Annexure II - AERA

Conclusion:
The Concession Agreement contemplates regulations of only the Regulated Charges by
the Authority as mentioned in the Schedule 6 of Concession Agreement.
The bifurcation of the charges into two categories viz.,[a] Airport Charges i.e. the above
said Regulated Charges and [b] Other Charges as mentioned above, clearly shows that
the CA envisaged a DUAL till and not a Single Till.
Hence all the charges should not be brought under the Single Till method as this goes
against the provisions ofConcession Agreement.
Adoption of Single Till and consideration of revenues from Non-Airport Activities (Other
Charges) for determining Regulated Charges is beyond the purview and jurisdiction of
AERA/Authority.
This is not in line with the provisions of the Concession Agreement.
Fixing the return on entire RAB under Single Till leads to indirect regulation of Other
Charges other than Regulated Charges which is contradictory to the provisions of the
Concession Agreement.
iv. Adherence to ICAD principles as per concession:
As per the Concession Agreement, clause 10.2.1 the Airport Charges specified
in Schedule 6 ("Regulated Charges") shall be consistent with ICAO Policies.
ICAD 9082 8th Edition read as under:
The Council also states that in determining the cost basis for airport charges
the following principles should be applied:
i) The cost to be shared is the full cost of providing the airport and its
essential ancillary services, including appropriate amounts for cost of
capital and depreciation of assets, as well as the costs of maintenance,
operation, management and administration, but allowing for all
aeronautical revenues plus contributions (rom non-aeronautical
revenues accruing from the operation of the airport to its operators.
ICAO has amended the language of ICAO 9082 8th Edition to remove ambiguity
as regards till to be followed. The aforesaid clause now reads:
ICAD 9082 9th Edition:
Annexure II-B
The cost to be allocated is the full cost of providing the airport and its essential
ancillary services, including appropriate amounts for cost of capital and
depreciation of assets, as well as the costs of maintenance, operation,
CP No. 9/2013-14/T-12023(14)/1/2012- Tariff- Vol - III Annexure II-B Page 7 of 51
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