Consultation Paper No. 19/2023-24 In the matter of determination of tariff for Ground Handling Services in respect of M/s IndoThai Pune Private Limited (IPPL) at Pune International Airport, Pune for the First Control Period (FY 2023-24 to FY 2027-28).

फा.सं. ऐरा/20010/एमवाईटीपी/इडं ोथाई/जीएच/पणु े/सीपी-III/2021-26 F. No. AERA/20010/ MYTP/IndoThai/GH/Pune/CP-III/2021-26 परामर्श पत्र संख् या 19/2023-24 Consultation Paper No. 19/2023-24 भारतीय विमानपत् तन रवथिश विवनयाम ्ावक र Airports Economic Regulatory Authority of India मैससश इडं ोथिाई पु े ्ाइिेट विवमटेड (रई.पी.पी.एि.) द्वारा पु े अंतराशष्ट्रीय हिाईअड्डा, में ्दान ी जा रही ग्राउंड हैंडविंग सेिाओ ं े विए ्थिम वनयंत्र अिवक (वित् त ि्श 0203-04 से वित्त ि्श 0207-08) े विए टैररफ वनकाशररत रने े मामिे में IN THE MATTER OF DETERMINATION OF TARIFF FOR THE GROUND HANDLING SERVICES IN RESPECT OF M/s INDOTHAI PUNE PRIVATE LIMITED (IPPL) AT PUNE INTERNATIONAL AIRPORT, PUNE FOR THE FIRST CONTROL PERIOD (FY 2023-24 TO FY 2027-28) जारी रने ी 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. 19/2023-24 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 IndoThai Pune Private Limited (IPPL) in respect of Pune International Airport. 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. 19/2023-24 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. 19/2023-24 Page 2 of 28TABLE 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)……………..…….……………………………………...…....13 Chapter 5: Revenue from Operations, Operating Expenditure and Projected Profitability…………...…..15 Chapter 6: Annual Tariff Proposal………………...……………………………………………………19 Chapter 7: Summary of Authority’s Proposals…………………..……………………………………23 Chapter 8: Stakeholders' Consultation………..……….…………………………….....…………………24 Annexure I: Tariff Rate Card for M/s IPPL in respect of Domestic & International Scheduled Flights for the First Control Period (FY 2023-24 to FY 2027-28) at Pune International Airport, Pune proposed by AERA for Stakeholders’ Consultation……………………………………….25 Annexure II: Tariff Rate Card for M/s IPPL in respect of International “Non-Scheduled & General Aviation Flights” for the First Control Period (FY 2023-24 to FY 2027-28) at Pune International Airport, Pune proposed by AERA for Stakeholders’ Consultation.....…………………………………………………………………………… 26 Annexure III: Item Wise Charges for Domestic and International Flights For M/s IPPL In Respect Of Ground Handling Services at Pune International Airport, Pune proposed by AERA for Stakeholders’ Consultation….……...………………….……………..…..……...……….. 27 Consultation Paper No. 19/2023-24 Page 3 of 28LIST OF TABLES Table Particulars Page No. No. 1 Shareholding Structure of M/s IPPL, Pune 6 Actual Aircraft Traffic handled at Pune International Airport, Pune during FY 2 10 2018-19 to FY 2022-23 Projected Aircraft Traffic (Flights to be handled by ISP) submitted by M/s IPPL for 3 10 the First Control Period (FY 2023-24 to FY 2027-28) 4 Projected Capital Expenditure submitted by M/s IPPL for the First Control Period 13 Breakup of Projected Capital Expenditure submitted by M/s IPPL for the First 5 13 Control Period Revenue, Operating Expenditure and Profitability projected by M/s IPPL for the 6 15 First Control Period Year on Year Percentage (%) increase in the Revenue and Operation & Maintenance 7 16 Expenditure during the First Control Period Proposed Tariff Rates for Scheduled Flights submitted by M/s IPPL for the First 8 19 Control Period Statement of Y-o-Y Percentage (%) Change in Tariff Rates for Different Category 9 20 of Scheduled Flights in respect of the First Control Period Proposed Tariff Rates for Non-Scheduled Flights submitted by M/s IPPL for the 10 20 First Control Period Consultation Paper No. 19/2023-24 Page 4 of 28List 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 GFHSPPL Global Flight Handling Services (Pune) Private Limited GHA Ground Handling Agencies GHS Ground Handling Services INR/₹ Indian Rupees IPPL IndoThai Pune Private Limited ISP Independent Service Provider ITAMSPL IndoThai Airport Management Services 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. 19/2023-24 Page 5 of 28CHAPTER 1: INTRODUCTION 1.1 M/s IndoThai Airport Management Services Pvt. Ltd. (ITAMSPL) was awarded Concession to provide Ground Handling Services at Pune International Airport, Pune by the Airport Operator i.e., Airports Authority of India (AAI), vide Letter of Intent to Award (LOIA) dated 12.01.2021. 1.2 As per the LOIA, a Special Purpose Vehicle (SPV) was required to be formed by the M/s ITAMSPL within 30 days from the date of issue of LOIA, for entering into concession agreement with AAI and implementation of Concession to provide ground handling services at Pune International Airport. Accordingly, SPV namely M/s IndoThai Pune Private Limited (IPPL), was incorporated under the Indian Companies Act, 2013 on 10.02.2021. 