annual tariff proposal submitted by cambata aviation pvt...

File No. AERA/20010/MYTP/Cambata/GH/Chennai/2011-12

Consultation Paper No. 31 /2012-13

Airports Economic Regulatory Authority of India

Annual Tariff Proposal submitted by Cambata Aviation Pvt. Ltd for Providing Ground Handling

Services at Chennai International Airport, Chennai

New Delhi: 26th November, 2012

AERA Building Administrative Complex

Safdarjung Airport New Delhi – 110 003

The Authority had considered the Multi-Year Tariff Proposal, for the first control period submitted by Cambata Aviation Pvt. Ltd (Cambata) in respect of their ground handling services provided at Chennai International Airport, Chennai. After due stake holder consultation, the Authority issued a Multi-Year Tariff Order (MYTO) No. 31/2011-12 dated 05.12.2011 ordering that:

(i) The services provided for ground handling facility by Cambata at Chennai International Airport, is “material but competitive”. Hence the Authority will adopt a “light touch approach” for determination of tariff for the 1st Control Period w.e.f. 01.04.2011.

(ii) Cambata Aviation Pvt Ltd may submit its Annual Tariff Proposal for the first tariff year of the first control period for the consideration of the Authority within a period of 75 days of the issue of this Order in accordance with the Guidelines.

2. As per clause A.I.8.2., of the Appendix to 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 Service Provider(s) shall submit, for the consideration of the Authority, an ATP for review of Tariff(s) to be charged in the following Tariff Year on a Control Period, in the specified Form B and Form F14 (b). The Tariff(s), as proposed by the Service Provider in the Annual Tariff Proposal, shall be on non- discriminatory basis, with reference to conditions of Tariff(s), volume of the discount, rationale behind giving the discount and such other factors as may be relevant.

3. Cambata submitted the Annual Tariff Proposal (ATP) for the first tariff year and second tariff year of the first Control Period for the ground handling services provided at Chennai International Airport, with proposed tariff-rate card. 4. Cambata further submitted that;

“As per the agreement signed with all airlines our tariffs are quoted in USD and for ATP purpose the same have been converted to INR @1 USD = INR -50 and INR -56 respectively for the years 2011-12 and 2012-13. Our tariffs given as per ATP are inclusive of royalties payable to Airport Operators as per the Agreement. ….All the tariff for provision various services are fixed and agreed upon with each airline and clearly documented in the SGHA entered into with airline. The contracts signed are generally for a period of three years and only very few airlines contracts consists of an increase in tariff clause each year that too no exceeding by 5% and in most of the cases the tariff are fixed in USD for three years.

For ATP purposes, we have considered the maximum rate which we have been charging an airline under a particular category of an aircraft and confident that our tariff will not go beyond the tariff given in the ATP for the first year and second year. Since, the rates have already been fixed and agreed upon with each airline and will not exceed the maximum tariff given as per ATP for the first and second tariff year, we were of the opinion that a separate consultation once again with the stakeholder on the tariffs

CP No. 31/2012-13 MYTP/Cambata/GH/Chennai/2011-12 Page 1 of 14

proposed as per ATP does not warrant which will result in duplication of work.”

5.1 Cambata made further submissions for ATP for the years 2011-12 and 2012-13 showing separately the Ground Handling and Cargo tariffs for Chennai airport.

5.2 Cambata made a separate submission on Cargo back office functions performed by them at airports. According to Cambata, carrying Back Office functions forms part of original Ground Handling contracts, the tariffs of which are agreed with each airline based on services offered for Cargo Back Office functions. It has also been stated that Cambata is permitted to perform only back office function relating to cargo while physical cargo handling is actually done by cargo terminal operators.

