Consultation Paper No. 21/2023-24 In the matter of Determination of Tariff for the Ground Handling Services in respect of M/s IndoThai Calicut Private Limited (ICPL) at Calicut International Airport, Kozhikode for the First Control Period (FY 2023-24 to FY 2027-28).

फा. सं. ऐरा/20010/एमवाईटीपी/इडं ोथाई/जीएच/कालीकट /सीपी-III/2021-26 F. No. AERA/20010/ MYTP/IndoThai/GH/Calicut/CP-III/2021-26 परामर्श पत्र संख् या 21/2023-24 Consultation Paper No. 21/2023-24 भारतीय विमानपत् तन आवथशक विवनयामक प्राविकरण Airports Economic Regulatory Authority of India मैससश इडं ोथाई कालीकट प्राइिेट वलवमटेड (आई.सी.पी.एल.) की कालीकट अंतराशष्ट्रीय हिाईअड्डा, कोझीकोड में ग्राउंड हैंडवलंग सेिाओ ंके वलए प्रथम वनयंत्रण अिवि के वलए (वित् त िर्श 2023-24 से वित् त िर्श 2027-28) टैररफ वनिाशररत करने के मामले में IN THE MATTER OF DETERMINATION OF TARIFF FOR THE GROUND HANDLING SERVICES IN RESPECT OF M/s INDOTHAI CALICUT PRIVATE LIMITED (ICPL) AT CALICUT INTERNATIONAL AIRPORT, KOZHIKODE FOR THE FIRST CONTROL PERIOD (FY 2023-24 TO FY 2027-28) जारी करने की तारीख : 01.12.2023 Date of Issue: 01.12.2023 ऐरा बिब्डंग/AE RA Building प्रशासबिक पररसर/Administrative Complex सफदरजंग हवाईअड्डा/Safdarjung Airport िई बद् ली/New Delhi – 110003 Consultation Paper No. 21/2023-24 Page 1 of 29STAKEHOLDERS’ COMMENTS The Authority has released this Consultation Paper, after considering various assumptions stipulated in the Multi-Year Tariff Proposal (‘MYTP’) submitted by the M/s IndoThai Calicut Private Limited (ICPL) in respect of Calicut International Airport, Kozhikode. 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. 21/2023-24 dated 01.12.2023 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 22.12.2023 Last date for submission of Counter Comments 29.12.2023 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. 21/2023-24 Page 2 of 29TABLE 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 from Operations, Operating Expenditure and Projected Profitability…………...…..16 Chapter 6: Annual Tariff Proposal………………...……………………………………………………20 Chapter 7: Summary of Authority’s Proposals…………………..……………………………………24 Chapter 8: Stakeholders' Consultation………..……….…………………………….....…………………25 Annexure I: Tariff Rate Card for M/s ICPL in respect of Domestic & International Scheduled Flights for the First Control Period (FY 2023-24 to FY 2027-28) at Calicut International Airport, Kozhikode proposed by AERA for Stakeholders’ Consultation…………… ………… ….26 Annexure II: Tariff Rate Card for M/s ICPL in respect of International “Non-Scheduled & General Aviation Flights” for the First Control Period (FY 2023-24 to FY 2027-28) at Calicut International Airport, Kozhikode proposed by AERA for Stakeholders’ Consultation..….27 Annexure III: Item Wise Charges for M/s ICPL In Respect Of Ground Handling Services at Calicut International Airport, Kozhikode proposed by AERA for Stakeholders’ Consultation….……...………………….……………..…..……...………………………. 28 Consultation Paper No. 21/2023-24 Page 3 of 29LIST OF TABLES Table Page Particulars No. No. 1 Shareholding Structure of M/s ICPL, Kozhikode 6 Actual Aircraft Traffic handled at Calicut International Airport, Kozhikode 2 10 during FY 2018-19 to FY 2022-23 Projected Aircraft Traffic (Flights to be handled by the ISP) submitted by M/s ICPL 3 10 for the First Control Period. 4 Projected Capital Expenditure submitted by M/s ICPL for the First Control Period 12 Breakup of Projected Capital Expenditure as submitted by M/s ICPL for the First 5 12 Control Period Revenue, Operating Expenditure and Profitability projected by M/s ICPL for the First 6 16 Control Period. Year-on-Year Percentage (%) increase in the Revenue and Operation & Maintenance 7 17 Expenditure during the First Control Period Proposed Tariff Rates for Scheduled Flights submitted by M/s ICPL for the First 8 20 Control Period Statement of Y-o-Y Percentage (%) Change in Tariff Rates in respect of Different 9 21 Categories of Scheduled Flights for the First Control Period Proposed Tariff Rates for Non-Scheduled Flights submitted by M/s ICPL for the First 10 22 Control Period Consultation Paper No. 21/2023-24 Page 4 of 29List of Abbreviations: AERA / Authority Airports Economic Regulatory Authority of India AIASL AI Airport Services Limited ATM Air Traffic Movement ATP Annual Tariff Proposal 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 ICPL IndoThai Calicut 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 RAB Regulatory Asset Base SPV Special Purpose Vehicle Y-o-Y Year on Year Consultation Paper No. 21/2023-24 Page 5 of 29CHAPTER 1: INTRODUCTION 1.1 M/s IndoThai Airport Management Services Pvt. Ltd. (ITAMSPL) was awarded Concession to provide Ground Handling Services at Calicut International Airport, Kozhikode by the Airport Operator i.e., Airports Authority of India (AAI), vide Letter of Intent to Award (LOIA) dated 19.02.2021. 