Civil Aviation Authority of Singapore (Price Control of Aeronautical Charges) Rules 2009

those services and facilities provided at the airport that are essential to the operation and maintenance of civil aviation at the airport, and includes each service or facility that is —

mentioned in an item in Part I of the First Schedule (aircraft-related); or

mentioned in an item in Part II of the First Schedule (passenger-related and cargo‑related);

such other services and facilities provided at the airport which the Authority certifies under rule 5 as a service that the airport licensee has the market power of a monopoly or near monopoly in Singapore as a provider of such service.

aeronautical services and facilities;

security services and facilities; nor(c)unregulated services and facilities,and includes each service or facility that is mentioned in an item in the Second Schedule.

the airport licensee exercises the market power of a monopoly or near monopoly in Singapore as a provider of that service or facility; and

the promotion of competition, efficiency or the public interest requires the making of the certification.

give written notice of its intention to make the certification, cancellation or recommendation, as the case may be, and the reasons for doing so, to each airport licensee providing the service or facility in question;

publish the giving of such a notice on the Authority’s website or in such daily newspapers circulating in Singapore as the Authority considers appropriate; and

allow the airport licensee to make written submissions to the Authority with respect to the matter within such reasonable time as is specified in that notice.

not later than 2 weeks after the commencement of these Rules; and

in any other case, before the start of every regulatory period thereafter,a date as being the middle of that regulatory period (referred to in this rule as the mid-term review date).

any determination comprising a tariff of aeronautical charges; or

any regulatory period of 3 years or shorter.

amend the determination for any regulatory period;

revoke the determination for any regulatory period; or

revoke and make a substitute determination for any regulatory period,if —

the Authority considers that the determination was made on the basis of information provided to the Authority that was false or misleading in a material particular;

the Authority considers that there is a material error in the determination and the airport licensee has consented to the revocation or amendment; or

the Authority is satisfied that —

a price variation trigger has happened; or

in a case where the determination is in terms of a maximum total amount (expressed in the form of a revenue yield cap) that may be earned by the airport licensee in question from the provision of aeronautical services and facilities, there has been a material change in the cost conditions and capital expenditure requirements for the provision of the aeronautical services and facilities and security services and facilities by the airport licensee and the change was brought about by external events not reasonably foreseeable by and beyond the control of the airport licensee.

invite submissions with respect to the matter within the reasonable period specified in the invitation; and

consider any such submissions made to it.

in writing; and

given to the airport licensee concerned.

a price variation trigger specified in the determination has happened; or

in a case where the determination is in terms of a maximum total amount (expressed in the form of a revenue yield cap) that may be earned by the airport licensee in question from the provision of aeronautical services and facilities, the Authority is satisfied that there has been a material change in the cost conditions or capital expenditure requirements for the provision of the aeronautical services and facilities and security services and facilities by the airport licensee, and that the change was brought about by external events not reasonably foreseeable by and beyond the control of the airport licensee.

a maximum price or both a minimum and maximum price for each aeronautical service or facility to be provided in that regulatory period;

a maximum total amount (revenue cap, revenue yield cap or otherwise) that may be earned by the airport licensee providing aeronautical services and facilities from the provision of those services and facilities in relation to that airport in that regulatory period;

the maximum rate of increase or the minimum rate of decrease in maximum price;

the average price or the average rate of increase or decrease in average price;

a tariff for the provision of aeronautical services and facilities, including the rate of increase or decrease in a tariff, a maximum tariff or maximum rate of increase or minimum rate of decrease in the maximum tariff or an average tariff or an average rate of increase or decrease in the average tariff;

the pricing policies or principles for fixing prices or tariffs;

by reference to a general price index or to quantity, location or period of provision of the aeronautical services and facilities, the class of persons to whom aeronautical services and facilities is provided;

such other terms as the Authority considers appropriate.

a price or an amount referred to in paragraph (1)(a) or (b) that is calculated according to the formula in rule 7A;

a method (for example, by reference to price indices) by which a price or an amount mentioned in paragraph (1) is to be ascertained;

a reference to the price variation triggers.

