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फा.स.ं ऐरा/20010/एमवाईटीपी/इडं ोथाई/जीएच/वाराणसी/सीपी-III/2021-26
F. No. AERA/20010/ MYTP/IndoThai/GH/Varanasi/CP-III/2021-26
परामर्श पत्र संख् या 18/2023-24
Consultation Paper No. 18/2023-24
भारतीय विमानपत् तन आवथशक विवनयामक प्राविकरण
Airports Economic Regulatory Authority of India
मैससश इंडोथाई िाराणसी प्राइिेट विवमटेड (आई.िी.पी.एि.) द्वारा िाि बहादुर र्ास्त्री
अंतराशष्ट्रीयहिाईअड्डा, िाराणसी में प्रदान की जा रही ग्राउंड हैंडविंग सेिाओ ंके विए प्रथम वनयंत्रण
अिवि (वित् त िर्श 2023-24 से वित् त िर्श 2027-28) के विए टैररफ वनिाशररत करने के मामिे में
IN THE MATTER OF DETERMINATION OF TARIFF FOR THE GROUND HANDLING
SERVICES IN RESPECT OF M/s INDOTHAI VARANASI PRIVATE LIMITED (IVPL) AT
LAL BAHADUR SHASTRI INTERNATIONAL AIRPORT, VARANASI
FOR THE FIRST CONTROL PERIOD
(FY 2023-24 TO FY 2027-28)
जारी करने की तारीख : 17.11.2023
Date of Issue: 17.11.2023
ऐरा बिब्डंग/AERA Building
प्रशासबिक पररसर/Administrative Complex
सफदरजंग हवाईअड्डा/Safdarjung Airport
िई बद् ली/New Delhi – 110003
Consultation Paper No. 18/2023-24 Page 1 of 27STAKEHOLDERS’ 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 IndoThai Varanasi
Private Limited (IVPL) in respect of Lal Bahadur Shastri International Airport, Varanasi.
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, 2008, the written
comments on Consultation Paper No. 18/2023-24 dated 17/11/2023 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 08/12/2023
Last date for submission of Counter Comments 15/12/2023
Comments and counter 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. 18/2023-24 Page 2 of 27TABLE OF CONTENTS
Chapter 1: Introduction……...………….……………………………………………………………...6
Chapter 2: Principles for the 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: Revenue, Operating Expenditure and Projected Profitability……………………...…...…..14
Chapter 6: Annual Tariff Proposal………………...…………………………………………………17
Chapter 7: Summary of Authority’s Proposals…………………..…………………………………21
Chapter 8: Stakeholders' Consultation………..……….……………………………..…………………22
Annexure I: Tariff Rate Card for M/s IVPL in respect of Domestic* & International Scheduled Flights,
for the First Control Period (FY 2023-24 to FY 2027-28) at Lal Bahadur Shastri
International Airport, Varanasi proposed by AERA for Stakeholders’ Consultation…...23
Annexure II: Tariff Rate Card for M/s IVPL in respect of International “Non-Scheduled & General
Aviation Flights” for the First Control Period (FY 2023-24 to FY 2027-28) at Lal Bahadur
Shastri International Airport, Varanasi proposed by AERA for Stakeholders’
Consultation.....………………………………………………………………………… 25
Annexure III: Item-Wise Charges for the Ground Handling Services, in respect of M/s IVPL at Lal
Bahadur Shastri International Airport, Varanasi proposed by AERA for Stakeholders’
Consultation….……...……………………………………………..…..……...………. 26
Consultation Paper No. 18/2023-24 Page 3 of 27LIST OF TABLES
Table
Particulars Page No.
No.
1 Shareholding Structure of M/s IVPL, Varanasi 6
Actual Aircraft Traffic handled at Lal Bahadur Shastri International Airport,
2 10
Varanasi during FY 2018-19 to FY 2022-23
Projected Aircraft Traffic (Flights to be handled by the ISP) submitted by M/s IVPL,
3 10
Varanasi for the First Control Period.
4 Projected Capital Expenditure submitted by M/s IVPL for the First Control Period 12
Breakup of Capital Expenditure as submitted by M/s IVPL for the First Control
5 12
Period
Revenue, Operating Expenditure and Profitability projected by M/s IVPL for the
6 14
First Control Period
Year on Year Percentage (%) increase in the Revenue and Operation & Maintenance
7 15
Expenditure during the First Control Period
Proposed Tariff Rates for the Scheduled Flights submitted by M/s IVPL for the First
8 17
Control Period
Statement of Y-o-Y Percentage (%) Change in Tariff Rates for Different Category
9 18
of Scheduled Flights for the First Control Period
Proposed Tariff Rates for Non-Scheduled Flights submitted by M/s IVPL for the
10 19
First Control Period
Consultation Paper No. 18/2023-24 Page 4 of 27List of Abbreviations:
AERA / Authority Airports Economic Regulatory Authority of India
AIASL AI Airport Services Limited
ATM Air Traffic Movement
ATP Annual Tariff Proposal
BCAS Bureau of Civil Aviation Security
CAPEX Capital Expenditure
COD Commercial Operations Date
CGF Cargo Facility, Ground Handling & Supply of Fuel to the Aircraft
EBIDTA Earnings Before Interest, Depreciation, Tax and Amortization
GHA Ground Handling Agencies
GHS Ground Handling Services
INR/₹ Indian Rupees
ISP Independent Service Provider
IAMSPL IndoThai Airport Management Services Private Limited
IVPL IndoThai Varanasi Private Limited
LOIA Letter of Intent to Award
MAG Minimum Annual Guarantee
MoM Minutes of Meeting
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. 18/2023-24 Page 5 of 27CHAPTER 1: INTRODUCTION
1.1 M/s IndoThai Airport Management Services Private Limited (IAMSPL), vide its letter dated
24.09.2021, informed the Authority it had been awarded the contract for providing Ground
Handling Services at Lal Bahadur Shastri International Airport, Varanasi by Airports Authority of
India (Airport Operator), vide its Letter of Intent to Award (LOIA) dated 13.04.2021.