1.3 The Airport Operator (AAI) and M/s IPPL (Special Purpose Vehicle) entered into Concession Agreement on 13.08.2022, for a provision of ground handling services at Pune International Airport, Pune 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 IPPL is tabulated below. Table-1: Shareholding Structure of M/s IPPL, Pune: Shareholding Name of Shareholder No. of Shares (%) M/s IndoThai Airport Management Services Private 9900 99% Limited 100 1% Shyam Sunder Malani 10,000 100% Total 1.5 M/s IndoThai Pune Private Limited was granted security clearance vide Bureau of Civil Aviation Security (BCAS) letter dated 12.05.2022, which is valid for a period of five years from the date of issuance of security clearance. 1.6 Upon receipt of request from M/s IndoThai Pune Pvt. Ltd., vide its letter dated 18.05.2022, the Authority, vide its Order No. 18/2022-23 dated 18.08.2022, allowed M/s IndoThai Pune Pvt. Ltd. to levy and collect, on ad-hoc basis, tariff for Ground Handling Services at Pune International Airport w.e.f. ‘commercial operation date (COD)’ up to 31.03.2023. The Authority extended the prevailing Ad-hoc tariff (as on 31.03.2023) up to 30.09.2023 vide Order No. 42/2022-23 dated 23.03.2023. 1.7 Subsequently, 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. 1.8 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 IPPL submitted the Multi Year Tariff Proposal (‘MYTP’) pertaining to First Control Period on 23.09.2023, for determination of regular Tariff in respect of the Ground Handling Services being provided by the ISP at Pune International Airport, Pune. 1.9 M/s IPPL, initially submitted the MYTP/ ATP considering the FY 2022-23 as the first tariff Consultation Paper No. 19/2023-24 Page 6 of 28year and FY 2026-27 as last tariff year of the First Control Period. Subsequently, M/s IPPL based on the AERA observations submitted the revised MYTP on 16.10.2023, considering the First Control Period from FY 2023-24 to FY 2027-28. 1.10 The Authority, after having examined the MYTP submission of the M/s IPPL 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. 19/2023-24 Page 7 of 28CHAPTER 2: PRINCIPLES FOR THE 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: MATERIALITY ASSESSMENT: 𝑰𝒏𝒕. 𝑨𝒊𝒓𝒄𝒓𝒂𝒇𝒕 𝑴𝒐𝒗𝒆𝒎𝒆𝒏𝒕𝒔 𝒂𝒕 𝑴𝒂𝒋𝒐𝒓 𝑨𝒊𝒓𝒑𝒐𝒓𝒕 Materiality Index (MI ) = 𝑿𝟏𝟎𝟎 G 𝑻𝒐𝒕𝒂𝒍 𝑰𝒏𝒕𝒍. 𝑨𝒊𝒓𝒄𝒓𝒂𝒇𝒕 𝑴𝒐𝒗𝒆𝒎𝒆𝒏𝒕𝒔 𝒂𝒕 𝑴𝒂𝒋𝒐𝒓 𝑨𝒊𝒓𝒑𝒐𝒓𝒕𝒔 The Materiality Index for Pune Airport = 1195/420772 = 0.28% The percentage share of Pune International Airport, Pune for FY 2019-20 (Pre- Covid Year) in respect of International Aircraft Movements is 0.28%, which is less than 5% Materiality Index (MI ) G for the subject regulated service. Hence, the Regulated Service is deemed ‘Not Material’ for the First Control Period at Pune International Airport, Pune as per clause 4.4(ii) of the Guidelines. 2.3 As per the information furnished by M/s IPPL in Form F1 (b) on competition Assessment, M/s AI Airport Services Limited (AIASL) and M/s Global Flight Handling Services (Pune) Private Limited (GFHSPPL) are also rendering similar services at Pune International Airport. 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 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. 2.6 The Authority notes that M/s IPPL has submitted the Annual Tariff Proposal (ATP) for the First Control Period as part of its MYTP submission. The ISP conducted stakeholders’ consultation meeting on 21st September, 2023 and has submitted Minutes of Meetings (MoM) to the Authority vide email dated 27.10.2023. As per the minutes of meeting, it is observed that besides participants from the ISP, representatives of Akasa Air, Air Asia participated in the above referred consultation Consultation Paper No. 19/2023-24 Page 8 of 28meeting. From the MoM, it is noted that none of the Stakeholders raised any issue regarding Tariff proposed by ISP for the First Control Period. 2.7 Authority’s Proposal regarding Methodology of Tariff Determination of M/s IPPL: Based on the material before it and its analysis, the Authority proposes to consider the Tariff determination exercise for M/s IPPL, in respect of Ground Handling Services being provided by the ISP at Pune International Airport, Pune, under the ‘Light Touch Approach’, for the First Control Period, as the regulated service is deemed ‘Not Material’. Consultation Paper No. 19/2023-24 Page 9 of 28CHAPTER 3: AIRCRAFT TRAFFIC (FLIGHTS TO BE HANDLED) M/s IPPL submission on Projected Aircraft Traffic (Flights to be Handled) for the First Control Period 3.1 Actual Aircraft Traffic handled at Pune International Airport, Pune from the FY 2018-19 to FY 2022- 23 is given below: Table 2: Actual Aircraft Traffic handled at Pune International Airport during FY 2018-19 to FY 2022-23 Total number of Landings at Pune Y-o-Y % increase Year International Airport Domestic International Total Domestic International Total 2018-19 57612 