposed significant CAPEX on the GSE. Therefore, the Authority asked the ISP to furnish the details of equipment being hired along with the justification thereof. The ISP vide Email dated 03.10.2023 clarified that “we procure equipment as per the normal schedule provided by the airlines. It is not viable to keep the equipment in spares to cater to the need of the sudden requirement of additional equipment due to the sudden change in the flight timing done by the airlines at very short notice. Hence, we take equipment on a hire basis from other ground handling agencies and other vendors who are authorized to provide their equipment on a hire basis at the airport”. b.2 Lease/ Space Rent: The Authority observes that lease/rent is another major component of Admin. & General expenses (i.e. ₹ 755 lakhs approx., which almost accounts for 15% of total Admin. & General Expenses). 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. The ISP vide Email dated 11.09.2023 provided copy of supplementary Space and land agreement with AAI. The Authority, from the supplementary agreement notes that the License fee will be escalated @ 7.5% Y-o-Y basis. In view of above, including clarification furnished by the ISP, and taking into account the projected increase in the aircraft traffic and considering the impact of general inflation and annual escalation in Land/ Space Rent as per concession agreement, the Y-o-Y increase projected by ISP in respect of Administrative and General Expenses for the First Control Period is reasonable. c) Concession Fees: The Authority notes from the clause 7.1.1 of concession agreement executed between AAI and M/s BASCPL, 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 the maximum of “Minimum Annual Guarantee” (MAG) and the ‘Revenue Share’ calculated as per clause 7.1.1 of the concession agreement. Further as per the ISP, MAG will be escalated @ 20% p.a. on completion of five years. Consultation Paper No. 14/2023-24 Page 17 of 28The ISP, vide email dated 26.09.2023 further clarified that they are expecting that the amount of revenue share will be less than the MAG in all the Tariff year of the Control Period. Accordingly, there will be the fixed amount of Concession fee (Amount of MAG) payable to Airport Operator in the Control Period. So, ISP is expecting no growth in the Concession fee in the Control Period from FY 2024-25 onward. 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) Repairs and Maintenance Expenses: The Authority observes that the Y-o-Y increase proposed by M/s BASCPL in the Repair and Maintenance Expenses for the Control period is 5% p.a. from 2024-25 onwards. Considering the impact of annual general inflation, including annual increase in labour component of Repair & Maintenance, the Authority considers the Y-o-Y increase in Repair and Maintenance Expenses for the First Control Period projected by ISP as reasonable. e) Utilities and Outsourcing Expenses: The Authority observes that from FY 2024-25 onward the Y-o-Y increase proposed by M/s BASCPL in the Utilities and Outsourcing Expenses for the Control Period is 10%. The Authority further observes that the utility and outsourcing costs of the ISP mainly comprise of fuel charges and electricity expenses which are directly linked with the number of flights handled. In view of the projected increase in aircraft traffic (flights to be handled by the ISP) and the impact of general inflation, the Utility & Outsourcing Expenses projected for the Control Period by the ISP