6. Cambata in its ATPs have mentioned maximum rates in USD as well as in INR and stated that as per agreement signed with all airlines their tariff quoted in USD and for ATP purposes the same have been converted to INR at the average rate of 1 US$= INR 56. Further, it is stated that the rates will not exceed the maximum tariff given as per ATP for the first and second tariff year. 7. It has been observed that statedly Cambata is providing some back office functions in respect of cargo at Chennai Airport, however, charges for the same are included as part of Ground Handling agreements. Further, the cargo service at Chennai International airport is “material & competitive”. AAI as well as Air India are also providing cargo service. Hence, the ATP submitted by Cambata is being considered for services being provided by them at Chennai airport. 8. The Authority has carefully considered the proposal submitted by Cambata for Ground Handling services being provided at Chennai Airport and decided to make the following proposal for stakeholder consultation:

(i). The Annual Tariff for Ground Handling Service provided by Cambata at

Chennai Airport for the first tariff year (F.Y 2011-2012) and second tariff year (FY 2012-2013) of the first control period may be tentatively decided to be determined as per the INR rates as at Annexure I, which will be the maximum rates.

(ii). The charges for cargo back office function, being performed by Cambata are tentatively decided to be determined as per the INR rates as contained in Annexure I, which will be the maximum rate.

9. In accordance with the provisions of Section 13(4) of the AERA Act, the proposal contained in para 8 above is hereby put forth for stakeholder consultation. To assist the stakeholders in making their submissions in a meaningful and constructive manner, necessary documents are enclosed as Annexure II. 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 terms of the provisions of the Act.


10. The Authority welcomes written evidence-based feedback, comments and suggestions from stakeholders on the proposal made in para 7 above, latest by 10.12.2012 at the following address:

Capt. Kapil Chaudhary, Secretary, Airports Economic Regulatory Authority of India, AERA Building, Administrative Complex, Safdarjung Airport, New Delhi- 110003 Email: [email protected] Tel: 011-24695042 Fax: 011-24695039

Yashwant S. Bhave Chairperson


Annexure - I


CAMBATA AVIATION PVT~ LTD. Corp. Off. : T9 & 9A. 3rd Floor, Vasant Square Mall, Vasant Kunj,

New Delhi-~10070 Phone +91-11-40000260-265

BEFORE THE AIRPORTS ECONOMIC REGULATORY AUTHORITY OF INDIA

AT NEW DELHI

SUBMISSION OF PROPOSAL FOR DETERMINAnON OF ANNUAL TARIF-V FOR AND ON BEHALF OF:

MIS. CAMBATA AVIA TION PRIVATE LTD- CHENNAI BRANCH

I P. Bharani Kumar aged 46 years resident of Delhi- India acting in my official capacity as Chief Financial Officer in Mis. Carnbata Aviation Private Ltd having its registered office at T 9/9A,Vasant Square Mall, Vasant Kunj, New Delhi-I 10 070 do hereby state and affirm as under that:

C) 1. That I am duly authorized to act for and on behalf of Mis. Cambata Aviation Private Ltd in the matter of making this submission before the Airports Economic regulatory Authority of Jndia, New Delhi ('the Authority');

2. I am competent to make this submission before the Authority;

3. I am making this submission in my official capacity and the facts stated herein are based on official records;

4. The contents of this submission which include inter alia

(1) Est-imated-Ma*:i~-¥..re--ld-p8Hffi#-an4-{:he---i3r-e~reakup-of Tariff(s) (in cont8X:t to Estimated Maximum Allowed Yield pBf--l:ffiit wI3.~re determined by the Au~bority)--\>,4H?r6 the---Auth.~cifieda price cap appreach for the duration of the Control Period, pursuant to el~

Proposed detailed break-up of Tariffs(s) based on clause 11.2 where the ( ) OR

Authority has specified a light touch approach for the duration of the Control Period, pursuant to Clause 3.2 and

(II) Justifications are correct and true to my knowledge and belief and nothing

material has been concealed there from.

I!~.~ Bharani Kumar Chief Financial Officer. Place: New Delhi Date: zs" June 2012


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Th is licence is granted under the Foreign Trade ( Development a nd Regulation ) Act, 19~ . (~. :22 or"1!f92) . . is ,.4h~lt re i dice to the application "f... a.: ny ~. t.h.e r prohibition orres u!<lti on 3ffecti ng the Import I Export of the goods which may be in force at the time of their 8 a~~JM/(ii:!ol"~ t v!' ..... " ' ~" ' ~' it:~" " '8:: " .... . . .. '.