2276 59888 -- -- -- 2019-20 53066 1195 54261 - 7.9% - 47.5% - 9.4% 2020-21 19686 145 19831 - 62.9% - 87.9% - 63.5% 2021-22 30519 302 30821 55% 108.3% 55.4% 2022-23 58261 1190 59451 90.9% 294% 92.9% 3.2 Projected Aircraft Traffic (flights to be handled) for the First Control Period (FY 2023-24 to FY 2027- 28) submitted by M/s IPPL is given below in Table 3. Table 3: Projected Aircraft Traffic (Flights to be handled by ISP) submitted by M/s IPPL for the First Control Period (FY 2023-24 to FY 2027-28) Flights to be handled by M/s IPPL for the First Control Total (No. of Y-o-Y % increase Year Period Landings) Domestic International Domestic International Total 2023-24 4331 49 4380 - - - 2024-25 4873 52 4925 12.5% 5% 12.4% 2025-26 5287 54 5341 8.5% 5% 8.5% 2026-27 5730 57 5787 8.4% 5% 8.3% 2027-28 6205 60 6265 8.3% 5% 8.3% Total 26426 272 26698 Consultation Paper No. 19/2023-24 Page 10 of 28Authority’s Examination of the Projected Aircraft Traffic (Flights to be handled by the ISP): 3.3 The ISP started its commercial operations with effect from 22.08.2022 and had operated partially during the FY 2022-23. The Authority, for the purpose of determination of regular Tariff for M/s IPPL at Pune International Airport has considered the FY 2023-24 as the first tariff year and the FY 2027-28 as the fifth tariff year of the First Control Period. 3.4 The Authority observes that in respect of FY 2024-25 (second tariff year), the ISP has projected a growth of 12.4% in the total aircraft traffic volume as compared to the FY 2023-24. From the FY 2025- 26 onward, M/s IPPL has projected an increase around 8.5% on Y-o-Y basis in the total aircraft traffic volumes (domestic & international). 3.5 As per the statistics available at AAI website, the total Aircraft Traffic handled by Pune International Airport in FY 2022-23 had reached to 110% of the actual Aircraft Traffic handled at the Pune airport during 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 September, 2023 in respect of the Pune International Airport, Pune have increased by 16%, as compared to the corresponding period of FY 2022-23. 3.7 Based on the projected aircraft traffic volumes for the FY 2023-24 (Table 3), the Authority notes that the ISP is expected to have market share of around 7.4% in the ground handling services at the Pune Airport, when compared with the actual number of total flights handled in FY 2022-23(Table 2) at the Pune airport. 3.8 The Authority notes that the ISP has projected a nominal International Aircraft traffic (International Flights to be handled) for the First Control Period. Accordingly, the Authority sought a clarification from the ISP for the less international aircraft traffic volume projection. In response thereto, the ISP informed that they expected to handle only the Non-Scheduled International Flights. 3.9 The ISP further provided the detail of the agencies providing the ground handling services to the major airlines operating at the Pune Airport, as per the table given 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 Pune Private Limited AIX Connect M/s IndoThai Pune Private Limited Indigo Self-handling Spice Jet M/s Global Flight Handling Services Private Limited Vistara Airlines M/s Global Flight Handling Services Private Limited Consultation Paper No. 19/2023-24 Page 11 of 283.10 The Authority, taking into account the market competition among the three service providers at Pune International Airport, considers the aircraft traffic volume projected by the ISP for the First Control Period as reasonable. Accordingly, the Authority proposes to consider the projected Aircraft Traffic Volume (flights to be handled by the ISP) as submitted by M/s IPPL for the First Control Period as per the Table 3 above. Authority’s Proposal regarding the projected Aircraft Traffic Volumes (Flights to be handled by the ISP) for the First Control Period: 3.11 Based on the material before it and its analysis, the Authority proposes to consider the Aircraft Traffic Volumes (Flights to be handled by the ISP) for the First Control Period as given in Table 3 above. Consultation Paper No. 19/2023-24 Page 12 of 28CHAPTER 4: CAPITAL EXPENDITURE (CAPEX) M/s IPPL’s Submission on the Capital Expenditure for the First Control Period 4.1 M/s IPPL has projected a total Capital Expenditure (CAPEX) of ₹ 777.75 Lakhs for the First Control Period. The proposed CAPEX is to be incurred during the 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 IPPL 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 Equipment 48.56 71.50 121.90 253.00 69.20 564.16 Vehicles 68.50 34.25 12.50 74.50 13.34 203.09 Furniture and Fittings 1.50 - 2.00 2.00 1.00 6.50 Office Equipment 1.50 1.00 - 1.00 0.50 4.00 Total 120.06 106.75 136.40 330.50 84.04 777.75 4.2 As part of the MYTP, the ISP has also provided the detailed bifurcation of the