1.2 As per the Letter of Intent to Award (LOIA) dated 13.04.2021, M/s IAMSPL was required to form
a Special Purpose Vehicle (SPV) within 30 days from issuance of LOIA. Accordingly, the SPV,
M/s IndoThai Varanasi Private Limited (IVPL) was incorporated on 14.05.2021 under the
Companies Act, 2013.
1.3 The shareholding structure of the M/s IndoThai Varanasi Private Limited, as informed by
the ISP, is tabulated as below:
Table-1: Shareholding Structure of M/s IVPL, Varanasi:
Name of Shareholder No. of Equity Shares Equity Holding (%)
M/s IndoThai Airport Management
9,900 99%
Services Private Limited
Shyam Sunder Malani 100 1%
Total 10,000 100%
1.4 Bureau of Civil Aviation Security (BCAS) granted security clearance to M/s IndoThai
Varanasi Private Limited vide letter dated 12.05.2022 for a period of five years, from the
date of issuance of the security clearance.
1.5 Airports Authority of India and M/s IndoThai Varanasi Pvt. Ltd. entered into a License Agreement
dated 06.07.2022 for providing Ground Handling Services at Lal Bahadur Shastri International
Airport, Varanasi for a period of five years, from the Commercial Operations Date.
1.6 Upon receipt of request from M/s IndoThai Varanasi Pvt. Ltd., vide its letter dated
18.05.2022, the Authority, vide its Order No. 12/2022-23 dated 05.07.2022, allowed M/s
IndoThai Varanasi Pvt. Ltd. to levy and collect, on Ad-hoc basis, tariff for Ground Handling
Services at Lal Bahadur Shastri International Airport, Varanasi w.e.f. 11.07.2022 to
31.03.2023.
The Authority, extended the prevailing ad-hoc tariff (as on 31.03.2023) upto 30.09.2023,
vide Order No. 42/2022-23 dated 23.03.2023.
Thereafter, the Authority, vide Order No. 20/2023-24 dated 27.09.2023 further extended the
Ad-hoc tariff (as on 30.09.2023) for the period from 01.10.2023 up to 31.03.2024, or, till the
determination of regular tariff for the ISP, whichever is earlier.
1.7 In accordance with 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 IVPL,
submitted its Multi Year Tariff Proposal (MYTP) on 12.09.2023, for the determination of
regular Tariff pertaining to the First Control Period, in respect of the Ground Handling
Services being provided by the ISP at Lal Bahadur Shastri International Airport, Varanasi.
Consultation Paper No. 18/2023-24 Page 6 of 271.8 Subsequently, the ISP based on the AERA observations submitted the revised MYTP on
20.10.2023 to the Authority, after considering the First Control Period from the FY 2023-24
to FY 2027-28.
1.9 The Authority, after having examined the MYTP submission of the M/s IVPL in detail and
taking into account the additional information/clarifications furnished by the ISP, has issued
this Consultation Paper for stakeholders’ consultation.
Consultation Paper No. 18/2023-24 Page 7 of 27CHAPTER 2: PRINCIPLES FOR THE DETERMINATION OF TARIFF FOR THE
AERONAUTICAL SERVICES
2.1 The Authority, vide Order No. 12/2010-11 dated 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 (“CGF
Guidelines”), vide its Direction No. 04/2010-11 dated 10.01.2011.
2.2 In accordance with above mentioned AERA CGF Guidelines, the following procedure is adopted
for the determination of the Materiality Index of Regulated Service, as per clause 4.4 of the
Guidelines:
MATERIALITY ASSESSMENT:
𝑰𝒏𝒕. 𝑨𝒊𝒓𝒄𝒓𝒂𝒇𝒕 𝑴𝒐𝒗𝒆𝒎𝒆𝒏𝒕𝒔 𝒂𝒕 𝑴𝒂𝒋𝒐𝒓 𝑨𝒊𝒓𝒑𝒐𝒓𝒕
Materiality Index (MI ) = 𝑿𝟏𝟎𝟎
G
𝑻𝒐𝒕𝒂𝒍 𝑰𝒏𝒕𝒍. 𝑨𝒊𝒓𝒄𝒓𝒂𝒇𝒕 𝑴𝒐𝒗𝒆𝒎𝒆𝒏𝒕𝒔 𝒂𝒕 𝑴𝒂𝒋𝒐𝒓 𝑨𝒊𝒓𝒑𝒐𝒓𝒕𝒔
The Materiality Index for Varanasi Airport = 2069/420772
= 0.49%
The percentage share of Lal Bahadur Shastri International Airport, Varanasi, in respect of the
International Aircraft Movements, for the FY 2019-20 is 0.49%, which is less than 5% Materiality
Index (MI ) for the subject regulated service. Hence, the Regulated Service is deemed ‘Not
G
Material’ for the First Control Period, at Lal Bahadur Shastri International Airport, Varanasi as
per clause 4.4(ii) of the Guidelines.
2.3 As per the information furnished by M/s IVPL in Form F1 (b) on competition Assessment, M/s AI
Airport Services Limited (AIASL) is also rendering similar services at Lal Bahadur Shastri
International Airport, Varanasi.
2.4 As per Clause 3.2 (i) of the CGF Guidelines, wherever the Regulated Service provided is ‘Not
Material’, 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 CGF Guidelines, 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
should be supported by the following:
a) Evidence of Consultation with Stakeholders;
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.
2.6 The Authority notes that M/s IVPL submitted the Annual Tariff Proposal (ATP) along with its
MYTP. It is observed that the ISP conducted stakeholders’ consultation meeting on
11th September, 2023 and has submitted Minutes of Meeting (MoM) to the Authority, vide email
dated 15.09.2023. As per the MoM, the representatives of Vistara Airlines and Akasa Air
Consultation Paper No. 18/2023-24 Page 8 of 27participated in the referred consultation meeting. From the MoM, it is noted that none of the
stakeholders has raised any issue regarding the Tariff proposed by ISP, for the First Control Period.
2.7 Authority’s Proposal regarding principles for the determination of Tariff of the
Aeronautical services:
Based on the material before it and its analysis, the Authority proposes to consider the Tariff
determination exercise for M/s IVPL, in respect of the Ground Handling Services being provided
by the ISP at Lal Bahadur Shastri International Airport, Varanasi, under the ‘Light Touch
Approach’ for the First Control Period, as the regulated service is deemed ‘Not Material’.
