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)

Definitions

Airport means State Enterprise “Danylo Halytskyi International Airport “Lviv”.

Lviv Airport means a complex of facilities intended for aircraft reception, departure and maintenance of air transportation, which has for this purpose an aerodrome, other ground facilities and necessary equipment that are under the economic control or use of State Enterprise “Danylo Halytskyi International Airport “Lviv”.

Airport charges means the fee that includes take-off and landing fee, passenger fee and aviation security fee.

Aircraft ground handling means a complex of ground handling services for aircrafts.

Passenger handling means a complex of services provided when handling passengers and their luggage.

Airline means a legal entity that concludes with the Airport IATA Standard Ground Handling Agreement (Simplified Procedure) in order to operate flights from Lviv Airport.

Aviation Carrier (or Air carrier) is an organization transporting passengers, baggage, cargo and mail by an air transport.

Baggage means objects, property and other personal property of a passenger that is carried on an aircraft.

Cargo means any property carried on board except mail, supplies and baggage carried in accordance with the baggage receipt.

Passenger means an person who is carried on an aircraft with the consent of the air carrier in accordance with the contract of carriage, except for crew members and additional specialists on board, employees of the aircraft operator, authorized representative of the relevant national regulatory authority and persons accompanying cargo.

Scheduled flight means a flight that is a part of a series of flights related to the carriage of passengers, cargo and mail, which is available for a general chargeable usage and operated according to an officially approved timetable between the same two or more points, regardless of commercial load. Scheduled flights include the approved scheduled flights of this series, operated by the same carrier.

New scheduled route means a scheduled (scheduled) flight that was not performed between Lviv airport and another airport on a year-round basis during the last 12 calendar months by any airline.

If the Airline starts operating a new scheduled route, within 6 months from the date of its performance another Airline has the right to operate this route and obtain a discount in accordance with the discount criteria described in this Regulation, taking into acount the restrictions specified in another criteria of this Regulation. 

New airline means the airline that has not operated flights to/from Lviv Airport.

Discount coefficient means the amount of the discount in absolute terms on airport charges, ground handling and passenger handling at the Airport.

Airport charges boundary rates means the charges approved by the Order of the Ministry of Transport and Communications of Ukraine No.433 dated 14 April, 2008.

Flight frequency means the number of flights operated by an airline on a specific scheduled route during the reporting period (week, month).

Charter flight (charter air service) means a non-scheduled air service performed on the basis of a charter agreement (chartering), under which the air carrier provides to the charterer or charterers for a fee the specified number of seats or the whole capacity of the aircraft for one or more flights for the transportation of passengers, cargo or mail specified by the charterer. Moreover, determining the number of charter flights performed, the following charter flights are taken into consideration:

- flights operated for the carriage of passengers and baggage;

- flights operated for the carriage of cargo and mail.

Spring-summer period (summer season) means the period from April 1 till September 30.

Autumn-winter period (winter season) means the period from October 1 till March 31.

Low-intensity route means the route that is served with flight frequency that does not exceed 2 flights per week (inclusively).

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 scheduled 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 scheduled 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 scheduled flights in the previous year.

In order to obtain the discount, the Airline should submit a written application on the letterhead according to the prescribed form (Annex 1) not later than 7 working days before the planned new scheduled flight operation date. Each new scheduled 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 scheduled 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 scheduled 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 scheduled 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 scheduled 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 scheduled route, which are to be applied from the first new scheduled flight operation date, to be signed. The specified Additional Agreement is prepared based on the decision on the first new scheduled flight and all subsequent new scheduled 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 scheduled 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.

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

Year, since the first new scheduled flight operation

                         Discount coefficient on airport charges*

Validity period

(months, since the commencement date of scheduled operations)

1st

                                                        0,2

1 - 12

2nd

                                                        0,3

13 - 24

3rd

                                                       0,4

25 - 36

* - discount can be applied to flights, which are not given any other discounts on airport charges, indicated in paragraph 2 of the Regulations.

In order to obtain the discount, the Airline should submit a written application on the letterhead according to the prescribed form (Annex 1) not later than 7 working days before the planned new scheduled flight operation date. Each new scheduled 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 scheduled 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 scheduled route within 6 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).

