air india limited tender no. …mmd.airindia.co.in/aimmd/tender/kix gh tender.pdf · a330-200 00 24...

AIR INDIA LIMITED

Tender No. GH/Comp/KIX/2015/003

TENDER FOR PAX, RAMP AND CARGO HANDLING SERVICES AT KIX(OSAKA)

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TENDER DOCUMENT

M/s._________________

_____________________

_____________________

Dear Handling Agent,

Sub: Passenger, Ramp and Cargo Handling Services at Kansai International

Airport (KIX) Osaka, Japan.

Air India Limited (AI) solely at its discretion desires to award contract for availing Ground

Handling services on "Comprehensive basis" comprising of Passenger (including Flight

Dispatch), Ramp (including Cabin Cleaning) and Cargo Handling Services, for its flights at

Osaka, Kansai International Airport (KIX), Japan. As an authorized handling agent, we

invite you to submit your offer for handling Air India flights in the format provided. Please

note that you should offer those services for which you are the Authorized/Licensed

Handling Agent by the Competent Authority.

2. You are requested to submit your 'Sealed Offer' on or before 9th July 2015 by 1700

hours in the office of :

Manager - West Japan

Air India Limited

3F Osaka Kokusai Bldg.

3-13, Azuchimachi 2-Chome

Chuo-ku, Osaka, 541-0052.

Response received after the due date, time and incomplete response are liable to be rejected.

3. Following Annexures are enclosed with this Tender Document.

Annex-I Air India’s Current schedule of Operations and Approx. Cargo/Mail

Handled per month at Osaka

Annex-II Resource requirement, Procedures and Services Standards expected

Annex-III Service Level Agreement(SLA)

Annex-IV Air India’s Service requirement as per IATA AHM 810 2013 Version.

Annex-V Handling Company Profile and Terms of Technical Evaluation

Annex-VI Commercial Offer.

Annex-VII Integrity Pact.

Annex-VIII Check List

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4. Your offer should be in “Two Separate Sealed Envelopes” as given below:

ENVELOPE 1: “Technical Offer” (Containing Annex II, III, IV, V, VII &VIII)

Please provide information regarding your Handling Company in general including the

structure of Company, turnover and experience in relevant business and your capability to

provide offered handling services at Osaka in particular. Your response must reply points

mentioned in Annex V format of this Tender document. Air India reserves the right to

reject the bids which do not comply and do not meet the requirements and experience or do

not provide with the document proof.

In this response please specify the services you intend to offer. “PLEASE DO NOT

QUOTE RATES IN THIS ENVELOPE.”

ENVELOPE – 2: “COMMERCIAL OFFER – GH”

Air India’s requirement of services as per IATA AHM 810, 2013 version is specified in

Annex IV. Please also refer Annex II for Air India’s resource requirements, the procedures

to be followed and the Service Standards expected to be met for flight handling. Please

submit your quotation meeting the requirements of Annex II, III & IV and meeting all the

terms and conditions in the format given in Annex VI of this Tender document.

5. It may please be noted that, both the sealed envelopes must be clearly super-scribed

as stated above and submitted before the due date. Responses received after the due date,

time and incomplete response are liable to be disqualified. Air India reserves the right to

accept or reject any bids and/or cancel the tender process at its own discretion.

6. The offers received will be opened in the office of the Manager-West Japan in the

presence of the bidders who are interested to be present. Initially the technical offers

(Envelop-1) will be opened. Subsequently the commercial offers (Envelop-2) will be

opened if possible for those bidders who meet Air India requirements technically under

Annex V. Bidders will be informed about date, time and venue for opening of bids at the

contact no. indicated on the top of the envelopes.

7. If you require any clarifications, please contact as per details mentioned below. We

shall appreciate if you confirm your participation in this tender.

Manager - West Japan, Air India Limited,

3F Osaka Kokusai Bldg., 3-13, Azuchimachi 2-Chome, Chuo-ku,

Osaka, 541-0052, Tel. 81-6-6264-5912

Regards,

Air India Limited,

Osaka

AIR INDIA LIMITED



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ANNEX – I

AIR INDIA FLIGHT SCHEDULE EFFECTIVE SUMMER SEASON-2015 AT

KIX

DAYS

FLT NBR A/C

TYPE

ARR DEP SECTOR

2,4,6 AI-314/315 B787 1240 LT 1410 LT BOM-DEL-HKG-KIX-HKG-

DEL-BOM

NOTE:

1. The Schedule provided above is for Season Summer – 2015. It may be clearly

noted that Schedule are subject to change & intimation of the same will be

provided with reasonable Notice.

2. Any Changes in schedule with reasonable notice will not be a ground for

seeking any price escalation by Handling Company.

3. A/C configuration: (Subject to change without notice)

Aircraft type Passengers ULD Configuration

F J Y Pallet Container

A330-200 00 24 255 04 14

B777-200LR 08 35 195 04 18

B777-300ER 04 35 303 06 24

B787-800 18 238 04 18

B787-900* 22 250 04 22

(*)-Configuration is approximate

4. Diversionary Airport in Japan - Itami, Haneda, Narita & Fukuoka

Approximate Cargo / Mail to be handled per month (Tons.)

Cargo & Mail

Export 61 tons

Import 64 tons

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ANNEX – II

RESOURCE REQUIREMENTS AND SERVICE STANDARDS EXPECTED

1. PASSENGER HANDLING - RESOURCE REQUIREMENTS

Sr.

No.

Job Description Numbers /

Parameters/Staff

1 No. of counters [F/J] + Y

* as applicable

01F*/02J/5Y(+1 for B747),

subject to booked load

2. No. of counter for excess baggage/ticketing/cashier 01

3 FFP Counter 01

4 Opening of counters 3 hrs before STD

5 Closing of counters D-45mins for F & J ,

D-1 hr for economy class

6 Boarding to commence 45 mins prior to ETD

7 Overall Supervision 01 Supervisor

8 Floor Walkers 02 staff

9 Assistance for CUSS 01 staff

10 Porters 02 staff

11 Pre-flight Planning, Loading instructions, Trim,

Service (coupon) control, etc

01 staff for 4 hrs.

12 Load sheet / flight document to be delivered to

Aircraft

01 staff & to be delivered 30

minutes before ETD.

13 Departure activity / Boarding Gate 03 staff

14 Arrival activity and Customer Area 03 staff and 1 lead to assist

15 Lost, Found / Damaged property matters /PIR,

Tracing etc./Mishandled Baggage

01 staff

16 Airport Manager and Staff for back office function

(9 am to 5 pm - 5 days/ week)

01 + 2 staff

17 Availability of Lounge facility 01 staff

18 Handling of UM/DEPU/VIP etc.(on request) 02 staff

19 Close all ETs Before closure of flight in

check-in system

20 Send Departure Messages D + 30

21 Liaison Agent for Ramp 01staff

22 Positioning of Ramp Equipment & Manpower on

aircraft parking bay.

STA – 10 minutes

23 Baggage Delivery

a) First Bag : First / Executive Class A + 10 minutes

b) Last Bag : First / Executive Class A + 20 minutes

c) First Bag : Economy Class A + 15 minutes

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d) Last Bag : Economy Class A + 40 minutes

24 Last Baggage release from baggage make up D-30 minutes

25 Loading on A/C to be complete and holds closed. D-10 minutes

26 All arriving cargo to cargo warehouse A + 60 minutes

27 All departing cargo to be under the aircraft D-60 minutes

28 Closure of holds D-10 minutes

29 Dedicated Ramp supervision 01 supervisor.

30 Availability of Training Classes 01

1.1 Service Standards & Procedures for Passenger Handling.

The staff will carry out the duties as given below following the procedures as given:

Courteous and efficient services with a smile are most important parameters

for quality of service to the Passenger.

Re-booking / Revalidation & Reissue of tickets in case of flight disruption

due any reason must be done by handling Company within 2 hrs of flight

cancellation and transfer passengers.

Extra care must be taken and all possible assistance must be provided to

elderly passengers, physically challenged, ladies with children, UNMs and

VIPs/CIPs.

Agents will ensure that excess and /or oversized hand baggage is not

allowed and gate withdrawal of such bags must be avoided.

Liaison Agent will monitor Check-in activity, close counters in time and

release containers from baggage room for timely closing A/C holds and

ensuring on time departures.

Liaison Agent will also monitor and ensure interline connection of baggage,

destination wise loading plan for baggage, and compliance with baggage

reconciliation.

All passengers must be on board at least 15 minutes before departure.

In case of passenger gate no show, timely action (D-20) must be taken to

initiate off load his baggage to avoid delay to flight departure.

Agents knowing Hindi or any other Indian language will be preferred.

All agents should have a minimum qualification of High School completed.

Air India may choose to provide its own Indian uniform for the staff at

appropriate time. Till then the Handling Company will provide them with

their uniforms.

Air India will provide initial training on AI specific systems and procedures

by deputing an instructor. The Handling Company will depute max number

of staff to undergo the training and will absorb the staff cost for training. If

the Handling Agent wants additional training for their staff due to high

turnover, the Handling Company will agree to pay for all training cost to

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Air India.

Monitoring customer service at check-in line, to assist First/Executive class

passengers with their baggage and for retrieving heavy/odd size/cabin

restricted hand baggage at the boarding gate and tagging them for loading in

Security Container/Bulk.

In addition to the above, the following services must be carried out:

Before opening of Counters, Flight briefing/special instructions to be

attended by Check-in staff, passenger handling staff.

Baggage reconciliation will be carried out in accordance with the carrier’s

security procedures in the baggage make-up area/designated area in

co-ordination with Security before the loading process.

The Carrier will perform periodical audits to ensure that the Handling

Company complies with all Regulations, and Air India quality standards.

At all times, while rendering the Ground Handling services, safety procedures

should not be compromised.

The Handling Company will comply with the IATA, ICAO and local

regulations.

Periodic Review meetings will be held between the Carrier and the Handling

Agent to review the quality of service provided by the Handling Company

and discuss any modifications if required.

The Handling Agent shall make all possible efforts to overcome deficiencies

in standards of service brought to their notice during the flight handling

activities, within a reasonable time frame.

In case of delayed arrival of the flight, the Handling Company shall endeavor

to reduce the ground time to 01hour in order to make up the delay.

In case of flight irregularity, the Handling Company will issue FIM.

Handling Company will ensure deploying trained and authorized staff to

carry out various functions under the contract.

APIS data to be updated and transmitted to DELIN after close of the flight. Any

fine levied to the Carrier for non-compliance will be charged to GHA.

The number of check-in counters shall be as specified by the Carrier in the

Resource requirement in order to avoid large queues of passengers and to

ensure passenger check-in time.

Handling Company will ensure that Carrier’s logo, Signage’s, flight details

and other notices as specified from time to time, by the Carrier are properly

displayed at the Check-in counters and Boarding gates.

Assist transit passengers on arrival and provide necessary information and

documentation, check-in and smooth transfer of passengers to the connecting

carrier.

If Lounge Service is provided then the lounge should be well dressed and

presentable as per standard arrangement, passengers should be greeted and

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assisted with their personal gear, offered a seat and drink/snacks with a smile.

If the use of Business Centre is available it should be extended and accurate

information on boarding time, gate and delay if any should be provided.

Passenger who are designated as CIP by the Carrier should be met and

assisted through CIP formalities on arrival/departure.