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 issuance of LOIA, for entering into concession agreement with AAI and implementation of Concession to provide ground handling services at Calicut International Airport, Kozhikode. Accordingly, SPV namely M/s IndoThai Calicut Private Limited (ICPL), was incorporated under the Indian Companies Act, 2013 on 19.03.2021. 1.3 The Airport Operator (AAI) and M/s ICPL (Special Purpose Vehicle) entered into Concession Agreement on 19.07.2021, for a provision of Ground Handling Services at Calicut International Airport, Kozhikode 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 IndoThai Calicut Pvt. Ltd., as informed by the ISP, is tabulated as below: Table-1: Shareholding Structure of M/s ICPL, Kozhikode: Shareholding Name of Shareholder No. of Shares (%) M/s IndoThai Airport Management Services 9,900 99% Private Limited Shyam Sunder Malani 100 1% Total 10,000 100% 1.5 M/s IndoThai Calicut Private Limited was granted security clearance vide Bureau of Civil Aviation Security (BCAS) letter dated 12.07.2021, which is valid for a period of five years from the date of issuance of security clearance or the period of validity of contract with the Airport Operator, whichever is earlier. 1.6 Upon receipt of request from M/s IndoThai Airport Management Services Pvt. Ltd. vide letter dated 18.04.2022, the Authority, vide its Order No. 02/2022-23 dated 10.05.2022, allowed M/s IndoThai Calicut Pvt. Ltd. to levy and collect, on ad-hoc basis, tariff for Ground Handling Services at Calicut International Airport, Kozhikode for the period from 01.06.2022 to 30.09.2022. Subsequently, ad-hoc tariff has been extended up to 31.03.2024 by the Authority vide following orders: (i) Order No. 24/2022-23 dated 23.09.2022 – extended the ad hoc tariff up to 31.03.2023; (ii) Order No. 42/2022-23 dated 23.03.2023 – extended the ad hoc tariff up to 30.09.2023. Consultation Paper No. 21/2023-24 Page 6 of 291.7 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 IndoThai Calicut Private Limited submitted the Multi Year Tariff Proposal (‘MYTP’) on 30.09.2023 for determination of regular Tariff for providing Ground Handling Services at Calicut International Airport, Kozhikode for the First Control Period. 1.9 M/s ICPL, initially submitted the MYTP/ ATP considering FY 2022-23 as the first tariff year and FY 2026-27 as last tariff year of the First Control Period. Subsequently, M/s ICPL based on the AERA observations submitted the revised MYTP on 27.10.2023, 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 IndoThai Calicut Private Limited 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. 21/2023-24 Page 7 of 29CHAPTER 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 the above mentioned AERA Guidelines and Direction, the following procedure is adopted for the determination of the Materiality Index of the Regulated Service: STAGE I: MATERIALITY ASSESSMENT: 𝑰𝒏𝒕. 𝑨𝒊𝒓𝒄𝒓𝒂𝒇𝒕 𝑴𝒐𝒗𝒆𝒎𝒆𝒏𝒕𝒔 𝒂𝒕 𝑴𝒂𝒋𝒐𝒓 𝑨𝒊𝒓𝒑𝒐𝒓𝒕 Materiality Index (MI ) = 𝑿𝟏𝟎𝟎 G 𝑻𝒐𝒕𝒂𝒍 𝑰𝒏𝒕𝒍. 𝑨𝒊𝒓𝒄𝒓𝒂𝒇𝒕 𝑴𝒐𝒗𝒆𝒎𝒆𝒏𝒕𝒔 𝒂𝒕 𝑴𝒂𝒋𝒐𝒓 𝑨𝒊𝒓𝒑𝒐𝒓𝒕𝒔 The Materiality Index for Calicut Airport = 18660/420772 = 4.43% The percentage share of Calicut International Airport, Kozhikode, in respect of International Aircraft Movements, for the FY 2019-20 (Pre-Covid Year) is 4.43%, which is less than 5% Materiality Index (MI ) for the subject regulated service. Hence, the Regulated Service is deemed ‘Not Material’ for G the First Control Period at Calicut International Airport, Kozhikode as per clause 4.4(ii) of the Guidelines. 2.3 As per the information furnished by M/s IndoThai Calicut Private Limited in Form F1 (b) on competition Assessment, M/s AI Airport Services Limited (AIASL) is also rendering similar services at Calicut International Airport, Kozhikode. 