On the basis of the written decision on application of discounts on aircraft ground handling and passenger handling for a new scheduled 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 scheduled route, which are to be applied from the first new scheduled flight operation date, to be signed. The specified Additional Agreement is prepared based on the decision on the first new scheduled flight and all subsequent new scheduled 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 of the Regulations, the Airport sends Additional Agreement to the contract on applying discounts on airport charges not later than 2 working days before the flight commencement date.

 2.4 Maximum discount coefficients on each flight that exceedthe defined number of frequencies: the frequency of more than 80 scheduled flights per month during summer season and 60 scheduled 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) scheduled flights during the reporting month it is necessary to sum up international and domestic scheduled departed flights.

In order to obtain the discount, the Airline, planning to operate scheduled flights with the determined frequency in the reported month, should submit the application form (Annex 3) not later than 6 working days of the reported month (inclusive), indicating the following information:

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

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

- approximate minimum 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 scheduled flights not later than 5 working days after having received the Airline's Application.

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

2.6 Maximum discounts on airport charges, offered in case the Airline operates 35 (inclusive) or more charter flights during one calendar month (reporting month), are the following:

Number of flights* operated during 1 calendar (reporting) month

Discount coefficient on airport charges**

Validity period

35-44

0,90

reporting month

45-49

0,85

 reporting month

50 and more

0,70

 reporting month

* - discount can be applied to flights, which are not given any other discounts on airport charges, indicated in paragraph 2 of the Regulations;

** - the discounts on airport charges are offered from the first charter flight in case the Airline operates 35 (inclusive) or more flights during one calendar (reporting) month.

The number of flights performed by the Airline during the reporting month means the total number of charter flights operated during this month (in fact). In case the arrival occurs in the reporting month and the departure in the month following the reporting one, the flight refers to the month following the reporting one.

In order to obtain the discount on airport charges in the month that follows the reporting one (planning the charter flights operation, indicating the total number of charter flights in the reporting month), the Airline should submit a written application on the letterhead according to the prescribed form (Annex 9) no later than the sixth day of the month that follows the reporting one.

In case the Airline operates the sufficient number of flights to obtain the discount, starting from the last day of the reporting month, the provided services recording group of the airport’s central dispatching office prepares forms "C" for the reporting month and applies the corresponding discount to the airport charges for all charter flights, operated during the reporting month and covered by paragraph 2.6 of the Regulations. In case the difference appears between the amounts actually paid for airport services for charter flights that were performed during the reporting month and the amounts indicated in forms "C" after their correction, such difference is an overpayment for airport services and is used as a prepayment for future flights.

If the differences appear between the procedure of preparing forms "C", established by the terms of the contract, and the procedure established by this paragraph, the provisions of this paragraph of the Regulations shall apply. Applying for discounts, the Airline agrees to the terms of this paragraph of the Regulations.

2.7 Maximum discount coefficients, offered for the Airline that operates scheduled flights on a low-intensity route (with flight frequency up to 2 flights per week (inclusively)*, in case the Airline increases the total scheduled flight frequency (per week), except the flights to the United States of America, Canada, Thailand and China:

 

Discount coefficient**

Validity period

(months, since the first scheduled flight commencement date on the route that experiences total flight frequency increase)

0,70

6

*- scheduled flight frequency per week is the balance between the number of the operated scheduled flights of all Airlines on the route during the period of 12 months before the Airline submitted the Application and the number of week during this period (12 months).

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

In order to obtain the discount, the Airline should submit a written application on the letterhead according to the prescribed form (Annex 11) not later than 15 days before the planned scheduled flight increase commencement date.

The Airport checks whether the scheduled flight frequency on the route has not exceeded 2 flights per week. The Airlines that operate flights on the route and the initiating Airline are informed about the ability to obtain the discount during 2 days after the decision has been made. If the Airlines that are not the initiating ones and want to join the program, they  should submit a written application on the letterhead according to the prescribed form (Annex 11) during 5 days after they have received the information from the Airport.

2.8 New volume-based incentive program - Maximum discounts on airport charges, offered in case the Airline carried 55 000 and more passengers on international scheduled flights during one calendar (reporting) year, except the flights to the United States of America, Canada, Thailand and China, are the following:

 

 

Annual departed PAX (‘000)

Validity period

 (year, since the first international scheduled flight operation date according to the new program)

Year 1

Year 2

55,000 – 84,999

0,95

0,95

85,000 – 99,999

0,70

0,70

100,000 – 109,999

0,60

0,60

110,000 – 114,999

0,50

0,50

115,000 – 119,999

0,40

0,40

120,000 and more

0,20

0,20

-  year means the 12-month period since the commencement of the first scheduled flight according to the new program.