Complete handling and full support to Deportee passengers will be given by

the Handling Company which will include:

a. Flight arrangement on Air India or other carrier.

b. Assistance to passenger (Meals/telephone/baggage check at Customs/

escort to gate for return flight and other unanticipated incidents).

c. Arrangement of hotel accommodation and security guard as and when

necessary.

Operational documents/information (Flight plan/WX Chart/NOTAM) will be

prepared by Handling Company and delivered to the flight commander.

ZFWT will be calculated and briefed to flight commander by Handling

company.

Prepare document in advance for mishandled baggage upon receipt of

message from the previous station and provide necessary assistance. [Raising

of PIRs and creation of files in World Tracer System with follow up for 07

days.]

Loading of baggage and cargo should be as per given load plan. GHA must

take appropriate action for handling priority baggage, cargo and mail.

Handling Company will maintain a flight folder for a period of at least 180

days. The file will include the final load-sheet with remarks and signatures,

the balance chart if done manually, any last minute changes and the loading

report duly signed along with the load message received and sent for a

particular flight.

2. RAMP HANDLING

2.1 Resources Requirement:

01 dedicated Supervisor with radio for coordination with baggage room and check

in counters, to be available to cover the duration of flight handling.

06 Ramp Agents well trained for Equipment. Operation, Ramp Safety and baggage

Handling, ULDs restraining and locking.

Minimum 04 baggage handlers for delivery of Arrival Baggage to

be available A-10 mts. till last bag delivered.

01 dedicated Lead agent in baggage room with radio for coordination with Check in

counters, Interline Agency and Ramp to be available from D-4 hrs. till Departure.

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05 Baggage Room Agents for loading departure baggage destination wise

containers as per given loading plan. To be available from D-4 hrs till Departure.

2.2 Ramp procedures and Service Levels

Ramp Equipment and manpower must be positioned on the Ramp before

Arrival-10 minutes. Arrival Baggage Delivery First/ Executive class Baggage

within 10 minutes of Arrival and Last Bag within 40 minutes of Arrival. The

timings of first and last bag on the belt to be maintained and submitted to the

Airport Manager on a daily basis.

All the Ramp Staff must be trained for Safety, DGR handling and duly authorized

for operating the type of Ramp equipment being operated from the training division

of the handling agency, records to be made available on request.

Ramp Supervisor to sign and return the loading sheet certifying, “Loading has been

carried out as per given loading plan.”

Sr. nos. of Arriving and Departing ULDs must be recorded on the loading sheet.

Last Baggage must be released from baggage room by D-30 mts.

Loading on A/C to be complete and holds closed by D-10 mts.

Departing baggage should be loaded destination wise as per given plan and “mixed

can” loading not to exceed ONE can per flight unless agreed by AI in certain

situations.

Handling Agent will submit for each flight. 1) Baggage Room Report-containing

the list of names with timings of the staff allocated in the Arrival and Departure

baggage rooms and report of any deviation in loading of baggage and 2) Ramp

Handling Report- giving names and timings of staff allocated on ramp along with

Cans numbers on offloading and loading plan, duly signed by ramp supervisor.

F/J class baggage if loaded in any other can for some reason, must be reported on

loading sheet.

The staff in the Baggage Room will remove the baggage stubs from the baggage

being loaded in the ULD on the respective BRS chart to facilitate BRS or

alternatively the staff to carry out scanning of the baggage tags as per local

procedure.

Baggage Room Supervisor will ensure handing over baggage received after closing

of flight, for safe custody with baggage services.

All staff to be permanent staff of handling agency and to be in proper uniform

Trained staff with proper authorization for driving/operating flight handling

equipment with authorization certificate from approved agency and qualified to

operate in plane ULD loading system.

In case of ‘in plane’ system not working, sufficient staff to be deployed to carry out

unloading/loading activity manually.

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3. CABIN CLEANING


- 01 Supervisor and minimum 18 cleaners including two Leads

- 04 Vacuum Cleaners, other approved cleaning equipment and

materials in sufficient Quantities.

3.2 Cabin cleaning procedures and Service Levels - Complete Cleaning of Cabin, thorough cleaning of the Toilets, galleys and

then grooming of Cabin with change of Head rest and Pillow covers must be

performed on every flight as standard practice.

- Cleaners must be available ready for entering aircraft as soon as passenger

deplaning is complete.

- All staff entering and exiting A/C will be subjected to security check.

- Complete cleaning must be performed within 35 minutes without any

compromise in service

- In case of delayed arrival, the ground time of the flight will stand reduced to

01Hr and the Handling Agent should supplement manpower to achieve

desired cleaning standard within available time.

- Supervisor will submit Cabin Cleaning Report for every flight, giving

names of staff allocated, the timings of starting and finishing of cleaning job

and obtain signature of AI Officer for satisfactory service.

- Arrangement for taking away and suitable disposal of cabin garbage should

be made.

4. CARGO HANDLING


- 01 Cargo Supervisor

- 01 Cargo assistant who will control ULD Inventory & Report and

carry out other cargo related work

4.2 Cargo procedures and Service Levels

i. After off-loading of the aircraft the inbound cargo pallet and containers to be taken

to Cargo warehouse within 60 minutes of arrival. The departure cargo should be

picked up from the Cargo warehouse and positioned under the aircraft for loading

at least 1.0 hr before departure.

ii. Postal Mail will be offloaded from the aircraft and delivered to the postal

authorities and record maintained for the delivery. Departing Postal Mail from

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warehouse to airside is guarded by a staff from Security Company appointed by

AI.

iii. All cargo movement from/to aircraft and ramp must be under security escort and

cargo should not be left unattended at any time.

iv. The Handling Company will provide cargo handling services as specified in

Annexure III in their warehouse and provide necessary manpower, supervision

services.

v. The Handling Company should hold all warehouse equipment for handling the

cargo at their cost. Inspect and verify weighing scales and their calibration and

maintain record of the same.

vi. The Handling Company will provide storage for the ULD’s of the Carrier and will

submit an inventory report on weekly basis to AI personnel.

vii. The Carrier may display its signage and corporate logo on the Handling Agent’s

facility.

viii. The Handling Agent will ensure that all government formalities like FAA, ICAO,

IATA, Customs, Health, Safety, Labour, and other mandatory requirements are

complied with.

ix. Dangerous Goods will be accepted by Handling Agent’s trained personnel in

accordance with the latest edition of IATA DGR and Carrier’s special instructions.

The staff from the Handling Company performing these functions should hold

valid certificate, periodically updated.

x. Consumables for ULD buildup of export cargo like skids, plastic cover, lashings

etc. will be supplied by the Handling Company.

xi. Stock and store DGR labels.

xii. In case of non-arrival of W-container, VAL should be loaded into separate

container exclusively wrapped up with vinyl sheets and transferred from

warehouse to airside in a similar way of departing Postal Mail. In case of arrival of

W-container, VAL should be transferred from warehouse to airside by the coach

of the Handling Company and loaded into W-container retained at the ship side.

xiii. Copies of import/export AWBs/Manifests/Mail documents (CN38) of every flight

should be handed over to airline’s office by the Handling Company.

xiv. Process/Inputs of Import/Export/Transfer cargo data through AI’s LMS

system and/or by telex/email which include:-

Import

a. Update data for arrived shipment (send FSU to DEL/BOM)

b. For shipments destined to other than KIX, issue Transfer Manifest and

update data.

c. Check arrived ULD and send UCM.

Export

a. Update MAWB information for all destined shipments in LMS.

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b. Input HAWB information in LMS for all destined shipments except for

Europe,

c. For Europe destined shipments, HAWB information should be input in LMS.

d. Update data for uplifted shipments in LMS and send FSU/FFM/FWB to the

applicable stations.

e. Check uplifted ULD and send UCM.

f. Handling Company to provide vinyl sheets to cover ULDs of export cargo

at cost.

g. Storage space of pallets to be provided as a part of GHA.

xv) Import & Export OLT wherever required has to be accepted by the Handling

Company and transported using bonded truck to NRT or Other points in Japan.

xvi) The Handling Company will provide one dedicated Customer Agent on a daily

basis. The Agent will handle enquiries, answer telexes/emails, make arrangements

for movement of special cargo. The Customer Agent will function under the

direction of AI personnel.

xvii) The guarding of cargo and mail on round the clock basis, in cargo warehouse in

coordination with Security and observing 24 hours cooling off period or X-ray

screening of cargo/mail for export.

xviii) EDI transfer (transferring cargo data to Customs)

xix) Handling Company staff/Customer Service Agents should be trained in

cargo handling as per laid-down AI procedures in the Cargo Operations

Manual.

3. SECURITY REQUIREMENT

- All handling agency staff must follow Air India’s security requirements

and procedures.

5. AIRCRAFT MAINTENANCE

5.1 Resources requirement:

Two Maintenance support staff to assist Carrier’s Engineer.

5.2 Procedure and service levels:

i). Maintenance Support Staff are positioned 10 minutes prior to ETA.

ii) To assist Carrier’s Engineer for servicing aircraft as per his instructions.

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iii) Provide space (2 sq. mtr) to store Aircraft Spares and Tools.

iv) Inventory control for Aircraft Spares and Tools and submit inventory list

periodically to the Carrier.

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Annex III

SERVICE LEVEL AGREEMENT

Attachment to Annex B ___________. (The Annex II -Regarding resource requirement

forms part of this SLA)

This SLA is made between the representatives of Air India Limited (The Carrier) and

______________________________ (the Service Provider) at the location KIX

concerning service delivery standards for the ground handling services contracted between

the two parties.

The Service Provider is aware that the delivery of service standards shall not compromise

safety of procedures. The service elements outlined below are general and are based on

prevailing industry standards. They can be extended/reduced or added to as agreed between

the parties considering factors such as facilities available, infrastructure, type of aircraft

operated etc. at the respective locations.

Performance below Service Levels The performance below laid down Service standards and levels shall attract penalties.

The penalties are specified under 2 parts hereunder. The penalties indicated at para

Á,B,C,D of this Annex, shall be independent of parameters & penalties stated in

Para E. The penalties, so mentioned in Para E, shall apply on the total monthly GH

bills.

A. Punctuality (On Time Performance) - Target : 100%

There will be no penalty for GH delay up to 15 minutes. However, for GH delay above 15

minutes, the percentage penalty of the handling charges of the flight shall be as under:

Delay Penalty

16-30 minutes 15%

31-44 minutes 25%

45 minutes and above 50%

B. Aircraft Safety - Target : NIL Incident of Safety Breach

Criteria – Damage to aircraft by the act of Handling Company employee or the

employee of its outsourced agency.

Penalty - AI will reserve the right to impose the penalty of up to 100% of handling

charges besides the clauses in the main agreement.

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C. Security - Target : Nil security breaches(airport security directives, airport

regulations, 100% baggage reconciliation, breach of ICAO regulations - Annex17,

etc.,) within the responsibility and control of Handling Company.

Penalty: Reimbursement of fines/fees imposed on Air India .