Consultation Paper No. 18/2023-24 Page 9 of 27CHAPTER 3: AIRCRAFT TRAFFIC (FLIGHTS TO BE HANDLED)
M/s IndoThai Varanasi Pvt. Ltd. submission on the Projected Aircraft Traffic (Flights to be
Handled) during the First Control Period
3.1 Actual Aircraft Traffic (No. of Landings) handled at the Lal Bahadur Shastri International Airport,
Varanasi from FY 2018-19 to FY 2022-23 is given below:
Table 2: Actual Aircraft Traffic handled at Lal Bahadur Shastri International Airport, Varanasi
during FY 2018-19 to FY 2022-23
Total number of Landings at
Y-o-Y % increase
Year Varanasi Airport
Domestic International Total Domestic International Total
2018-19 9992 917 10909 -- -- --
2019-20 10994 1034 12028 10% 13% 10.25%
2020-21 7114 84 7198 -35% -92% -40%
2021-22 7825 247 8072 10% 194% 12%
2022-23 9109 470 9579 16% 90% 19%
3.2 Projected Aircraft Traffic (flights to be handled) for the First Control Period submitted by M/s IVPL,
Varanasi is given below in Table 3.
Table 3: Projected Aircraft Traffic (Flights to be handled by the ISP) submitted by M/s IVPL,
Varanasi for the First Control Period
Flights to be handled by M/s
IVPL for the First Control Total
Y-o-Y % increase
Period (No. of
Year
Domestic International Landings)
(No. of (No. of
Domestic International Total
Landings) Landings)
2023-24 1390 25 1415 - - -
2024-25 1456 30 1486 5% 20% 5%
2025-26 1535 35 1570 5% 20% 6%
2026-27 2548 43 2591 66% 20% 65%
2027-28 2674 51 2725 5% 20% 5%
TOTAL 9603 183 9786
Authority’s Examination of the Projected Aircraft Traffic
3.3 The Authority observes that the ISP started its commercial operations from 16.07.2022 and had
operated partially during the FY 2022-23. Therefore, for the purpose of tariff determination, the
Authority has considered the FY 2023-24 as the First Tariff Year and FY 2027-28 as the Fifth/Last
Tariff Year of the First Control Period, in respect of the ISP, at Lal Bahadur Shastri International
Airport, Varanasi.
3.4 The Authority notes that M/s IVPL has projected a Y-o-Y increase of 5% to 6% for all the tariff years
of the Control Period, in respect of the aircraft traffic (flights to be handled by the ISP) except for FY
Consultation Paper No. 18/2023-24 Page 10 of 272026-27, where the ISP has considered an increase of 65% in the projected aircraft traffic.
The Authority sought a clarification from the ISP regarding very high increase projected in the
aircraft traffic (flights to be handled) during the FY 2026-27. The ISP, vide email dated 24.10.2023
informed the Authority that it has projected aggressive traffic, considering the re-commencement of
operations by the Jet Airways in the FY 2026-27 and expected new business from Air India as some
business expected to be shifted from earlier service provider.
3.5 As per the statistics available at AAI website, the total Aircraft Traffic (Domestic and International)
at Lal Bahadur Shastri International Airport, Varanasi in FY 2022-23 had reached to 80% of the
actual Aircraft Traffic handled at the airport in the pre-Covid year i.e., FY 2019-20.
3.6 The ISP is expected to have market share of around 14.8% at Lal Bahadur Shastri International
Airport, Varanasi, based on M/s IVPL’s projected level of operations during the FY 2023-24 when
compared to the actual number of total flights handled in the FY 2022-23 at the Varanasi Airport (as
per table 2 & 3).
3.7 The details of the agencies providing Ground Handling Services to the major airlines at the Varanasi
Airport, as per the ISP, is tabulated below:
Airline Ground Handling Agency/ Self Handling
Air India M/s AI Airport Services Limited
Air India Express M/s AI Airport Services Limited
Akasa Air M/s IndoThai Varanasi Private Limited
Indigo Self-Handling
Spice Jet Self-Handling
Vistara Airlines M/s AI Airport Services Limited
3.8 The Authority, considering that the ISP is new entrant at Lal Bahadur Shastri International Airport,
Varanasi and taking into account the market competition among the two service providers, considers
the Aircraft Traffic projected (flights to be handled) by the ISP for the First Control Period as
reasonable.
Accordingly, the Authority proposes to consider Traffic projections (flights to be handled) as
submitted by M/s IVPL for its First Control Period, as given in Table 3 above.
