Discounts

Discounts on airport charges, ground handling and passenger handling at Danylo Halytskyi International Airport “Lviv” (according to Order No. 229 dated May 18, 2016)

Regulations on Application of Discounts on Airport Charges, Ground Handling and Passenger Handling Fees (Extract)

2. Discounts on airport charges

2.3.1. Maximum discount coefficients, offered in case the Airline initiates a new scheduled route except the flights to the United States of America, Canada, Thailand and China:

 
Annual departing PAX ('000)*
Validity period (year, since the first flight operation date)**
Year 1
Year 2
Year 3
Year 4
Year 5

0-14,999

0,2

0,4

0,5

-

-

15,000-24,999

0,2

0,4

0,5

0,7

0,8

25,000-34,999

0,2

0,2

0,4

0,6

0,7

35,000-49,999

0,2

0,2

0,2

0,5

0,6

50,000-64,999

0,2

0,2

0,2

0,4

0,5

65,000-84,999

0,2

0,2

0,2

0,2

0,4

85,000+

0,2

0,2

0,2

0,2

0,2

* - year means the 12-month period since the first new regular flight operation date.

** - discount on airport charges can be applied to flights which are not given any discounts described in the Paragraph 2 of the Regulations.

N.B. The discount rate of the first year of operating new regular flights is 0,2 regardless the departing PAX figure. The discount rate of the consequent years depends on the total number of departing passengers carried on all new regular flights in the previous year.

In order to obtain the discount, the Airline should submit the application form (Annex 1) not later than 7 working days before the planned new regular flight operation date. Each new regular flight requires separate application for discount. The airline should necessarily indicate the following information:

-          planned (actual) date of the official announcement about launching of the new regular route;

-          planned (actual) date of the start of ticket sale;

-          planned schedule, operating period and aircraft type;

-          planned load factor during each calendar year;

-          approximate average ticket price, excluding the discount on airport charges;

-          approximate average reduced ticket price, including the discount on airport charges.

The airline must start to operate a new regular route within 12 months either since the actual date of the official announcement about launching of the route or the actual date of the commencement of ticket sale (whichever event is the latter). After the official announcement about launching of the route and the start of ticket sale, the route becomes reserved by the Airline, and requests from other Airlines regarding the application of the incentive program to this route will not be granted. If the Airline ceases to sell tickets for a flight within the period either between the actual date of the official announcement about opening of the route or the actual date of commencement of the ticket sale (whichever event was the latter) and the date of the first new regular flight operation, the route ceases to be reserved by the Airline and becomes available for other Airlines on the day the ticket sale is stopped.

On the basis of the written decision on application of discounts on airport charges for a new regular route, that is approved by the General Director of the Airport, the Contractual Division prepares and sends the Airline the Additional Agreement on the application of discounts on airport charges for a new regular route, which are to be applied from the first new regular flight operation date, to be signed. The specified Additional Agreement is prepared based on the decision on the first new regular flight and all subsequent new regular flights join the incentive program in accordance with this Paragraph on the basis of relevant decisions without concluding Additional Agreements.

In case the Airline suits the requirements of this Paragraph, the Airport sends the Additional Agreement on applying discounts on airport charges not later than 2 working days before the planned new regular flight commencement date.

 2.4 Maximum discount coefficients on each flight that exceedthe defined number of frequencies: the frequency of more than 80 regular flights per month during summer season and 60 regular flights per month during winter season:

The increase of defined flight frequency Discount coefficient for additional flight* Validity period

+1 and more

0,2

Reporting month

* - discount can be applied to flights, which are not given discounts described in paragraph 2 of the Regulations.

To determine the number of operated (planned) regular flights during the reporting month it is necessary to sum up international and domestic regular departed flights.

In order to obtain the discount, the Airline should submit the application form (Annex 3) not later than 7 working days before the flight commencement date, indicating the following information:

- number of regular flights to operate (during the defined period);

- approximate average ticket price, excluding discount on airport charges;

- approximate average ticket price, including the discount on airport charges.

In case the Airline suits the requirements of the paragraph 2.4 of the Regulations, the Airport reports on agreement to apply discounts on additional regular flights not later than 5 working days after having received the Airline's Application.

If the actual number of regular operated flights differs from the one that has been indicated in the Application, the discounts are given on the actual number of regular operated flights that exceed the defined number of frequencies.

3. Discounts on ground handling and passenger handling

3.3 Maximum discounts on aircraft ground handling and passenger handling, given in case an Airline establishes a new scheduled route except the flights to the United States of America, Canada, Thailand and China:

Discount coefficient*
Validity period
(months, since the commencement date)
Flight frequency (per week)**

0,5

1-12

1-4

0,2

1-12

5 and more

* - discount can be applied to flights, which are not given any other discounts on aircraft ground handling and passenger handling, indicated in paragraph 3 of the Regulations;

** - in case of new regular route operation with frequency of up to 4 flights per week the discount on ground handling and passenger handling is 0,5; on each additional new regular flight with frequency exceeding 4 (5 and more flights per week) the discount on ground handling and passenger handling amounts to 0,2.