proposed CAPEX for the First Control Period as under: Table 5: Breakup of Projected Capital Expenditure submitted by M/s IPPL for the First Control Period (₹ in Lakhs) FY FY FY FY FY Total Sl. Particulars Cost/ 2023-24 2024-25 2025-26 2026-27 2027-28 Amount no. Unit Qty. Amount Qty. Amount Qty. Amount Qty. Amount Qty. Amount 1. Ground Handling Equipment: Push Back - Medium 90.00 - 0.00 - 0.00 - 0.00 1 90.00 - 0.00 90.00 Towbar 7.50 1 7.50 - 0.00 1 7.50 1 7.50 - 0.00 22.50 Tugs 25.00 - 0.00 - 0.00 - 0.00 2 50.00 - 0.00 50.00 Electric Baggage 35.00 - 0.00 - 0.00 2 70.00 2 70.00 - 0.00 140.00 Tractors Ground Power Unit - 36.00 - 0.00 1 36.00 0.00 - 0.00 1 36.00 72.00 90 KVA Towable Bulk Freight 8.00 - 0.00 1 8.00 2 16.00 1 8.00 - 0.00 32.00 Loader Towable Pax Step 8.00 - 0.00 1 8.00 2 16.00 1 8.00 - 0.00 32.00 ladder Towable toilet cart 4.00 - 0.00 1 4.00 - 0.00 - 0.00 1 4.00 8.00 Towable water cart 4.00 - 0.00 1 4.00 - 0.00 - 0.00 1 4.00 8.00 Vacuum Cleaner 0.50 2 1.00 - 0.00 4 2.00 2 1.00 2 1.00 5.00 Baggage Trolley - 0.70 25 17.50 10 7.00 10 7.00 20 14.00 10 7.00 52.50 Covered Ambulift Towable 12.00 1 12.00 - 0.00 - 0.00 - 0.00 1 12.00 72400 Fire Extinguisher 0.15 - 0.00 2 0.30 2 0.30 2 0.30 - 0.00 0.90 TROLLEY Trestle/ Ladder 2.00 1 2.00 - 0.00 0.00 - 0.00 1 2.00 4.00 Wheelchairs 0.22 23 5.06 10 2.20 5 1.10 10 2.20 10 2.20 12.76 Consultation Paper No. 19/2023-24 Page 13 of 28FY FY FY FY FY Total Sl. Particulars Cost/ 2023-24 2024-25 2025-26 2026-27 2027-28 Amount no. Unit Qty. Amount Qty. Amount Qty. Amount Qty. Amount Qty. Amount Fuel Bowser 1.50 1 1.50 - 0.00 0.00 - 0.00 - 0.00 1.50 Miscellaneous 0.00 - 2.00 2.00 - 2.00 1 2.00 - 1.00 9.00 Total 48.56 71.50 121.90 253.00 69.20 564.16 2. Vehicles: Bus/coaches 34.25 2 68.50 1 34.25 - - 2 68.50 - - 171.25 Car-KIA - - - - 1 12.50 - - - - 12.50 Car - - - - - - 1 6.00 1 6.23 12.23 Tata Yodha - - - - - - - - 1 7.11 7.11 Total 68.50 34.25 12.50 76.50 13.34 203.09 3. Furniture & Fittings 1.50 - 2.00 2.00 1.00 6.50 4. Office Equipment 1.50 1.00 - 1.00 0.50 4.00 GRAND TOTAL 120.06 106.75 136.40 330.50 84.04 777.75 Authority’s Examination of the CAPEX proposed by the ISP: 4.3 The Authority notes that the ISP is providing Ground Handling Services (GHS) at Pune International Airport, Pune from 22.08.2022 and has an Opening Regulatory Asset Base (RAB) of ₹ 599.31 lakhs. The ISP has projected a total CAPEX of ₹ 777.75 lakhs during the First Control Period. Out of Total projected CAPEX, M/s IPPL has projected a major portion of the CAPEX i.e., ₹ 564.16 lakhs (72.54%) on the Ground Handling Equipment and ₹ 203.09 lakhs (26.11%) on the procurement of vehicles. 4.4 The Authority sought the status of CAPEX incurred so far in respect of the FY 2023-24. In response, the ISP vide email dated 06.10.2023 stated that they had not incurred any CAPEX till date; however, as per the ISP, they will incur the projected CAPEX on or before the end of FY 2023-24. 4.5 The Authority, based on its examination, observes that M/s IPPL has proposed the necessary CAPEX on assets/ equipment which are essential for the smooth ground handling operations at the Airport. The Authority, therefore, proposes to consider the projected CAPEX for the First Control Period as submitted by the ISP, as per Table 4 above. 4.6 The Authority notes that the ISP would be eligible to claim GST Input Tax Credits (ITC) on the procurement of various 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 the projected 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. 19/2023-24 Page 14 of 28CHAPTER5: REVENUE FROM OPERATIONS, OPERATING EXPENDITURE AND PROJECTED PROFITABILITY M/s IPPL’s 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 IPPL for its Ground Handling operations at the Pune International Airport have been broadly categorized as under: a) Payroll Cost; b) Repair and Maintenance Costs; c) Concession Fee/ Revenue Share payable to Airport Operator; d) Utilities & Outsourcing; e) Administrative and Other 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 IPPL 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) 949.30 1,100.36 1,239.36 1,400.05 1,581.07 6,270.15 Revenue from other than Regulated Services (B) - - - - - - Total Revenue from the Services (A+B) = (C) 949.30 1,100.36 1,239.36 1,400.05 1,581.07 6,270.15 Operating Expenditure (OPEX) Payroll Costs (i) 578.44 607.36 637.73 669.62 703.10 3,196.24 Repair and Maintenance Costs (ii) 16.95 18.39 19.97 21.92 23.99 101.21 Concession Fee/ Revenue Share payable to 154.38 128.15 102.52 82.02 73.22 540.29 Airport Operator (iii) Utilities & Outsourcing Expenses (iv) 0.37 0.37 0.38 0.39 0.40 1.90 Administrative & Other Expenses (v) 69.46 70.15 75.25 81.03 87.44 383.32 Total OPEX (i+ii+iii+iv+v) = (D) 819.59 824.43 835.85 854.97 888.14 4,222.97 Earnings Before Interest, Tax, Depreciation and 129.71 275.94 403.51 545.09 692.93 