Category No. Question CAM s Response RFP & Minimum Requirements. 1 Are any current operators or services providers of MIA
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1 The following is issued on 11 July 2017 in pursuance of Section II, point 21, of the Request for Proposals (RFP) (dated 24 May 2017) for a Fixed Base Operation for the Provision of FBO Services at Macau International Airport: Category No. Question CAM s Response RFP & Minimum Requirements 1 Are any current operators or services providers of MIA excluded from the RFP? Please refer to RFP, particularly Section II, point 3 Minimum Qualification (page 11). For the avoidance of doubt, the respective existing subconcessionaires of FBO and MRO services provided to Business/General Aviation and ground handling services provided to airlines are excluded from the present RFP. 2 Do we need written approval before submission of RFP for any specific sub contracted services such as line maintenance? No such written approval is to be given before the submission of proposal. 3 Is the letter from insurance required for submission of response to RFP? The successful proponent shall provide CAM with the updated insurance policies and receipts complying with all the insurance requirements before commencing operation. 4 How do we show evidence of compliance with labor law of Macao SAR with respect to employee compensation at submission of response? Is this required or does commitment suffice? This is the obligation for all services providers in Macau International Airport. The proponents have to make commitment to comply with the law and regulations of Macao SAR (including labor law). For the labor law, please refer to the following Macao Government website. 1
2 5 Is it acceptable for several individual companies to form a special purpose company for the sole purpose of performing the FBO Services contract? Does the company have to be established in Macao or is another jurisdiction acceptable? Please refer to the RFP, Section II, point 3. Furthermore, the Proposed Contracting Company, whether established in Macao or in another jurisdiction, will be required to register at the Commercial and Movable Property Registry of Macao before it may enter into the Subconcession Contract. 6 May we know the duration of the tender evaluation process? The duration of proposal evaluation process depends on actual circumstances, it is expected to be completed as soon as possible. Sub concession 7 Will there be another public tender for request of proposal when the existing concession expires? At the end of the sub concession contract after 6 years, will there be an option or priority for the concessionaire to negotiate an extension? What would be the assessment criteria for extension? CAM reserves the right to make any decision at its sole discretion. 8 Will there be any additional FBO sub concession licences issued in addition to this sub concession and the existing FBO during the 6 year term? Does CAM have any set plans to introduce additional FBO concessionaires in future? The operation models in future will be subject to the market conditions. We do not have any plan of introducing the 3rd FBO at this moment. 2
3 9 Would both existing operator have the same and fair treatment in the agreement terms? (e.g. duration of CAM has no intention to create an unfair environment which hampers competition. agreement) 10 Can CAM provide a draft template of the anticipated Subconcession Contract? A draft contract will only be provided to the successful proponent. Legal 11 Is there any employee policy (foreign vs local employee ratio) of the FBO operation company in Macao? For information in regard of labor policy, please refer to the following Macao Government website. Statistics/Forecast 12 Can CAM provide details on individual movements for the last three to five years? If possible, please also provide the Please see page 13 to 15 of this Q&A list. ICAO Reference Code breakdowns similar to Page 7 of the RFP document. 13 Can we get the CPI rate that is recorded by CAM for 2016 and YTD 2017? For information in regard of the CPI rate, please refer to the following Macao Government website How would be the expansion plan of MIA for Business Aviation, other than existing and 2 nd FBO and hangar area? If yes, any time frame for this? There are 15 stands designated for business jet at apron currently. The airport master plan of MIA reserves reasonable space for the future development of Business/General Aviation in MIA. 3