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 should 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 ICPL has submitted the Annual Tariff Proposal (ATP) along with its MYTP. It is observed that the ISP conducted stakeholders’ consultation meeting on 27th September, 2023 and has submitted Minutes of Meeting (MoM) to the Authority, vide email dated 30.09.2023. As per the MoM, representatives of Flynas Airlines and Air Arabia participated in the above Consultation Paper No. 21/2023-24 Page 8 of 29referred 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. Authority’s Proposal regarding Principles for the Determination of Tariff for the Aeronautical Services: 2.7 Based on the material before it and its analysis, the Authority proposes to consider the Tariff determination exercise for M/s ICPL, in respect of Ground Handling Services being provided by the ISP at Calicut International Airport, Kozhikode under the ‘Light Touch Approach’ for the First Control Period, as the regulated service is deemed ‘Not Material’. Consultation Paper No. 21/2023-24 Page 9 of 29CHAPTER 3: AIRCRAFT TRAFFIC (FLIGHTS TO BE HANDLED) M/s ICPL submission on Projected Aircraft Traffic (Flights to be Handled) for the First Control Period as part of MYTP 3.1 Actual Aircraft Traffic (No. of Landings) handled at Calicut International Airport, Kozhikode from FY 2018-19 to FY 2022-23 is given below: Table 2: Actual Aircraft Traffic handled at Calicut International Airport, Kozhikode during FY 2018-19 to FY 2022-23 Total number of Landing at Y-o-Y % increase Year Calicut Airport Domestic International Total Domestic International Total 2018-19 7897 18841 26738 -- -- -- 2019-20 6695 18660 25355 -15% -1% -5% 2020-21 3327 5611 8938 -50% -70% -65% 2021-22 4311 10697 15008 30% 91% 68% 2022-23 6362 16780 23142 48% 57% 54% 3.2 Projected Aircraft Traffic (flights to be handled) for the First Control Period submitted by M/s ICPL is given below in Table 3. Table 3: Projected Aircraft Traffic (Flights to be handled by the ISP) submitted by M/s ICPL for the First Control Period. Flights to be handled by M/s ICPL for the First Control Total (No. of Period Y-o-Y % increase Landings) Year Domestic International (No. of (No. of Landings) Landings) Domestic International Total 2023-24 85 1545 1630 - - - 2024-25 105 1617 1722 25% 5% 6% 2025-26 110 1940 2050 5% 20% 19% 2026-27 115 2329 2444 4% 20% 19% 2027-28 120 2795 2915 5% 20% 19% TOTAL 535 10226 10761 Consultation Paper No. 21/2023-24 Page 10 of 29Authority’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 09.06.2022 and had operated partially during FY 2022-23. The Authority, for the purpose of determination of regular Tariff for M/s ICPL at Calicut International Airport has considered FY 2023-24 as the first tariff year and 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 6% in the total aircraft traffic volume as compared to the FY 2023-24. From the FY 2025- 26 onward, M/s ICPL has projected an increase around 19% 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 Calicut International Airport in FY 2022-23 had reached to 91.2% of the actual Aircraft Traffic handled in the pre-Covid year i.e., FY 2019-20. 3.6 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% (number of flights i.e, 1630 nos. to be handled in FY 2023-24 by the ISP / total number of flights handled at the airport in FY 2022-23 i.e., 23142 nos.) in the ground handling services at the Calicut International Airport. 3.7 The ISP through its submissions informed that during FY 2023-24 they are not permitted to handle Wide Body Aircraft on Calicut International Airport. However, from FY 2024-25 they are expected to get permission for the same. 3.8 Considering that the service provider is a new entrant at Calicut International Airport and taking into account the market competition among the service providers at Calicut International Airport, the aircraft traffic projected by the ISP for the First Control Period appears reasonable. Accordingly, the Authority proposes to adopt Aircraft traffic projections (flights to be handled) as submitted by M/s ICPL for the First Control Period (FY 2023-24 to 2027-28) as per the Table 3 above. Authority’s Proposal regarding 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. 