CAPA India Ground Handling Report 2014 Table of Contents & Sample Extracts

Transcription

1 CAPA India Ground Handling Report 2014 Table of Contents & Sample Extracts

2 Table of Contents Glossary... 2 Executive Summary... 4 Global Overview of Ground Handling India Aviation Overview Passenger traffic Air transport movements Cargo traffic Fleet Size CAPA traffic and movements forecast to FY Profiles of 10 Largest Indian Airports Delhi Airport Mumbai Airport Bengaluru Airport Chennai Airport Kolkata Airport Hyderabad Airport Cochin Airport Ahmedabad Airport Goa Airport Pune Airport SWOT Analysis of Metro Airports from a Ground Handler s Perspective Bengaluru Airport Hyderabad Airport Chennai Airport Kolkata Airport Mumbai Airport Delhi Airport Ground Handling Market in India Ground Handling Costs Subcontracting of Ground Handling Activities Regulatory Framework Profiles of Key Ground Handlers

3 Air India SATS Airport Services Bhadra India Bird Worldwide Flight Services (BWFS) Cambata Aviation Pvt. Ltd Çelebi India Çelebi NAS Airport Services India Pvt. Ltd GlobeGround India Indo Thai Menzies Group SWOT Analysis of Key Ground Handlers Delhi Airport AISATS Airport Services Pvt. Ltd Delhi Airport Cambata Aviation Pvt. Ltd Delhi Airport Çelebi Ground Handling Delhi Pvt. Ltd Delhi Airport Bird Worldwide Flight Services Pvt. Ltd Mumbai Airport Air India Mumbai Airport Cambata Aviation Pvt. Ltd Mumbai Airport Çelebi NAS Airport Services India Pvt. Ltd Bengaluru Airport AISATS Airport Services Pvt. Ltd Bengaluru Airport GlobeGround (India) Pvt. Ltd Chennai Airport Air India Chennai Airport Bhadra International India Ltd Chennai Airport Cambata Aviation Pvt. Ltd Kolkata Airport Bhadra International India Ltd Kolkata Airport Air India Hyderabad Airport AISATS Hyderabad Airport Menzies Bobba Ground Handling Services Pvt. Ltd Selection of Ground Handlers by Airlines Introduction Delhi Airport Mumbai Airport Chennai Airport Kolkata Airport Bengaluru Airport Hyderabad Airport

4 CAPA Survey of Key Stakeholders Ground Handlers Airlines Airport Operators General Aviation Analysis of Ground Handling Tariffs at Metro Airports in India in FY Delhi Airport Mumbai Airport Chennai Airport Kolkata Airport Bengaluru Airport Hyderabad Airport Appendices Appendix A: Domestic air transport movements by aircraft type Appendix B: Ceiling rates of ground handling services at metro airports in India Appendix C: List of ground handling subcontractors at metro airports in India Appendix D: List of ground/cargo handlers at Indian airports Appendix E: Minimum and average wage rates of personnel in ground handling Appendix F: List of ground/cargo handlers covered under study for financial analysis Appendix G: Financial analysis of ground/cargo handling firms at Delhi Airport Appendix H: Financial analysis of ground/cargo handling firms at Bengaluru Airport Appendix I: Financial analysis of ground/cargo handling firms at Bengaluru Airport Appendix J: Financial Analysis of ground/cargo handling firms at Kolkata Airport Appendix K: Financial Analysis of ground/cargo handling firms at Hyderabad Airport Appendix L: Financial Analysis of ground/cargo handling firms at Lucknow, Jaipur airports Appendix M: Financial Analysis of ground/cargo handling firms at Cochin Airport Appendix N: Financial Analysis of ground/cargo handling firms at Bhubaneshwar Airport Appendix O: Financial analysis of ground/cargo handling firms at Trivandrum airport Appendix P: Ground support equipment with select designated ground handling firms