the cost of providing aeronautical services and facilities and non-aeronautical services and facilities at the airport concerned;

any international benchmark for prices, costs, revenues and return on assets in bodies providing a service similar to those aeronautical services and facilities and non-aeronautical services and facilities;

the principle that there is a need for a reasonable return on the assets of the airport licensee concerned;

the principle that there is a need for efficiency in the provision of the aeronautical services and facilities and non-aeronautical services and facilities for the purpose of benefiting the public interest;

the effects of inflation and deflation;

the principle that there is a need for the airport licensee concerned to be financially viable so far as the provision of airport services and facilities are concerned;

the impact on pricing policies of any borrowing, capital, dividend and taxation or tax equivalent obligations of the airport licensee concerned, including obligations to renew or increase assets;

the quality of the provision of those aeronautical services and facilities;

any cost (including capital expenditure) incurred by the airport licensee concerned at the direction of the Authority;

the public interest; and

any other matter the Authority considers relevant.

the starting value of the regulated asset base for the next regulatory period shall be equal to its value at the end of the last regulatory period; and

the projected ending value of the regulated asset base of each year in the regulatory period shall be its starting value plus —

projected aeronautical capital expenditure during the year;

projected change in work-in-progress assets; and

projected net changes to net aeronautical working capital, where aeronautical working capital is to be determined by the Authority after consultation with the airport licensee,but less projected depreciation and disposals of aeronautical assets.

the starting value of the security asset base for the next regulatory period shall be equal to its value at the end of the last regulatory period; and

the projected ending value of the security asset base of each year in the regulatory period shall be its starting value plus —

projected security capital expenditure during the year;

projected change in work-in-progress assets; and

projected net changes to net security working capital, where security working capital is to be determined by the Authority after consultation with the airport licensee,but less projected depreciation and disposals of security assets.

must be 31st March 2012 in the case of the first regulatory period; (b)in the case of the second regulatory period in respect of an airport licensee that is not a former exempt airport licensee, must be 31 March 2017, or a later date specified in accordance with paragraph (6); and

in any other case, must be the end of the regulatory period.

if at the time the determination is made no existing determination is in force, on the day specified in the determination;

if at the time the determination is made an existing determination is in force having not yet reached its expiry date, on the expiry or revocation of that existing determination; or

if at the time the determination is made an existing determination is in force by reason of paragraph (5), on the day specified in that determination.

if the determination is revoked, on the day that revocation takes effect; or

in any other case, on the day specified in the determination as the day on which it expires.

continues to have effect in respect of that service; but(b)subject to these Rules, ceases to have effect in respect of any other service to which it relates.

the purpose of the inquiry;

the day by which the Authority is to complete the inquiry and make a determination under rule 17(1), which must not be later than 4 months after the commencement of these Rules;

the period within which proposals may be made to the Authority, which must not be more than 3 months;

the form in which proposals may be made to the Authority; and

the matters the Authority would like the proposals to address.

passenger growth expectations in relation to the airport;

aircraft traffic growth expectations in relation to the airport;

cost of capital assumptions;

an inflation and deflation forecast;

productivity expectations;

a proposed capital expenditure schedule for that airport.

prepare a draft proposal on the determination for the first regulatory period (which may include any proposed amendments thereto);

provide without charge a copy of the draft proposal to the Authority;

make copies of the draft proposal, in both electronic and printed form, available free of charge to the designated airport users relating to that airport for the first regulatory period; and

start to consult, at its own expense, with those designated airport users for the first regulatory period.

the purpose of the consultation;

the period within which comments by those designated airport users may be given to the airport licensee, being a period not ending before 21st August 2009;

the matters the airport licensee would like the comments to address; and

that if such a designated airport user does make such comments, the designated airport user must also deliver a copy of those comments to the Authority at the same time.

prepare a draft report on the inquiry and a draft of any determination under rule 17(1) in relation to the determination for the first regulatory period; and

do anything it considers necessary or convenient for the purposes of reviewing the proposal, but subject to these Rules.