21/2023-24 Page 11 of 29CHAPTER 4: CAPITAL EXPENDITURE (CAPEX) M/s ICPL’s Submission on Capital Expenditure for the First Control Period 4.1 M/s ICPL has projected total Capital Expenditure (CAPEX) of ₹ 2392.29 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 ICPL 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 193.43 1,053.13 639.24 208.87 37.93 2,132.61 Vehicles - 74.55 104.71 26.60 42.54 248.41 Furniture and Fittings - 2.50 1.50 1.50 1.00 6.50 Office Equipment 0.53 2.00 1.00 1.00 0.25 4.78 Total 193.96 1,132.18 746.46 237.97 81.72 2,392.29 4.2 As part of MYTP, the ISP has also provided detailed bifurcation of the proposed CAPEX for the First Control Period as under: Table 5: Breakup of Projected Capital Expenditure as submitted by M/s ICPL for the First Control Period (₹ in Lakhs) FY FY FY FY FY Sl. no. Particulars Cost/ 2023-24 2024-25 2025-26 2026-27 2027-28 Ground Unit Total 1. Handling Qty. Amount Qty. Amount Qty. Amount Qty. Amount Qty. Amount Equipment: Push Back - Medium 81.69 - 0.00 1 81.69 - 0.00 1 81.69 - 0.00 163.38 Push Back - Heavy 295.65 - 0.00 1 295.65 - 0.00 - 0.00 0.00 295.65 Air Start Unit 311.66 - 0.00 1 311.66 - 0.00 - 0.00 - 0.00 311.66 Air Cooler Unit - 110 Ton 148.00 1 148.00 0.00 - 0.00 - 0.00 - 0.00 148.00 MDL 295.28 - 0.00 - 0.00 1 295.28 - 0.00 - 0.00 295.28 LDL 177.48 - 0.00 - 0.00 1 177.48 - 0.00 - 0.00 177.48 Towbar 7.30 - 0.00 1 7.30 1 7.30 - 0.00 1 7.30 21.91 Tugs 25.09 - 0.00 1 25.09 2 50.19 1 25.09 - 0.00 100.37 Electric Baggage Tractors 27.40 - 0.00 4 109.62 2 54.81 2 54.81 - 0.00 219.23 Baggage Tractor - Battery 6.22 - 0.00 1 6.22 - 0.00 2 12.43 - 0.00 18.65 Ground Power Unit - 90 KVA 45.39 - 0.00 1 45.39 - 0.00 - 0.00 - 0.00 45.39 Bulk Freight Loader - Motorized 35.00 - 0.00 1 35.00 - 0.00 - 0.00 - 0.00 35.00 Towable Bulk Freight Loader 5.00 1 5.00 4 20.00 1 5.00 1 5.00 1 5.00 40.00 Consultation Paper No. 21/2023-24 Page 12 of 29Towable Pax Step ladder 5.25 - 0.00 4 21.00 1 5.25 2 10.50 - 0.00 36.75 Motorized Toilet Cart 20.00 - 0.00 1 20.00 - 0.00 - 0.00 - 0.00 20.00 Motorized Toilet Cart 20.00 - 0.00 1 20.00 - 0.00 - 0.00 - 0.00 20.00 Towable toilet cart 3.30 1 3.30 - 0.00 1 3.30 1 3.30 - 0.00 9.90 Towable water cart 3.65 1 3.65 - 0.00 1 3.65 1 3.65 - 0.00 10.95 Vacuum Cleaner 0.50 - 0.00 4 2.00 2 1.00 2 1.00 2 1.00 5.00 Baggage Trolley - Covered 0.87 19 14.58 10 8.68 10 8.68 10 8.68 5 4.34 44.96 Container/pallet Dolly 1.40 - 0.00 25 35.00 10 14.00 - 0.00 5 7.00 56.00 Ambulift Towable 10.00 1 10.00 - 0.00 1 10.00 - 0.00 1 10.00 30.00 Fire Extinguisher Trolley 0.15 - 0.00 4 0.60 2 0.30 2 0.30 - 0.00 1.20 Trestle/Ladder 2.00 - 0.00 - 0.00 1 2.00 0.00 1 2.00 4.00 Wheelchairs 0.13 18 2.32 25 3.22 0.00 11 1.42 10 1.29 8.25 Fuel Bowser 1.50 1 5.00 - 0.00 0.00 - 0.00 - 0.00 5.00 Miscellaneous 1.58 5.00 1.00 1.00 0.00 8.58 Total 193.43 1053.13 639.24 208.87 37.93 2132.61 2. Vehicles: Coaches 30.16 - 0.00 2 60.33 3 90.49 - 0.00 1 30.16 180.99 Car - KIA 12.38 - 0.00 - 0.00 - 0.00 1 12.38 1 12.38 24.76 Tata Yodha 7.11 - 0.00 2 14.22 2 14.22 2 14.22 - 0.00 42.66 Total 0.00 74.55 104.71 26.60 42.54 248.41 Furniture & 3. Fittings 0.00 2.50 1.50 1.50 1.00 6.50 Total 0.00 2.50 1.50 1.50 1.00 6.50 Office 4. Equipment 0.53 2.00 1.00 1.00 0.25 4.78 Total 0.53 2.00 1.00 1.00 0.25 4.78 GRAND TOTAL 193.96 1132.18 746.46 237.97 81.72 2392.29 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 Calicut International Airport, Kozhikode from 09.06.2022 and has an Opening Regulatory Asset Base (RAB) of ₹ 159.47 lakhs. The ISP has projected a total CAPEX of ₹ 2392.29 lakhs during the First Control Period. 4.4 Out of Total projected CAPEX, M/s ICPL has projected a major portion of the CAPEX i.e., ₹ 2132.61 lakhs (89.1%) on the Ground Handling Equipment and ₹ 248.41 lakhs (10.3%) on the procurement of vehicles. 4.5 M/s ICPL has proposed a moderate CAPEX for the First Control Period because maximum assets have been sourced from Holding Company i.e., M/s. IndoThai Airport Management Services Private Limited (ITAMSPL). The Authority observes from the copy of the letter issued by M/s ITAMSPL in respect of M/s ICPL that following equipment are to be provided by M/s ITAMSPL to the ISP. Consultation Paper No. 21/2023-24 Page 13 of 29Equipment Used No. of Quantity Air Start Unit 1 Towbar 2 Electric Baggage Tractor 5 Ground Power Unit 1 Towable Baggage Freight Loader 5 Electric Baggage Freight Loader 1 Pax Step Ladder - Towable 4 Towable - Water Cart 1 Towable – Toilet Cart 1 Vacuum Cleaner 4 Baggage Trolley 23 Fire Extinguisher Trolley 2 Tata Yodha - Vehicle 2 4.6 The Authority, from the submissions of the ISP (Email dated 11.11.2023) observes that the ISP has already issued purchase orders amounting to ₹ 43.25 lakhs approx. (22.3%) against the total CAPEX proposed for FY 2023-24. The ISP also informed that the remaining CAPEX in respect of the FY 2023-24 will be incurred during the remaining period of the current financial year. 4.7 The Authority also notes that M/s ICPL being a new entrant at the Calicut International Airport, Kozhikode, is required to make provision for the necessary Ground Support Equipment (GSE) / Allied infrastructure during initial years of the Control Period, for smooth commencement of its commercial operations. 