- discount can be applied to flights, which are not given any other discounts on airport charges described in paragraph 2 of the Regulations. In case the Airline is given the other discounts described in Paragraph 2 and wants to obtain the discount described in 2.8, it is possible to change the current discount for the one of Paragraph 2.8 since the date of application.

- the annual departed PAX figure includes both the PAX carried by the Airline and the ones carried by the airlines and/or its subsidiaries and /or groups of companies which are owned by the Company (100% ownership).

The annual departed PAX figure during the reporting year includes the actual departed PAX carried by the Airline (including the PAX carried by the airlines and/or its subsidiaries and/or groups of companies, which are owned by the Airline (100% ownership) on all international scheduled flights during 12 months that precede the month when the application has been made. 

The discount ratio on the second year of the program depends on the number of departed PAX by the Airline (including PAX carried by the airlines and/or its subsidiaries and/or groups of companies, which are owned by the Airline (100% ownership) during the first year of the program. 

This program does not apply to the routes reserved for airlines as new scheduled flights.

In order to obtain the discount, the Airline should submit a written application on the letterhead according to the prescribed form (Annex 13).

If the Airline adds to the program scheduled flights on the routes that were not mentioned in the previous application (applications), the Airline should apply to the Airport with the appropriate additional request (Annex 13) and in accordance with the procedure specified in this Paragraph. In this case, the Airport shall consider the application and take the appropriate decision according to this Paragraph, and no Additional Agreements on applying discounts should be signed.

If the request submitted by the Airline according to this Paragraph specifies routes, reserved by the airlines as new scheduled flights, such request should not be satisfied, and the Airport should inform the Airline about the decision.

2.9 Maximum discount coefficients on airport charges, offered to encourage airlines to resume scheduled air operations:

Discount coefficient on airport charges*

Validity period

0,5

Till September 30, 2020

* - discount can be applied to flights, which are not given any other discounts on airport charges, indicated in paragraph 2 of the Regulations;

In order to obtain the discount, the Airline should submit a written application on the letterhead according to the prescribed form (Annex 15).

 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 scheduled 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 scheduled 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 a written application on the letterhead according to the prescribed form (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 scheduled flights per week
Discount coefficient on grount handling of additional flights*
Validity period(months, since the commencement date of additional 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 scheduled 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 a written application on the letterhead according to the prescribed 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 scheduled 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

* - minimum quantity of operated flights per 1 (reported) month that is necessary to obtaint the discount. In February, the above-mentioned figure amounts to the number of days of the month, that is 28 (29).

** - 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 in the month that follows the reporting one, the Airline should submit a written application on the letterhead according to the prescribed form (Annex 7) no later than the sixth day of the month that follows the reporting one, indicating the number of flights operated during the reporting month (not less than 30*), 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, the Airline should submit a written application on the letterhead according to the prescribed form (Annex 7) no later than the sixth 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 scheduled 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 scheduled 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 scheduled flights operated by the respective airline during the validity period of the discount (1-5 year since the commencement of the first new scheduled flight by a respective airline).

In order to obtain the discount, the Airline should submit a written application on the letterhead according to the prescribed form (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 scheduled 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 scheduled route except the flights to the United States of America, Canada, Thailand and China: 

The number of new scheduled flights which are operated simultaneously *

 Validity period of discount on aircraft ground handling and passenger handling

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

Year 1

Year 2

Year 3

1 new scheduled flight

0,3

0,5

0,7

2-3 new scheduled flight s

0,2

0,3

0,5

4 and more new scheduled 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 scheduled 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 scheduled 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 a written application on the letterhead according to the prescribed form (Annex 1) not later than 7 working days before the first new scheduled flight planned operation date. Each new scheduled flight requires separate application for discount. The Airline should necessarily indicate the following information concerning the new scheduled flight which his to be operated from the Airport:

-          planned (actual) date of the official announcement about the launching of the new scheduled 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 scheduled 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 scheduled 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 scheduled 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 scheduled route, which are to be applied from the first new scheduled flight operation date, to be signed. The specified Additional Agreement is prepared based on the decision on the first new scheduled flight and all subsequent new scheduled 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 scheduled route not later than 2 working days before the first new scheduled flight operation 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.