5 Figure 12: Air traffic movements by aircraft type, FY13 Market segment Domestic International Narrow body 99% Wide body 1% Narrow body 30 40% Wide body 60 70% Source: CAPA Research, AirportIS Note: Wide body operations on domestic routes were mainly positioning flights The majority of Indian domestic routes have a flight time of 2.5 hours or less making them most suitable for narrow body or regional aircraft. In the future, on high density routes at slot constrained airports such as Mumbal we may see the deployment of wide body aircraft, however these will account for a relatively small share of the national total. International services operated by foreign carriers are dominated by wide body aircraft, however the proportion of narrow body equipment has been increasing as a result of the entry of low cost carriers operating regional international routes to India from the Gulf and Southeast Asia. And going forward, re engined A320neos and 737 MAX aircraft will be economical over a longer range making them suitable for deployment to a larger number of international destinations. Table 5: Top 10 markets for passenger handling, international services, wide body aircraft, FY13 Airport Estimated market size (USD million/year) Delhi Mumbai Chennai Bengaluru Cochin Hyderabad Kolkata Trivandrum Calicut Ahmedabad Source: CAPA Research 2014 CAPA India 34

6 Figure 13: Estimated value of market segments for ground handling Market segment Domestic services International services Indian carriers (USD million) Indian carriers (USD million Foreign carriers (USD million) Source: CAPA Research The international ground handling market in India, which is the aggregate of Indian and foreign carriers operating international services, was estimated at USD million in FY13 and represented more than % of the market opportunity, see Figures 14 and 15. The international segment was estimated at % Indian and % foreign carriers. Figure 14: Estimated average market opportunity by customer segment, FY13 (USD million)* Domestic flights International flights (domestic carriers) International Flights (foreign carriers) Source: CAPA Research 2014 CAPA India 36

7 Figure 15: Relative share of domestic and international handling market by value, FY13 (%) 28% Domestic International 72% Source: CAPA Research, CAPA estimates that Delhi was the largest ground handling market in India for both domestic and international services. The top 10 market opportunities for domestic ground handling services are listed in Table 8 and those for international services are provided in Table 9. Table 8: Estimated top 10 market opportunities for ground handling Domestic Airport Market size (USD million/year) Delhi Mumbai Bengaluru Chennai Kolkata Hyderabad Ahmedabad Guwahati Pune Goa Source: CAPA research Table 9: Estimated top 10 market opportunities for ground handling International Airport Market size (USD million/year) Delhi Mumbai Chennai Cochin Calicut Bengaluru Hyderabad Kolkata Trivandrum Ahmedabad Source: CAPA research 2014 CAPA India 37

8 Royalty charges at metro airports Figure 17: Royalty charges at metro airports S.No. Airports Ground handling firms Royalty charges 1 Delhi AISATS Airport Service Pvt. Ltd % on the revenue earned as per the ceiling rates Bird Worldwide Flight Services(India)Pvt. Ltd. Cambata Aviation Pvt. Ltd. Çelebi Ground Handling Delhi Pvt. Ltd. % on gross revenues % on gross revenue % on gross revenues or 12.75% on revenues earned as per the ceiling rates 2 Mumbai Air India % of gross revenue Cambata Aviation Pvt. Ltd. Çelebi NAS Airport Services India Pvt. Ltd. 3 Chennai Air India n/a Bhadra International India Ltd Cambata Aviation Pvt. Ltd. 4 Kolkata Air India n/a Bhadra International India Ltd 5 Bengaluru AISATS Airport Service Pvt. Ltd Globe Ground % on gross revenues % on gross revenues % on gross revenues % on gross revenues % on gross revenues 6 Hyderabad AISATS Airport Service Pvt. Ltd % on revenue earned from international sector Source: CAPA Research, AERA, Company filings Note: n/a Not available Menzies Bobba Ground Handling Services Pvt. Ltd. % on revenue earned from international sector 2014 CAPA India 47