D. Documentation

Criteria:

i) APIS for all passengers to be sent - 100% compliance

ii) No Passenger Documentation Check error - 100% compliance

(Identity, passport, visa)

iii) No acts of omission and commission by - 100% compliance

Handling Company employee.

iv) No mishandling due check-in handling - 100% compliance

v) No baggage left behind - 100% compliance

Penalty: for i) & ii) Reimbursement of fines/fees imposed on Air India by

immigration, FRRO authorities, applicable airfare etc. to be reimbursed to Air

India in case of deportation.

iii) Revenue loss to Air India due such acts by Handling Company

employee.

iv) & v) Actual compensation paid to the passenger will be recovered

E. Other Performance Parameters - Check-in, Boarding, Baggage Handling

Sr.

No.

Service Requirement Penalty per flight if

not complied

(amount in JPY)

i Counter opening 2.5 hrs before STD 8000

ii Container/Belt

loader

2 container loaders and/or belt

Loader immediately on arrival

8000

iii Baggage delivery First baggage on belt to be

business class baggage

8000

First Economy class baggage 10

mins after arrival

8000

Last Baggage 40 min of arrival 8000

2 Baggage handlers in customs 4000

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Sr.

No.

Service Requirement Penalty per flight if

not complied

(amount in JPY)

iv Cargo/Mail

delivery

Inbound all cargo/mail

delivered to Warehouse within

60 mts of chocks on

8000

Outbound- positioned 60 mts

prior to STD

8000

v Supervisor 1 Supervisor each under aircraft

& bag room

8000

vi Delayed provision

of GS Equipment

on hardstand

beyond 20 mins of request 4000

vii Any discrepancy not covered above 8000

viii No damaged ULD should be loaded 8000 (per incident)

ix Proper handling and no damage to ULD Cost of ULD

Other targets and penalties

Sr.

No.

Activity Monthly

Target

Penalty for not

meeting target

(% of monthly bill)

x CARGO

ULDs/bulk built up export cargo

complete D-2 hrs 98% 1%

Export Cargo reach airside for loading

D-1.0 hrs 98% 1%

Send FFM for export cargo D+1 hr 99% 1%

Dispatch incoming cargo to warehouse

ATA+1 hr 98% 1%

ULD Import & Export UCM message -

1 hrs after ATD 100% 1%

ULD SCM message- 1st & 15th of

every month 100% 1%

xi

SAFETY

DGR/AVI/VAL/ HUM acceptance

strict to IATA regulations 100% 1%

xii

CABIN CLEANING

Cabin Cleaners to be ready to

commence as soon as pax

disembarkation is complete

97% 1%

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Sr.

No.

Activity Monthly

Target

Penalty for not

meeting target

(% of monthly bill)

Complete the cabin cleaning functions

within 35 minutes of commencement

97% 1%

Discrepancies in quality of cabin

cleaning

Max 1 case

per Month

JPY 10000 per case

All above parameters shall be taken only wherever they relate to Handling Company and

is within Handling Company’ responsibility & control.

Handling Company to provide the handling report for certification by the authorized

AI representative after each flight.

Signed the Signed the

At At

for and behalf of for and behalf of Air India Ltd.

"the Service Provider" "the Carrier"

by by

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ANNEX -IV (Pax, Ramp and Cargo Handling) Services Required by Air India

AS PER IATA AHM 810, 2013 VERSION

Services sections/Terms

Para 1 -Handling Services

Section 1 –Management Functions

1.1.1, 1.1.2, 1.1.3, 1.1.4

1.2.1, 1.2.2, 1.2.3, 1.2.4, 1.2.5, 1.2.6

1.3.1, 1.3.2, 1.3.3, 1.3.4, 1.3.5, 1.3.6, 1.3.7, 1.3.8, 1.3.9

1.4.1(a), 1.4.2( as agreed), 1.4.3(a), 1.4.4(a)(b)(c) (1,2,6,7) 1.4.7, 1.4.8

Note:

1.2.3 Contents of administrative duty shall be done from instruction by the carrier.

1.2.4 maintain relevant, current and updated manuals for all the services in their

office for reference any time.

Section 2 - Passenger Services

2.1.1, 2.1.2, 2.1.3(a)(1,2,3,4,5), 2.1.3(b)(6), 2.1.4(a) (1,2,5), 2.1.4(b) (3,4) 2.1.5,

2.1.6(a), 2.1.7, 2.1.8(a)(4), 2.1.8(b)(1,2,3,5,6), 2.1.9

2.2.1, 2.2.2(a,b,c,d), 2.2.3(1,2,3,4), 2.2.4(a)(b)(1,2)(a,c,d) 2.2.5(1,3,4),

2.2.6(a)(1,2)(a,c), 2.2.6(b)(1,2)(b,c,d), 2.2.7(a,b,c,d), 2.2.8(a,b,c,d), 2.2.9(a,b,c,d),

2.2.10(a)(b)(c)(1,2)(a,b,c,d)(AI stationery to be used),

2.2.11, 2.2.12(a), 2.2.13, 2.2.14, 2.2.15, 2.2.16

2.3.2, 2.3.3,2.3.4(a)(1,2,3,6), 2.3.4(b)(4,5,7)

Note:

2.1.3(a)(1,2) Five wheel chair and two UNM in FOC to be added.

2.1.8(b)(6) Self check-in kiosk-assistance as required to be provided.

2.2.3 Any penalty by immigration authorities and costs of deportee handling / travel

shall be debited to handling company if the passengers travel on expired passport and/

or visa

2.2.5 (Ref Air India Docs for EBT/MCO's)

Section 3 - Ramp Services

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3.1.1, 3.1.2, 3.1.3, 3.1.4, 3.1.5, 3.1.6, 3.1.7(a), 3.1.8, 3.2.1(a), 3.2.2, 3.3.1(a)(b),

3.3.2(a)(b)(1,2,3,4,6,7), 3.4.1(b), 3.5.1, 3.5.2, 3.6.1(a)(c)(1,3), 3.6.2(b), 3.6.3(a),

3.6.4(a), 3.6.5(a), 3.6.6, 3.6.7, 3.6.8(b), 3.6.9, 3.7.1, 3.7.2(a)(1,2), 3.7.3, 3.8.1(a),

3.8.2(b), 3.10.1, 3.10.2, 3.10.3(a-h)(1), 3.10.4(a-b)(1), 3.11.1(a)(1,2),

3.12.1(a)(1,2,3), 3.16

Note:

3.6.1 One Auto Step required at L-5 for Cleaning Staff to be included in basic

handling rate.

3.6.2 Separate coach to be provided for F/J class Passenger exclusively ,in case flight

goes to remote

3.8.1 One pushback per turnaround is included in basic price. Towing is on recharge

basis.

3.11.1 Toilet Waste Disposal will be re-charged based on toilet tank volume at current

local rates.

Section 4 - load Control Communication, Flt. Operation and Crew Management

4.1.1, 4.1.2(a,b-1), 4.2.1, 4.2.2, 4.2.3, 4.3.1,4.3.2, 4.3.3(1), 4.3.4, 4.3.5(b)(d), 4.3.6,

4.3.7, 4.3.9, 4.3.10, 4.4.1, 4.4.2, 4.4.3(b), 4.4.4 4.4.5, 4.4.6, 4.4.7

Note:

4.2.3 Air to Ground Communication facility to be provided and charges will be paid

directly to the radio provider by the carrier

Section 5 - Cargo/Mail Handling

5.1.1, 5.1.2 ,5.1.3, 5.2.1, 5.3.1(b,c,d,e,f,g,h,i), 5.3.2, 5.3.3(a)(1,2), 5.3.4(a), 5.4.1,

5.4.2, 5.4.3(a)(b)(c)(1,2,3), 5.4.4, 5.4.5, 5.4.6, 5.4.7, 5.5.1, 5.5.2, 5.5.3(a)(1), 5.5.4,

5.6.1, 5.6.2, 5.6.3(a,b)(1), 5.6.4, 5.6.5, 5.6.6

Note:

5.3.2 Irregularities Handling has to be covered as follows

-Take immediate action in respect of irregularities, damage or mishandling of

dangerous goods and other special shipments.

-Report to the Carrier any irregularities discovered in cargo handling

-Handle lost, found and damaged cargo

-Notify the carrier of complaints and claims,process claims

-Take action when consignee refuses acceptance and payment.

Section 6 - Support Services

6.1.1(b), 6.2.1(a,c-1), 6.2.2(a)(1,2,3,4,5,6,8,9,10,11), 6.2.2(c)(5), 6.2.3(b)(1,2,3),

6.3.1(a), 6.3.2, 6.3.3, 6.3.4, 6.3.5, 6.5.1, 6.5.2, 6.5.3, 6.5.5, 6.5.8, 6.5.9, 6.6.1(b)(1,2,3,4,5,6)(b), 6.7.1, 6.7.2

Note:

(6.1.1) Small storage space for spare parts maintained by the Ground Handlers.

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(6.3.1) For ten LD3 containers and one pallet shelf up to 45 pallets.

(6.3.2) upto daily stock of 27 containers, pallets will be stored at cargo

(6.3.3) weekly inventory is required

Section 7 - Security Services

7.1.1(a), 7.1.2(b), 7.1.4(a), 7.2.1(a)(1,2,3,4,5)

Note:

7.2.1(a)(2) Arrange for screening of cargo and/or mail as per the prevailing practice on

request basis.

Section 8 - A/C Maintenance

8.1.1, 8.1.2, 8.1.5, 8.2.1, 8.2.2(a)(b), 8.3.1, 8.3.4, 8.4.1(b), 8.4.2, 8.4.3,

8.5.1(b)

Note:

8.1.5 Turnaround check per AI specifications-2 maintenance support staff on

additional charges basis.

8.1.2(Under AI-Ground Engineer direction)

8.2.1( Need co-ordination with fuel supplier)

8.3.1(During ground time, exclusive of materials,)

8.3.4( on request/recharge basis)

8.4.3( 2 Sq. mtr. Space for spares)

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ANNEX - V

HANDLING COMPANY PROFILE

Please furnish following information and other relevant information pertaining to your

Handling Company in general and your facility and capability at Osaka International

Airport, Osaka (KIX) in particular covering following:

1) Name, Address, Contact Telephone number, Fax number, e-mail address etc.

2) Brief resume of Handling Company specifying capabilities for providing various

handling services to different aircraft at Osaka in particular.

3) Please specify the services you are offering from the following in this tender and

confirm that you are Authorized/Licensed Handling Agent at Osaka Int'l Airport for

the services with reference.

(i) Passenger (ii) Ramp (iii) Cargo (iv) Aircraft maintenance

4) Please give brief description of resources held at Osaka International Airport & the

date since when providing handling services at Osaka Int'l Airport.

a) Manpower : No of skilled personnel, unskilled workmen,

Supervisory, Managerial etc working with you on your

payroll.

b) Assets : Offices, workshop facility etc.

c) Equipment : Number of GS Equipment held in each type like

Step Ladder, Hi-Loaders, Transporters, Conveyors etc.

Number of simultaneous flights you can handle at KIX.

Number of flights that you will be required to handle when

AI flights are on ground - Please specify Day-wise position

giving flight details.

5) Experience as Handling Agent and the number of airlines handled at present at

Osaka International Airport giving following information.

Name of

Airlines

Services

Provided

Type of

Aircraft

Frequency Type/Name

of

DCS

handled

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6) Please confirm that you will be in a position to handle AI flights in AI's own

computerized SDCS through CUTE.

7) Necessary Carrier specific Training including Load & Trim, Carriers SDCS, etc. as

decided by the Carrier will be provided for which no reimbursement will be made to

the Handling Agent by the Carrier for Deputing their staff to undergo the same.