Authority’s Proposal regarding the projected Aircraft Traffic Volume (Flights to be handled
by the ISP) for the First Control Period:
3.9 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. 18/2023-24 Page 11 of 27CHAPTER 4: CAPITAL EXPENDITURE (CAPEX)
M/s IndoThai Varanasi Pvt. Ltd.’s Submission on Capital Expenditure for the First Control
Period
4.1 M/s IVPL has projected a total Capital Expenditure (CAPEX) of ₹278.55 Lakhs for the First
Control Period, as a part of its MYTP submissions. The projected CAPEX has been proposed to
be incurred during FY 2023-24 to FY 2027-28. The year-wise & category-wise Capital
Expenditure projected by ISP is given below:
Table 4: Projected Capital Expenditure submitted by M/s IVPL for the First Control Period
(₹ in Lakhs)
FY FY FY FY FY
Particulars of Assets Total
2023-24 2024-25 2025-26 2026-27 2027-28
Ground Handling
17.50 25.70 26.40 103.70 10.85 184.15
Equipment
Vehicles - 30.20 42.70 6.00 - 78.90
Furniture and Fitting 2.50 - 2.50 2.50 1.50 9.00
Office Equipment 2.50 1.00 1.00 1.00 1.00 6.50
Total 22.50 56.90 72.60 113.20 13.35 278.55
4.2 The ISP has also provided detailed bifurcation of the proposed CAPEX for the First Control Period
as under:
Table 5: Breakup of Capital Expenditure as submitted by M/s IVPL for the First Control Period
(₹ in Lakhs)
Sl. FY FY FY FY FY
Particulars Cost/ Total
no. 2023-24 2024-25 2025-26 2026-27 2027-28
Unit
Ground Handling
1. (₹ in lakhs) Qty. Amount Qty. Amount Qty. Amount Qty. Amount Qty. Amount
Equipment:
Tow bar 7.50 - 1 7.50 - - - 7.50
Tugs 25.00 - - - 1 25.00 - 25.00
Electric Baggage
35.00 - - - 2 70.00 - 70.00
Tractors
Towable Pax Step
8.00 - - 1 8.00 - - 8.00
ladder
Vacuum Cleaner 0.50 - - - 4 2.00 2 1.00 3.00
Baggage Trolley –
0.65 - 16 10.40 25 16.25 - 10 6.50 33.15
Covered
Ambulift Towable 12.00 1 12.00 - - - - 12.00
Fire Extinguisher
0.15 - 2 0.30 1 0.15 2 0.30 1 0.15 0.90
trolley
Trestle/ Ladder 2.00 1 2.00 - - - - 2.00
Wheelchairs 0.22 - 25 5.50 - 20 4.40 10 2.20 12.10
FUEL BOWSER 1.50 1 1.50 - - - - 1.50
Miscellaneous - - 2.00 - 2.00 - 2.00 - 2.00 - 1.00 9.00
Total - - 17.50 - 25.70 - 26.40 - 103.70 - 10.85 184.15
2. Vehicles:
Bus/Coaches - Mini 30.20 - 1 30.20 1 30.20 - - 60.40
Car – KIA 12.39 - - 1 12.50 - - 12.50
Consultation Paper No. 18/2023-24 Page 12 of 27Car 5.97 - - - 1 6.00 - 6.00
Total - - - - 30.20 - 42.70 - 6.00 - - 78.90
3. Furniture & Fittings - - 2.50 - - - 2.50 - 2.50 - 1.50 9.00
4. Office Equipment - - 2.50 - 1.00 - 1.00 - 1.00 - 1.00 6.50
GRAND TOTAL - - 22.50 - 56.90 - 70.10 - 113.20 - 13.35 278.55
Authority’s Examination of the CAPEX proposed by the ISP:
4.3 The Authority notes that the ISP has projected a total CAPEX of ₹278.55 lakhs for the First Control
Period. It is observed that out of the total CAPEX, a major portion of the CAPEX i.e., ₹184.15
lakhs have been earmarked for the Ground Handling Equipment and ₹78.90 lakhs on the
procurement of vehicles.
4.4 On enquiry about the status of CAPEX incurred in FY 2023-24 till date, the ISP informed that they
have not incurred any CAPEX so far; but as per the ISP, the projected CAPEX will be achieved
before the end of the current financial year.
4.5 The Authority, based on its examination, observes that M/s IVPL has proposed only necessary
CAPEX for the assets/equipment which are essential for the smooth ground handling operations at
the airport. The Authority, therefore, proposes to consider the CAPEX for the First Control Period
submitted by the ISP, as per Table 4 above.
4.6 The Authority also observes that the ISP would be entitled to claim GST Input Tax Credits (ITC)
on the procurement of various eligible movable assets etc., accordingly, the Authority advises the
ISP to claim the eligible ITC on such assets and exclude the GST component from the capitalized
value of such assets.
Authority’s Proposal regarding CAPEX for the First Control Period
4.7 Based on the material before it and its analysis, the Authority proposes to consider the projected
CAPEX for the First Control Period as per Table 4.
Consultation Paper No. 18/2023-24 Page 13 of 27CHAPTER 5: REVENUE, OPERATING EXPENDITURE AND PROJECTED PROFITABILITY
M/s IVPL’s Submission on Operating Expenditure for the First Control Period
5.1 As provided in Clause 9.4 of the CGF Guidelines, 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 Expenditure of M/s IVPL in respect of its Ground Handling operations
at Lal Bahadur Shastri International Airport, Varanasi has been broadly categorized as under:
a) Payroll Costs;
b) Repair & Maintenance Costs;
c) Concession Fee/ Revenue Share payable to Airport Operator;
d) Utilities & Outsourcing Costs;
e) Administrative & General 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 IVPL for the First
Control Period.
(₹ in Lakhs)
FY FY FY FY FY
Particulars TOTAL
2023-24 2024-25 2025-26 2026-27 2027-28
Revenue from Regulated Services (A) 319.41 354.19 395.57 634.62 735.40 2439.18
Revenue from Non-Regulated Services (B) - - - - - -
Total Revenue from Services (A+B) = (C) 319.41 354.19 395.57 634.62 735.40 2439.18
Operating Expenditure (OPEX)
Payroll Costs (i) 218.95 229.89 241.39 253.46 266.13 1209.82
Repair & Maintenance Costs (ii) 22.82 24.39 26.07 27.87 29.80 130.96
Concession Fee / Revenue Share payable to
156.44 128.49 102.80 82.24 65.79 535.76
Airport Operator (iii)
Utilities & Outsourcing Costs (iv) 1.17 1.19 1.21 1.24 1.26 6.06
Administrative & General Expenses (v) 30.19 31.04 32.49 34.02 35.94 163.68
Total OPEX (i+ii+iii+iv+v) = (D) 429.57 415.01 403.96 398.82 398.92 2,046.28
Earnings Before Interest, Tax, Depreciation and
-110.15 -60.82 -8.39 235.79 336.47 392.90
Amortization (EBITDA) (C-D) = (E)
Depreciation and Amortization (F) 51.39 51.94 54.01 59.93 55.27 272.54
Interest & Finance Charges (G) 126.08 146.39 161.92 161.61 144.30 740.31
Profit Before Tax (PBT) (E-F-G) = (H) -287.63 -259.15 -224.33 14.25 136.90 -619.96
Provision for Tax* (I) - - - - - -
Profit After Tax (PAT) (H-I) = (J) -287.63 -259.15 -224.33 14.25 136.90 -619.96
*Nil Tax Provision due to anticipated losses in first 3 years of the Control Period.