4 FBO Services/Operation 15 Are there any slot limitations or other operational restrictions that would inhibit the operation of business aircraft? If no such operational restrictions for business aircraft are in place today, does CAM anticipate a need for such restrictions might arise in future? The positioning of the Macau International Airport is multi functional small and medium sized International Airport. Simultaneously developing legacy carriers, Low cost carriers, Cargo Freighter and Business aviation is and will be future direction of Macau International Airport. 16 Are there any limitation on the FBO s ability to provide MRO services beyond minor aircraft line maintenance services? In general, FBO has no right to provide MRO services beyond the minor aircraft line maintenance services listed in the MIA Minimum Requirements for FBO. If FBO intends to provide a maintenance product/service which is not listed in the Minimum Requirements, the FBO has to apply for approval from CAM. 17 The service provision is required 24 hours per day. Does this require staff onsite even during periods where no handling is required? Yes. For details please refer to the Minimum Requirements, page 16, point 6 Minimum Staffing Requirements. 18 What additional line maintenance approvals will be required from CAM for line maintenance? When FBO intends to provide the line maintenance product/service which is not listed in the Minimum Requirements, the FBO has to apply for approval from CAM. Please note that the list of minor line maintenance services stated in the Minimum Requirements may be updated and amended by CAM to take into account the market demand of business aviation environment of MIA. 4
5 19 Is the FBO able to act as a fuel reseller? Are fuel suppliers on the airport limited in any way? Are there restrictions or rules applicable to fueling services? Are fueling services to be obtained exclusively from anyone? What is the current cost of fuel? How many fuel vendors currently? Any restriction to introduce new vendor? Is there underground fuel tank available? Nam Kwong Petroleum & Chemicals Co., Ltd is currently the sole company which has been granted the right to act as aviation fuel supplier in Macau International Airport. 20 How the CIQ logistics is arranged at the FBO building? Can immigration officers check and chop the passenger s passport in advance while he/she is waiting at the lounge on the 2rd floor to take off? It is not allowed under normal circumstances. 21 As the FBO operator is required to have the capability and facilities set up to provide line maintenance works, where such works can be conducted given the assigned hangar space and height is so limited? Please refer to the Minimum Requirements, page 12, point 1 vi, that the line maintenance service need to be provided in the parking stands designated to handle Business/General Aviation. 22 Is there any assigned space for FBO operators to conduct the exterior aircraft washing works? Can the aircraft cleaning work be done on the ramp area? If yes where is the location? There is designated area on stand of Apron with LVPG station for exterior aircraft washing works, subject to prior co ordination and approval from the Airport Management Company (ADA). 5
6 23 Can all types of aircraft taxi between the runway and the ramp area? What specific aircraft types are required Please refer to Macao AIP for details at towing? What is the existing rules on the airport? Security & Safety 24 What is the cost of CIQ (if any) and Security services? Is there a cost for security screening etc. on ground floor or is this part of concession commission or charged separately and passed onto the end client? Does SEMAC anticipate a need for capital expenditures to replace my major security equipment? The FBO shall, at its own expense, contract the security company authorized to provide security service at the Macau International Airport (currently SEMAC ) for the latter to implement the applicable security measures, particularly security screening. (See Section III, point 8, of the RFP page 21) 25 The Security and Safety Mandate details penalties and fines are in place to encourage the Quality and Safety goals. Can you please provide the fine structure and values? Can we obtain a copy of the Security and Safety Manuals of AACM & airport and other governmental & admin rules? This reimbursement provision is for the purpose of compensating CAM for penalties incurred thereby (if any) due to FBO s misconduct or failures to fulfil obligations, as imposed by the public authorities in accordance with the applicable laws and regulations. The Airport Security and Safety Manuals will be provided to the successful proponent. Bank Guarantee & Costing & Pricing 26 How will CAM determine the amount of the bank guarantee? What is the procedure to determine this amount? How is performance of the sub concessionaire determined? What penalties are envisaged? What method of review will be implemented? The bank guarantee amount will be determined with the financial proposal and projection submitted by the proponents taken into account. CAM will negotiate with the successful proponent to determine a reasonable and mutually agreed amount of bank guarantee. 6