9 The estimated manpower cost per process at the six metro airports is presented in Tables 13 and 14. These are aggregated costs and vary by metro, depending on minimum wage requirements, cost of living, and market forces in each metro. Manpower allocation varies largely depending on the type of operation (domestic or international). Table 13: Average manpower costs for metro airports by process* Domestic flights, FY13 (USD/day) Airport Cabin cleaning Ramp Passenger processing Delhi x Mumbai x Kolkata x Hyderabad x Bengaluru x Chennai x Source: CAPA Research, *costs have been averaged out across airlines Table 14: Average manpower costs for metro airports by process* International flights, FY13 (USD/day) Airport Cabin cleaning Ramp Passenger processing Delhi x Mumbai x Kolkata x Hyderabad x Bengaluru x Chennai x Source: CAPA Research, *costs have been averaged out across airlines Asset costs Asset costs for various processes are largely the same across airports and do not vary by geography. These costs are largely driven by the nature of the equipment and vary by the type of aircraft. CAPA has developed estimates for asset costs for both hub as well as spoke stations, based on exhaustive research and primary research, and these are presented in Tables 15 and 16. These estimates reflect the costs of new assets, as required under the policy. However, it has in the past been common to see a large secondary market for the purchase of equipment. Actual costs may vary depending on volume purchases, depreciated values, negotiating power, and the useful life of the equipment CAPA India 51

10 Table 15: Minimum equipment required for narrow body flights at a spoke station and indicative costs, FY13 S.No. Equipment Number(s) required Unit cost (USD) 1 Aircraft wheel chocks 1 2 Baggage dollies 4 3 Crew coach 1 4 Diesel tractor 2 5 Ground power unit 1 6 Marshalling torch pads 2 7 Motorised conveyor belt 2 8 Motorised passenger stairs 1 9 Passenger coach 1 10 Push back (narrow body) 1 11 Tow bars (Code C) 1 12 Towable conveyor/belt loader 2 13 Towable step ladder(a320) 1 14 Wheel chairs 2 15 Cones 6 Source: CAPA Research Table 16: Minimum equipment required for narrow body flights at a hub airport and indicative costs, FY13 Equipment Number(s) required Unit cost (USD) Air conditioning unit (65 tonnes) 1 Air start unit 1 Aircraft wheel chocks 4 Baggage dollies 4 Crew coach 1 Diesel tractor 2 Ground power unit 1 Marshalling torch pads 1 Motorised conveyor belt 2 Motorised passenger stairs 2 Passenger coach 2 Push back (narrow body) 1 Toilet cart 1 Tow bars (Code C) 1 Towable conveyor/belt loader 2 Towable step ladder (A320) 1 Water cart 1 Wheel chairs 4 Cones 4 Fuel Variable Insurance % % of asset value 2014 CAPA India 52

11 Delhi Airport air traffic movements by aircraft type: International departures by Indian carriers Aircraft Type Departures FY winglets pax/bbj2 2,859 A320 2, ER passenger 2,086 A319 1,521 A , passenger 1, LR passenger 947 A passenger passenger 191 A A Grand Total 14,057 Source: CAPA, Airport IS Delhi Airport air traffic movements by aircraft type: International departures by foreign carriers Aircraft Type Departures FY13 A ,543 A320 2, /200ER Passenger 1,541 A , passenger passenger passenger passenger 770 A passenger 533 A A passenger LR passenger 487 A A passenger passenger A passenger ER passenger 227 MD passenger CAPA India 58

12 MD 11 passenger 137 A MD passenger winglets pax/bbj A passenger 19 B727 passenger winglets passenger passenger passenger 2 A E passenger 1 Grand Total 17,920 Source: CAPA, Airport IS Ground handling costs per Departure: LCCs As per CAPA estimates derived from a proprietary model and extensive primary research, handling costs for low cost carriers on a per departure basis out of Delhi are estimated as below: Airline Aircraft Cost per departure (INR) IndiGo A320 x x SpiceJet 737 x x SpiceJet Q400 x x GoAir A320 x x Source: CAPA research Note: all asset costs are capitalised and based on the assumption that investment is made in the minimum equipment required to service the current volume of departures. As the headquarters for SpiceJet and IndiGo, the costs at Delhi also include an allocation for management and training costs. Ground handling costs per Departure: FSCs Estimated handling costs per departure for full service carriers are as below: Airline A/C Cost per departure (INR) Air India Narrow body (dom) x x Wide body (Intl.) x x Jet Narrow body (dom) x x Wide body (Intl.) x x Source: CAPA research Note: all asset costs are capitalised and based on the assumption that investment is made in the minimum equipment required to service the current volume of departures. For Air India this includes management and training costs; numbers for Jet include regional aircraft but exclude JetKonnect CAPA India 59