Consultation Paper No. 18/2023-24 Page 14 of 27Authority’s Examination and Analysis:
5.4 The Authority analyzed the Operating Expenditure provided in Form F3 (P&L) of the MYTP and
has observed following Y-o-Y% increase in Revenue & OPEX considered by the ISP for the First
Control Period, as per Table 8 below:
Table 7: Year on Year Percentage (%) increase in the Revenue and Operation & Maintenance Expenditure
during the First Control Period
FY FY FY FY
Particulars
2024-25 2025-26 2026-27 2027-28
Revenue from Regulated Services 11% 12% 60% 16%
Payroll Costs 5% 5% 5% 5%
Repair & Maintenance Costs 7% 7% 7% 7%
Concession Fee/ Revenue Share payable to Airport Operator -18% -20% -20% -20%
Utilities & Outsourcing Costs 2% 2% 2% 2%
Administrative & General Expenses 3% 5% 5% 6%
5.5 The Authority’s examination of Y-o-Y % growth considered by the M/s IVPL in the projected OPEX
for the Control Period, from FY 2024-25 (second tariff year) onward, is given in the following
sections:
a) Payroll Costs: The Authority notes that the ISP has projected a Y-o-Y increase of 5% in Payroll
Costs for the Control Period.
The Authority observes that the projected increase in payroll expenses considered by the M/s
IVPL is significantly lower than the projected % increase in aircraft traffic volume and revenues.
In view of the above and taking into account the impact of periodic increase in minimum wages
and annual salary increments and related increase in statutory component like EPF etc., the
Authority considers the Y-o-Y increase projected by the ISP in Payroll Costs for the First Control
Period as reasonable.
b) Repairs & Maintenance Costs: The Authority observes that M/s IVPL has projected a Y-o-Y
increase of 7% in R&M expenses for all the Tariff Years during the Control Period. Considering
the impact of annual general inflation, including annual increase in labour component of Repair
& Maintenance Costs, as per the Authority, the projected R&M expenses considered by the ISP
for the First Control Period appears reasonable.
c) Concession Fee/ Revenue Share payable to Airport Operator: The Authority notes that from
the clause 7.1.1 of the concession agreement executed between AAI and M/s IVPL, Revenue
share payable to the Airport Operator (AAI) is to be calculated as:
(i) 3% of the Actual Gross Revenue from Scheduled Passenger Flight(s)
(ii) 15% of the Actual Gross Revenue from Users other than Scheduled Domestic Passenger
Flight(s) and RCS Flight(s)
(iii) 0% for RCS Flight(s)
The Authority further notes that from clause 7.1.2 of the above said agreement, every year the
ISP shall pay ‘Premium’, which is the maximum of “Minimum Annual Guarantee” (MAG) or
the Revenue Share, calculated as per clause 7.1.1 of the Concession Agreement.
Consultation Paper No. 18/2023-24 Page 15 of 27In the first year, Concessionaire will pay MAG quoted at the time of bid. From the second year
onward, MAG for Concessionaire will be 80% of the previous year’s premium paid by the
Concessionaire to the Authority.
As per the ISP, for the second tariff year (FY 2024-25), the premium has been considered based
on expected revenue share (which is likely to be more than 80% of the previous year’s MAG).
However, for the remaining tariff years, M/s IVPL has considered the premium payable to the
airport operator based on MAG figures, as the MAG for the respective years is expected to be
higher than the Revenue Share (calculated as per the clause 7.1.1 of the agreement) for the same
year.
Taking note of the clause 7.1.2 of the concession agreement and clarification furnished by the
M/s IVPL, the Authority proposes to consider the premium payable to the airport operator as
projected by ISP, for the First Control Period.
d) Utilities & Outsourcing Costs: The Authority notes that M/s IVPL has proposed a nominal
increase @ 2% per annum in the utility & outsourcing costs for all the tariff years of the
First Control Period. The Utility & Outsourcing costs primarily consist of power/electricity
expenses and these expenses are directly linked with the number of flights to be handled.
The Authority, observes that the Y-o-Y % increase in the projected Utility & Outsourcing Costs
have been increased nominally, as compared to projected increase in aircraft traffic (flights to be
handled by the ISP) and revenues for the control period; therefore, the Utility & Outsourcing
Costs projected by the ISP for the Control Period is reasonable.
e) Administrative & General Expenses: The Authority observes that as per the ISP, the
Administrative & General Expenditure is expected to increase between 3% to 6% on Y-o-Y
basis, during the First Control Period.
Considering that the projected increase in aircraft traffic and taking into account impact of annual
general inflation, the Y-o-Y increase projected by ISP in respect of Administrative and General
Expenses for the First Control Period is reasonable.
5.6 The Authority observes that as per the profitability statement projected by the M/s IVPL
(Table 6), the service provider is likely to have losses in the first three tariff years of the First
Control Period. However, the ISP is expected to generate profits in the background of significant
growth in aircraft traffic movement and increase in market share also.
5.7 In view of the above, the Authority proposes to consider the projected Revenue & OPEX for the First
Control Period, as submitted by the ISP.