8) Please advise Handling Company’s approx. Financial turnover annually - by way of

providing ground handling service at Osaka International Airport.

9) Contact person for this tender with contact address, telephone No, email etc.

10) Please confirm that you comply with all requirements under IATA/ICAO, local

laws/rules related with safety, Labour, Airports Authority and any other applicable

regulations.

11) Please confirm that resources, procedures and service standards as per Annex II will

be met and that a Service Level Agreement will be discussed and entered into. In

case of non-compliance, penalty clause to be discussed and agreed upon.

12) Liability & Indemnity and Standard Termination clause as per article 8 and 11 of

IATA SGHA January 2013 version must be acceptable to you. Please confirm.

13) Please confirm handling of diversionary flights at agreed locations.

14) Please confirm that you will be able to commence services, as indicated in Annexure

IV from 22nd August, 2015 if the contract is awarded to you.

15) As an authorized Handling Agent, you are required to submit your offer for the "The

Comprehensive Handling comprising of Pax (including Flight Dispatch), Ramp

(including cabin cleaning), Cargo and Technical assistance.

16) The Handling Company will be eligible for further technical evaluation if it obtains

minimum 12 points in the “Requirement Grading in the table at Para 17 below. The

commercial offer of only technically suitable parties will be opened.

(17) MINIMUM EVALUATION/QUALIFYING CRITERIA

Minimum points to be obtained to qualify for the final Evaluation process is twelve

(12).

Sr.

no.

Parameter Points Party’s response

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i) Number of years in the business of providing Ground Handling

services for Passenger flights

Less than 3 years. 0

3 to 5 years 1

6 to 9 years 3

10 years & above 5

ii) Number of airports where you have Ground Handling set up

One airport 1

2 to 5 airports 2

6 to 9 airports 3

10 airports & above 5

iii) Total number of client airlines to which you are providing

Ground Handling services at the airports of your operation

Less than 03 client 0

03 to 05 clients 1

06 to 10 clients 2

11 to 15 clients 3

16 to 20 clients 4

21 & more clients 5

iv) Please provide maximum numbers of flights handled by you

during the year 2014-15 at KIX(Osaka) of your operation.

Indicate the name(s) of the airport.

Less than Five Hundred (500)

flights – 0 points

0

500 – 1000 flts. 1

1001 -2000 flts. 2

2001 -3000 flts. 3

3001 -5000 flts 4

5001 & above 5

v) Number of flights handled at the same time (bunching of flights)

Less than 02 flights 0

02 – 04 flights 1

05 - 09 flights 2

10 - 15 flights 3

16 -20 flights 4

21 & above 5

vi) Number of Accreditations / Certifications/Approvals for Ground

Handling services held by you.

One 1

Two 2

Thre 3

Four 4

Five & above 5

vii) The Annual Turnover in Ground Handling Business at Osaka in

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USD

less than 5 million 0

5 to 10 millions 1

More than 10 upto 20 millions 2

Above 20 millions 3

(18) Integrity pact and Integrity Pact program must be acceptable to you. Please confirm.

(19) PLEASE DO NOT QUOTE PRICE IN RESPONSE TO THIS ANNEXURE.

All responses to be signed by Authorized Signatory with company Seal

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ANNEX-VI

COMMERCIAL OFFER

Your quotation must cover following points:

Quotation for providing comprehensive services as per service requirements listed in

Annex IV for respective services and meeting the resources required /Procedures and

service standards as in Annexure II for handling of flights at Kansai International

Airport (KIX), Osaka, Japan and diversionary flights in Japan – Itami, Marita &

Fukuoka

Please note, your quotation must be in the form of Annex B, simplified version of IATA

SGHA January 2013, with the Rates as in the following format.

PARAGRAPH 1 - HANDLING SERVICES AND CHARGES

1.1 For a single ground handling consisting of the arrival and the subsequent

departure at agreed timings of the same aircraft, the Handling Company shall

provide the following services of Annex IV of this SGHA at the following rates

in JPY..

1.1.1 Services Sections/Terms (Pax,Ramp and Cargo Handling) services required

by Air India As Per IATA AHM 810, 2013 Version

Para 1 -Handling Services

Section 1 –Management Functions

1.1.1, 1.1.2, 1.1.3, 1.1.4

1.2.1, 1.2.2, 1.2.3, 1.2.4, 1.2.5, 1.2.6

1.3.1, 1.3.2, 1.3.3, 1.3.4, 1.3.5, 1.3.6, 1.3.7, 1.3.8, 1.3.9

1.4.1(a), 1.4.2( as agreed), 1.4.3(a), 1.4.4(a)(b)(c) (1,2,3,6,7) 1.4.7, 1.4.8

Note:

1.2.3 Contents of administrative duty shall be done from instruction by the carrier.

1.2.4 maintain relevant, current and updated manuals for all the services in their

office for reference any time.

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Section 2 - Passenger Services

2.1.1, 2.1.2, 2.1.3(a)(1,2,3,4,5), 2.1.3(b)(6), 2.1.4(a) (1,2,5), 2.1.4(b) (3,4) 2.1.5,

2.1.6(a), 2.1.7, 2.1.8(a)(4), 2.1.8(b)(1,2,3,5,6), 2.1.9

2.2.1, 2.2.2(a,b,c,d), 2.2.3(1,2,3,4), 2.2.4(a)(b)(1,2)(a,c,d) 2.2.5(1,3,4),

2.2.6(a)(1,2)(a,c), 2.2.6(b)(1,2)(b,c,d), 2.2.7(a,b,c,d), 2.2.8(a,b,c,d), 2.2.9(a,b,c,d),

2.2.10(a)(b)(c)(1,2)(a,b,c,d)(AI stationery to be used),

2.2.11, 2.2.12(a), 2.2.13, 2.2.14, 2.2.15, 2.2.16

2.3.2, 2.3.3,2.3.4(a)(1,2,3,6), 2.3.4(b)(4,5,7)

Note:

2.1.3(a)(1,2) Five wheel chair and two UNM in FOC to be added.

2.1.8(b)(6) Self check-in kiosk-assistance as required to be provided.

2.2.3 Any penalty by immigration authorities and costs of deportee handling / travel

shall be debited to handling company if the passengers travel on expired passport and/

or visa

2.2.5 (Ref Air India Docs for EBT/MCO's)

Section 3 - Ramp Services

3.1.1, 3.1.2, 3.1.3, 3.1.4, 3.1.5, 3.1.6, 3.1.7(a), 3.1.8, 3.2.1(a), 3.2.2, 3.3.1(a)(b),

3.3.2(a)(b)(1,2,3,4,6,7), 3.4.1(b), 3.5.1, 3.5.2, 3.6.1(a)(c)(1,3), 3.6.2(b), 3.6.3(a),

3.6.4(a), 3.6.5(a), 3.6.6, 3.6.7, 3.6.8(b), 3.6.9, 3.7.1, 3.7.2(a)(1,2), 3.7.3, 3.8.1(a),

3.8.2(b), 3.10.1, 3.10.2, 3.10.3(a-h)(1), 3.10.4(a-b)(1), 3.11.1(a)(1,2),

3.12.1(a)(1,2,3), 3.16

Note:

3.6.1 One Auto Step required at L-5 for Cleaning Staff to be included in basic

handling rate.

3.6.2 Separate coach to be provided for F/J class Passenger exclusively ,in case flight

goes to remote

3.8.1 One pushback per turnaround is included in basic price. Towing is on recharge

basis.

3.11.1 Toilet Waste Disposal will be re-charged based on toilet tank volume at current

local rates.

Section 4 - load Control Communication, Flt. Operation and Crew Management

4.1.1, 4.1.2(a,b-1), 4.2.1, 4.2.2, 4.2.3, 4.3.1,4.3.2, 4.3.3(1), 4.3.4, 4.3.5(b)(d), 4.3.6,

4.3.7, 4.3.9, 4.3.10, 4.4.1, 4.4.2, 4.4.3(b), 4.4.4 4.4.5, 4.4.6, 4.4.7

Note:

4.2.3 Air to Ground Communication facility to be provided and charges will be paid

directly to the radio provider by the carrier

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Section 5 - Cargo/Mail Handling

5.1.1, 5.1.2 ,5.1.3, 5.2.1, 5.3.1(b,c,d,e,f,g,h,i), 5.3.2, 5.3.3(a)(1,2), 5.3.4(a), 5.4.1,

5.4.2, 5.4.3(a)(b)(c)(1,2,3), 5.4.4, 5.4.5, 5.4.6, 5.4.7, 5.5.1, 5.5.2, 5.5.3(a)(1), 5.5.4,

5.6.1, 5.6.2, 5.6.3(a,b)(1), 5.6.4, 5.6.5, 5.6.6

Note:

5.3.2 Irregularities Handling has to be covered as follows

-Take immediate action in respect of irregularities, damage or mishandling of

dangerous goods and other special shipments.

-Report to the Carrier any irregularities discovered in cargo handling

-Handle lost, found and damaged cargo

-Notify the carrier of complaints and claims, process claims

-Take action when consignee refuses acceptance and payment.

Section 6 - Support Services

6.1.1(b), 6.2.1(a,c-1), 6.2.2(a)(1,2,3,4,5,6,8,9,10,11), 6.2.2(c)(5), 6.2.3(b)(1,2,3),

6.3.1(a), 6.3.2, 6.3.3, 6.3.4, 6.3.5, 6.5.1, 6.5.2, 6.5.3, 6.5.5, 6.5.8, 6.5.9, 6.6.1(b)(1,2,3,4,5,6)(b), 6.7.1, 6.7.2

Note:

(6.1.1) Small storage space for spare parts maintained by the Ground Handlers.

(6.3.1) For ten LD3 containers and one pallet shelf up to 45 pallets.

(6.3.2) upto daily stock of 27 containers, pallets will be stored at cargo

(6.3.3) weekly inventory is required

Section 7 - Security Services

7.1.1(a), 7.1.2(b), 7.1.4(a), 7.2.1(a)(1,2,3,4,5)

Note:

7.2.1(a)(2) Arrange for screening of cargo and/or mail as per the prevailing practice on

request basis.

Section 8 - A/C Maintenance

8.1.1, 8.1.2, 8.1.5, 8.2.1, 8.2.2(a)(b), 8.3.1, 8.3.4, 8.4.1(b), 8.4.2, 8.4.3,

8.5.1(b)

Note:

8.1.5 Turnaround check per AI specifications-2 maintenance support staff on

additional charges basis.

8.1.2(Under AI-Ground Engineer direction)

8.2.1( Need co-ordination with fuel supplier)

8.3.1(During ground time, exclusive of materials,)

8.3.4( on request/recharge basis)

8.4.3( 2 Sq. mtr. Space for spares)

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1.1.2 Handling Charges and Discount

(i) Comprehensive Flight handling rates (JPY) comprising of Passenger handling

including Flight Dispatch, Ramp handling (including Cabin cleaning), Common

Facilities charges (Use of CUPPS), including all services of Para 1.1.1 (i) are as

follows(excluding Cargo Handling rates).

Type of Aircraft Type of Operations(Rates in JPY)

Per Transit Per Turnaround

Per Terminating +Originating

B787-800/900

,B777-200LR

B777-300ER

B747-200/300/400

B737

A332

The flight handling charges per flight are for resources requirement and Service standards

mentioned in Annex II.