is reasonable. Authority’s proposal regarding Operation and Maintenance Expenses for the First Control Period: 5.5 Based on the material before it and its analysis, the Authority proposes to consider the OPEX for the First Control Period as per Table 5. Consultation Paper No. 14/2023-24 Page 18 of 28CHAPTER 6: ANNUAL TARIFF PROPOSAL M/s BASCPL Submissions on Annual Tariff Proposal for the First Control Period 6.1 M/s BASCPL has submitted a Tariff proposal for Ground Handling Services pertaining to 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 7: Proposed Tariff Rates for Scheduled Flights submitted by M/s BASCPL for the First Control Period. (Rates in ₹) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Full Full Full Full Full Pax Ramp Pax Ramp Pax Ramp Pax Ramp Pax Ramp Services Services Services Services Services Domestic Passenger Flight Code B 6,000 14,000 20,000 6,420 14,980 21,400 6,870 16,030 22,900 7,380 17,220 24,600 7,920 18,480 26,400 Code C 9,000 21,000 30,000 9,630 22,470 32,100 10,320 24,080 34,400 11,070 25,830 36,900 11,850 27,650 39,500 International Passenger Flight Code C 41,250 96,250 1,37,500 44,160 1,03,040 1,47,200 47,280 1,10,320 1,57,600 50,610 1,18,090 1,68,700 54,180 1,26,420 1,80,600 Code D 61,875 1,44,375 2,06,250 66,210 1,54,490 2,20,700 70,860 1,65,340 2,36,200 75,840 1,76,960 2,52,800 81,150 1,89,350 2,70,500 Code E 82,500 1,92,500 2,75,000 88,290 2,06,010 2,94,300 94,500 2,20,500 3,15,000 1,01,130 2,35,970 3,37,100 1,08,210 2,52,490 3,60,700 Domestic Cargo Flight Code C N/A N/A 82,500 N/A N/A 88,300 N/A N/A 94,500 N/A N/A 1,01,200 N/A N/A 1,08,300 Code D N/A N/A 1,23,750 N/A N/A 1,32,500 N/A N/A 1,41,800 N/A N/A 1,51,800 N/A N/A 1,62,500 International Cargo Flight Code C N/A N/A 1,37,500 N/A N/A 1,47,200 N/A N/A 1,57,600 N/A N/A 1,68,700 N/A N/A 1,80,600 Code D N/A N/A 1,92,500 N/A N/A 2,06,000 N/A N/A 2,20,500 N/A N/A 2,36,000 N/A N/A 2,52,600 Code E N/A N/A 2,32,500 N/A N/A 2,48,800 N/A N/A 2,66,300 N/A N/A 2,85,000 N/A N/A 3,05,000 Notes: 1. Any flight where either its arrival or departure are international, will also be considered as an International Flight for the purposes of applying above rates. 2. The above rates are for basic Handling Services. As per requirement, airlines/users ask for additional services. The rates for such additional services are given in Annexure-III. 3. The above rates are exclusive of GST and any other applicable Government taxes. 6.2 M/s BASCPL has proposed the following % increase in the proposed Tariff Rates for Scheduled Flights at Chennai International Airport, for the First Control Period, as per table given below: Table 8: Y-o-Y Percentage (%) Change in the Proposed Tariff for the different categories of Scheduled Flights for the First Control Period. FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Full Full Full Full Pax Ramp Pax Ramp Pax Ramp Pax Ramp Services Services Services Services Domestic Passenger Flight Code B 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Code C 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% International Passenger Flight Code C 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Code D 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Code E 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Consultation Paper No. 14/2023-24 Page 19 of 28FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Full Full Full Full Pax Ramp Pax Ramp Pax Ramp Pax Ramp Services Services Services Services Domestic Cargo Flight Code C N/A