2,047.18 Amortization (EBITDA) (C-D) = (E) 71.94 75.42 81.52 106.41 104.18 439.46 Depreciation and Amortization (F) Interest & Finance Charges (G) 146.34 127.38 104.27 86.86 56.56 521.42 Profit Before Tax (PBT) (E-F-G) = (H) -88.57 73.14 217.72 351.81 532.19 1,086.29 Provision for Tax (Calculated after taking in to an 0.00 0.00 0.00 55.31 134.00 189.31 account the previous years anticipated losses) (I) Profit After Tax (PAT) (H-I) = (J) -88.57 73.14 217.72 296.49 398.19 896.98 Consultation Paper No. 19/2023-24 Page 15 of 28Authority’s Examination and Analysis: 5.4 The Authority has analyzed the Operating Expenditure of the ISP, as provided in the Form F3 (P&L) of the MYTP, for the First Control Period and observes that the ISP has considered the following % increase in Revenues & OPEX on Y-o-Y basis, from the second tariff year onward, as indicated in the Table 7 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 15.9% 12.6% 13% 12.9% Payroll Costs 5% 5% 5% 5% Repair and Maintenance Costs 8.5% 8.5% 9.8% 9.5% Concession Fee/ Revenue Share -17% -20% -20% -10.7% payable to Airport Operator Utilities & Outsourcing Expenses 2% 2% 2% 2% Administrative & Other Expenses 1% 7.3% 7.7% 7.9% 5.5 The Authority’s examination of Y-o-Y % growth considered by the M/s IPPL for the projected OPEX from FY 2023-24 onward is given in the following sections: a) Payroll Cost: The Authority notes from the MYTP submission that the ISP has projected a Y-o-Y increase of 5% in Payroll costs during the First Control Period. Considering the impact of periodic increase in minimum wages & annual salary increments and related increase in statutory components like EPF etc., the Authority views the Y-o-Y increase projected Payroll expenses by the ISP for the First Control Period as reasonable. b) Repairs and Maintenance Costs: The Authority observes that M/s IPPL has projected an increase in R&M expenses from second tariff year onward, ranging between 8.5% to 10%, during the First Control Period. The Authority observes that the ISP during the last two tariff years of the Control Period has considered slightly higher R&M Expenses, as compared to initial two years of the Control Period. As per the Authority, it is imperative for the ground handling agencies to keep the ground handling equipment & allied facilities in proper working conditions, so as to provide safe & better services to users. The Authority in its analysis observes that the overall repair and maintenance costs, as a % of Opening RAB, is ranging between 2% to 3% in all the tariff years of the Control Period, as tabulated hereunder: (₹ in Lakhs) FY FY FY FY FY Particulars 2027-28 2023-24 2024-25 2025-26 2026-27 Opening RAB 599.31 647.43 678.76 733.65 957.73 Repair and Maintenance 16.95 18.39 19.97 21.92 23.99 Costs % of Opening RAB 2.83% 2.84% 2.94% 2.99% 2.50% Consultation Paper No. 19/2023-24 Page 16 of 28Further, taking into account the impact of annual general inflation, including annual increase in labour component of Repair & Maintenance Costs, the Authority considers the projected R&M expenses for the First Control Period as reasonable. c) Concession Fee/ Revenue Share payable to Airport Operator: The Authority notes from the clause 7.1.1 of concession agreement, executed between AAI and M/s IPPL, the Revenue Share payable by the ISP to the airport operator (AAI) is 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 flight(s). The Authority further observes from the clause 7.1.2 of above said agreement, that every year the ISP shall pay ‘Premium’, which is maximum of “Minimum Annual Guarantee” (MAG) and the ‘Revenue Share’, calculated as per the clause 7.1.1 of the concession agreement. 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. In 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. As per the ISP, for the first and last tariff year, the premium (concession fee) has been considered based on the expected Revenue Share (which is expected to be more than 80% of previous year’s MAG). However, for remaining tariff years of the Control period, the MAG is expected to be higher than the ‘Revenue Share’ (calculated as per the clause no. 7.1.1 of the agreement); hence the ‘premium’ payable to the airport operator has been considered based on the MAG figures. In view of the above, the Authority proposes to consider the concession fee (premium) payable to the airport operator as projected by ISP, for the First Control Period. d) Utilities and Outsourcing Expenses: The Authority notes that M/s IPPL proposed Y-o-Y increase of 2% in the Utilities and Outsourcing Expenses from FY 2024-25 onward. The Authority observes that Utility & Outsourcing Expenses consist of mainly Power Expenses. Further, these expenses are directly linked with the number of flights to be handled by the service provider. The Authority notes that Y-o-Y