4.8 The Authority observes 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 4.9 The Authority, based on its examination, observes that M/s ICPL 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. Consultation Paper No. 21/2023-24 Page 14 of 29Authority’s Proposal regarding CAPEX for the First Control Period 4.10 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. 21/2023-24 Page 15 of 29CHAPTER 5: REVENUE FROM OPERATIONS, OPERATING EXPENDITURE AND PROJECTED PROFITABILITY M/s ICPL 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 ICPL for its Ground Handling operations at Calicut 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 expenses; 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 ICPL 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) 1,535.73 2,146.05 2,678.13 3,345.90 4,182.43 13,888.24 Revenue from other than Regulated Services (B) - - - - - - Total Revenue from the Services (A+B) = (C) 1,535.73 2,146.05 2,678.13 3,345.90 4,182.43 13,888.24 Operating Expenditure (OPEX) Payroll Costs (i) 652.38 880.72 1,056.86 1,321.08 1,651.35 5,562.39 Repair and Maintenance Costs (ii) 26.50 27.83 29.22 30.68 32.21 146.43 Concession Fee/ Revenue Share payable to 2,714.50 2,171.60 1,737.28 1,389.82 1,111.86 9,125.06 Airport Operator (iii) Utilities & Outsourcing Expenses (iv) 0.46 0.49 0.51 0.54 0.56 2.57 Administrative & Other Expenses (v) 44.78 46.31 48.18 50.81 51.96 242.06 Total OPEX (i+ii+iii+iv+v) = (D) 3,438.63 3,126.95 2,872.05 2,792.93 2,847.95 15,078.51 Earnings Before Interest, Tax, Depreciation and -1,902.90 -980.90 -193.92 552.97 1,334.48 -1,190.27 Amortization (EBITDA) (C-D) = (E) Depreciation and Amortization (F) 35.34 145.03 205.17 208.45 195.78 789.77 Interest & Finance Charges (G) - - 72.85 126.00 86.31 285.16 Profit Before Tax (PBT) (E-F-G) = (H) -1,938.24 -1,125.93 -471.94 218.52 1,052.40 -2,265.19 Provision for Tax (Calculated after taking in to an 0.00 0.00 0.00 0.00 0.00 0.00 account the previous years anticipated losses) (I) Profit After Tax (PAT) (H-I) = (J) -1,938.24 -1,125.93 -471.94 218.52 1,052.40 -2,265.19 Consultation Paper No. 21/2023-24 Page 16 of 29Authority’s Examination and Analysis: 5.4 The Authority has analyzed the Operating Expenditure of the ISP, as provided in Form F3 (P&L) of the MYTP, for the First Control Period and observes that the ISP has considered the following % increase in Revenue & 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 Total Revenue from the Services 40% 25% 25% 25% Payroll Costs 35% 20% 25% 25% Repair and Maintenance Costs 5% 5% 5% 5% Concession Fee/ Revenue Share -20% -20% -20% -20% payable to Airport Operator Utilities & Outsourcing Expenses 5% 5% 5% 5% Administrative & Other Expenses 3.5% 4% 5% 2% 5.5 The Authority’s examination of Y-o-Y % growth considered by the M/s ICPL for the projected OPEX from FY 2024-25 onward is given in the following sections: a) Payroll Cost: The Authority notes that the ISP has projected a Y-o-Y increase ranging between 20% to 35% in Payroll Costs for the Control Period. The projected increase in payroll cost is commensurate with the growth proposed in the employee strength during the Control Period. Since, the ISP has projected that it will be handling Wide body aircraft from FY 2024-25 accordingly Man power planning has been done. The growth rates proposed by the ISP in respect of Revenue, Employees strength and payroll cost are tabulated below. FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Particulars Financial Year Total Revenue from the Services 40% 25% 25% 25% Strength of Employees 37.7% 20.3% 21.3% 20.2% Payroll Cost 35% 20% 25% 25% The Authority notes that projected increase in payroll expenses considered by the M/s ICPL is also commensurate with the projected increase in revenues, and, it factors-in the impact of additional manpower required to meet the projected growth in aircraft traffic. Further, considering the impact of periodic increase in minimum wages and annual salary increments and related increase in statutory component like EPF etc., the Authority notes that Y-o-Y increase projected by the ISP in Payroll expenses for the First Control Period seems reasonable. Consultation Paper No. 21/2023-24 Page 17 of 29b) Repair and Maintenance Costs: The Authority observes that M/s ICPL has projected a Y-o-Y increase of 5% in R&M expenses for all the Tariff Years during the Control Period. Further the concessionaire