7 27 What is the validity period for bank guarantee? The bank guarantee shall remain valid throughout the term of the sub concession contract and through to at least 30 days after the reversion of the FBO s premises to CAM. 28 Are all airport fees and charges pass through costs? Will the sub concessionaire be responsible for collecting all airport fees and under what terms for transfer to CAM? Please refer to the Minimum Requirements, page 17, FBO is responsible to collect landing fee, parking fee, passenger fee and so forth being approved by relevant authorities on behalf of CAM. CAM will bill FBO directly for settlement of all such airport charges incurred by clients being handled by FBO. 29 Are the prices currently imposed by the existing FBO set by CAM? Can the second FBO set its own independent prices? Is there any need for CAM to approve each FBO service charge for 2nd FBO operator? The successful proponent shall be responsible for setting the prices of its services in compliance with normal market rule to ensure the competitiveness of Macau International Airport. 30 Can you please provide details on any additional utilities costs not covered by the management fees? The management fees only cover the water and electricity fees, and cleaning of the common areas (if any), in the spaces/facilities made available to the successful proponent in the FBO Building (Second Floor) and the Half of Hangar associated with FBO Building (See Section I, point 3, of RFP). Other utilities costs generated from the provision of services are not covered. 7
8 31 The minimum 6% commission rate payable to CAM is based on the Total Sales figure. Is this % also applicable to include any 3rd parties charges /fees received on behalf of CAM/other authorities? How much % the FBO will need to pay to the airport authority in terms of the 3rd party services engaged? The commission is charged on the total sales, recorded in accordance to the applicable accounting standards under Macao laws and regulations, of the FBO. Airport charges collected on behalf of CAM or 3 rd parties charges, etc., which is not recognized as sales of the FBO, will not be subjected to commission. Should the 3 rd party services engaged is recognized as sales, the commission rate will be applied. 32 As the FBO is required to operate 24 hour every day, please provide the Macao benchmark electricity costs (airconditioning/ lighting in FBO building and associated hangar) to support such types of operations? The Management Fees paid to CAM already includes the water and electricity fees, and the cleaning of common areas (if any). For details please refer to the RFP, Section I (page 9). 33 What is the payment term of Property Usage fee from CAM? The payment term of the Property Usage fee will be in accordance to the sub concession contract which is billed to FBO on a monthly basis. 34 Apart from the areas mentioned in Table 2, are there other facilities (e.g. ground floor common area, apron) that require rental payment or need to be shared with the existing FBO? The subconcessionaire does not need to pay property usage fee (including Occupancy fee & Management fee) for the common area in the FBO Building shared and used by both FBOs. 8
9 35 Just to clarify on Total sales under financial proposal, does it include all of the following items: Fuel, movementbased revenue (aircraft handling, custom/immigration tax/towing/catering), hangar rental Office/car park rental, hangar short stay rental and apron parking? If not, what is the revenue sharing model? Total sales represent sales of the FBO recorded in accordance to the applicable accounting standards under Macao laws and regulations. Aircraft Parking 36 How many parking spaces are available and allocated for business jets at the hangar and apron area respectively. How are these parking spaces allocated between the two FBO operators in terms of numbers, location, access and priority? Is it on first come first serve basis or in advance allocation? What overflow space is available for business aircraft? Currently there are 22 regular aircraft parking stands for commercial airlines and 15 parking stands dedicated for Business/General Aviation subject to availability and size of aircraft. Parking stands dedicated for Business/General Aviation will be assigned by ADA to both FBOs on firstcome first serve basis. In order to maximize the apron usage, Business/General Aviation aircraft are allowed to utilize the commercial aircraft parking stands depending on slot s availability. 37 How is the current slot allocation mechanism? How will CAM remain neutral to providing the FBO s with equitable apron parking? How can CAM remain neutral with respect to driving traffic to its own business entities and preferential allocation of parking bays and slots? CAM is a neutral organization in charge of airport development, financing, and marketing, while ADA Administration of Airports is a wholly owned subsidiary of CAM, which engaged in the areas of Airport Operations, Air Traffic Control, Terminal Management and Facilities & Maintenance Management. Parking stands and slots will be assigned by ADA to both FBOs on first come first serve basis. 9