N/A 7% N/A N/A 7% N/A N/A 7% N/A N/A 7% Code D N/A N/A 7% N/A N/A 7% N/A N/A 7% N/A N/A 7% International Cargo Flight Code C N/A N/A 7% N/A N/A 7% N/A N/A 7% N/A N/A 7% Code D N/A N/A 7% N/A N/A 7% N/A N/A 7% N/A N/A 7% Code E N/A N/A 7% N/A N/A 7% N/A N/A 7% N/A N/A 7% 6.3 M/s BASCPL has also submitted separate Tariff Rate Card for Non-Scheduled and General Aviation Operations as per the table given below: - Table 9: Proposed Tariff Rates for Non-Scheduled Flights and General Aviation Operations submitted by M/s BASCPL for the First Control Period. (Rates in ₹) FY FY FY FY FY Maximum Take Off 2023-24 2024-25 2025-26 2026-27 2027-28 Weight (MTOW) International International International International International 0-5000 45,000 48,150 51,521 55,127 58,986 5001-10000 82,500 88,275 94,454 1,01,066 1,08,141 10001- 20000 1,31,250 1,40,438 1,50,269 1,60,788 1,72,043 20001- 35000 1,50,000 1,60,500 1,71,735 1,83,756 1,96,619 35001- 40000 1,68,750 1,80,563 1,93,202 2,06,726 2,21,197 40001- 50000 1,87,500 2,00,625 2,14,669 2,29,696 2,45,775 50001- 100000 2,43,750 2,60,813 2,79,070 2,98,605 3,19,507 100001 – 200000 4,61,250 4,93,538 5,28,086 5,65,052 6,04,606 200001 - 300000 5,43,750 5,81,813 6,22,540 6,66,118 7,12,746 300001 and above 6,56,250 7,02,188 7,51,341 8,03,935 8,60,210 Notes:1. The above rates are for basic Handling Services. As per requirement, airlines/users ask for additional services. The rates for which are given in Annexure-III. 2. The above rates are exclusive of GST and any other applicable Government taxes. Authority’s Examination and Analysis: 6.4 The Authority notes that in the case of Scheduled Flights (Domestic & International), the ISP has proposed 7% Y-o-Y increase in Tariff Rates from FY 2024-25 onwards (Table 8). 6.5 The Authority also notes that M/s BASCPL has proposed a separate Tariff Rate card for Non- Scheduled Flights, considering an increase of 7% Y-o-Y basis in tariff rates from FY 2024-25 onwards (Table 9). 6.6 The Authority, considering the Aircraft Traffic projected by the ISP for the Control Period & projected increase in the Operating Expenditure, due to factors like increase in number of employees to cater to projected increase in aircraft traffic, annual increase in salaries & wages etc., is of the view that ISP requires adequate revenues to cover up the Operating Costs and to get reasonable return on its investments. Consultation Paper No. 14/2023-24 Page 20 of 286.7 It is pertinent to note that the ISP even with the proposed Tariff is likely to suffer losses during the first four Tariff years of the Control Period (Table 5). The Authority considers 7% increase in Tariff Rates proposed by the ISP on Y-o-Y basis from FY 2024-25 onward as reasonable. 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 in case of International “Non-Scheduled & General Aviation Operations” only, 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 BASCPL 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 the available material and its analysis, the Authority proposes the following in respect of Tariff structure and Annual Tariff Proposal for the First Control Period: 6.11 To consider the Tariff Rates for Ground Handling Services provided by M/s BASCPL at Chennai International Airport in respect of Scheduled Flights, International “Non-Scheduled & General Aviation Flights” and Item-wise Tariff Rate Card for Scheduled & Non-Scheduled Operators, 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 Tariff to be charged. No other charge is to be levied over and above the approved Tariff Rates. 