Please specify any taxes, conditions, limitations, restrictions, surcharges, levies, royalties

that may be applicable on the quoted prices.

The above charges excludes Cargo/mail handling services charges, Trucking

Charges and Technical assistance (2 staff) per flight, which are listed in Para 1.1.4

(ii) Discount Percentage (%) on basic flight handling charge Para 1.1.2 – (i) for total

number of flights in a month.

Average Flights per Month

10 or less 10 to 20 20 to 30 More than 30

1.1.3 Please also furnish the list of charges for additional Ground equipment like

Ground power unit, Air Conditioning unit, Air Stater Unit, additional Step

Ladder, deicing (equipment & fluid) etc. Rates in JPY per half an hour of use per

flight should be mentioned in Paragraph 2 of this Annex.

1.1.4 Cargo/Mail Handling charges, Revenue sharing and Trucking charges.

(i) – Cargo Handling Charges

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Sr. No. Service / Item Rate (JPY)

Import Export

(a) Cargo and Mail handling charge (per Kilogram)

(b) Transfer cargo handling charge (per kilogram)

(c) COMAT handling charge (per kilogram)

Above charges to be inclusive of cost of plastic sheets and container covers

used on export cargo.

(ii) Revenue sharing (with Carrier) in charges collected from consigners and

consignee for Cargo Warehouse services

(iii) Trucking Charges (OLT by Truck)

OLT by truck for(Including truck Charges) JPY per Kilo

KIX/NGO

KIX/NRT

Note:

Lowest quote shall be calculated based on the total cost to the carrier after

taking into account- Handling rates quoted at para 1.1.2 (i), 1.1.4 (i) at current

level of flight operations and current cargo carriage as per Annexure-I of this

tender and applying discount and revenue sharing offered at para 1.1.2 (ii) &

1.1.4 (ii) respectively on the current level of operations and cargo carriage and

adding taxes as indicated para 1.1.

1.1.5 Diversionary/Technical handling charges in JPY at agreed locations. (Itami.

Marita & Fukuoka and in Japan)

Types of Aircraft Rates with change of

Load

Rates without change of

Load

B787-800/900

,B777-200LR

B777-300ER

B747-200/300/400

A332

B 737

1.2 Handling in case of technical landing for other than commercial purposes return to

ramp will be charged for only the services provided at man-hour rate at actual,

provided that a physical change of load is not involved.

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1.3 Handling in case of return to ramp will not be charged extra, provided that a

physical change of load is not involved.

1.4 Handling in case of return to ramp involving a physical change of load will be

charged as for handling in case of technical landing in accordance with

Sub-Paragraph 1.2 of this Annex.

1.5 Rates and discounts quoted in Para 1 and para 2 shall remain firm for three years.

1.6 Please specify any taxes, conditions, limitations, restrictions, surcharges, levies,

royalties that may be applicable on the quoted prices.

1.7 Please exclude landing, Parking, RNFC, TNLC charges applicable and levies by

customs, if any from your quotations.

1.8 No accounting surcharge applicable on disbursements that may be made on behalf

of AI to the third parties.

1.9 Please specify services you intend to subcontract if any with details of

subcontractors.

1.10 No additional charge should be levied to AI for handling flights during nights,

holidays, off days or for overnight stay.

1.11 Please confirm that there will be no charge for flight cancellations where the

Carrier informs/gives notice 8 hours prior to schedule time of Departure.

1.12 Please note that no escalation in Handling charges will be acceptable in case of

change in schedule of Operations.

1.13 Please specify the Lead-Time for commencement to provide services, if the

contract is awarded to you.

PARAGRAPH 2 - ADDITIONAL SERVICES AND CHARGES

List of Services not included in paragraph 1 above and to be on additional charge

S/no. Manpower/Services/Equipment Unit Rates in JPY

1 Customer Agent Per Hour

2 Ramp Supervisor Per Hour

3 Ramp Agent Per Hour

4 Lead Agent Per Hour

5

6

7

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8

9

10

No Overtime will be payable if flight departure is delayed after schedule departure. No

overtime will be paid if the flight is arriving late upto 2 hrs of scheduled arrival time or

departing late upto 3 hrs after the scheduled departure time.

PARAGRAPH 3 - DISBURSEMENTS

3.1 Any disbursement made by the Handling Company on behalf of the Carrier

will be reimbursed by the carrier at actual cost price.

PARAGRAPH 4 - LIABILITY AND INDEMNITY

4.1 The limit of liability referred to Sub-Article 8.5 of the Main Agreement of

SGHA version 2013 shall be as follows:

Aircraft Type Limit (Per Incident) in USD

A330/B777/B747/B787 All series

1,500,000

PARAGRAPH 5 - AREA OF RESPONSIBILITY

5.1 The area of responsibility: Kansai International Airport and for Diversionary

flight at Itami. Narita, Haneda & Fukuoka and in Japan.

PARAGRAPH 6. TRANSFER OF SERVICES

6.1 In accordance with Sub-Article 3.1 of the main Agreement, the Handling

Company plans to Subcontract following services:

Section Service Company

PARAGRAPH 7 - PAYMENT

7.1 Notwithstanding Sub–Article 7.2 of the main Agreement, payment of account

shall be effected locally in local currency, on monthly basis within 30 days of receipt

of invoices by carrier.

PARAGRAPH 8 - DURATION, MODIFICATION AND TERMINATION

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8.1 This Annex B shall be effective from 21-August-2015 and shall continue in force

for a period of three years or until terminated by either party giving 60 days notice in

writing to other party in accordance with the Main Agreement.

8.2 Notwithstanding Sub-article 11.11 of the Main Agreement, the Ground

Handling rates as specified in Para 1of this Annex B will remain firm for the

complete duration of the contract(ie. for the period of 3 years) and no escalation for

any reason would apply.

8.3 Notwithstanding Sub-article 11.2 of the Main Agreement, any modification

shall be in the form of an Annex B including one made in this Annex B and agreed

and signed by the handling Company and the Carrier’s representative.

PARAGRAPH 9 – ADDITIONAL CLAUSE

9.1 "It is expressly understood and agreed by and between ____________Ltd.

(Japanese Firm) and Air India Ltd. (the Indian PSU) that Air India Ltd. is entering into

this agreement solely on its own behalf and not on behalf of any other person or entity.

In particular it is expressly understood and agreed that the Government of India is not

a party to this agreement and has no liabilities, obligations or rights hereunder. It is

expressly understood and agreed that Air India Ltd. is an independent legal entity with

power and authority to enter into contracts solely in its own behalf under the

applicable laws of India and general principles of Contract Law.

____________expressly agrees, acknowledges and understands that Air India Ltd. is

not an agent, representative or delegate of the Government of India. It is further

understood and agreed that the Government of India is not and shall not be liable for

any acts, omissions, commissions, breaches or other wrongs arising out of the contract.

Accordingly ,_____________Ltd. hereby expressly waives, releases and forgoes any

and all actions or claims, including cross claims, impleader claims or counter claims

against the Government of India arising out of this contract and covenants not to suit

the Government of India as to any manner, claim, cause of action or things whatsoever

arising of or under this agreement.

PARAGRAPH 10 - SERVICE LEVEL AGREEMENT & INTEGRITY PACT

10.1 The executed Service Level Agreement, to be attached to Annex B as

Annexure and will form integral part of the SGHA.

10.2 The executed Integrity Pact, to be attached in this Annex B as Annexure.

10.3 The Handling Company agrees to provide the services in accordance with

the Services Standards as required by the Carrier.

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Signature of Authorised Signatory

With Company Seal

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ANNEX-VII

INTEGRITY PACT PROGRAM

I. INTRODUCTION

Air India Limited is a premier Public Sector airline (formed with the merger of the

erstwhile Air-India and Indian Airlines) engaged in air transportation of passengers

and cargo in India and abroad. The brand name of the Company is AIR-INDIA

and it conducts its business by benchmarking itself to the highest ethical standards,

and adopting the best practices followed by the industry.

It does business with a number of domestic and international Bidders, Contractors

and Vendors of goods and services (Counterparties). Air India Limited is

committed to fostering the most ethical and corruption free business environment.

Air India Limited values its relationships with all Counterparties and deals with

them in a fair and transparent manner.

In order to achieve these goals, Air India Limited is implementing the Integrity Pact

Program in cooperation with Central Vigilance Commission of India (CVC) in

respect of all contracts of the value of Rs.10 crores and above. As a part of this

initiative, Air India Limited will, in consultation with CVC, appoint external

Independent Monitors who will help Air India Limited in implementing the

Integrity Pact Program. The Integrity Pact would be signed by the Principal and

the Vendor at the pre-tendering stage itself, and will form part of the Tender

document. A pre-signed Integrity Pact by the Principal would form part of the

Tender document. The Vendors would sign the Pact and submit it along with the

financial and technical bids.

The ingredients of Air India Limited’s Integrity Pact Program are broadly based

on:-

- Commitments and Obligations of Air India Limited and its employees

- Commitments and Obligations of Counterparties

- Violation and Consequences

- Independent Monitor

- Implementation Guidelines

- Role of Independent Monitors.

II. COMMITMENTS AND OBLIGATION OF Air India Limited

a. Air India Limited is committed to have the most ethical and corruption-free

business dealings with its Counterparties.

b. Air India Limited values its relationship with all Counterparties and will deal

with them in a fair and transparent manner.

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c. Air India Limited and/or its Associates (employees, agents, consultants,

advisors, etc.) will not seek or take bribes / undue benefit directly or indirectly

for themselves or for third parties.

d. In a competitive tender as well as in general procurement, Air India Limited will

deal with all Counterparties with equity, reason and fairness.

e. Air India Limited will exclude all Associates who may be prejudiced or have a

Conflict of Interest in dealings with Counterparties.

f. Air India Limited will honour its commitments and make due payments to

Counterparties in a timely manner.

g. Air India Limited will initiate action and pursue it vigorously whenever

corruption or unethical behavior occurs.

III. COMMITMENTS AND OBLIGATIONS OF THE ‘COUNTER-PARTY’

a. The Counterparty, directly or indirectly (through Agent, consultant, advisor,

etc.), will not pay any bribes or give illegal benefit to any one to gain undue

advantage in dealing with the Principal, Air India Limited.

b. The Counterparty will not engage in collusion, Price-Fixing, etc. with other

Counterparties while dealing with the Principal, Air India Limited.

c. The Counterparty will not pass on to any third party any of the Principal’s

confidential information unless authorized by the organization.

d. The Counterparty will promote and observe best ethical practices within its

organization.

e. The Counterparty will inform the Independent Monitor:

i. If it receives demand for a bribe or illegal payment/benefit and

ii. If it comes to know of any unethical or illegal practice in the Principal’s

Organization (Air India Limited)

iii. If it makes any payment to any of Air India Limited’s Associates.

f. The Counterparty will not make any false or misleading allegations against Air

India Limited or its Associates.