13 Number of outsourced employees According to CAPA Research findings based on extensive engagement with key stakeholders the level of outsourcing of manpower for domestic operations is lower than that for international operations for both cabin cleaning and ramp handling. Table 18 presents the number of outsourced employees per departure for these two activities. Table 18: Number of outsourced staff per departure by activity Cabin cleaning* Ramp** Domestic operations x x International operations Source: CAPA Research, company filings *Cabin cleaning figure includes lavatory and potable water services **Ramp figure includes manpower for baggage transportation, sorting, and airside loading/unloading Table 19 presents CAPA estimates for the number of outsourced employees at the top 10 Indian airports. We developed these numbers on the basis of our proprietary model of labour requirements by activity supported by on the ground industry inputs. Table 19: Number of outsourced ground handling staff at top 10 airports Airport Number of outsourced employees Delhi Mumbai Bengaluru Chennai Hyderabad Kolkata Cochin Ahmedabad Pune Goa Source: CAPA research These outsourced employees are over and above those on the direct payrolls of the ground handling firms. If the final policy ruling prohibits subcontracting as the government is seeking to achieve, these staff will have to be employed directly by the authorised ground handling firms. This will drive up overall labour costs because most of the subcontracted labour is currently employed on the basis of daily wages (often below the minimum rate), with no tenure and few if any additional benefits such as leave, provident fund and medical. Formalising their employment on terms compliant with statutory regulations and providing a safe working environment will result in increased costs. Handling firms will need to further invest in training these staff to increase their productivity to mitigate the increased expenses CAPA India 111

14 Currently, the volume of manpower outsourced by the five private domestic airlines is greater than the number of handling related employees that they employ directly. Figure 20 provides the number of on roll and outsourced staff engaged in handling activities for the five Indian airlines at the six metro airports. Figure 20:Employment status of staff engaged in handling activities for the five Indian carriers at the six metro airports, FY11 6,210 (39%) Outsourced On payroll 9,744 (61%) Source: CAPA, High Court filing Employee strength of ground handling firms In FY12, eight ground handling firms Air India, Cambata, Çelebi NAS, Bird Worldwide Flight Services (BWFS), Bhadra International, Globe Ground, Çelebi and Indo Thai handled the majority of aircraft departures at Indian airports. These ground handling firms employed close to 25,000 staff. They also make some use of subcontracting agencies however in the case of the authorised ground handlers this represents less than 5% of their total staff deployment. Table 20: Number of employees with designated GH firms Company Employee strength (FY12) Air India Limited 10,481 Bhadra International India Ltd. 1,396 Bird Worldwide Flight Services 1,979 Cambata Aviation Pvt. Ltd 7,000 Çelebi Ground Handling Delhi Pvt. Ltd. 678 Çelebi NAS Airport Services India Pvt. Ltd. 2,125 Globe Ground India 1,017 Indo Thai Airport Management Services Pvt. Ltd 93 Total 24,769 Source: CAPA Research, Company filings, AERA Note: numbers may include outsourced manpower 2014 CAPA India 112

15 Major subcontractors at metro airports Outsourced manpower is usually provided by subcontractors (defined as firms providing manpower or GSE services to designated ground handlers or airlines that are self handling). There are several subcontractors present throughout the country and it is a largely unstructured and unorganised market. Major subcontractors for the six metro airports are listed in Table 21. Table 21: Major subcontractors at metro airports Station Supplier Services Delhi Lion Manpower Solutions Pvt. Ltd. Manpower supplier Neha Aviation Services Aroon Aviation Services Sunshine Enterprises Agarwal Packers and Movers JAC Air Services Livewel Aviation GSE provider, manpower supplier GSE provider, manpower supplier Manpower supplier Manpower supplier Manpower supplier Aircraft cleaning services Hyderabad Turbo Aviation GSE provider, manpower supplier Taurus Aviation GSE provider, manpower supplier Visskan Aviation GSE provider, manpower supplier Mumbai Airawat Aviation Services GSE provider, manpower supplier Steader International Krystal Aviation Livewel Aviation GSE provider, manpower supplier GSE provider, manpower supplier, catering services GSE provider, manpower supplier Bengaluru Visskan Aviation GSE provider, manpower supplier Décor Drapes Aviation Services Pvt. Ltd./Décor Aviation Pvt. Ltd Bengaluru Airport Terminal Services GSE provider, manpower supplier Cabin cleaning services, ground handling Kolkata JP Aviation Services Manpower supplier Able Aviation Manpower supplier, handling services Jai Santoshi Maa Ideal Cleaning Transtrack Services Star Aviation Services Manpower supplier Cabin cleaning Manpower supplier GSE provider, manpower supplier Chennai Universal Aviation Services GSE provider, manpower supplier Kazi Aviation GSE provider, manpower supplier Source: CAPA Research Krystal Aviation Services Santham Contractors Manpower supplier Manpower supplier 2014 CAPA India 113