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""" Date : ForeignTra4:lEll?evelopmei.\t q~cE1~ " : (~~~ SEERE\iERSE ) CP No. 31/2012-13 MYTP/Cambata/GH/Chennai/2011-12 Page 10 of 14

mailto:1J@a,sC!pd!!ilie~;ti~fldf~liif:oerty'.:@n.e

mailto:a3'[email protected]:1

~~.., , ~:Q .tq . '~~d: ~ . . . - '~~ ' Q). " . ' ~ RESERVE BANK OF INDLA ":-':""" •..-- -""T" .~ . ..... ... " ~ '- ._• _

WJl.(WA ~i, .b T~J n

FE,GO.EPD'. ~44 2. ':2~ /2 1 . 2B -

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" /2009 -10 . 2010. . M~n;:h31 ,

The P jfedt~r Cam P~.t~l Avlafiem Pvt Ltd . HC1noor No. . '{lA ~l)hu A~ro:dfOnle 1. MutobcH ~ 4000~~

o t}'~!3r $Ir,

Cl~.rifi ~at ioh QIl nature of r~~aip-tJrQr:n for.aigo alrl l~a$ ' .... p~;rol'l 9.53(iV) 91 .

I Forejl;Jit Trr!d ~PQi1qy ~""", 2009;,.?Q14I

I Please refer to'yQur lett~r dated MaJPb .4, 20'10on th$, ca ption~dslJbJeoL I

In this co nne ~t1Qh we clar ify thatWh~ o pC\Yhigl1bawhlCh h~ve been r~c~ ived inr fprelgn exohanqe Or whIch WQuld ht~ve b~~~ell 'othetv'l is~ rE!Q e"jv~d In foreIgnI I , exchanqe btlt paid in IndIan Rl,fpees out of th~ i!{ffiount r~ mlttable to tbe

overseas princtpalor are out of thS tem i,~arteeii to oe sli)nt by the. OVer$~A$ , I buyer, would be COf1$kfe.red 196 icl~emed to be recetved in foreign exoharige ! i and deemed to cre earned In foreign exohanse' . I '

Yours f~l thfIJI\y .

J. Cl. Ii . .. ' ,L ......,,' . r\- ,. tt ~ tfi~~

(Ms. AA. AmbeRat) p, Chief GehePiill Ma nag~r-ln-Cha r~e

IT'."" " \Ii~fT' l (~ $' N :! wi!:, ': .7"' ,:r; . : 'ON X\:J:J CP No. 31/2012-13 MYTP/Cambata/GH/Chennai/2011-12 Page 11 of 14

CHARGE RATES:

For the services specified in sub-paragraph 1.1(A)r and based on the scheduled arrival and departure times, the following rates will apply. All charges are inclusive of concession fee payable to the airport operator and exclusive of Taxes required by local law, having direct relation to the handling services provided to the Carrier under this aqreement .ano will be levledadditlonallv, if applicable:

AIRC~AtttrTYP E·· TURNARQUNO S'761jA310 l)S$ir30b

.8757/.' US$ \'650 A300F U$$.2;10Q

1.2 Handling in case of technical landing for other thancommercral purposes will be charged at 50% of the above rates, provided that a physical . change of load is not lrivolved.

Handling in case of return to ramp will not be chargedextr~i/pr6vjded that a physical change of load is not involved .

1.4 Handling in case of return to ramp involving a physiCal chance <;if load will be charged as for handling ·in Case of technical landing in accordance withsub-paraqraph 1.2 of this Annex B.

1.5 No extra charge will be made for providing the services to the .Carrier's off SChedule operation, ground lnterruptlcn and/or overnlqht off schedule operation provided that the services Can be eoveredbvexistinq shiWpersonnel. Any additional work result ing in additional costs must be pre-approved by the Carrier's local representative, in default of whiCh acceptance of service shall be deerti'iBG : '~pprovaJ of such additiOnSlI costs. . ... ; . . .