6.15 M/s BASCPL 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. 14/2023-24 Page 21 of 28CHAPTER 7: SUMMARY OF AUTHORITY’S PROPOSALS The below-mentioned summary provides the Authority's proposals relating to relevant chapters regarding the Tariff determination in respect of the Ground Handling Services provided by the ISP at Chennai International Airport for Stakeholders’ Consultation: Chapter Para Summary of the Authority’s Proposals Page No. The Authority proposes to consider the Tariff determination exercise for M/s BASCPL, in respect of the Ground Handling Services provided by the Chapter 2.8 9 ISP, at Chennai International Airport, under the ‘Light Touch Approach’ No.2 for the First Control Period, as the regulated service is deemed as ‘Material but Competitive’ Chapter 3.8 The Authority proposes to consider the Aircraft Traffic (Flights to be 11 No. 3 handled by the ISP) 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 5.5 The Authority proposes to consider the OPEX for the First Control Period 18 No. 5 as per Table 5. The Authority proposes to consider the Tariff Rates for Ground Handling Services provided by M/s BASCPL at Chennai International Airport in respect of Scheduled Flights, International “Non-Scheduled & General 6.11 Aviation Flights” and Item-wise Tariff Rate Card for Scheduled & Non- Scheduled Operators, 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 relevant Domestic Scheduled Flights for similar class of Aircraft(s). The Authority proposes that in case of payment in foreign currency, the RBI Chapter 21 No. 6 6.13 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. The Authority proposes that the Tariff Rates indicated in Annexures (I, II 6.14 & III) shall be maximum Tariff to be charged. No other charge is to be levied over and above the approved Tariff Rates. The Authority proposes that M/s BASCPL shall ensure compliance towards Standardization of Ground Handling Equipment at Chennai International 6.15 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. 14/2023-24 Page 22 of 28CHAPTER 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 in the Consultation Paper (Annexure-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 Chapter 7 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. 14/2023-24 Page 23 of 28ANNEXURE I TARIFF RATE CARD FOR M/s BASCPL IN RESPECT OF DOMESTIC*& INTERNATIONAL SCHEDULED FLIGHTS FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28) AT CHENNAI INTERNATIONAL AIRPORT PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Proposed Tariff Rates for Ground Handling Services (Rates in ₹) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Full Full Full Full Full Pax Ramp Pax Ramp Pax Ramp Pax Ramp Pax Ramp Services Services Services Services Services Domestic Passenger Flight Code B 6,000 14,000 20,000 6,420 14,980 21,400 6,870 16,030 22,900 7,380 17,220 24,600 7,920 18,480 26,400 Code C 9,000 21,000 30,000 9,630 22,470 32,100 10,320 24,080 34,400 11,070 25,830 36,900 11,850 27,650 39,500 International Passenger Flight Code C 41,250 96,250 1,37,500 44,160 1,03,040 1,47,200 47,280 1,10,320 1,57,600 50,610 1,18,090 1,68,700 54,180 1,26,420 1,80,600 Code D 61,875 1,44,375 2,06,250 66,210 1,54,490 2,20,700 70,860 1,65,340 2,36,200 75,840 1,76,960 2,52,800 81,150 1,89,350 2,70,500 Code E 82,500 1,92,500 2,75,000 88,290 2,06,010 2,94,300 94,500 2,20,500 3,15,000 1,01,130 2,35,970 3,37,100 1,08,210 2,52,490 3,60,700 Domestic