10 38 Does the sub concessionaire has right to propose to the airport authority to re align parking area in accordance with international standard? CAM welcomes any service providers in Macau International Airport to give recommendations and advice in optimizing the service and infrastructure of MIA and implementation depends on the actual conditions and approval by relevant governmental departments, if necessary. FBO Premises 39 Can the sub concessionaire lend out space to the third parties who are our service providers? It can be discussed during contract negotiation, as long as CAM deems it appropriate. 40 If all aircraft maintenance services are sub contracted are we still required to rent hangar and shop space? Yes. 41 For the 15 car parks allocated, is it allocated on fixed car park number? I.e. car park number X to Y is allocated to the Sub concessionaire. Please refer to the RFP, page 10, Annex to Section I. Renovation 42 Are there any and if so where are the available spaces for company signage outside and inside of the FBO building? Is there any restriction or requirements for the new logo position on the FBO building of the eventual subconcessionaire? It can be discussed during contract negotiation, as long as CAM deems it appropriate. 10
11 43 What is the scope of allowable renovation? What will be required permission for the 2nd floor refurbishment? Any constraints to reconstruct the current fixtures and fitting? The successful proponent can renovate the site according to their own needs, on the condition that the renovation plan shall be submitted for and subject to CAM s approval. 44 The hangar is too small to hanger the most common visiting business jets to MIA. Is there any plan to modify the hangar to make it more useful? We do not have plan to modify the hangar at this stage. 45 Can CAM provide a CAT floor plan allowing the proponents to have enough knowledge on how the 2 nd floor rental premises can be designed? Alternatively, please indicate the core structure of 2 nd floor regarding which existing wall/rooms cannot be changed/modified/demolished? The building was built a long time ago and there are no CAD drawings for it. Please find the attached as built layout plan and structure drawing of the 2 nd floor for reference. The actual condition should refer to the site condition. 46 Will the use of the elevator and the pathway leading to the 2 nd floor of the FBO building be exclusive for the subconcessionaire taking up 2 nd floor of FBO building? Can the lift lobby be renovated, say as reception area or main entrance to the 2 nd floor? The elevator is designated to serve the 2nd floor of FBO building. The selected proponent can discuss with CAM on leasing elevator lobby as reception area during contract negotiation. Facilities & Equipment 47 Who will be responsible for repairs and maintenance of the facility including entrance and common areas? CAM will be responsible for carrying out major maintenance and upkeep of the exterior and structure initially built by CAM, entrance and common areas are included. 11
12 48 Where will ground support equipment be stored when not is use on the apron and is there a cost associated for this area? CAM and the successful proponent will work with ADA to designate space to park the said equipment and vehicles. Currently, there is no additional parking fee for equipment and vehicle parking on apron. 49 Any provision of equipment and vehicle parking in airside? What are the size and cost? What are the requirements for airside registration of vehicles? Is there a restriction on how many vehicles can operate airside? CAM will provide the requirement for airside registration of vehicles to successful proponent. 50 What is the requirements for the fire fighting equipment of the FBO building and hangar? Who will take the final responsibility for that? CAM will be responsible in maintenance the only existing fire fighting system for public use in Hangar and FBO building. The operator will be responsible for the firefighting equipment and fixture inside the rental area. All the fire fighting equipment should comply with the Fire Safety Ordinance of Macao. 51 How should the 2 nd FBO operator share the common facility and area (such as aircraft parking bay, car park, car drop off point, CIQ facility, etc.) with existing FBO operator)? What are the arrangement of rental terms, priority of usage, right to modify current design? All the facilities are shared and used on first come firstserve basis. 12
13 CAM s Response for Question 12: Annual Business Jet movements
14 MIA business Jet Passenger
15 Distribution of Business Aviation Traffic by Manufacturer: Jan - Dec 2016 Gulfstream 30.03% Bombardier 26.84% Hawker 2.53% Dassault 6.33% Airbus 2.45% Boeing 4.61% AgustaWestland 18.31% Others 8.90% Total % Business Jet movement of 2016 by ICAO aircraft type Business Jet proportion by Manufacturer. Reminder: The historical and forecast (if any) statistics and information presented in this document are for information only. CAM does not in any way assume any responsibility whatsoever for the completeness and accuracy of the statistics and information as they are for information purposes only subject to deviation, and are not guaranteed or warranted in any way. All proponents should conduct their own due diligence and make such investigation and inquiries as they consider necessary for the purpose of submitting a proposal. In particular, Proponents are cautioned that the global airline and business/general aviation industry continues to experience significant changes. Proponents should take this into consideration when evaluating the estimates and business opportunity provided herein. 15
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