consult with any person;

receive submissions from those persons it considers appropriate;

hold seminars or workshops; or

conduct hearings.

attend before the Authority and answer questions which, in the opinion of the Authority, are relevant to the review;

provide to the Authority, in the manner specified in the notice, any document specified in the notice which is in the person’s possession or control and which, in the opinion of the Authority, is relevant to the review;

provide to the Authority, in the manner specified in the notice, a document prepared as specified in the notice that contains information which is specified in the notice and which, in the opinion of the Authority, is relevant to the review;

provide to the Authority, in the manner specified in the notice, any other information specified in the notice which, in the opinion of the Authority, is relevant to the review.

may examine, take possession of, make copies of and take extracts from any document provided under a requirement referred to in rule 14(1)(b) or (c);

may retain that document for so long as is necessary for the purposes of the inquiry; and

must allow a person who would be entitled to inspect the document if it were not in the possession of the Authority to inspect it, make a copy of it or take an extract from it at any reasonable time.

the publication of any answer, document or other information provided to it under a requirement referred to in rule 14(1);

a part of any such answer, document or other information; and

a copy of, or extract from, any such answer, document, other information or part.

a direction in respect of the answer, document, other information or part has been given under paragraph (2) and its provision to that person would contravene the direction; or

the answer, document, other information or part contains information which could cause damage to the commercial interests of a person and the Authority determines that such damage or the possibility of such damage outweighs the public benefit that would arise from its publication.

the purpose of the hearing;

the time and place at which the hearing is to be held; and

the places at which copies of any draft report and draft determination prepared by the Authority on the inquiry may be obtained or accessed.

direct that the hearing or part of the hearing is to take place in private and give directions as to the persons who may be present; and

give directions prohibiting or restricting the publication of evidence or a document presented at the hearing or a part of any such evidence or document.

a direction in respect of the answer, document, other information or part has been given under paragraph (5)(b) and its provision to that person would contravene the direction; or

the answer, document, other information or part contains information which could cause damage to the commercial interests of a person and the Authority determines that such damage or the possibility of such damage outweighs the public benefit that would arise from its publication.

to confirm the determination for the first regulatory period;

to amend the determination for the first regulatory period;

to revoke the determination for the first regulatory period; or

to revoke and make a substitute determination for the first regulatory period.

specify the services and facilities to be provided by the airport licensee concerned in the first regulatory period; and

specify either or both of the following:

a maximum price or both a minimum and maximum price for each aeronautical service or facility to be provided in the first regulatory period;

a maximum total amount (revenue cap or revenue yield cap or otherwise) that may be earned by the airport licensee providing aeronautical services and facilities from the provision of those services and facilities in relation to that airport in the first regulatory period.

may allow for an adjustment to the maximum revenues specified in the determination as a result of a pass-through event specified in the determination and, if it does so allow, the Authority must specify the method of calculating that adjustment or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment; and

may establish a performance incentive scheme for the airport licensee and, if it does so, the Authority must specify the method of calculating the adjustment to the maximum revenues specified in the determination as a result of that scheme or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment.

reasonable details of the qualitative and quantitative methodologies applied in making the decision, including calculations and formulae;

the values adopted by the Authority for each of the input variables in calculations and formulae used, including the reasons for adopting those values;

reasonable details of other assumptions made by the Authority in the conduct of material quantitative and qualitative analyses undertaken in relation to the setting of a maximum revenue or a related matter;

reasons for material judgments and qualitative determinations made and options considered;

reasons for discretions exercised which materially affected the setting of maximum revenues in the determination.

provide a copy of the determination and report to the Minister and to the airport licensee concerned; and

publish in such daily newspapers circulating in Singapore as the Authority considers appropriate a notice of the making of the determination.