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IV. VIOLATIONS & CONSEQUENCES

a. If a Counterparty commits a violation of its Commitments and Obligations

under the Integrity Pact Program during the bidding process, it shall be liable to

compensate Air India Limited by way of Liquidated damages amounting to a

sum equivalent to 3% of the value of the offer or the amount equivalent to

Earnest Money Deposit/Bid Security, whichever is higher or an amount

determined by the Independent Monitor.

b. Incase of violation of the Integrity Pact whereby after award of the Contract the

Principal (Air India Limited) terminates or is entitled to terminate the Contract,

Air India Limited shall be entitled to demand and recover from the Contractor

liquidated damages equivalent to 5% of the contract value or the amount

equivalent to Security Deposit/Performance Bank Guarantee, whichever is

higher or an amount determined by the Independent Monitor.

c. Air India Limited may ban and exclude the Counterparty from future dealings

until the Independent Monitor is satisfied that the Counterparty will not commit

any future violation.

d. Air India Limited may initiate criminal proceedings against the violating

Counterparty, depending on the gravity of the violation.

e. In case there is a violation of the Integrity Pact by the Principal (Air India

Limited) or its Associates (i.e. employees, agents, consultants, advisors, etc.),

Air India Limited undertakes to take appropriate action against them.

f. If the complaint made by a Counterparty is found to be frivolous or

mischievous, action in the form of certain sanctions would be taken against the

said complainant.

V. INDEPENDENT MONITOR

1. The Chairman & MD of Air India Limited, has the authority to appoint Independent

Monitor(s) to oversee the implementation and effectiveness of the Integrity Pact

Program. The process for their appointment shall be similar to Outside Expert

Committee (OEC). For this purpose, a panel of Independent Monitors may be

constituted by Air India Limited and the same may be referred to CVC for

clearance.

2. The Independent Monitor will be a person of Impeccable Integrity, Knowledgeable

of Air India Limited’s business and experienced in commercial activities.

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3. It will be a voluntary, non-salaried position of a 3 year term. Independent Monitor

will have stature /benefits similar to those of Chairman of the Audit Committee of

Board/status of the Directors of Air India Limited. The remuneration and

perquisites would be similar to the remuneration/perks of independent Directors on

the Board of Air India Limited.

4. The main objective of the Independent Monitor will be to oversee the

implementation of the Integrity Pact Program, to prevent corruption, or any other

unethical practices in the implementation of the contract.

5. The Independent Monitor will not have administrative or enforcement

responsibilities. He will coordinate his efforts through the CVO or other

anti-corruption institutions such as CVC. (He may engage services of outside

agencies such as accounting firms, law firms, etc at Air India Limited’s expense, if

required, in discharge of his responsibilities after obtaining the approval of the

Chairman & M.D.)

6. The Independent Monitor will have access to all offices and internal records of the

Principal in respect of the Tender in question. He will also have access to

Counterparties’ records and information regarding its dealing with the Principal.

7. The Independent Monitor will have the right to attend any meetings between the

Principal and the Counterparties. As far as possible, the meetings should be

scheduled in India. In respect of any meeting to be held outside India, attendance by

the Independent Monitor will be decided in consultation with the Chairman &

M.D., Air India Limited.

8. If the Independent Monitor observes or suspects an irregularity, he will inform the

Chairman of Air India Limited. Once the Independent Monitor is satisfied that any

irregularity has taken place, he may also inform the CVO and CVC.

VI. IMPLEMENTATION GUIDELINES

To implement the Integrity Pact Program, the following general Guidelines are suggested:

a. To select and appoint a Panel of Independent Monitors in consultation with the

CVC.

b. To get commitment from all Senior Level executives/officials of Air India

Limited to implement the program. It should be recognized that there may be

resistance to Integrity Pact program.

c. To develop detailed implementations plans and finalize the Integrity Pact

document in consultation with the Independent Monitors.

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d. To notify all senior staff members, Board of Directors, any other relevant body

and all major suppliers of Air India Limited’s plans to implement the Integrity

Pact program, details of which are to be included on Air India Limited’s web site

and disclosed to the media.

VII. PERIODIC REVIEW & EVALUATION

It is recommended that the Board of Directors of Air India Limited periodically review

the effectiveness of Integrity Pact Program by all or some of the following measures:-

1. The Independent Monitors and senior leadership of Air India Limited do an annual

self-assessment of Integrity Pact Program effectiveness and identify areas / ways to

improve the same.

2. The Independent Monitor will submit an annual report on the progress /

effectiveness of Integrity Pact Program to the Board of Directors of Air India

Limited.

3. Air India Limited may conduct an annual 360-degree review (through an outside

agency, if required) with senior executives, junior executives, suppliers, and

competitors, regarding the effectiveness of the Integrity Pact Program in reducing

corruption. Feed-back may be taken from the junior and senior executives of the

Principal, suppliers and competitors.

4. Air India Limited should meet with CVC on an annual basis to review the

effectiveness of the program.

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INTEGRITY PACT

Between

Air India Ltd. hereinafter referred to as “The Principal”,

and

hereinafter referred to as “The Bidder/ Contractor”

PREAMBLE

The Principal intends to award, under laid down organizational procedures, contract(s) for. The

Principal values full compliance with all relevant laws of the land, rules, regulations, economic

use of resources and of fairness/transparency in its relations with its Bidder(s) and/or

Contractor(s).

In order to achieve these goals, the Principal will appoint an Independent External Monitor

(IEM), who will monitor the tender process and the execution of the contract for compliance

with the principles mentioned above.

Section 1 – Commitments of the Principal

1. The Principal commits itself to take all measures necessary to prevent corruption and to

observe the following principles:-

a. No employee of the Principal, personally or through family members, will in

connection with the tender for, or the execution of a contract, demand, take a

promise for or accept, for self or third person, any material or immaterial benefit

which the person is not legally entitled to. The word ‘take’ shall also include

the past and future.

b. The Principal will, during the tender process treat all Bidder(s) with equity and

reason. The Principal will in particular, before and during the tender process,

provide to all Bidder(s) the same information and will not provide to any

Bidder(s) confidential/additional information through which the Bidder(s) could

obtain an advantage in relation to the tender process or the contract execution.

c. The Principal will exclude from the process all known prejudiced persons and

persons who would be known to have a connection or nexus with the prospective

bidder.

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3. If the Principal obtains information on the conduct of any of its employees

which is a criminal offence under the IPC/PC Act or the conduct rules of the

Principal, or if there be a substantive suspicion in this regard, the Principal will

inform the Chief Vigilance Officer and in addition can initiate disciplinary

actions.

Section 2 – Commitments of the Bidder(s)/ contractor(s)

1. The Bidder(s)/ Contractor(s) commit themselves to take all measures necessary to

prevent corruption in their dealings with Air India Limited. They commit to observe

the following principles during participation in the tender process and during the

contract execution.

a. The Bidder(s)/ Contractor(s) will not, directly or through any other person or firm,

offer, promise or give to any of the Principal’s employees involved in the tender

process or the execution of the contract or to any third person any material or other

benefit which he/she is not legally entitled to, in order to obtain in exchange any

advantage of any kind whatsoever during the tender process or during the

execution of the contract.

b. The Bidder(s)/Contractor(s) will not enter into any undisclosed agreement or

understanding with other Bidders, whether formal or informal. This applies in

particular to prices, specifications, certifications, subsidiary contracts, submission

or non-submission of bids or any other actions to restrict competitiveness or to

introduce cartels in the bidding process.

c. The Bidder(s)/Contractor(s) will not commit any offence under the relevant

IPC/PC Act; further, the Bidder(s)/ Contractor(s) will not use improperly, for

purposes of competition or personal gain, or pass on to others, any information or

document provided by the Principal as part of the business relationship, regarding

plans, technical proposals and business details, including information contained or

transmitted electronically.

d. The Bidder(s)/Contractors(s) of foreign origin shall disclose the name and address

of the Agents/representatives in India, if any. Similarly the

Bidder(s)/Contractors(s) of Indian Nationality shall furnish the name and address

of the foreign principals, if any. Further details as mentioned in the “Guidelines on

Indian Agents of Foreign Suppliers” shall be disclosed by the

Bidder(s)/Contractor(s).Further, as mentioned in the Guidelines all the payments

made to the Indian agent/representative have to be in Indian Rupees only. Copy of

the “Guidelines on Indian Agents of Foreign Suppliers” is placed at (Page nos.

6-7)

e. The Bidder(s)/Contractor(s) will, when presenting his bid, disclose any and all

payments he has made, is committed to or intends to make to agents, brokers or any

other intermediaries in connection with the award of the contract.

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f. This integrity pact shall override the confidentiality clause, if any, in the offer

submitted by the Contractor/Bidder and in the agreement entered into by the

Principal with the Contractor/Bidder.

2. The Bidder(s)/Contractor(s) will not instigate third persons to commit offences or acts

outlined above or be an accessory to such offences.

Section 3 - Disqualification from tender process and exclusion from future

contracts

If the Bidder(s)/Contractor(s), before award or during execution has committed a

transgression through a violation of Section 2, above or in any other form such as to

put his reliability or credibility in question, the Principal is entitled to disqualify the

Bidder(s)/Contractor(s) from the tender process or take action as per the procedure

mentioned in the “Guidelines on Banning of business dealings”. Copy of the

“Guidelines on Banning of business dealings” is placed at Page nos. 8-16.

Section 4 – Compensation for Damages

1. If the Principal has disqualified the Bidder(s) from the tender process prior to the award

according to Section 3, the Principal is entitled to demand and recover the damages

equivalent to Earnest Money Deposit/Bid Security and other actual damages due to the

consequential delay.

2. If the Principal has terminated the contract according to Section 3, or if the Principal is

entitled to terminate the contract according to Section 3, the Principal shall be entitled

to demand and recover from the Contractor liquidated damages of the Contract value or

the amount equivalent to Performance Bank Guarantee.

3. The Contractor/Bidder shall not be entitled to claim from the Principal any amounts

either as damages or otherwise, on account of termination.

Section 5 – Previous transgression

1. The Bidder declares that no previous transgressions occurred in the last 3 years with

any other Company in any country conforming to the corruption approach or with any

other Public Sector Enterprise in India that could justify his exclusion from the tender

process.

2. If the Bidder makes incorrect statement on this subject, he can be disqualified from the

tender process or action can be taken as per the procedure mentioned in “Guidelines on

Banning of business dealings”.

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Section 6 – Equal treatment of all Bidders/Contractors/Subcontractors

1. The Bidder(s)/ Contractor(s) undertake(s) to demand from all subcontractors a

commitment in conformity with this Integrity Pact, and to submit it to the Principal

before contract signing.

2. The Principal will enter into agreements with identical conditions as this one with all

Bidders, Contractors and Subcontractors.

3. The Principal will disqualify from the tender process all bidders who do not sign this

Pact or violate its provisions.

Section 7 –Criminal charges against violating Bidder(s)/Contractor(s)/

Subcontractor(s)

If the Principal obtains knowledge of conduct of a Bidder, Contractor or Subcontractor, or

of an employee or a representative or an associate of a Bidder, Contractor or Subcontractor

which constitutes corruption, or if the Principal has substantive suspicion in this regard, the

Principal will inform the same to the Chief Vigilance Officer.

Section 8 – Independent External Monitor/Monitors

1. The Principal appoints competent and credible Independent External Monitor for

this Pact. The task of the Monitor is to review independently and objectively,

whether and to what extent the parties comply with the obligations under this

agreement.

2. The Monitor is not subject to instructions by the representatives of the parties and

performs his functions neutrally and independently. He shall report to the

Chairman, Air India Limited.