Authority’s Proposals regarding the Operation and Maintenance Expenses for the First
Control Period:
5.8 Based on the 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. 18/2023-24 Page 16 of 27CHAPTER 6: ANNUAL TARIFF PROPOSAL
M/s IndoThai Varanasi Pvt. Ltd. submission on the Annual Tariff Proposal for the First Control
Period
6.1 M/s IVPL has submitted a Tariff proposal for Ground Handling Services in respect of Scheduled
Flights at Lal Bahadur Shastri International Airport, Varanasi, for the First Control Period (FY 2023-
24 to FY 2027-28) as per the Tabe given below:
Table 8: Proposed Tariff Rates for the Scheduled Flights submitted by M/s IVPL for the First Control Period
(Rates in ₹)
FY FY FY FY FY
2023-24 2024-25 2025-26 2026-27 2027-28
Pax Ramp Full Pax Ramp Full Pax Ramp Full Pax Ramp Full Pax Ramp Full
Services Services Services Services Services
(A) Passenger Flights
Domestic Passenger Flight
Code B 5198 7798 12996 5472 8208 13680 5760 8640 14400 6048 9072 15120 6350 9526 15876
Code C 6931 10397 17328 7296 10944 18240 7680 11520 19200 8064 12096 20160 8467 12701 21168
Code D 8664 12996 21660 9120 13680 22800 9600 14400 24000 10080 15120 25200 10584 15876 26460
Code E 20794 31190 51984 21888 32832 54720 23040 34560 57600 24192 36288 60480 25402 38102 63504
Code F 41587 62381 103968 43776 65664 109440 46080 69120 115200 48384 72576 120960 50803 76205 127008
International Passenger Flight
Code B 21101 49236 70337 22212 51827 74039 23381 54555 77936 24550 57283 81833 25777 60147 85925
Code C 21660 50540 72200 22800 53200 76000 24000 56000 80000 25200 58800 84000 26460 61740 88200
Code D 26858 62670 89528 28272 65968 94240 29760 69440 99200 31248 72912 104160 32810 76558 109368
Code E 35522 82886 118408 37392 87248 124640 39360 91840 131200 41328 96432 137760 43394 101254 144648
Code F 40721 95015 135736 42864 100016 142880 45120 105280 150400 47376 110544 157920 49745 116071 165816
(B) Cargo Flights
Domestic Cargo Flight
FY FY FY FY FY
2023-24 2024-25 2025-26 2026-27 2027-28
Ramp Services Ramp Services Ramp Services Ramp Services Ramp Services
Code B 39710 41800 44000 46200 48510
Code C 54150 57000 60000 63000 66150
Code D 144400 152000 160000 168000 176400
Code E 189525 199500 210000 220500 231525
Code F 225625 237500 250000 262500 275625
International Cargo Flight
Code B 64980 68400 72000 75600 79380
Code C 158840 167200 176000 184800 194040
Code D 180500 190000 200000 210000 220500
Code E 198550 209000 220000 231000 242550
Code F 231040 243200 256000 268800 282240
Consultation Paper No. 18/2023-24 Page 17 of 276.2 M/s IndoThai Varanasi Pvt. Ltd. has proposed the following % increase in the Tariff for the Scheduled
Flights on Y-o-Y basis, at Lal Bahadur Shastri International Airport, Varanasi, as stated in the table
below:
Table 9: Statement of Y-o-Y Percentage (%) Change in Tariff Rates for Different Category of
Scheduled Flights for the First Control Period
FY FY FY FY
2024-25 2025-26 2026-27 2027-28
Pax Ramp Full Services Pax Ramp Full Services Pax Ramp Full Services Pax Ramp Full Services
(A) Passenger Flights
Domestic Passenger Flight
Code B 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%
Code D 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%
Code F 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%
Code C 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%
Code E 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%
(B) Cargo Flights
Domestic Cargo Flight
FY FY FY FY
2024-25 2025-26 2026-27 2027-28
Ramp Services Ramp Services Ramp Services Ramp Services
Code B 5% 5% 5% 5%
Code C 5% 5% 5% 5%
Code D 5% 5% 5% 5%
Code E 5% 5% 5% 5%
Code F 5% 5% 5% 5%
International Cargo Flight
Code B 5% 5% 5% 5%
Code C 5% 5% 5% 5%
Code D 5% 5% 5% 5%
Code E 5% 5% 5% 5%
Code F 5% 5% 5% 5%
6.3 M/s IVPL has also submitted a separate Tariff Rate Card for the Non-Scheduled and General Aviation
Consultation Paper No. 18/2023-24 Page 18 of 27Flights as per the table given below: -
Table 10: Proposed Tariff Rates for Non-Scheduled Flights submitted by M/s IVPL for the First Control
Period
(Rates in ₹)
Financial FY FY FY FY FY
Year 2023-24 2024-25 2025-26 2026-27 2027-28
A/C Category Domestic International Domestic International Domestic International Domestic International Domestic International
MTOW
Helicopter 8123 13321 8550 14022 9000 14760 9450 15498 9923 16273
≤ 6000 12184 27382 12825 28823 13500 30340 14175 31857 14884 33450
>6000 – 12000 16696 37003 17575 38950 18500 41000 19425 43050 20396 45203
>12000 – 25000 27075 42553 28500 44793 30000 47150 31500 49508 33075 51983
>25000 – 40000 40613 64754 42750 68163 45000 71750 47250 75338 49613 79104
>40000 – 70000 54150 81406 57000 85690 60000 90200 63000 94710 66150 99446
>70000 –
88445 109157 93100 114903 98000 120950 102900 126998 108045 133347
100000
> 100000 –
112813 162811 118750 171380 125000 180400 131250 189420 137813 198891
150000
> 150000 &
135375 185013 142500 194750 150000 205000 157500 215250 165375 226013
Above
Authority’s Examination and Analysis:
6.4 The Authority notes that in the case of Scheduled Flights (Domestic and International), the ISP has
proposed a Y-o-Y increase of 5% in Tariff Rates from FY 2024-25 onward (Table 9).
6.5 The Authority also notes that M/s IVPL has proposed a separate Tariff Rate card for Non-Scheduled
Flights and has proposed an increase of 5% Y-o-Y basis from FY 2024-25 onward (Table 10).
6.6 The Authority, taking into consideration the projected increase in the Aircraft Traffic (Flights to be
handled) volume for the Control Period and increase in the Operating Expenditure, due to factors like
increase in number of manpower, annual increase in salary and wages, general inflation etc., is of the
view that ISP requires a minimum level of revenues to meet its projected operating expenditure and
earn reasonable return on its investments.
In view of the above, the Authority considers the 5% increase in Tariff Rates proposed by the ISP, on
Y-o-Y basis from FY 2024-25 onward for the First Control Period, as reasonable.
6.7 The Authority is of the view that the Tariff for Domestic Non-Scheduled and General Aviation Flights,
should not be more than the Tariff for 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
International “Non-Scheduled & General Aviation Flights” as per Annexure-II.
6.8 As regard to the number of services covered under the Rate Card for the ‘Item-wise Charges for Ground
Handling Services’, the ISP clarified that they are expected to handle only the Narrow body type of
Aircrafts at Lal Bahadur Shastri International Airport, Varanasi & the Item-wise Charges for Ground
Handling Services have been proposed accordingly.
Consultation Paper No. 18/2023-24 Page 19 of 276.9 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 15th of the
month will be applicable for the second fortnight.