increase projected in Utility & Outsourcing Expenses is commensurate with the projected increase in the aircraft traffic and the number of Electricity/Power units consumed. Considering the above, the Utility and Outsourcing Expenses projected for the Control Period by the ISP is reasonable. e) Administrative & Other Expenses: In respect of Administrative and Other Expenses, M/s IPPL proposed an increase of 1% during FY 2024-25 as compared to the projected figures of FY 2023- 24. From FY 2025-26 onward, the ISP has proposed a Y-o-Y increase of around 7% to 8% in Admin. & General Expenses. The Authority notes that the Land/ Space Rent is a major component of the Admin. & Other Expenses (i.e., ₹ 265 lakhs approx.), which almost accounts for 69% of the total Admin. & Other Consultation Paper No. 19/2023-24 Page 17 of 28Expenses projected for the First Control Period. The Authority further observes from the ISP’s submission that Land/Space Rent will be escalated annually @ 7.5% p.a. Apart from Land/ Space Rent, other major heads of expenses under the Admin. & General Expenses include expenses relating to transportation, travelling and cost of consumables. In view of the projected increase in the aircraft traffic and considering the impact of general inflation & annual escalation @ 7.5% p.a. in Land/ Space Rent, the Y-o-Y increase of around 7% to 8% projected by the ISP in respect of Administrative and Other Expenses for the First Control Period is reasonable. 5.6 The Authority also notes that as per the profitability statement projected for the First Control Period (Table no. 6), M/s IPPL is expected to earn a profit of around Rs. 8.96 crores and maintain overall profit margin (Total PAT / Total Revenue) of around 14.3% for the First Control Period. Authority’s Proposals regarding Operation and Maintenance Expenses for the First Control Period: 5.7 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. 19/2023-24 Page 18 of 28CHAPTER 6: ANNUAL TARIFF PROPOSAL M/s IPPL submission on the Annual Tariff Proposal for the First Control Period 6.1 M/s IPPL submitted its Tariff proposal for the Ground Handling Services in respect of Scheduled Flights at Pune International Airport, Pune, for the First Control Period (FY 2023-24 to FY 2027-28) as per Table given below: Table 8: Proposed Tariff Rates for Scheduled Flights submitted by M/s IPPL for the First Control Period (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 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 Ramp Services Ramp Services Ramp Services Ramp Services Ramp Services 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 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. Consultation Paper No. 19/2023-24 Page 19 of 286.2 M/s IPPL has proposed the following % increase in the Tariff Rates on Y-o-Y basis in respect of the Scheduled Flights at Pune International Airport as stated in the table below: Table 9: Statement of Y-o-Y Percentage (%) Change in Tariff Rates for different category of Scheduled Flights in respect of the First Control Period FY FY FY FY 2024-25 2025-26 2026-27 2027-28 Full Full Full Full Pax Ramp Pax Ramp Pax Ramp Pax Ramp Services Services Services 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 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 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% 6.3 M/s IPPL has also submitted separate Tariff Rate Card for Non-Scheduled and General Aviation Flights as per the table given below: - Table 10: Proposed Tariff Rates for Non-Scheduled Flights submitted by M/s IPPL for the First n Control Period Financial FY FY Year FY FY FY 2026-27 2027-28 2023-24 2024-25 2025-26 A/C Domestic International Domestic International Domestic International Domestic International Domestic International Category Maximum Take Off Weight (MTOW) Helicopter 8123 13321 8550 14022 9000 14760 9450 15498 9923 16273 <6000 12184 27382 12825 28823 13500 30340 14175 31857 14884 33450 >6000 - 16696 37003 17575 38950 18500 41000 19425 43050 20396 45203 12000 >12000 - 27075 42553 28500 44793 30000 47150 31500 49508 33075 51983 Consultation Paper No. 19/2023-24 Page 20 of 28Financial FY FY Year FY FY FY 2026-27 2027-28 2023-24 2024-25 2025-26 A/C Domestic International Domestic International Domestic International Domestic International Domestic International Category Maximum Take Off Weight (MTOW) 25000 >25000 - 40613 64754 42750 68163 45000 71750 47250 75338 49613 79104 40000 >40000 - 54150 81406 57000 85690 60000 90200 63000 94710 66150 99446 70000 >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 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 observes that in the case of Scheduled Flights (Domestic and International), the ISP has proposed 5% Y-o-Y increase in Tariff Rates from FY 2024-25 onward (Table 9). 