shall maintain all the Ground Handling Equipment and Ground Handling Facilities in accordance with the minimum quality standards, according to the concession agreement in order to ensure the timely provision of the Ground Handling Services during the term of the agreement. Considering the above and the impact of annual general inflation, including annual increase in labour component of Repair & Maintenance Costs, the Authority notes that projected R&M expenses for the First Control Period is reasonable. c) Concession Fee/ Revenue Share payable to Airport Operator: The Authority notes from the concession agreement executed between AAI and M/s ICPL that the ISP is required to pay concession fee as per the following: • 3% of the Actual Gross Revenue from Scheduled Domestic Passenger Flight(s). • 15% of the Actual Gross Revenue from Users other than Scheduled Domestic Passenger Flight(s) and RCS Flight(s). • 0% for RCS Flights. 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 the maximum of the Revenue share or MAG quoted at the time of bid. From the second year onward, MAG for Concessionaire will be [80%/90%] of the previous year’s premium. As per the ISP, MAG during all the tariff years of the Control Period 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. Considering the above, the 20% de-escalation of Concession fee as projected by the ISP during all the tariff years of the Control Period is reasonable. d) Utilities and Outsourcing Expenses: The Authority notes that M/s ICPL proposed Y-o-Y increase of 5% in the Utilities and Outsourcing Expenses from FY 2024-25 onward. The Authority observes that Utility & Outsourcing Expenses consist of mainly Power Charges and Water 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: The Authority observes that the Y-o-Y increase considered by M/s ICPL during the Control Period with respect to the Administrative and General Expenditure is ranging between 2% to 5%. Consultation Paper No. 21/2023-24 Page 18 of 29The Authority notes that The Administrative & General Expenses mainly include Land/ Space Rent, Transport Expenses, Office Expenses & other miscellaneous expenses etc. In view of the projected increase in the aircraft traffic and considering the impact of general inflation & annual escalation in Land/ Space Rent, the Y-o-Y increase of around 2% to 5% 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 projected profitability statement for the First Control Period submitted by the M/s ICPL (Table no. 6), the ISP is likely to incur overall losses during the First Control Period. 5.7 Accordingly, the Authority proposes to consider the projected Revenue, OPEX and Profitability for the First Control Period, as submitted by the ISP. Authority’s Proposals regarding Operation and Maintenance Expenses for the First Control Period: 5.8 Based on the available facts and its analysis, the Authority proposes to consider the OPEX for the First Control Period as per Table 6. Consultation Paper No. 21/2023-24 Page 19 of 29CHAPTER 6: ANNUAL TARIFF PROPOSAL M/s ICPL submission on the Annual Tariff Proposal for the First Control Period 6.1 M/s ICPL submitted its Tariff proposal for Ground Handling Services in respect of Scheduled Flights at Calicut International Airport, Kozhikode, 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 ICPL 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. 21/2023-24 Page 20 of 296.2 M/s ICPL has proposed the following % increase in the Tariff Rates on Y-o-Y basis in respect of the Scheduled Flights at Calicut International Airport, Kozhikode as stated in the table below: Table 9: Statement of Y-o-Y Percentage (%) Change in Tariff Rates in respect of different categories of Scheduled Flights for 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 ICPL has also submitted separate Tariff Rate Card for Non-Scheduled and General Aviation Flights as per the table given below: - Consultation Paper No. 21/2023-24 Page 21 of 29Table 10: Proposed Tariff Rates for Non-Scheduled Flights submitted by M/s ICPL for the First Control Period Financial FY FY FY FY FY Y ear 2023-24 2024-25 2025-26 2026-27 2027-28 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 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 ICPL has proposed a separate Tariff Rate card for Non-Scheduled Flights and similar to scheduled fights, the ISP has proposed an increase of 5% Y-o-Y basis from FY 2024-25 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 view that ISP requires minimum level of revenues to cover-up the Operating Costs and get reasonable return on its investments. In view of this, the 5% increase in Tariff Rates considered by the ISP on Y-o-Y basis from FY 2024-25 onward appears reasonable. 