In order to obtain the discount, the Airline should submit the application (Annex 1) not later than 7 working days before the flight commencement date, indicating the following information:

- planned schedule, operating period and aircraft type;

- planned load factor during each calendar year;

- approximate average ticket price, excluding discount;

- approximate average ticket price, including the discount.

In case the Airline suits the requirements of the paragraph 3.3 of the Regulations, the Airport sends Additional Agreement to the contract on applying discounts on ground handling and passenger handling not later than 2 working days before the flight commencement date.

The provisions of this Paragraph shall be applied in case the relevant Additional Agreements have been concluded between the Airline and the Airport and during the period for which they have been concluded. New Additional Agreements in accordance with this Paragraph are not concluded and written requests from Airlines are not subject to review. The Airlines will be informed about this decision in the written form

3.4 Maximum discounts on aircraft ground handling services, allowed in case the Airline increases the defined number of frequencies:

The number of additional regular flights per week
Discount coefficient on grount handling of additional flights*
Validity period(months, since the commencement date of aadditional flights)

+1

0,7

12

+2 and more

0,5

12

* - discount can be applied to flights, which are not given any other discounts on aircraft ground handling according to paragraph 3 of the Regulations.

The basis for comparison is the maximum number of regular departed flights per week, operated during the same period (summer or winter) of the previous year.

In order to obtain the discount, the Airline should submit the application form (Annex 5) not later than 7 working days before the flight commencement date, indicating the following information:

- planned schedule, operating period and aircraft type;

- planned load factor during each calendar year;

- approximate average price, excluding discount;

- approximate average price, including the discount.

In case the Airline suits the requirements of the paragraph 3.4 of the Regulations, the Airport sends Additional Agreement to the contract on applying discounts on ground handling not later than 2 working days before the additional regular flight(s) commencement date.

 3.5 Maximum discounts on aircraft ground handling, given to the Airline which has operated 30 flights and more during 1 calendar month:

The number of flights operated during one calendar (reporting) month
Discount coefficient*
Validity period

30-39

0,7

During following calendar month

40-54

0,5

During following calendar month

55-64

0,4

During following calendar month

65 and more

0,3

During following calendar month

* - discount can be applied to flights, which are not given any other discounts on aircraft ground handling.

The total number of flights is the sum of scheduled and non-scheduled departed flights.

In order to obtain the discount the Airline should submit the application form (Annex 7) not later than the fifth day of the month that follows the reporting one, indicating the number of flights operated during the reporting month, which are not offered any other discounts on aircraft ground handling described in paragraph 3 of the Regulations.

In case the Airline suits the requirements of the paragraph 3.5 of the Regulations, the Airport reports on the agreement to apply discounts on ground handling during 5 working days after having received the Application.

 3.6 Maximum discounts on passenger handling, offered to the Airline that has carried 5,000 passengers and more during 1 calendar month:

The number of passengers carried during 1 calendar month
Discount coefficient*
Validity period

5 000-9 999

0,8

During following calendar month

10 000-14 999

0,7

During following calendar month

15 000 and more

0,5

During following calendar month

* - discount is applied to passengers carried on flights, which are not given any other discounts on passenger handling according to paragraph 3 of the Regulations.

The total number of passengers is the sum of passengers carried on both scheduled and non-scheduled flights.

In order to obtain the discount an airline should submit the application form (Annex 7) no later than the fifth day of the month that follows the reporting one, indicating the number of passengers handled during the reporting month, which are not offered any other discounts on passenger handling described in paragraph 3 of the Regulations.

In case the Airline suits the requirements of the paragraph 3.6 of the Regulations, the Airport reports on the agreement to apply discounts on passenger handling during 5 working days after having received the Application.

3.7. Maximum discounts on ground handling and passenger handling offered in case the new Airline (the Airline that has not operated regular flights to/from Danylo Halytskyi International Airport "Lviv") initiates a new scheduled route except the flights to the United States of America, Canada, Thailand and China:

Discount coefficient*
Validity period (years, since the flight commencement date)**

0,5

1-5

* - year means the 12-month period since the commencement of the new regular flight by the respective airline.

* - discount can be applied to flights, which are not given any other discounts on aircraft ground handling and passenger handling indicated in paragraph 3 of the Regulations. Discount is also applied to all new regular flights operated by the respective airline during the validity period of the discount (1-5 year since the commencement of the first new regular flight by a respective airline).

In order to obtain the discount on ground handling and passenger handling the Airline should submit the application (Annex 1) not later than 7 working days before the flight commencement date, indicating the following information:

- planned schedule, operating period and aircraft type;

- planned load factor during each calendar year;

- approximate average ticket price, excluding discount;

- approximate average ticket price, including the discount;

In case the Airline suits the requirements of the paragraph 3.7 of the Regulations, the Airport sends Additional Agreement on applying discounts on ground handling and passenger handling not later than 2 working days before the new regular flight commencement date.