16 Financial analysis Çelebi Ground Handling Delhi Pvt. Ltd. Key financial results (USD million) FY12* FY11* FY10 Total income n/a Total expenditure 4.90 (5.1) n/a Interest 1.63 n/a n/a Profit/(loss) before tax (3.26) (3.5) n/a Provision for income tax n/a Net income (3.26) (3.5) n/a Shareholders' equity Debt Total liabilities Gross fixed assets Depreciation Net fixed assets Current assets Current liabilities Net current assets Other assets Profit and loss account n/a Total assets Key ratios FY12 FY11 FY10* Profitability EBIT/operating income (55.73)% 204.2% n/a PAT/operating income (55.73)% 203.7% n/a ROCE (15.53)% (14.9)% n/a Solvency Interest coverage n/a n/a n/a Debt to equity ratio Liquidity Current ratio The ground handling business is marked by high operating leverage, as the majority of costs are fixed. Consequently, Çelebi Ground Handling being in its second year of operations reported a loss of USD3.26 million in FY12. Çelebi has been aggressively pursuing new clients for growth in a pricesensitive market, which is evident in its growing revenues but declining net profit. The company s current ratio fell in FY11 and FY12. This can be attributed to the loans it took for expansion in FY11 and the increase in interest payments due to the subsequent depreciation of the Rupee. Source: CAPA Research, MCA,* some numbers are CAPA estimates and do not represent actuals CAPA India 125

17 Rating agency inputs for Çelebi Ground Handling Delhi Pvt. Ltd. Rating assigned to various bank facilities Facilities Amount (INR mn) Current Rating Previous Rating Long term bank facilities 750 CRISIL BB (reaffirmed) CRISIL BB Short term bank facilities 600 CRISIL A4 (reaffirmed) CRISIL A4 Total 1350 Source: CAPA Research, CRISIL, as of Feb 11, CAPA India 126

18 Capex plans by ground handling firms at selected airports Sr. No. Airports Ground Handler Capex Projections (INR Million) FY13 FY14 FY15 1 Delhi BWFS x.x x.x x.x Cambata x.x x.x x.x Çelebi x.x x.x x.x 2 Mumbai Cambata x.x x.x x.x Çelebi NAS x.x x.x x.x 3 Bengaluru GlobeGround x.x x.x x.x 4 Hyderabad Menzies Bobba x.x x.x x.x 5 Cochin BWFS x.x x.x x.x 6 Ahmedabad Cambata x.x x.x x.x Source: CAPA Research, industry sources, AERA 2014 CAPA India 155

19 Airport Ground handlers Varanasi Air India NAS Indo Thai Nagpur Air India NAS Amritsar Air India Indo Thai Srinagar Air India Indo Thai Guwahati Air India Rudra Aviation Source: CAPA Research Findings of CAPA survey on ground handling operations in India Policy and regulations The ground handling policy was partially implemented at the metro airports, with airport operators selecting third party ground handlers through an international competitive bidding process. The policy proposed the exit of subcontractor handling firms. Subcontracting plays a major role in the Indian ground handling industry. These subcontractors provide either manpower. However, most of these companies are very small in size, with presence at only one or two airports. The directive to end subcontracting has not been implemented and remains sub judice. Most PPP airport operators were of the view that the policy should be fully implemented with some modification. Table 27 collates the views of airport operators on the ground handling policy. Table 27: Views of airport operators on the ground handling policy Impact category Key impact Remarks Infrastructure impact Improved equipment utilisation Improved standard of equipment Limiting the number of ground handling operators would improve equipment utilisation. The proposed policy allows ground handling firms to achieve scale in their operations by: limiting the number of licensed ground handling firms at the airport and; prohibiting subcontracting of GH activities CAPA India 172