6.5 The Authority also notes that M/s IPPL has proposed a separate Tariff Rate card for Non-Scheduled Flights and similar to scheduled flights, the ISP has proposed an increase of 5% Y-o-Y basis from FY 2024-25 (second tariff year) onward (Table 10). 6.6 Considering the Aircraft Traffic projected by the ISP for the Control Period and projected increase in Operating Expenditure, due to factors like increase in number of manpower, annual increase in salary and wages, general inflation etc., the Authority is of the view that ISP requires minimum level of revenues to cover-up the Operating Costs and get reasonable return on its investments. In view of the above, the 5% increase in Tariff Rates proposed by the ISP on Y-o-Y basis from FY 2024-25 onward appears 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 of relevant Domestic Scheduled Flights for a similar class of Aircraft(s). However, the Authority proposes to consider the separate Tariff Rate Card in case of International ‘Non- Scheduled & General Aviation Flights’ only, as per Annexure-II. 6.8 As regard to the fewer 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 mainly Narrow body type of Aircraft at Pune International Airport, Pune and Itemised Rate Card has been proposed accordingly. 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 15th of the month will be applicable for the second fortnight. 6.10 Further, M/s IPPL should ensure compliance towards Standardization of Ground Handling Equipment at Pune International Airport 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. Consultation Paper No. 19/2023-24 Page 21 of 28Authority’s Proposals regarding Tariff for Ground Handling Services for the First Control Period: Based on the material before it and its analysis, the Authority proposes the following Tariff structure and Annual Tariff Proposal for the First Control Period: 6.11 To consider the Tariff Rates for Ground Handling Services provided by M/s IPPL at Pune International Airport 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 is to be levied over and above the approved Tariff Rates. 6.15 M/s IPPL shall ensure compliance towards Standardization of Ground Handling Equipment at Pune International Airport 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. 19/2023-24 Page 22 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 of M/s IPPL providing Ground Handling Services at Pune International Airport, for Stakeholders’ Consultation purpose: Chapter Para Summary of Authority’s Proposals Page No. The Authority proposes to consider the Tariff determination exercise for M/s Chapter 2.7 IPPL, in respect of Ground Handling Services being provided by the ISP at 9 No.2 Pune International Airport, under the ‘Light Touch Approach’ for the First Control Period, as the regulated service is deemed ‘Not Material’. Chapter 3.11 The Authority proposes to consider the Aircraft Traffic (Flights to be 12 No. 3 handled) for the First Control Period as per Table 3. Chapter 4.7 The Authority proposes to consider the projected CAPEX for the First 14 No. 4 Control Period as per Table 4. Chapter 5.7 The Authority proposes to consider the OPEX for the First Control Period as 18 No. 5 per Table 6. The Authority proposes to consider the Tariff Rates for Ground Handling Services provided by M/s IPPL at Pune International Airport in respect of 6.11 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 Authority proposes that the Tariff for Domestic ‘Non-Scheduled and 6.12 General Aviation Flights’, 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 6.13 conversion rate as on the last day of the previous month will be applicable for 22 No. 6 the first fortnight and the rate prevailing as on the 15th of the month will be applicable for the second fortnight. The Authority proposes that the Tariff Rates indicated in Annexures (I, II & 6.14 III) shall be maximum Tariff to be charged. No other charge is to be levied over and above the approved Tariff Rates. The Authority proposes that M/s IPPL shall ensure compliance towards 6.15 Standardization of Ground Handling Equipment at Pune International Airport 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. 19/2023-24 Page 23 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 to the Consultation Paper (Annexures-I, II & III). 8.2 For removal of doubts, it is clarified that the contents of this Consultation Paper may not be construed as any Order or Direction of this Authority. The Authority shall pass an Order, in the matter, only after considering the submissions of the Stakeholders in response hereto and by making such decision fully documented and explained in the tariff order in terms of the provisions of the Act. 8.3 The Authority welcomes written evidence-based feedback, comments and suggestions from Stakeholders on the proposals made in 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. 