Cargo Flight 1,08,30 Code C N/A N/A 82,500 N/A N/A 88,300 N/A N/A 94,500 N/A N/A 1,01,200 N/A N/A 0 Code D N/A N/A 1,23,750 N/A N/A 1,32,500 N/A N/A 1,41,800 N/A N/A 1,51,800 N/A N/A 1,62,500 International Cargo Flight Code C N/A N/A 1,37,500 N/A N/A 1,47,200 N/A N/A 1,57,600 N/A N/A 1,68,700 N/A N/A 1,80,600 Code D N/A N/A 1,92,500 N/A N/A 2,06,000 N/A N/A 2,20,500 N/A N/A 2,36,000 N/A N/A 2,52,600 Code E N/A N/A 2,32,500 N/A N/A 2,48,800 N/A N/A 2,66,300 N/A N/A 2,85,000 N/A N/A 3,05,000 * Tariff for Domestic Scheduled Flights is also applicable to Domestic “Non-Scheduled Flights and General Aviation Flights”. 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. 14/2023-24 Page 24 of 28ANNEXURE II TARIFF RATE CARD FOR M/s BASCPL 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 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 MTOW 0-5000 45,000 48,150 51,521 55,127 58,986 5001-10000 82,500 88,275 94,454 1,01,066 1,08,141 10001- 20000 1,31,250 1,40,438 1,50,269 1,60,788 1,72,043 20001- 35000 1,50,000 1,60,500 1,71,735 1,83,756 1,96,619 35001- 40000 1,68,750 1,80,563 1,93,202 2,06,726 2,21,197 40001- 50000 1,87,500 2,00,625 2,14,669 2,29,696 2,45,775 50001- 100000 2,43,750 2,60,813 2,79,070 2,98,605 3,19,507 100001 - 200000 4,61,250 4,93,538 5,28,086 5,65,052 6,04,606 200001 - 300000 5,43,750 5,81,813 6,22,540 6,66,118 7,12,746 300001 and above 6,56,250 7,02,188 7,51,341 8,03,935 8,60,210 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. 14/2023-24 Page 25 of 28ANNEXURE III ITEM WISE CHARGES FOR M/s BASCPL IN RESPECT OF GROUND HANDLING SERVICES AT CHENNAI INTERNATIONAL AIRPORT, CHENNAI PROPOSED BY AERA , FOR STAKEHOLDERS’ CONSULTATION Proposed Item-wise Charges in respect of Domestic* & International Flights for First Control Period (FY 2023-24 to FY 2027-28) (Rates in ₹) S. 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. Ground Handling Equipment 1 Ambulift Per Usage 10,903 17,233 11,666 18,439 12,483 19,730 13,357 21,111 14,292 22,589 Ground Power Unit 2 Per Hour 8,461 13,373 9,053 14,309 9,687 15,311 10,365 16,383 11,091 17,530 (GPU) 90 KV Ground Power Unit 3 Per Hour 10,903 17,233 11,666 18,439 12,483 19,730 13,357 21,111 14,292 22,589 (GPU) 140 KV Hook on 4 Per flight 872 1,379 933 1,476 998 1,579 1,068 1,690 1,143 1,808 power Air 5 Conditioner Per Hour 17,270 27,298 18,479 29,209 19,773 31,254 21,157 33,442 22,638 35,783 unit (ACU) Ramp to Per Flight Deck 6 Turnroun 3,490 5,515 3,734 5,901 3,995 6,314 4,275 6,756 4,574 7,229 Communica d tion Step Ladder (remote 7 bay) - Per Hour 5,670 8,961 6,067 9,588 6,492 10,259 6,946 10,977 7,432 11,745 Narrow Body Step Ladder (remote 8 Per Hour 8,460 13,373 9,052 14,309 9,686 15,311 10,364 16,383 11,089 17,530 bay) - Wide Body Passenger 9 Per Trip 3,925 6,204 4,200 6,638 4,494 7,103 4,809 7,600 5,146 8,132 Bus Per 10 Crew Bus Turnroun 3,490 5,515 3,734 5,901 3,995 6,314 4,275 6,756 4,574 7,229 d Conveyor 11 Per hour 9,090 14,371 9,726 15,377 10,407 16,453 11,135 17,605 11,914 18,837 belt loader Fork Lift 10 12 Per Hour 8,900 14,063 9,523 15,047 10,190 16,100 10,903 17,227 11,666 18,433 Ton Fork Lift 5 13 Per Hour 6,280 9,926 6,720 10,621 7,190 11,364 7,693 12,159 8,232 13,010 Tons Fork Lift 3 14 Per Hour 4,536 7,169 4,854 7,671 5,194 8,208 5,558 8,783 5,947 9,398 Tons Air Start 15 Per start 13,520 21,369 14,466 22,865 15,479 24,466 16,563 26,179 17,722 28,012 Unit (ASU) Per push / 16 Towbar 3,490 5,515 3,734 5,901 3,995 6,314 4,275 6,756 4,574 7,229 tow Push Back - per 17 Narrow 10,470 16,544 11,203 17,702 11,987 18,941 12,826 20,267 13,724 21,686 service Body Tow Inter Stand - 18 Per Tow 15,265 24,127 16,334 25,816 17,477 27,623 18,700 29,557 20,009 31,626 Narrow Body Consultation Paper No. 14/2023-24 Page 26 of 28S. 