3. The Bidder(s)/Contractor(s) accepts that the Monitor has the right to access

without restriction to all Project documentation of the Principal including that

provided by the Contractor. The Contractor will also grant the Monitor, upon his

request and demonstration of a valid interest, unrestricted and unconditional access

to his project documentation. The same is applicable to Subcontractors. The

Monitor is under contractual obligation to treat the information and documents of

the Bidder(s)/ Contractor(s)/ Subcontractor(s) with confidentiality.

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4. The Principal will provide to the Monitor sufficient information about all meetings

among the parties related to the Project provided such meetings could have an

impact on the contractual relations between the Principal and the Contractor. The

parties offer to the Monitor the option to participate in such meetings.

5. As soon as the Monitor notices, or believes to notice, a violation of this agreement,

he will so inform the Management of the Principal and request the Management to

discontinue or take corrective action, or to take other relevant action. The monitor

can in this regard submit non-binding recommendations. Beyond this, the Monitor

has no right to demand from the parties that they act in a specific manner, refrain

from action or tolerate action.

6. The Monitor will submit a written report to the Chairman, Air India Limited within

8 to 10 weeks from the date of reference or intimation to him by the Principal and,

should the occasion arise, submit proposals for correcting problematic situations.

7. Monitor shall be entitled to compensation on the same terms as being extended to /

provided to Independent Directors on the Air India Limited Board.

8. If the Monitor has reported to the Chairman Air India Limited, a substantiated

suspicion of an offence under relevant IPC/ PC Act, and the Chairman Air India

Limited has not, within the reasonable time taken visible action to proceed against

such offence or reported it to the Chief Vigilance Officer, the Monitor may also

transmit this information directly to the Central Vigilance Commissioner.

9. The word ‘Monitor’ would include both singular and plural.

Section 9 – Pact Duration

This Pact begins when both parties have legally signed it. It expires for the Contractor 3

years after the last payment under the contract, and for all other Bidders 12 months after the

contract has been awarded.

If any claim is made/lodged during this time, the same shall be binding and continue to be

valid despite the lapse of this pact as specified above, unless it is discharged / determined

by Board of Air India Limited.

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GUIDELINES FOR INDIAN AGENTS OF FOREIGN SUPPLIERS

1.0 There shall be compulsory registration of agents for all Global (Open) Tender and

Limited Tender. An agent who is not registered with Air India Limited

Departments/Stations shall apply for registration in the prescribed Application

–Form.

1.1 Registered agents will file an authenticated Photostat copy duly attested by a

Notary Public/Original certificate of the principal confirming the agency agreement

and giving the status being enjoyed by the agent and the

commission/remuneration/salary/ retainer ship being paid by the principal to the

agent before the placement of order by Air India Limited Departments/Stations.

1.2 Wherever the Indian representatives have communicated on behalf of their

principals and the foreign parties have stated that they are not paying any

commission to the Indian agents, and the Indian representative is working on

the basis of salary or as retainer, a written declaration to this effect should be

submitted by the party (i.e. Principal) before finalizing the order

2.0 DISCLOSURE OF PARTICULARS OF AGENTS/ REPRESENTATIVES IN

INDIA. IF ANY.

2.1 Tenderers of Foreign nationality shall furnish the following details in their offer:

2.1.1 The name and address of the agents/representatives in India, if any and the extent of

authorization and authority given to commit the Principals. In case the

agent/representative be a foreign Company, it shall be confirmed whether it is real

substantial Company and details of the same shall be furnished.

2.1.2 The amount of commission/remuneration included in the quoted price(s) for

such agents/representatives in India.

2.1.3 Confirmation of the Tenderer that the commission/ remuneration if any, payable to

his agents/representatives in India, may be paid by Air India Limited in Indian

Rupees only.

2.2 Tenderers of Indian Nationality shall furnish the following details in their offers:

2.2.1 The name and address of the foreign principals indicating their nationality as well

as their status, i.e, whether manufacturer or agents of manufacturer holding the

Letter of Authority of the Principal specifically authorizing the agent to make an

offer in India in response to tender either directly or through the

agents/representatives.

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2.2.2 The amount of commission/remuneration included in the price (s) quoted by the

Tenderer for himself.

2.2.3 Confirmation of the foreign principals of the Tenderer that the

commission/remuneration, if any, reserved for the Tenderer in the quoted price

(s), may be paid by Air India Limited in India in equivalent Indian Rupees on

satisfactory completion of the Project or supplies of Stores and Spares in case of

operation items .

2.3 In either case, in the event of contract materializing, the terms of payment will

provide for payment of the commission /remuneration, if any payable to the

agents/representatives in India in Indian Rupees on expiry of 90 days after the

discharge of the obligations under the contract.

2.4 Failure to furnish correct and detailed information as called for in paragraph-2.0

above will render the concerned tender liable to rejection or in the event of a

contract materializing, the same liable to termination by Air India Limited. Besides

this there would be a penalty of banning business dealings with Air India Limited or

damage or payment of a named sum.

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GUIDELINES ON BANNING OF BUSINESS DEALINGS

CONTENTS

S.No. Description Page(s)

1. Introduction 9

2. Scope 9

3. Definitions 10

4. Initiation of Banning / Suspension 11

5. Suspension of Business Dealings 11-12

6. Ground on which Banning of Business Dealing can be initiated 12-13

7. Banning of Business Dealings 13-14

8. Removal from List of Approved Agencies-Suppliers/Contractors

etc.

14-15

9. Procedure for issuing Show-cause Notice 15

10. Appeal against the Decision of the Competent Authority 15

11. Review of the Decision by the Competent Authority 15

12. Circulation of the names of Agencies with whom Business

Dealings have been banned

16

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1. Introduction

1.1 Air India Limited, being a Public Sector Enterprise and ‘State’, within the

meaning of Article 12 of the Constitution of India, has to ensure

preservation of rights enshrined in Chapter III of the Constitution. Air India

Limited has also to safeguard its commercial interests. Air India Limited

deals with Agencies, who have a very high degree of integrity, commitments

and sincerity towards the work undertaken. It is not in the interest of Air

India Limited to deal with Agencies who commit deception, fraud or

exercise of coercion or undue influence or other misconduct in the

execution of contracts awarded / orders issued to them. In order to ensure

compliance with the constitutional mandate, it is incumbent on Air India

Limited to observe principles of natural justice before banning the business

dealings with any Agency.

1.2 Since banning of business dealings involves civil consequences for an

Agency concerned, it is incumbent that adequate opportunity of hearing is

provided and the explanation, if tendered, is considered before passing any

order in this regard keeping in view the facts and circumstances of the case.

2. Scope

2.1 The General Conditions of Contract (GCC) of Air India Limited generally

provide that Air India Limited reserves its rights to remove from list of

approved suppliers/contractors or to ban business dealings if any Agency

has been found to have committed misconduct, violation of any law or any

term of the agreement and also to suspend business dealings pending

investigation. If such provision does not exist in any GCC, the same may be

incorporated.

2.2 Similarly, in case of sale of material there is a clause to deal with the

Agencies/customers/buyers, who indulge in lifting of material in

unauthorized manner. If such a stipulation does not exist in any Sale Order,

the same may be incorporated.

2.3 However, absence of such a clause does not in any way restrict the right of

Company (Air India Limited) to take action/decision under these guidelines

in appropriate cases.

2.4 The procedure of (i) Removal of Agency from the List of approved

suppliers / contractors; (ii) Suspension and (iii) Banning of Business

Dealing with Agencies, has been laid down in these guidelines.

2.5 These guidelines apply to all the Departments/Stations and subsidiaries of

Air India Limited.

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2.6 It is clarified that these guidelines do not deal with the decision of the

Management not to entertain any particular Agency due to its

poor/inadequate performance or for any other reason.

2.7 The banning shall be with prospective effect, i.e., future business dealings3.

3 Definitions

In these Guidelines, unless the context otherwise requires:

i) ‘Party/Contractor/Supplier/Purchaser/Customer’ shall mean and include a

public limited company or a private limited company, a firm whether

registered or not, an individual, a cooperative society or an association or a

group of persons engaged in any commerce, trade, industry, etc.

‘Party/Contractor/Supplier/Purchaser/Customer’ in the context of these

guidelines is indicated as ‘Agency’.

ii) ‘Inter-connected Agency’ shall mean two or more companies having any of

the following features:

a. If one is a subsidiary of the other.

b. If the Director(s), Partner(s), Manager(s) or Representative(s) are common;

c. If Management is common;

d. If one owns or controls the other in any manner;

iii) ‘Competent Authority’ and ‘Appellate Authority’ shall mean the following:

a. For Company (entire Air India Limited) Wide Banning

The Executive Director – GH shall be the ‘Competent Authority’ for the

purpose of these guidelines. Chairman, Air India Limited shall be the

‘Appellate Authority’ in respect of such cases.

b. In case the foreign supplier is not satisfied by the decision of the First

Appellate Authority, it may approach Air India Limited Board as Second

Appellate Authority.

c. For Departments / Stations only

Any officer not below the rank of Executive Director appointed or nominated

by the Functional Director / SBU Head shall be the ‘Appellate Authority’ in

all such cases.

d. For Corporate Office only

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For procurement of items / award of contracts, to meet the requirement of

Corporate Office only, Head of CMMG shall be the “Competent Authority”

and Director (Technical) shall be the “Appellate Authority”.

e. Chairman, Air India Limited shall have overall power to take suo-moto action

on any information available or received by him and pass such order(s) as he

may think appropriate, including modifying the order(s) passed by any

authority under these guidelines.

iv) ‘Investigating Department’ shall mean any Department or Unit investigating

into the conduct of the Agency and shall include the Vigilance Department, Central

Bureau of Investigation, the State Police or any other authority or agency set up by

the Central or State Government having powers to investigate.

v) ‘List of approved Agencies - Parties/Contractors/Suppliers/

Purchasers/Customers shall mean and include list of approved/registered Agencies

- Parties/Contractors/Suppliers/ Purchasers/Customers, etc.

4. Initiation of Banning/Suspension

Action for banning/suspension of business dealings with any Agency should be

initiated by the department having business dealings with them after noticing the

irregularities or misconduct on their part. The Vigilance Department of Air India

Limited shall have the right to recommend banning/suspension and this shall be

binding on the Department/SBU and non-compliance of these

recommendations/instructions shall be deemed to be a misconduct on the part of the

Head of the Department/SBU.

5. Suspension of Business Dealings

5.1 If the conduct of any Agency dealing with Air India Limited is under

investigation by any department (except Foreign Suppliers of imported

coal/coke), the Competent Authority may consider whether the allegations

under investigation are of a serious nature and whether pending

investigation, it would be advisable to continue business dealing with the

Agency. If the Competent Authority, after consideration of the matter

including the recommendation of the Investigating Department, if any,

decides that it would not be in the interest to continue business dealings

pending investigation, it may suspend business dealings with the Agency.

The order to this effect may indicate a brief of the charges under

investigation. If it is decided that inter-connected Agencies would also

come within the ambit of the order of suspension, the same should be

specifically stated in the order. The order of suspension would operate for a

period not more than six months and may be communicated to the Agency

as also to the Investigating Department. The Investigating Department

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may ensure that their investigation is completed and whole process of final

order is over within such period.

5.2 The order of suspension shall be communicated to all Departmental Heads

within the Departments/Stations. During the period of suspension, no

business dealing may be held with the Agency.