6.10 Further, M/s IVPL should ensure compliance towards Standardization of Ground Handling Equipment
at Lal Bahadur Shastri International Airport, Varanasi 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 Tariff Structure
and Annual Tariff Proposal in respect of the Ground Handling Services for the First Control Period:
6.11 To consider the Tariff Rates for Ground Handling Services provided by M/s IVPL at Lal Bahadur
Shastri International Airport, Varanasi, in respect of Scheduled Flights, International “Non-Scheduled
& General Aviation Flights” and Item-wise Tariff Rate Card for Ground Handling Services, for the
First Control Period as per Annexures (I, II & III).
6.12 The Tariff for Domestic Non-Scheduled and General Aviation Flights, 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(s) is to be levied over and above the approved Tariff Rates.
6.15 M/s IVPL shall ensure compliance towards Standardization of Ground Handling Equipment at Lal
Bahadur Shastri International Airport, Varanasi in accordance with the directives issued by Ministry
of Civil Aviation vide its letter no. AV-240 11/10/2021-AAI-MOCA dated 27.10.2022.
Consultation Paper No. 18/2023-24 Page 20 of 27CHAPTER 7: SUMMARY OF AUTHORITY’S PROPOSALS
The below-mentioned summary provides the Authority's proposals relating to relevant chapters regarding
the Tariff determination exercise for M/s IVPL, providing Ground Handling Services at Lal Bahadur Shastri
International Airport, Varanasi, for the Stakeholders’ Consultation purpose:
Chapter Para Summary of Authority’s Proposals Page No.
The Authority proposes to consider the Tariff determination exercise for M/s
IVPL, in respect of Ground Handling Services being provided by the ISP at
Chapter 2.7
Lal Bahadur Shastri International Airport, Varanasi, under the ‘Light Touch 9
No.2
Approach’ for the First Control Period, as the regulated service is deemed
‘Not Material’.
Chapter 3.9 The Authority proposes to consider the Aircraft Traffic (Flights to be handled
11
No. 3 by the ISP) for the First Control Period as per Table 3.
Chapter 4.7 The Authority proposes to consider the projected CAPEX for the First
13
No. 4 Control Period as per Table 4.
Chapter 5.8 The Authority proposes to consider the OPEX for the First Control Period as
16
No. 5 per Table 6.
The Authority proposes to consider the Tariff Rates for Ground Handling
Services provided by M/s IVPL at Lal Bahadur Shastri International Airport,
6.11 Varanasi, in respect of Scheduled Flights, International “Non-Scheduled &
General Aviation Flights” and Item-wise Tariff Rate Card for Ground
Handling Services, for the First Control Period as per Annexures (I, II & III).
The Tariff for Domestic Non-Scheduled and General Aviation Flights, shall
6.12
not exceed the approved Tariff(s) for relevant Domestic Scheduled Flights
for similar class of Aircraft(s).
In case of payment in foreign currency, the RBI conversion rate as on the last
Chapter 6.13 day of the previous month will be applicable for the first fortnight and the 20
No. 6
rate prevailing as on the 15th of the month will be applicable for the second
fortnight.
The Tariff Rates indicated in Annexures (I, II & III) shall be maximum Tariff
6.14
to be charged. No other charge(s) is to be levied over and above the approved
Tariff Rates.
The Authority proposes that M/s IVPL shall ensure compliance towards
Standardization of Ground Handling Equipment at Lal Bahadur Shastri
6.15
International Airport, Varanasi in accordance with the directives issued by
Ministry of Civil Aviation vide its letter no. AV-240 11/10/2021-AAI-
MOCA dated 27.10.2022.
Consultation Paper No. 18/2023-24 Page 21 of 27CHAPTER 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 the 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 the 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 08/12/2023:
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. 18/2023-24 Page 22 of 27ANNEXURE I
TARIFF RATE CARD FOR M/s IVPL IN RESPECT OF DOMESTIC* & INTERNATIONAL
SCHEDULED FLIGHTS, FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28) AT
LAL BAHADUR SHASTRI INTERNATIONAL AIRPORT, VARANASI PROPOSED BY AERA
FOR STAKEHOLDERS’ CONSULTATION
Proposed Tariff Rates for Ground Handling Services
(Rates in ₹)
FY FY FY FY FY
2023-24 2024-25 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
Code B 5198 7798 12996 5472 8208 13680 5760 8640 14400 6048 9072 15120 6350 9526 15876
Code C 6931 10397 17328 7296 10944 18240 7680 11520 19200 8064 12096 20160 8467 12701 21168
Code D 8664 12996 21660 9120 13680 22800 9600 14400 24000 10080 15120 25200 10584 15876 26460
Code E 20794 31190 51984 21888 32832 54720 23040 34560 57600 24192 36288 60480 25402 38102 63504
Code F 41587 62381 103968 43776 65664 109440 46080 69120 115200 48384 72576 120960 50803 76205 127008
International Passenger Flight
Code B 21101 49236 70337 22212 51827 74039 23381 54555 77936 24550 57283 81833 25777 60147 85925
Code C 21660 50540 72200 22800 53200 76000 24000 56000 80000 25200 58800 84000 26460 61740 88200
Code D 26858 62670 89528 28272 65968 94240 29760 69440 99200 31248 72912 104160 32810 76558 109368
Code E 35522 82886 118408 37392 87248 124640 39360 91840 131200 41328 96432 137760 43394 101254 144648
Code F 40721 95015 135736 42864 100016 142880 45120 105280 150400 47376 110544 157920 49745 116071 165816
(B) Cargo Flights
Domestic Cargo Flight
FY FY FY FY FY
2023-24 2024-25 2025-26 2026-27 2027-28
Ramp Services Ramp Services Ramp Services Ramp Services Ramp Services
Code B 39710 41800 44000 46200 48510
Code C 54150 57000 60000 63000 66150
Code D 144400 152000 160000 168000 176400
Code E 189525 199500 210000 220500 231525
Code F 225625 237500 250000 262500 275625
International Cargo Flight
Code B 64980 68400 72000 75600 79380
Code C 158840 167200 176000 184800 194040
Code D 180500 190000 200000 210000 220500
Code E 198550 209000 220000 231000 242550
Code F 231040 243200 256000 268800 282240
*Tariff for Domestic Scheduled Flights is also applicable to Domestic Non-Scheduled & General Aviation Flights.