amends a determination for the first regulatory period to become a determination described in rule 17(2)(b)(ii);

makes a substitute determination for the first regulatory period that is a determination described in rule 17(2)(b)(ii); or

confirms the determination for the first regulatory period which is a determination described in rule 17(2)(b)(ii),specifying a maximum total amount (revenue cap, revenue yield cap or otherwise) that may be earned by the airport licensee for an airport from the provision of aeronautical services and facilities in relation to the airport in the first regulatory period, the airport licensee concerned shall prepare a statement setting out the details of every fee and charge it proposes to impose in respect of each type of aeronautical service or facility to be provided in relation to the airport in the first regulatory period.

provide a copy of the statement to the Authority and to the Minister; and

make copies of the statement, in both electronic and printed form, available free of charge to the designated airport users for the first regulatory period,at least 3 months before any fee or charge in that statement takes effect.

the purpose of the inquiry;

the day by which the Authority is to complete the inquiry and make a determination;

the period within which proposals may be made to the Authority;

the form in which proposals may be made to the Authority; (e)the matters the Authority would like the proposals to address; and

any information that the Authority requires from the airport licensee in question, being information that the Authority considers relevant to the inquiry.

prepare a draft proposal on the determination to be made, in relation to that airport in that regulatory period;

provide without charge a copy of the draft proposal to the Authority;

make copies of the draft proposal, in both electronic and printed form, available free of charge to the designated airport users relating to the airport for the regulatory period in question; and

start to consult, at its own expense, with those designated airport users for that regulatory period.

the purpose of the consultation;

the period within which comments by those designated airport users may be given to the airport licensee, being a period that is at least 6 weeks (or such period as the Chief Executive may allow in any particular case);

the matters the airport licensee would like the comments to address; and

that if such a designated airport user does make such comments, the designated airport user must also deliver a copy of those comments to the Authority at the same time.

prepare a written response responding in appropriate detail to the comments of the designated airport users made in relation to its draft proposal; and

serve the written response on the designated airport users.

be accompanied by —

accounts or, if it is a holding company, consolidated accounts (prepared in accordance with the applicable accounting standards) that meets the requirements of Part 6 of the Companies Act 1967 for the preceding regulatory period;

director’s reports for itself and for all its subsidiaries and related corporations providing aeronautical services and facilities, non-aeronautical services and facilities and security services and facilities at the airport for the preceding regulatory period;

[Deleted by S 9/2018 wef 08/01/2018](iv)[Deleted by S 9/2018 wef 08/01/2018](v)[Deleted by S 9/2018 wef 08/01/2018](vi)[Deleted by S 9/2018 wef 08/01/2018](vii)[Deleted by S 9/2018 wef 08/01/2018](viii)[Deleted by S 9/2018 wef 08/01/2018](ix)[Deleted by S 9/2018 wef 08/01/2018](x)without charge, a copy of the comments by every designated airport user in relation to the airport licensee’s draft proposal received by the airport licensee and the airport licensee’s written response under rule 21(4) to those comments; (xi)unaudited quarterly regulatory accounts for the years in the preceding regulatory period where audited accounts are not yet available; and

any information specified under rule 20(2)(f) in the notice of aeronautical services and facilities pricing as information that the Authority requires from the airport licensee; and

set out such other provisions, specifications and particulars in relation to the proposal, and such other information and materials as are necessary to explain and illustrate the proposal, as the Authority may require.

aeronautical services and facilities during the financial year;

non-aeronautical services and facilities during the financial year; and

security services and facilities during the financial year,including those recovered directly or indirectly from airlines and other airport users.

the accounts and director’s reports for an airport licensee for an airport must —

include the financial reports for all subsidiaries and related corporations of the airport licensee providing aeronautical services and facilities, non-aeronautical services and facilities and security services and facilities at the airport; and

as far as practicable, include the financial reports for all other persons providing aeronautical services and facilities, non-aeronautical services and facilities and security services and facilities at the airport as if those persons were subsidiaries or related corporations of the airport licensee; and

the costs and revenue for the provision and use of aeronautical services and facilities for an airport licensee must include those recovered directly or indirectly from airlines and persons who provide airport services and facilities under an agreement with an airport licensee.

consult with any person;

receive submissions from those persons it considers appropriate;

hold seminars or workshops; or

conduct hearings.