1.6 No extra charges will be made for providing 'the service at niqht, Saturday, Sunday or legal holidays. .. .

1.7 Cancellations within 6 hours of flight STA will be charged at 50% ofthe above rates.

Extrast-aff requested for special needs by the Carrier Will be charged at the rate shown below in paragraph 2.1.

. .j...

PARAGRAPH 2 - AODITIONj\.L SERVICES ~ CHARGES

2.1 All services not included in paragraph 1 of this Annex B will be charged for at the followlnq rates prevailing at the date on whic~ the service(s) are provided: . •

.. ._....-_. ......... ...,_. ....

. SERVICE -.....,

PRICEQUANTITY/ . GPU (3.3.3) Per hour orpart thereof US$ 110

!1

, Per hour of part thereof US$ 190 ·Air Starin.7.1) AifCondition UniU].4.1)

US$ 127 Extra Pushback (3.9,3)(a)

Per start Per service US$ 210

Handling of passengers with US$ 12 reduced mobility (2.1.3)(2)

Per 1 passenger (6 included in turnaround)

-~

Ambulift (i 1.3)(6) Per service Aircraft Towlnq (3.9.3)(b) Per tow ULD Storage Per LD3 per day (storage of

15 included in turnaround)

US$ 160 US$ 235 ,. ....

US$6 /.~ 3 ~[-CP No. 31/2012-13 MYTP/Cambata/GH/Chennai/2011-12 Page 12 of 14

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.' CP No. 31/2012-13 MYTP/Cambata/GH/Chennai/2011-12 Page 13 of 14

)...~

CAMBATA AVIATION PVT. LTD'. Corp. Off. : T9 & 9A , 3rd Floor, Vasant Square Mall, Vasant Kunj,

New Delhi-110070 Phone. +91-11-40000260-265

27th August 2012

Ms. Kapila Cbowdbary Secretary, Airports Economic Regulatory Authority of India ' AERA Building, Safdarjung Airport, New Delhi.

Dear Ms. Kapila Cbowdbary

This is further to the meetingwe had on the above subject please find below a write up on the services being rendered by us on the Cargo Operations. Background: Cambata is basically engaged in providing GH services to various international carriers and as forming part of GH services package we also do certain cargo back office functions which forms part of the original GH

( ·"'pu·acts. Further tariffs are agreed with each airline based on the services offered for the Cargo back office :.::dhctions.

Cargo Documentation: Cambata handles all documentation work relating to Export/Import of Cargo like,

1.. Filing of Export /Import General Manifests with customs authorities (EGMlIGM) .2. Segregation and distribution of documents 3. Issue of Deliver Order to agents in case of imports, 4. Collect DO charges and deposit into airlines bank accounts, 5. Issue of CAN (Cargo Arrival Notice) to agents/consignees in case of imports.

Export Carting: 1. Acceptance of Cargo on behalf of airlines relating to Export after agents clearing the customs

formalities. 2. Verifying all the documents relating to Export Cargo. 3. Provide Manpower/Equipment's for moving the Cargo inside the cargo terminal, provide ne.£essary

assistance for screening the Cargo. '"'., 4. After Screening the cargo unitize the same and build pallets.

( ) 5. Send FFM messages to airlines offices ~ 6. Update all data's in the airline systems.

7. Move the pallets.toaircrafts which forms part of the GH functions.

Kindly note that we are permitted to perform only back office functions relating to Cargo and the physical cargo handling is actually done by cargo terminal operators like MIAL in Mumbai, Celebi in Delhi, Bhadra International in Chennai etc.,

We further wish to inform you that we perform back office functions relating to Cargo at Mumbai, Chennai, Delhi and Ahmedabad Airports only except for Pune.

i!ky'OU . P.~&~ Chief Financial Officer


annual tariff proposal submitted by cambata aviation pvt...

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