3.8.1 Maximum discount coefficients on aircraft ground handling and passenger handling, offered in case the Airline initiates a new scheduled route, except the flights to the United States of America, Canada, Thailand and China:

Year, since the first new scheduled flight operation

Discount coefficient on aircraft GH and PAX handling*

Validity period

(months, since the commencement date of scheduled operations)

1st

0,2

1 - 12

2nd

0,3

13 - 24

3rd

0,4

25 - 36

* - 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 order to obtain the discount, the Airline should submit a written application on the letterhead according to the prescribed form (Annex 1) not later than 7 working days before the planned new scheduled flight operation date. Each new scheduled 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 scheduled 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.

On the basis of the written decision on application of discounts on aircraft ground handling and passenger handling for a new scheduled 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 scheduled route, which are to be applied from the first new scheduled flight operation date, to be signed. The specified Additional Agreement is prepared based on the decision on the first new scheduled flight and all subsequent new scheduled 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 of the Regulations, the Airport sends Additional Agreement to the contract on applying discounts on airport charges not later than 2 working days before the flight commencement date.

3.9. 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 (if the airline opens not less than 5 new scheduled routes during two months):

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

0,1

0,4

0,5

-

-

15,000-24,999

0,1

0,1

0,5

0,7

0,8

25,000-34,999

0,1

0,1

0,4

0,6

0,7

35,000-49,999

0,1

0,1

0,1

0,5

0,6

50,000-64,999

0,1

0,1

0,1

0,4

0,5

65,000-84,999

0,1

0,1

0,1

0,1

0,1

85,000+

0,1

0,1

0,1

0,1

0,1

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

** - discount on aircraft ground handling and passenger handling can be applied to flights which are not given any discounts described in the Paragraph 3 of the Regulations.

N.B. The discount rate of the first year of operating new scheduled flights is 0,1 regardless the departing PAX figure. The discount rate of the consequent years depends on the total number of departing passengers carried on all new scheduled flights in the previous year.

In order to obtain the discount for five or more new scheduled flights, the Airline should submit the application form (Annex 1) not later than 7 working days before the planned new scheduled flight operation date. Each new scheduled 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 scheduled 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;

-          approximate average reduced ticket price, including the discount.

The airline must start to operate a new scheduled 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 scheduled 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 scheduled 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 scheduled route, which are to be applied from the first new scheduled flight operation date, to be signed. The specified Additional Agreement is prepared based on the decision on the first new scheduled flight and all subsequent new scheduled 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 applies the discount.

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.

3.10 Maximum discount coefficients on aircraft ground handling and passenger handling, offered for the Airline that operates scheduled flights on a low-intensity route (with flight frequency up to 2 flights per week (inclusively)*, in case the Airline increases the total scheduled flight frequency (per week), except the flights to the United States of America, Canada, Thailand and China:

 

Discount coefficient**

Validity period

(months, since the first scheduled flight commencement date on the route that experiences total flight frequency increase)

0,50

6

*- scheduled flight frequency per week is the balance between the number of the operated scheduled flights of all Airlines on the route during the period of 12 months before the Airline submitted the Application and the number of week during this period (12 months).

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

In order to obtain the discount, the Airline should submit a written application on the letterhead according to the prescribed form (Annex 11) not later than 15 days before the planned scheduled flight increase commencement date.

The Airport checks whether the scheduled flight frequency on the route has not exceeded 2 flights per week. The Airlines that operate flights on the route and the initiating Airline are informed about the ability to obtain the discount during 2 days after the decision has been made. If the Airlines that are not the initiating ones and want to join the program, they are to submit the Application (Annex 11) during 5 days after they have received the information from the Airport.

3.11 Maximum discounts on aircraft ground handling and passenger handling, offered in case the Airline carried 55 000 and more passengers on international scheduled flights during one calendar (reporting) year, except the flights to the United States of America, Canada, Thailand and China, are the following:

 

Annual departed PAX (‘000)

Validity period

 (year, since the first international scheduled flight operation date according to the new program)

Year 1

Year 2

55,000 – 84,999

0,9

0,9

85,000 – 99,999

0,8

0,8

100,000 – 109,999

0,7

0,7

110,000 – 114,999

0,6

0,6

115,000 – 119,999

0,5

0,5

120,000 and more

0,1

0,1

 -  year means the 12-month period since the commencement of the first scheduled flight according to the new program

- discount can be applied to flights, which are not given any other discounts on aircraft ground handling and passenger handling described in paragraph 3 of the Regulations. In case the Airline is given the other discounts described in Paragraph 3 and wants to obtain the discount described in 3.11, it is possible to change the current discount for the one of Paragraph 3.11 since the date of application.