20 Labour laws Human Resource Impact Safety and security impact Source: CAPA Research Improved compliance with labour laws Improved quality of workforce Reduced attrition Increased staff utilisation Enhanced safety Enhanced security This should in turn justify the induction of more expensive IATA standard ground handling equipment. According to several airport operators, subcontractors commonly violate labour laws by not paying benefits or for that matter the minimum wage in order to support a low cost base. However, the licensed ground handlers are believed to comply with statutory requirements. Subcontractors usually provide untrained and unskilled labour for ground handling activities. The move to licensed handlers is expected to result in greater investment in training and the development of a higher quality labour force. Subcontractors usually deploy temporary labour and do not follow standard HR policies with respect to tenure. With the implementation of the proposed policy, only permanent workers will be permitted in ground handling activities. Employees will benefit from enhanced working terms and conditions which in turn should lower the attrition rates. With airlines forced to use one of the designated handlers at an airport rather than self handling this should result in more efficient deployment of staff as resources can be shared across carriers. Only trained staff will be allowed to operate equipment. Licensed handlers are expected to have a greater focus on occupational health and safety than the current subcontractors. The greater deployment of permanent staff, employed by a handful of licensed, professional companies should improve the ability to monitor personnel for security purposes. The current multiplicity of companies employing itinerant and unskilled workers for airside roles is unmanageable CAPA India 173

21 Table 30: Proposed and approved comprehensive tariffs for ground handling of scheduled passenger aircraft by AISATS Domestic (INR) Aircraft type Proposed charges Charges approved by AERA Proposed charges International (INR) Charges approved by AERA Code B 14,351 12,700 63,054 55,700 Code C 12,204 10, ,316 93,200 Code D 19,323 17, , ,100 Code E 64,410 57, , ,000 Code F 114, , , ,000 Source: CAPA Research, AERA Mumbai airport In FY14, the following three ground handling firms were operating at Mumbai airport: Air India Limited Cambata Aviation Pvt. Ltd. Çelebi NAS Airport Service Pvt. Ltd. Table 31 below provides AERA approved tariffs for scheduled passenger aircraft serviced by Çelebi NAS during FY14 at the airport. Table 31: Comprehensive tariffs for ground handling of scheduled passenger aircraft Aircraft type Pax terminal services Domestic (INR) Ramp handling Total Pax terminal services International (INR) Ramp handling Code B 3,800 8,900 12,700 11,000 33,000 44,000 Code C 3,200 7,600 10,800 23,500 69,900 93,400 Code D 4,500 12,700 17,200 30,400 1,23,000 1,53,400 Code E 19,100 38,100 57,200 35,600 1,44,700 1,80,300 Code F 38,100 63,500 1,01,600 55,000 1,97,000 2,52,000 Source: CAPA Research, AERA Note: Ceiling rates are as per the concession agreement with Mumbai International Airport Pvt. Ltd., dated 14 November These rates are exclusive of government taxes and duties such as service tax and the concession fee payable to the airport operator. Total The approved FY13 tariffs for ground handling services provided by Cambata Aviation at the airport for scheduled passenger aircraft are provided below. Aircraft type International (INR) A , ,400 A ,000 A , , CAPA India 180