The provisions of this Paragraph shall be applied in case the relevant Additional Agreements have been concluded between the Airline and the Airport and during the period for which they have been concluded. New Additional Agreements in accordance with this Paragraph are not concluded and written requests from Airlines are not subject to review. The Airlines will be informed about this decision in the written form.

3.8. Maximum discounts on aircraft ground handling and passenger handling, given in case an airline establishes a new regular route except the flights to the United States of America, Canada, Thailand and China: 

The number of new regular flights which are operated simultaneously *

 Validity period of discount on aircraft ground handling and passenger handling

(year, since the first new regular flight operation) **

Year 1

Year 2

Year 3

1 new regular flight

0,3

0,5

0,7

2-3 new regular flight s

0,2

0,3

0,5

4 and more new regular flights

0,1

0,2

0,3

* - the number of new scheduled flights which are operated simultaneously by one Airline since the first new scheduled flight operation date. In case the Carries temporarily suspends or cancels a new scheduled flight during the duration of the program, discount coefficients should be recalculated according to the actual number of flights that are being performed.

** - discount can be applied to flights, which are not given any other discounts on aircraft ground handling and passenger handling.

Example:
 
The airline plans to launch the following new regular routes:
-          01.09.17 route А
-          01.10.17 route B
-          11.10.17 route C
-          01.12.17 route D
Discounts on aircraft ground handling and passenger handling during the first year of flight operation (from 01.09.17 – the date of operation of the first new regular flight) are the following:
-          from 01.09.17 to 30.09.17 inclusively on route А the discount is 0,3
-          from 01.10.17 to 10.10.17 inclusively on routes А, B the discount is 0,2
-          from 11.10.17 to 30.11.17 inclusively on routes А, В, C the discount is 0,2
-          from 01.12.17 to 31.08.18 inclusively on routes А, B, C, D the discount is 0,1
-          from 01.09.18 to 31.08.19 inclusively on routes А, B, C, D the discount is 0,2
-          from 01.09.19 to 31.08.20 inclusively on routes А, B, C, D the discount is 0,3

In order to obtain the discount on aircraft ground handling and passenger handling the Airline should submit the application form (Annex 1) not later than 7 working days before the first new regular flight planned operation date. Each new regular flight requires separate application for discount. The Airline should necessarily indicate the following information concerning the new regular flight which his to be operated from the Airport:

-          planned (actual) date of the official announcement about the launching of the new regular route;

-          planned (actual) date of the start of ticket sale;

-          planned schedule, operating period and aircraft type;

-          planned load factor during each calendar year;

-          approximate minimum ticket price, excluding the discount on airport charges;

-          approximate minimum reduced ticket price, including the discount on airport charges.

The airline must start to operate a new regular route within 12 months either since the actual date of the official announcement about launching of the route or the actual date of the commencement of ticket sale (whichever event is the latter). After the official announcement about launching of the route and the start of ticket sale, the route becomes reserved by the Airline, and requests from other Airlines regarding the application of the incentive program to this route will not be granted.

If the Airline ceases to sell tickets for a flight within the period between either the actual date of the official announcement about the opening of the flight or the actual date of commencement of the ticket sales (whichever event was the latter) and the day of the first new regular flight operation, the route ceases to be reserved by the Airline and becomes available for other Airlines on the day the ticket sale is stopped.

On the basis of the written decision on application of discounts on aircraft ground handling and passenger handling for a new regular route, that is approved by the General Director of the Airport, the Contractual Division prepares and sends the Airline the Additional Agreement on the application of discounts on aircraft ground handling and passenger handling for a new regular route, which are to be applied from the first new regular flight operation date, to be signed. The specified Additional Agreement is prepared based on the decision on the first new regular flight and all subsequent new regular flights join the incentive program in accordance with this Paragraph on the basis of relevant decisions without concluding Additional Agreements.

In case the Airline suits the requirements of this Paragraph, the Airport sends Additional Agreement on applying discounts on aircraft ground handling and passenger handling for a new regular route not later than 2 working days before the first new regular flight operation date.

Concluding comments

1. Application forms for obtaining discounts as well as report on the number of flights and passengers which contain incomplete information will not be taken into consideration and the decision will be reported in the written form.

2. In case an airline has been offered discounts and has not started to operate new or additional scheduled flights within 60 calendar days, the incentive program is abolished.

3. In case an airline violates its obligations during discount period, has the past-due debts to the airport in accordance with the signed contracts, the airport has the right to unilaterally refuse an airline to offer discounts. The airport informs an airline thirty calendar days prior to the abolishment of discount support.

4. In case the norms of the Regulations contradict the norms of the current legislation of Ukraine, the latter are to be taken into consideration.