5.3 As far as possible, the existing contract(s) with the Agency may continue

unless the Competent Authority, having regard to the circumstances of the

case, decides otherwise.

5.4 If the gravity of the misconduct/violation under investigation is very serious

and it would not be in the interest of Air India Limited, as a whole, to deal

with such an Agency pending investigation, the Competent Authority may

send his recommendation to Chief Vigilance Officer (CVO), Air India

Limited Corporate Office along with the material available. If Corporate

Office considers that depending upon the gravity of the

misconduct/violation, it would not be desirable for all the

Departments/Stations and Subsidiaries of Air India Limited to have any

dealings with the Agency concerned, an order suspending business dealings

may be issued to all the Departments/Stations by the Competent Authority

of the Corporate Office, copy of which may be endorsed to the Agency

concerned. Such an order would operate for a period of six months from the

date of issue.

5.5 For suspension of business dealings with Foreign Suppliers, following shall

be the procedure :-

i. Suspension of the foreign suppliers shall apply through out the

Company including Subsidiaries.

ii.Based on the complaint forwarded by ED-Procurement or received

directly by Corporate Vigilance, if gravity of the misconduct under

investigation is found serious and it is felt that it would not be in the

interest of Air India Limited to continue to deal with such agency,

pending investigation, Corporate Vigilance may send such

recommendation on the matter to Executive Director-Procurement

to place it before a Committee consisting of the following :

1. Director-Finance/Head of Corporate Finance;

2. SBU Head/Department concerned;

3. ED-Headquarters/Head of Corporate Office;

4. GM-Legal/Head of Corporate Law.

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The committee shall expeditiously examine the report, give its

comments/recommendations within twenty one days of receipt of

the reference by ED-Procurement.

iii.The comments/recommendations of the Committee shall then be

placed by ED-Procurement before the Board of Air India Limited

and if the Board opines that it is a fit case for suspension, SBU Head

may pass necessary orders which shall be communicated to the

foreign supplier by ED-Headquarters.

5.6 If the Agency concerned asks for detailed reasons of suspension, the

Agency may be informed that its conduct is under investigation. It is not

necessary to enter into correspondence or argument with the Agency at this

stage.

5.7 It is not necessary to give any show-cause notice or personal hearing to the

Agency before issuing the order of suspension. However, if investigations

are not complete in six months time, the Competent Authority may extend

the period of suspension by another three months, during which period the

investigations must be completed.

6. Grounds on which Banning of Business Dealings can be initiated

6.1 If the security consideration, including questions of loyalty of the Agency to

the State, so warrants;

6.2 If the Director/Owner of the Agency, proprietor or partner of the firm, is

convicted by a Court of Law for offences involving moral turpitude in

relation to its business dealings with the Government or any other public

sector enterprises or Air India Limited, during the last five years;

6.3 If there is strong justification for believing that the Directors, Proprietors,

Partners, owner of the Agency have been guilty of malpractices such as

bribery, corruption, fraud, substitution of tenders, interpolations, etc;

6.4 If the Agency continuously refuses to return/refund the dues of Air India

Limited without showing adequate reason and this is not due to any

reasonable dispute which would attract proceedings in arbitration or Court

of Law;

6.5 If the Agency employs a public servant dismissed/removed or employs a

person convicted for an offence involving corruption or abetment of such

offence;

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6.6 If business dealings with the Agency have been banned by the Govt. or any

other public sector enterprise;

6.7 If the Agency has resorted to Corrupt, fraudulent practices, coercion, undue

influence and other violations including misrepresentation of facts;

6.8 If the Agency uses intimidation/threatening or brings undue outside

pressure on the Company (Air India Limited) or its official in acceptance/

performances of the job under the contract;

6.9 If the Agency indulges in repeated and/or deliberate use of delay tactics in

complying with contractual stipulations;

6.10 Willful indulgence by the Agency in supplying sub-standard material

irrespective of whether pre-dispatch inspection was carried out by

Company (Air India Limited) or not;

6.11 Based on the findings of the investigation report of CBI/Police/internal

Vigilance or any other investigative agency including Government Audit

against the Agency for malafide/unlawful acts or improper conduct on his

part in matters relating to the Company (Air India Limited) or even

otherwise;

6.12 Established litigant nature of the Agency to derive undue benefit;

6.13 Continued poor performance of the Agency in several contracts;

6.14 If the Agency misuses the premises or facilities of the Company (Air India

Limited), forcefully occupies tampers or damages the Company’s

properties including land, water resources, forests / trees, etc.

(Note: The examples given above are only illustrative and not exhaustive.

The Competent Authority may decide to ban business dealing for any good

and sufficient reason).

7 Banning of Business Dealings

7.1 Normally, a decision to ban business dealings with any Agency

should apply throughout the Company including Subsidiaries. However, the

Competent Authority of the Department/Unit except Corporate Office can

impose such ban unit-wise only if in the particular case banning of business

dealings by respective Department/Unit will serve the purpose and achieve

its objective and banning throughout the Company is not required in view of

the local conditions and impact of the misconduct/default to beyond the

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Department/Unit. Any ban imposed by Corporate Office shall be applicable

across all Departments/Stations of the Company including Subsidiaries.

7.2 For Company-wide banning, the proposal should be sent by

ACVO of the Department/Unit to the CVO through the Chief Executive of

the Department/Unit setting out the facts of the case and the justification of

the action proposed along with all the relevant papers and documents except

for banning of business dealings with Foreign Suppliers of imported

coal/coke.

The Corporate Vigilance shall process the proposal of the Department/Unit

for a prima-facie view in the matter by the Competent Authority nominated

for Company-wide banning.

The CVO shall get feedback about that agency from all other

Departments/Stations. Based on this feedback, a prima-facie decision for

banning/or otherwise shall be taken by the Competent Authority.

If the prima-facie decision for Company-wide banning has been taken, the

Corporate Vigilance shall issue a show-cause notice to the agency

conveying why it should not be banned throughout Air India Limited.

After considering the reply of the Agency and other circumstances and facts

of the case, a final decision for Company-wide banning shall be taken by the

Competent Authority.

7.3 There will be a Standing Committee in each Department/Unit to be

appointed by Chief Executive for processing the cases of “Banning of

Business Dealings” except for banning of business dealings with foreign

suppliers of coal/coke. However, for procurement of items/award of

contracts, to meet the requirement of Corporate Office only, the committee

shall be consisting of Executive Director/General Manager from Finance,

Procurement and Legal:

i) To study the report of the Investigating Agency and decide if a

prima-facie case for Company-wide/Local unit wise banning exists,

if not, send back the case to the Competent Authority.

ii) To recommend for issue of show-cause notice to the Agency by the

concerned department.

iii) To examine the reply to show-cause notice and call the Agency for

personal hearing, if required.

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iv) To submit final recommendation to the Competent Authority for

banning or otherwise.

7.4 If the Competent Authority is prima-facie of the view that action for

banning business dealings with the Agency is called for, a show-cause

notice may be issued to the Agency as per paragraph 9.1 and an enquiry held

accordingly.

8 Removal from List of Approved Agencies - Suppliers/Contractors, etc.

8.1 If the Competent Authority decides that the charge against the Agency is of

a minor nature, it may issue a show-cause notice as to why the name of the

Agency should not be removed from the list of approved Agencies -

Suppliers/Contractors, etc.

8.2 The effect of such an order would be that the Agency would not be

disqualified from competing in Open Tender Enquiries.

8.3 Past performance of the Agency may be taken into account while

processing for approval of the Competent Authority for awarding the

contract.

9 Show-cause Notice

9.1 In case where the Competent Authority decides that action against an

Agency is called for, a show-cause notice has to be issued to the Agency.

Statement containing the imputation of misconduct or misbehavior may be

appended to the show-cause notice and the Agency should be asked to

submit within 15 days a written statement in its defense.

9. 2 If the Agency requests for inspection of any relevant document in

possession of Air India Limited, necessary facility for inspection of

documents may be provided.

9.3 The Competent Authority may consider and pass an appropriate speaking

order:

a. For exonerating the Agency if the charges are not established;

b. For removing the Agency from the list of approved

Suppliers/Contactors, etc.

c. For banning the business dealing with the Agency.

9.4 If it decides to ban business dealings, the period for which the ban would be

operative may be mentioned. The order may also mention that the ban

would extend to the interconnected Agencies of the Agency.

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10 Appeal against the Decision of the Competent Authority

10.1 The Agency may file an appeal against the order of the Competent

Authority banning business dealing, etc. The appeal shall be to the

Appellate Authority. Such an appeal shall be preferred within one month

from the date of receipt of the order banning business dealing, etc.

10.2 Appellate Authority would consider the appeal and pass appropriate order

which shall be communicated to the Agency as well as the Competent

Authority.

11 Review of the Decision by the Competent Authority

Any petition/application filed by the Agency concerning the review of the banning

order passed originally by Chief Executive/Competent Authority under the existing

guidelines either before or after filing of appeal before the Appellate Authority or

after disposal of appeal by the Appellate Authority, the review petition can be

decided by the Chief Executive/Competent Authority upon disclosure of new

facts/circumstances or subsequent development necessitating such review. The

Competent Authority may refer the same petition to the Standing Committee for

examination and recommendation.

12 Circulation of the names of Agencies with whom Business Dealings have been

banned

12.1 Depending upon the gravity of misconduct established, the Competent

Authority of the Corporate Office may circulate the names of Agency with

whom business dealings have been banned, to the Government

Departments, other Public Sector Enterprises, etc. for such action as they

deem appropriate.

12.2 If Government Departments or a Public Sector Enterprise request for more

information about the Agency with whom business dealings have been

banned, a copy of the report of Inquiring Authority together with a copy of

the order of the Competent Authority/Appellate Authority may be supplied.

12.3 If business dealings with any Agency have been banned by the Central or

State Government or any other Public Sector Enterprise, Air India Limited

may, without any further enquiry or investigation, issue an order banning

business dealing with the Agency and its inter-connected Agencies.

12.4 Based on the above, Departments/Stations may formulate their own

procedure for implementation of the Guidelines.

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ANNEX-VIII

Check List to be submitted along with

TECHNICAL BID.

Sr.

No.

Requirements Check

Box

1 Handling Company Profile as per Annex V.

2 Relevant documents to establish eligibility (eg. Authorisation from

Airport operator, approval of local regulatory bodies including Civil

Aviation Authority, Experience and qualification of personnel etc.)

3 Service requirement as per Annex IV.

4 Acceptance of standard termination clause as per IATA SGHA

2013.(Refer Para 8 of Annex VI.)

5 Lead time for commencement of services.

6 Acceptance of Annex II, IV, V, VII and duly signed SLA as in Annex III.

7 No price quote in technical bid.

8 Letter from Company authorising person to sign all the Offer Documents.

9 Envelope clearly indicating technical offer for Comprehensive services to

Air India Flights at KIX and the name of Handling Company.

COMMERCIAL OFFER

10 Rates in Para 1 of Annex VI quoted are as per the format.

11 Carefully read the note regarding calculation of Lowest offer.

12 Acceptance of all the para and sub-para of Commercial offer.

13 All the papers of tender document and quotation have been signed and

stamped by the person authorised by handling Company.

14 Envelope clearly indicating commercial offer for Comprehensive services

to Air India Flights at KIX and the name of Handling Company.

15 Services and format in Commercial bid are same as in the technical bid

and these services are included in the basic handling charge.