22 , SP 173, , ,000 A ,600 Source: CAPA Research, AERA Note: Tariffs provided in the table are inclusive of royalties payable to the airport operator. Air India also provides ground handling services at Mumbai airport. It has submitted its tariff proposal to AERA and the proposed rates are provided in Table 32. In its proposal, Air India has proposed to retain existing tariffs for ground handling services for the entire control period. In addition, it has stated that in case of any revision it will approach AERA. As Air India has not proposed any increase in ground handling charges, AERA is currently considering this submission of AI for determination of tariffs for ground handling services provided by it at Mumbai airport. Table 32: Proposed tariffs for ground handling of scheduled passenger aircraft by Air India Aircraft type Transit Turnaround within 4 hours Turnaround beyond 4 hours A320/737 1,310 1,799 2, /IL62/757 1,455 1,999 2,231 A330/A310/767/A330 2,882 3,914 4, /A340/777 3,413 4,665 5,279 Source: CAPA Research, AERA Note: Numbers are in USD. For conversion of USD into INR, RBI reference rate as on the first day of the month for the first fortnightly billing period and the rate prevailing as on sixteenth day of the month for the next fortnightly billing period shall be adopted. Airport levy and service tax will be charged additionally Time Iimit for use of equipment per flight is as follows: 2 hours for transit flights 2 hours 30 minutes for turnaround within 4 hours 3 hours for turnaround beyond 4 hours Flights handled between 0001 Hours and 0400 Hours will be charged a 15% peak hour surcharge. Handling in case of technical landing for other than commercial purpose will be charged 50% of the above rates, provided there is no physical change of load. Handling in case of return to ramp will not be charged extra, provided that a physical change of load is not involved. Handling in case of return to ramp involving a physical change of load will be charged as for handling in case of a technical landing No extra charge will be implemented for providing the services on Saturdays, Sundays, and public holidays. Chennai airport During FY14, the following three ground handling firms provided ground handling services at Chennai airport. Air India Bhadra International India Ltd. Cambata Aviation Pvt. Ltd CAPA India 181

23 Appendix E: Minimum and average wage rates of personnel employed in ground handling Minimum wage rates for ground handling staff across six metros (in USD) City Classification of Labour Skill Skilled Semi skilled Unskilled Delhi x. x. x. Mumbai x. x. x. Bengaluru x. x. x. Chennai x. x. x. Hyderabad x. x. x. Kolkata x. x. x. Source: CAPA Research, numbers are in USD/hour Average wage rates for ground handling staff across six metros (in USD) Role Bengaluru Chennai Delhi Hyderabad Kolkata Mumbai Airside Salary/month Salary/month Salary/month Salary/month Salary/month Salary/month Cabin cleaning Supervisor x x x x x x Staff x x x x x x Ramp Supervisor x x x x x x Staff x x x x x x Bus Drivers x x x x x x Baggage drivers x x x x x x Jetway operator x x x x x x Marshals x x x x x x Terminal Gate agents Supervisor x x x x x x Staff x x x x x x Porter x x x x x x Source: CAPA Research, numbers are in USD/month and only include the cash component of salary (i.e. benefits are excluded) 2014 CAPA India 193

24 Appendix J: Financial Analysis of ground/cargo handling firms at Kolkata airport Able Aviation India Pvt. Ltd. Balance sheet (Units in USD mn.) Y o Y Change FY10 FY09 FY08 FY10 FY09 Sources of funds Paid up capital % 900.0% Share application money (pending allotment) % 0.0% Reserves and surplus % 206.5% Secured Loans % 37.1% Unsecured Loans Deferred Tax Liabilities (Net) Total liabilities and equity % 71.2% Application of funds Gross fixed assets (including intangible assets) % 80.7% Less: depreciation and amortisation % 299.9% Net Fixed Assets % 60.4% Capital work in progress Investment Deferred tax assets (Net) Current assets, loans and advances (a) Inventories (b) Sundry Debtors % 202.7% (c)cash and Bank Balances % 398.5% (d) Other current assets (e) Loans and Advances % 202.8% Less : Current Liabilities & provisions (a) Current Liabilities % 266.9% (b) Provisions Net Current Assets % 115.7% Misc expenditure to the extent not written off or % 25.0% adjusted Profit & Loss Account Dr. Balance Total Assets % 71.2% Source: MCA filings, CAPA research Ratio Analysis FY10 FY09 FY08 Net Debt/Equity Ratio 2.7% 4.4% 412.5% Current Ratio Quick Ratio Debt to Total Assets Ratio CAPA India 235

25 Appendix P: Ground support equipment with select designated ground handling firms at Indian airports Çelebi Delhi Ground Handling Delhi Airport Ground Support Equipment Air Start Unit Air Conditioning Unit AmbuLift Baggage Trolley Container Dolly Conveyor Fork Lift Ground Power Unit Loader Pallet Dolly Push Back Roller Step Ladder Toilet Cart Tow Bar Tow Tractor Tractor Water Cart Total Source: CAPA Research, AERA Quantity n/a n/a x 2014 CAPA India 250