- the annual departed PAX figure includes both the PAX carried by the Airline and the ones carried by the airlines and/or its subsidiaries and /or groups of companies which are owned by the Company (100% ownership).

The annual departed PAX figure during the reporting year includes the actual departed PAX carried by the Airline (including the PAX carried by the airlines and/or its subsidiaries and/or groups of companies, which are owned by the Airline (100% ownership) on all international scheduled flights during 12 months that precede the month when the application has been made.

The discount ratio on the second year of the program depends on the number of departed PAX by the Airline (including PAX carried by the airlines and/or its subsidiaries and/or groups of companies, which are owned by the Airline (100% ownership) during the first year of the program. 

This program does not apply to the routes reserved for airlines as new scheduled flights.

In order to obtain the discount, the Airline should submit a written application on the letterhead according to the prescribed form (Annex 13).

If the Airline adds to the program scheduled flights on the routes that were not mentioned in the previous application (applications), the Airline should apply to the Airport with the appropriate additional request (Annex 13) and in accordance with the procedure specified in this Paragraph. In this case, the Airport shall consider the application and take the appropriate decision according to this Paragraph, and no Additional Agreements on applying discounts should be signed.

If the request submitted by the Airline according to this Paragraph specifies routes, reserved by the airlines as new scheduled flights, such request should not be satisfied, and the Airport should inform the Airline about the decision.

3.12 Maximum discount coefficients on aircraft ground handling and passenger handling, offered to encourage airlines to resume scheduled passenger air operations:

Discount coefficient on ground handling and passenger handling *

Validity period

0,5

Till September 30, 2020

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

In order to obtain the discount, the Airline should submit a written application on the letterhead according to the prescribed form (Annex 15).

 Concluding comments

4.1. 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.

4.2. 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.

4.3. In case an airline violates its obligations during the period of discounts on airport charges, ground handling and passenger handling, 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. If the written notification is properly sent by the Airport (courier service or postal facilities to the Airline's location, by e-mail or fax, as provided in the IATA Standard Ground Gandling Agreement (simplified procedure) but the Airline does not receive it, the decision to abolish the discount support is not reversed.

4.4. In case the Airline, having received the discounts, has not started operating new or additional scheduled flights within 60 calendar days from the planned new scheduled flight operation date, indicated in the respective Application, the discounts is cancelled.

4.5. If the Airline operates only one segment indicated in the flight route application (due to force majeure, meteorological conditions, technical and other objective reasons), the discounts on airport charges, ground handling and passenger handling are also applied to the operated segment, and the latter is taken into account when determining the total number of flights operated by the Airline and the number of passengers carried.

4.6. In case the Airline (main Airline):

1) is registered in the European Union,

2) has started the operation of new scheduled flights from Lviv to the airports of the United Kingdom (and in the opposite direction), and ), and the discounts on airport charges, ground handling and passenger handling are given in accordance with the application submitted by the Airline and the decision taken by the Airport,

3) in regard with the planned exit of the UK from the European Union, ceases to operate flights from Lviv to the airports of the United Kingdom (and in the opposite direction), and in the future such flights will be operated by the Airline registered in the United Kingdom and associated with the main Airline,

the above-mentioned flights are taken into account when determining the total number of flights operated by the main Airline and the number of passengers carried. At the same time, the ground handling of flight of the Airline registered in the United Kingdom and connected with the main Airline and payment for such service are carried out under the terms of an agreement concluded with the main Airline.

To include the total number of flights operated and passengers carried by the Airline registered in the United Kingdom and associated with the Main Airline into the total number of flights and passengers of the Main Airline, registered in the European Union with which the relevant agreement is concluded, the main Airline shall submit a new application (Annex 1), including the information about the Airline registered in the United Kingdom and associated with the Main Airline.

4.8. This Regulation does not apply to aircrafts that make a technical landing, as well as the aircraft that performs test, training, probationary, technical flights. 

4.9 In case the Airline has not been operating scheduled flights on a specified route for 6 months, the Airport shall be entitled to unilaterally suspend the application of the discounts on airport charges and/or aircraft ground handling and/or passenger handling for this route.