6.7 The ISP through its submissions clarified that they are expected to handle only Narrow body type of Aircraft during FY 2023-24 as they are not permitted to handle Wide Body Aircraft at Calicut International Airport, Kozhikode. However, from FY 2024-25 they are expected to get permission for the same; therefore, the Itemised Rate Card has been proposed accordingly. 6.8 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. Consultation Paper No. 21/2023-24 Page 22 of 296.9 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 ICPL should ensure compliance towards Standardization of Ground Handling Equipment at Calicut International Airport, Kozhikode, 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 facts 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 ICPL at Calicut International Airport, Kozhikode in respect of Scheduled Flights, International “Non-Scheduled & General Aviation Flights” and Item-wise Tariff Rate Card in respect of 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 ICPL shall ensure compliance towards Standardization of Ground Handling Equipment at Calicut 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. 21/2023-24 Page 23 of 29CHAPTER 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 ICPL providing Ground Handling Services at Calicut International Airport, Kozhikode 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 ICPL, in respect of Ground Handling Services being provided by the ISP at Chapter 2.7 Calicut International Airport, Kozhikode under the ‘Light Touch Approach’ 9 No.2 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 4.10 The Authority proposes to consider the projected CAPEX for the First 15 No. 4 Control Period as per Table 4. Chapter 5.8 The Authority proposes to consider the OPEX for the First Control Period as 19 No. 5 per Table 6. The Authority proposes to consider the Tariff Rates for Ground Handling Services provided by M/s ICPL at Calicut International Airport, Kozhikode 6.11 in respect of Scheduled Flights, International “Non-Scheduled & General Aviation Flights” and Item-wise Tariff Rate Card in respect of 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). 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 23 No. 6 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 ICPL shall ensure compliance towards 6.15 Standardization of Ground Handling Equipment at Calicut 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. 21/2023-24 Page 24 of 29CHAPTER 8: STAKEHOLDERS’ CONSULTATION 8.1 In accordance with the provisions of Section 13(4) of the AERA Act, the Authority’s proposals contained in Chapter 7 above are hereby put forth for Stakeholders consultation. To assist the Stakeholders in making their submissions in a meaningful and constructive manner, necessary annexures are enclosed to the Consultation Paper (Annexures-I, II & III). 8.2 For removal of doubts, it is clarified that the contents of this Consultation Paper may not be construed as any Order or Direction of this Authority. The Authority shall pass an Order, in the matter, only after considering the submissions of the Stakeholders in response hereto and by making such decision fully documented and explained in the tariff order in terms of the provisions of the Act. 8.3 The Authority welcomes written evidence-based feedback, comments and suggestions from Stakeholders on the proposals made in Chapter 7 above, latest by 22.12.2023. 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. 21/2023-24 Page 25 of 29ANNEXURE I TARIFF RATE CARD FOR M/S ICPL IN RESPECT OF DOMESTIC* & INTERNATIONAL SCHEDULED FLIGHTS FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28) AT CALICUT INTERNATIONAL AIRPORT, KOZHIKODE 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 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 *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. 21/2023-24 Page 26 of 29ANNEXURE II TARIFF RATE CARD FOR M/S ICPL IN RESPECT OF INTERNATIONAL “NON-SCHEDULED & GENERAL AVIATION FLIGHTS” FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28) AT CALICUT INTERNATIONAL AIRPORT, KOZHIKODE PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Proposed Tariff Rates for 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. 