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. Per Wing 19 turnaroun 1,745 2,757 1,867 2,950 1,998 3,157 2,138 3,378 2,288 3,614 Walkers d Toilet per 20 6,542 10,340 7,000 11,064 7,490 11,838 8,014 12,667 8,575 13,554 service service Water per 21 5,670 8,961 6,067 9,588 6,492 10,259 6,946 10,977 7,432 11,745 service service Passenger/Terminal Side and Manpower related. Unaccompa 22 nied minor per child 2,365 3,737 2,531 3,999 2,708 4,279 2,898 4,579 3,101 4,900 handling Wheel Chair per 23 2,355 3,722 2,520 3,983 2,696 4,262 2,885 4,560 3,087 4,879 WCHR OR service WCHS per 24 WCHC 2,620 4,136 2,803 4,426 2,999 4,736 3,209 5,068 3,434 5,423 service per 25 VIPs 3,637 5,748 3,892 6,150 4,164 6,581 4,455 7,042 4,767 7,535 passenger Transit w/o per 26 3,637 5,748 3,892 6,150 4,164 6,581 4,455 7,042 4,767 7,535 visa pax passenger per 27 Deportees 3,637 5,748 3,892 6,150 4,164 6,581 4,455 7,042 4,767 7,535 passenger Floor per 28 Walkers/We personnel/ 1,745 2,757 1,867 2,950 1,998 3,157 2,138 3,378 2,288 3,614 lcome staff 8hrs Manpower per 29 (White personnel/ 2,617 4,136 2,800 4,426 2,996 4,736 3,206 5,068 3,430 5,423 collar) 8 hr. Manpower per 30 (Blue personnel/ 1,745 2,757 1,867 2,950 1,998 3,157 2,138 3,378 2,288 3,614 collar) 8 hr. Excess 31 Baggage per flight 10% of collection 10% of collection 10% of collection 10% of collection 10% of collection Collection per std. Val 32 sz. 9,092 14,371 9,728 15,377 10,409 16,453 11,138 17,605 11,918 18,837 Handling container Ballast Bags Per refill - 33 1,308 2,068 1,400 2,213 1,498 2,368 1,603 2,534 1,715 2,711 Refill per Bag Interior cleaning per 34 (Transit) - 12,210 19,301 13,065 20,652 13,980 22,098 14,959 23,645 16,006 25,300 service Narrow Body Interior cleaning per 35 7,065 11,167 7,560 11,949 8,089 12,785 8,655 13,680 9,261 14,638 (Transit) - service ATR & like Deep Cleaning - per 36 17,445 27,574 18,666 29,504 19,973 31,569 21,371 33,779 22,867 36,144 Narrow service Body Deep per 37 Cleaning - 10,030 15,855 10,732 16,965 11,483 18,153 12,287 19,424 13,147 20,784 service ATR & like Flight Deck per 38 4,360 6,893 4,665 7,376 4,992 7,892 5,341 8,444 5,715 9,035 cleaning service Waste per 39 1,220 1,930 1,305 2,065 1,396 2,210 1,494 2,365 1,599 2,531 Disposal service Arrange non- per 40 1,308 2,068 1,400 2,213 1,498 2,368 1,603 2,534 1,715 2,711 scheduled service Crew Hotel Consultation Paper No. 14/2023-24 Page 27 of 28S. 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. accommoda tion Arrange for non- scheduled per 41 1,308 2,068 1,400 2,213 1,498 2,368 1,603 2,534 1,715 2,711 Crew service Transportati on C.I.Q. assistance / per arr. or 42 Direct crew dep. 2,617 4,136 2,800 4,426 2,996 4,736 3,206 5,068 3,430 5,423 thru airport clearance facilities Cargo 43 Supervision per flight 6,530 10,321 6,987 11,043 7,476 11,816 7,999 12,643 8,559 13,528 services Cargo 44 Supervision Per flight 10,012 15,826 10,713 16,934 11,463 18,119 12,265 19,387 13,124 20,744 services Live 45 Animal per AVI 1,273 2,012 1,362 2,153 1,457 2,304 1,559 2,465 1,668 2,638 Handling Dom. = Domestic; Intl. = International * Tariff for Domestic Flights is also applicable to Domestic “Non-Scheduled and General Aviation 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. 14/2023-24 Page 28 of 28