19/2023-24 Page 24 of 28ANNEXURE I TARIFF RATE CARD FOR M/S INDOTHAI PUNE PRIVATE LIMITED IN RESPECT OF DOMESTIC* & INTERNATIONAL SCHEDULED FLIGHTS FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28) AT PUNE INTERNATIONAL AIRPORT PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Proposed Tariff Rates for the 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 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”. 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. 19/2023-24 Page 25 of 28ANNEXURE II TARIFF RATE CARD FOR M/S INDOTHAI PUNE PRIVATE LIMITED IN RESPECT OF INTERNATIONAL ‘NON-SCHEDULED & GENERAL AVIATION FLIGHTS’ FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28) AT PUNE INTERNATIONAL AIRPORT PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Proposed Tariff Rates for the Ground Handling Services (Rates in ₹) Financial Year FY FY FY FY FY 2023-24 2024-25 2025-26 2026-27 2027-28 A/C Category Maximum Take Off Weight (MTOW) 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 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. 19/2023-24 Page 26 of 28ANNEXURE III ITEM WISE CHARGES FOR M/s IPPL IN RESPECT OF GROUND HANDLING SERVICES AT PUNE INTERNATIONAL AIRPORT, PUNE PROPOSED BY AERA , FOR STAKEHOLDERS’ CONSULTATION Maximum Item-wise Charges in respect of Domestic* & International Flights for the First Control Period (FY 2023-24 to FY 2027-28) (Rates in ₹) FY FY FY FY FY Sl. SERVICES UNIT 2023-24 2024-25 2025-26 2026-27 2027-28 No. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. 1 Air Starter Unit (NB) Per Start 7,500 15,000 7,875 15,750 8,269 16,538 8,682 17,364 9,116 18,233 Aircraft Disinfection- Per 2 Freighter Aircrafts Service 3,000 16,000 3 , 1 5 0 1 6 , 8 0 0 3,308 17,640 3,473 18,522 3,647 19,448 Aircraft Disinfection- Per 3 Pax Aircrafts Code C Service 4,000 8,000 4,200 8,400 4,410 8,820 4,631 9,261 4,862 9,724 Aircraft Disinfection- 4 Pax Aircrafts Code Per D/E Service 25,000 32,000 26,250 33,600 27,563 35,280 28,941 37,044 30,388 38,896 Aircraft Disinfection- Per 5 Pax Aircrafts Code F Service - 40,000 - 42,000 - 44,100 - 46,305 - 48,620 Per 6 Aircraft Marshalling Service 1,875 2,480 1,969 2,604 2,067 2,734 2,171 2,871 2,279 3,014 Per flight 7 Ambulift leg 5,000 10,000 5,250 10,500 5,513 11,025 5,788 11,576 6,078 12,155 Apron Transport 8 (Passenger) Per Trip 950 1,600 998 1,680 1,047 1,764 1,100 1,852 1,155 1,945 Arrange non-scheduled Crew Hotel 9 Accommodation 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. (HOTAC) Per flight 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10 ATC payment services Per flight Per 11 Baggage ID 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. Service 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 12 Baggage /Cargo cart Per Hour Per staff 13 Blue collar staff per hour 400 800 420 840 441 882 463 926 486 972 14 Crew Transport Per Trip 950 1,600 998 1,680 1,047 1,764 1,100 1,852 1,155 1,945 Deportee/Inadmissible Per 15 (INAD) handling passenger - 1,200 - 1,260 - 1,323 - 1,389 - 1,459 Excess Baggage Fee As per 16 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. (% of collection) collection Per 17 Exterior Cleaning - NB Service 52,500 - 55,125 - 57,881 - 60,775 - 63,814 - Ground Power unit 18 90KVA Per Hour 4,700 10,000 4,935 10,500 5,182 11,025 5,441 11,576 5,713 12,155 Interior Deep Cleaning Per 19 - NB Service 5,000 8,000 5,250 8,400 5,513 8,820 5,788 9,261 6,078 9,724 Passenger Step 20 (mobile-NB) Per Hour 1,375 4,000 1,444 4,200 1,516 4,410 1,592 4,631 1,671 4,862 Pushback for narrow 21 body aircraft Per Push 5,000 10,000 5,250 10,500 5,513 11,025 5,788 11,576 6,078 12,155 Consultation Paper No. 19/2023-24 Page 27 of 28FY FY FY FY FY Sl. SERVICES UNIT 2023-24 2024-25 2025-26 2026-27 2027-28 No. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Per 22 Toiler truck Service 1,375 2,400 1,444 2,520 1,516 2,646 1,592 2,778 1,671 2,917 Towing of narrow 23 body aircraft Per Tow 5,000 10,000 5,250 10,500 5,513 11,025 5,788 11,576 6,078 12,155 Unaccompanied Minor 24 (UM) Handling per UM 950 1,200 998 1,260 1,047 1,323 1,100 1,389 1,155 1,459 25 Vacuum Cleaner Per Hour 3,750 4,000 3,938 4,200 4,134 4,410 4,341 4,631 4,558 4,862 VIP Vehicle (Innova 26 range) Per Trip 10,000 20,000 10,500 21,000 11,025 22,050 11,576 23,153 12,155 24,310 VIP Vehicle (Luxury- 27 Mercedes/BMW/AUDI range) Per Trip 25,000 40,000 26,250 42,000 27,563 44,100 28,941 46,305 30,388 48,620 Per 28 Water truck Service 1,375 2,400 1,444 2,520 1,516 2,646 1,592 2,778 1,671 2,917 Per 29 Wheel chair Service 400 2,400 420 2,520 441 2,646 463 2,778 486 2,917 Per staff 30 White Collar Staff per hour 600 1,200 630 1,260 662 1,323 695 1,389 729 1,459 * 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 15th of the month will be applicable for the second fortnight. Consultation Paper No. 19/2023-24 Page 28 of 28