attend before the Authority and answer questions which, in the opinion of the Authority, are relevant to the review;

provide to the Authority, in the manner specified in the notice, any document specified in the notice which is in the person’s possession or control and which, in the opinion of the Authority, is relevant to the review;

provide to the Authority, in the manner specified in the notice, a document prepared as specified in the notice that contains information which is specified in the notice and which, in the opinion of the Authority, is relevant to the review;

provide to the Authority, in the manner specified in the notice, any other information specified in the notice which, in the opinion of the Authority, is relevant to the review.

may examine, take possession of, make copies of and take extracts from any document provided under a requirement referred to in rule 24(1)(b) or (c);

may retain that document for so long as is necessary for the purposes of the inquiry; and

must allow a person who would be entitled to inspect the document if it were not in the possession of the Authority to inspect it, make a copy of it or take an extract from it at any reasonable time.

the publication of any answer, document or other information provided to it under a requirement referred to in rule 24(1);

a part of any such answer, document or other information; and

a copy of, or extract from, any such answer, document, other information or part.

a direction in respect of the answer, document, other information or part has been given under paragraph (2) and its provision to that person would contravene the direction; or

the answer, document, other information or part contains information which could cause damage to the commercial interests of a person and the Authority determines that such damage or the possibility of such damage outweighs the public benefit that would arise from its publication.

the purpose of the hearing;

the time and place at which the hearing is to be held; and

the places at which copies of the draft report and draft determination prepared by the Authority on the inquiry may be obtained or accessed.

direct that the hearing or part of the hearing is to take place in private and give directions as to the persons who may be present; and

give directions prohibiting or restricting the publication of evidence or a document presented at the hearing or a part of any such evidence or document.

a direction in respect of the answer, document, other information or part has been given under paragraph (5)(b) and its provision to that person would contravene the direction; or

the answer, document, other information or part contains information which could cause damage to the commercial interests of a person and the Authority determines that such damage or the possibility of such damage outweighs the public benefit that would arise from its publication.

specifies the services and facilities to be provided by the airport licensee concerned in the regulatory period to which the determination applies; and

specifies the maximum prices of the aeronautical services and facilities to be provided by the airport licensee in that regulatory period in any of the terms mentioned in rule 7(1).

may allow for an adjustment to the maximum revenues specified in the determination as a result of a pass-through event specified in the determination and, if it does so allow, the Authority must specify the method of calculating that adjustment or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment; and

may establish a performance incentive scheme for the airport licensee and, if it does so, the Authority must specify the method of calculating the adjustment to the maximum revenues specified in the determination as a result of that scheme or the principles and general manner to be applied in making the adjustment or doing the calculation of the adjustment.

reasonable details of the qualitative and quantitative methodologies applied in making the determination, including calculations and formulae;

the values adopted by the Authority for each of the input variables in calculations and formulae used, including the reasons for adopting those values;

reasonable details of other assumptions made by the Authority in the conduct of material quantitative and qualitative analyses undertaken in relation to the setting of a maximum revenue or a related matter;

reasons for material judgments and qualitative determinations made and options considered;

reasons for discretions exercised which materially affected the setting of maximum revenues in the determination.

provide a copy of the determination and report to the Minister and to the airport licensee concerned; and

publish on the Authority’s website or in such daily newspapers circulating in Singapore as the Authority considers appropriate notice of the making of the determination.

the Authority shall, as soon as is reasonably practicable —

notify, in such form and manner and in such detail as the Authority considers appropriate, the designated airport users who had made comments under rule 21 at the inquiry leading to that determination; and

provide without charge to the Minister a copy of its notice under sub-paragraph (i) to the designated airport users; and

the airport licensee concerned shall prepare a statement setting out the details of every fee and charge it proposes to impose in respect of each type of aeronautical service or facility to be provided in relation to the airport in that regulatory period.

provide a copy of the statement to the Authority and to the Minister; and

make copies of the statement, in both electronic and printed form, available free of charge to the designated airport users for that regulatory period,at least 3 months (or such period as the Chief Executive may allow in any particular case) before any fee or charge in that statement takes effect.