Consultation Paper No. 18/2023-24 Page 23 of 27Notes:
• Above Tariff Rates are excluding all applicable taxes.
• Tariff determined 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. 18/2023-24 Page 24 of 27ANNEXURE II
TARIFF RATE CARD FOR M/s IVPL IN RESPECT OF INTERNATIONAL “NON- SCHEDULED &
GENERAL AVIATION FLIGHTS” FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28)
AT LAL BAHADUR SHASTRI INTERNATIONAL AIRPORT, VARANASI
PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION
Proposed Tariff Rates for Ground Handling Services
(Rates in ₹)
FY FY FY FY FY
Financial Year
2023-24 2024-25 2025-26 2026-27 2027-28
A/C Category International International International International International
MTOW (Maximum
Take Off Weight)
Helicopter 13321 14022 14760 15498 16273
≤ 6000 27382 28823 30340 31857 33450
>6000 - 12000 37003 38950 41000 43050 45203
>12000 - 25000 42553 44793 47150 49508 51983
>25000 - 40000 64754 68163 71750 75338 79104
>40000 - 70000 81406 85690 90200 94710 99446
>70000 - 100000 109157 114903 120950 126998 133347
> 100000 - 150000 162811 171380 180400 189420 198891
> 150000 & Above 185013 194750 205000 215250 226013
Notes:
• Above Tariff Rates are excluding all applicable taxes.
• Tariff determined 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. 18/2023-24 Page 25 of 27ANNEXURE –III
ITEM-WISE CHARGES FOR THE GROUND HANDLING SERVICES IN RESPECT OF M/s IVPL
AT LAL BAHADUR SHASTRI INTERNATIONAL AIRPORT, VARANASI PROPOSED BY AERA FOR
STAKEHOLDERS’ CONSULTATION
Maximum Item-wise Charges for the Domestic* & International
Flights for the First Control Period (FY 2023-24 to FY 2027-28)
(Rates in ₹)
Sl. FY FY FY FY FY
No SERVICES UNIT 2023-24 2024-25 2025-26 2026-27 2027-28
. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl.
1 Air Starter Unit (NB) Per Start 7500 15000 7875 15750 8269 16538 8682 17364 9116 18233
Aircraft Disinfection-
2 Per Service 3000 16000 3150 16800 3308 17640 3473 18522 3647 19448
Freighter Aircrafts
Aircraft Disinfection- Pax
3 Per Service 4000 8000 4200 8400 4410 8820 4631 9261 4862 9724
Aircrafts Code C
Aircraft Disinfection- Pax
4 Per Service 25000 32000 26250 33600 27563 35280 28941 37044 30388 38896
Aircrafts Code D/E
Aircraft Disinfection- Pax
5 Per Service - 40000 - 42000 - 44100 - 46305 - 48620
Aircrafts Code F
6 Aircraft Marshalling Per Service 1875 2480 1969 2604 2067 2734 2171 2871 2279 3014
Per Flight
7 Ambulift 5000 10000 5250 10500 5513 11025 5788 11576 6078 12155
Leg
8 Apron Transport (Passenger) Per Trip 950 1600 998 1680 1047 1764 1100 1852 1155 1945
Arrange non-scheduled Crew
9 Hotel Accommodation Per Flight 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp.
(HOTAC)
10 ATC payment services Per Flight 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp.
11 Baggage ID Per Service 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp.
12 Baggage /Cargo cart Per Hour 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp.
Per Staff
13 Blue collar staff 400 800 420 840 441 882 463 926 486 972
Per Hour
14 Crew Transport Per Trip 950 1600 998 1680 1047 1764 1100 1852 1155 1945
Deportee/Inadmissible Per
15 - 1200 - 1260 - 1323 - 1389 - 1459
(INAD) handling Passenger
Excess Baggage Fee As Per
16 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp.
(% of collection) Collection
17 Exterior Cleaning - NB Per Service 52500 - 55125 - 57881 - 60775 - 63814 -
18 Ground Power unit 90 KVA Per Hour 4700 10000 4935 10500 5182 11025 5441 11576 5713 12155
19 Interior Deep Cleaning - NB Per Service 5000 8000 5250 8400 5513 8820 5788 9261 6078 9724
20 Passenger Step (mobile-NB) Per Hour 1375 4000 1444 4200 1516 4410 1592 4631 1671 4862
Pushback for narrow body
21 Per Push 5000 10000 5250 10500 5513 11025 5788 11576 6078 12155
aircraft
22 Toiler truck Per Service 1375 2400 1444 2520 1516 2646 1592 2778 1671 2917
Towing of narrow body
23 Per Tow 5000 10000 5250 10500 5513 11025 5788 11576 6078 12155
aircraft
Unaccompanied Minor (UM)
24 Per UM 950 1200 998 1260 1047 1323 1100 1389 1155 1459
Handling
25 Vacuum Cleaner Per Hour 3750 4000 3938 4200 4134 4410 4341 4631 4558 4862
26 VIP Vehicle (Innova range) Per Trip 10000 20000 10500 21000 11025 22050 11576 23153 12155 24310
VIP Vehicle (Luxury-
27 Mercedes/BMW/AUDI Per Trip 25000 40000 26250 42000 27563 44100 28941 46305 30388 48620
range)
28 Water truck Per Service 1375 2400 1444 2520 1516 2646 1592 2778 1671 2917
29 Wheel chair Per Service 400 2400 420 2520 441 2646 463 2778 486 2917
Per Staff
30 White Collar Staff 600 1200 630 1260 662 1323 695 1389 729 1459
Per Hour
* Tariff for Domestic Flights is also applicable to Domestic ‘Non-Scheduled and General Aviation Flights’.
Dom. = Domestic; Intl. = International
Consultation Paper No. 18/2023-24 Page 26 of 27Notes:
• Above Tariff Rates are excluding of all applicable taxes, if any.
• Tariff determined 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. 18/2023-24 Page 27 of 27