21/2023-24 Page 27 of 29ANNEXURE –III ITEM WISE CHARGES FOR M/s ICPL IN RESPECT OF GROUND HANDLING SERVICES AT CALICUT INTERNATIONAL AIRPORT, KOZHIKODE 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. No SERVICES UNIT 2023-24 2024-25 2025-26 2026-27 2027-28 . Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Air Conditioning Unit 1 Per Hour 11100 15000 11655 15750 12238 16538 12850 17364 13492 18233 (NB) Air Conditioning Unit 2 Per Hour 18703 24938 19688 26250 20672 27563 21705 28941 22791 30388 (WB) 3 Air Starter Unit (NB) Per Start 7500 15000 7875 15750 8269 16538 8682 17364 9116 18233 4 Air Starter Unit (WB) Per Start 18703 24938 19688 26250 20672 27563 21705 28941 22791 30388 Aircraft Disinfection- Per 5 3000 16000 3150 16800 3308 17640 3473 18522 3647 19448 Freighter Aircrafts Service Aircraft Disinfection- Per 6 4000 8000 4200 8400 4410 8820 4631 9261 4862 9724 Pax Aircrafts Code C Service Aircraft Disinfection- Per 7 25000 32000 26250 33600 27563 35280 28941 37044 30388 38896 Pax Aircrafts Code D/E Service Aircraft Disinfection- Per 8 - 40000 - 42000 - 44100 - 46305 - 48620 Pax Aircrafts Code F Service Per 9 Aircraft Marshalling 1875 2480 1969 2604 2067 2734 2171 2871 2279 3014 Service Per flight 10 Ambulift 5000 10000 5250 10500 5513 11025 5788 11576 6078 12155 leg Apron Transport 11 Per Trip 950 1600 998 1680 1047 1764 1100 1852 1155 1945 (Passenger) Arrange non-scheduled Crew Hotel 12 Per flight 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. Accommodations (HOTAC) 13 ATC payment services Per flight 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. Per 14 Baggage ID 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. Service 15 Baggage /Cargo cart Per Hour 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. Per staff 16 Blue collar staff 400 800 420 840 441 882 463 926 486 972 per hour 17 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 18 - 1,200 - 1,260 - 1,323 - 1,389 - 1,459 (INAD) handling passenger Excess Baggage Fee (% As per 19 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. of collection) collection Per 20 Exterior Cleaning - NB 52,500 - 55,125 - 57,881 - 60,775 - 63,814 - Service Exterior Cleaning – Per 21 - - 1,57,500 - 1,65,375 - 1,73,644 - 1,82,326 - WB# Service Ground Power unit 22 Per Hour 4,700 10,000 4,935 10,500 5,182 11,025 5,441 1,576 5,713 12,155 90KVA Ground Power unit 23 Per Hour 9,400 16,800 9,870 17,640 10,364 18,522 10,882 19,448 11,426 20,421 180KVA Interior Deep Cleaning - Per 24 5,000 8,000 5,250 8,400 5,513 8,820 5,788 9,261 6,078 9,724 NB Service Consultation Paper No. 21/2023-24 Page 28 of 29FY FY FY FY FY Sl. No SERVICES UNIT 2023-24 2024-25 2025-26 2026-27 2027-28 . Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Interior Deep Cleaning Per 25 - - 15,750 25,200 16,538 26,460 17,364 27,783 18,233 – WB# Service 29,172 Passenger Step (mobile- 26 Per Hour 1,375 4,000 1,444 4,200 1,516 4,410 1,592 4,631 1,671 4,862 NB) Passenger Step (mobile- 27 Per Hour - - 2,888 8,400 3,032 8,820 3,183 9,261 3,343 9,724 WB)# Pushback for narrow 28 Per Push 5,000 10,000 5,250 10,500 5,513 11,025 5,788 6,078 body aircraft 11,576 12,155 Pushback for wide body 29 Per Push - - 10,500 21,000 11,025 22,050 11,576 12,155 aircraft# 23,153 24,310 Per 30 Toiler truck 1,375 2,400 1,444 2,520 1,516 2,646 1,592 2,778 1,671 2,917 Service Towing of narrow body 31 Per Tow 5,000 10,000 5,250 10,500 5,513 11,025 5,788 6,078 aircraft 11,576 12,155 Towing of wide body 32 Per Tow - - 10,500 21,000 11,025 22,050 11,576 12,155 aircraft# 23,153 24,310 Unaccompanied Minor 33 Per UM 950 1,200 998 1,260 1,047 1,323 1,100 1,389 1,155 1,459 (UM) Handling 34 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 35 Per Trip 10,000 20,000 10,500 21,000 11,025 22,050 11,576 12,155 range) 23,153 24,310 VIP Vehicle (Luxury- 36 Mercedes/BMW/AUDI Per Trip 25,000 40,000 26,250 42,000 27,563 44,100 28,941 30,388 46,305 48,620 range) Per 37 Water truck 1,375 2,400 1,444 2,520 1,516 2,646 1,592 2,778 1,671 2,917 Service Per 38 Wheel chair 400 2,400 420 2,520 441 2,646 463 2,778 486 2,917 Service Per staff 39 White Collar Staff 600 1,200 630 1,260 662 1,323 695 1,389 729 1,459 per hour * Tariff for Domestic Flights is also applicable to Domestic’ Non-Scheduled and General Aviation Flights’. # The ISP informed that during FY 2023-24, the Calicut International Airport, Kozhikode, is not equipped to handle Wide Body Aircraft. Dom. = Domestic; Intl. = International Notes: • 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. 21/2023-24 Page 29 of 29