AIR INDIA CHARTERS LIMITED AICL INVITATION FOR DRY LEASE OF B737-800NG AIRCRAFT MUMBAI JAN 2014
INTRODUCTION Tender No.EY/ DRYLEASE/ 2014/ 1. AIR INDIA Air India is an international airline, fully owned by Government of India and is having its maintenance base in India. Air India s budget international airline, Air India charters Limited (AICL) under brand Air India Express, operates between Indian cities, Middle East and South East Asia. Air India has B747-400, B777-200LR, B777-300ER, B787, A330, A320 series and A310-300 aircraft in its fleet. Air India Express fleet consists of state of the art 17 owned B737-800 aircraft and 4 leased aircraft. Maintenance of these aircraft and overhaul of engines and components for B737, B747, B777, A330, A320 and A310 is performed in-house. Air India s and AICL maintenance facilities are approved by DGCA of India. Its engine overhaul and associated component overhaul facilities are also approved by FAA and EASA. 2. PURPOSE AICL intends to take on dry lease up to Eight new B737-800NG with winglets for period of eight years with an option to extend the lease by four more years. 3. TENDER DOCUMENT The purpose of this document is to present the requirements of AICL and to invite technical and financial proposals for dry-lease of B737-800NG ( with winglets) aircraft. 4. STRUCTURE OF THE DOCUMENT 4.1 Annexure-I The Annexure-I contains the technical specifications and delivery requirements of the B737-800/900ER aircraft. 4.2 Annexure II This Annexure II contains the format for Technical Bid. Please complete the annexure with the required information and submit as a part of the bid. 4.2 Annexure III Annexure-III is for financial bid of the offer. As company s procedures do not permit post-tender negotiations- except with the bidder offering the best financial terms you are requested to submit your best terms at this stage itself. 4.3 Annexure-IV Page 2 of 15
5. SUBMISSION Annexure IV contains the Integrity Pact. To be executed and submitted by Bidder/Lessor. Offers complete in all respects should be sent in two sealed envelopes to the following Address: Executive Director Materials Management Department Air India, Old Airport Santacruz East Mumbai 400 029 India Attn: Mr.P.S.Negi - General Manager One envelope will contain Annexure II and Integrity Pact (duly signed) as per Annexure IV and be superscribed as Tender for B737 Dry lease - Technical Bid & Integrity Pact. The second envelope will contain the Annexure-III and be super scribed as Tender for B737 Dry lease - Annexure III Financial bid. Please provide your company profile along with the Technical Bid. Airlines / operators / owners of aircraft / leasing companies having aircraft of its own/ have authority to offer aircraft on lease can only participate in the Tender. AICL will not deal with any agents / brokers during the process of evaluation and finalisation of the lease contract. 6. TENDER CLOSE DATE : The tender closes on 27 Feb 2014 at 1500 hrs. Bids received later will not be considered 7. BIDS OPEN DATE : The Technical bids will be opened on 28 Feb Jan 2014 at 1100 hrs. Technical bids will be opened first and after evaluation, financial bids of those selected technically shall only be considered for opening. Only the technically qualified bidders will be intimated the date and time of opening of financial bids. The bidders who desire to be present for the opening of the bids can do so. Validity of the bids should be for 4 months from the date of submission. Selected bidders will be required to sign lease agreement with mutually agreed exit clause with AICL. Any amendments to tender document/ extension of closing / opening date will be displayed on our website, www.airindia.in and no separate communication will be sent in this regard. Page 3 of 15
After downloading this document, please communicate to sm.rao@airindia.in or fax 91-22-26157172/ 26157051 (Attn: Mr. S.M.Rao) with your name, address and email address/ Fax number wit copy to K.Aseri@airindia.in, FA.Shaikh@airindia.in, a.sabherwal@airindia.in, ML.Krishnamoorthi@airindia.in. This is to ensure that any subsequent changes/developments can be promptly communicated to you. Page 4 of 15
ANNEXURE-I TECHNICAL REQUIREMENTS Tender No.EY/ DRYLEASE/ 2014/ Requirement Lease Period Vintage Indicative Delivery Schedule Engine type Seating Configuration MTOW/MLW/MZFW Up to Eight new B737-800W aircraft on dry lease 8 (eight) years with option to extend by four more years New Four aircraft in Yr 2014 Four aircraft in Yr 2015 to 2016 CFM56-7B27/3 All Economy B737-800 - 79 /66 / 62 tonnes (Minimum) Metric Units RVSM qualification ETOPS AWO AD compliance External Painting Delivery Location Overhead Stowage bins AICL prefers galleys to have Galleys should have Galleys must have meal capacity for Aircraft Instrumentation and Technical documents like AFM etc., in Metric units (fuel, Aircraft weights, fluids) The aircraft must have completed Height monitoring verification and have State approval for conducting flights in RVSM air space. At least 120 minutes Aircraft qualified for Cat II/ IIIb Must have complied with all applicable Airworthiness directives issued by the Regulatory Authority of the Country of Manufacture, including those due within 12 (Twelve) months after the start of the lease period. Aircraft to be painted in AICL livery. AICL requires the aircraft to be delivered at Delhi or at any other location in India, under lessor s registration. Pax cabin to be equipped with Side and Center Stowage bins ATLAS standard equipment in forward and aft galley complexes. Adequate number of ovens, water boilers, coffee makers, hot cups and beverage flasks. One meal Page 5 of 15
The aircraft on offer must be equipped with the following equipment which is mandatory requirements in India. If not already complied, it should be done prior to the delivery of aircraft at lessors s cost. The compliance requirements are listed in detail at the website www.dgca.nic.in/rules/car-ind.htm Compliance with these requirements, prior to delivery, should be confirmed in the Tech bid.. Survival & emergency equipment as per FAR 121 Over water Certification. 2 hr SSCVR Bulk erase facility to be Deactivated. Dual HF Triple VHF with ACARS PRNAV/RNP 1 SSFDR EGPWS with aircraft position information from GPS. Complying with ICAO Annex 6 parameter recording capability Mandated by Indian DGCA must be complied prior to delivery. Aspirated TAT Probes Automated External Defibrillator Overhead Projection System in each of the Passenger Zones or drop down TV monitors in each Zone Desired Features GPS MMR (Multi-mode receivers) Dual FMC EFB Page 6 of 15
DELIVERY REQUIREMENTS Aircraft to be painted in AICL livery Galley Equipment Meal Carts Full Meal Carts - Half Waste Carts Waste Bins Ice Bins / Drawers Standard Units Oven Cage with Trays Hot Jugs / hot beverage flasks Hot Cups Service Trolleys Carry Cots AICL requires one set in aircraft and additional four ship sets per aircraft of the above equipment at delivery. Please advise the number of sets per aircraft that will be supplied with each aircraft. FINANCIAL TERMS & CONDITIONS 1 (i) ADs issued after the commencement of the lease and whose threshold lies within the lease period will be complied with by AICL. AICL s cost in complying with all such Ads will not exceed USD 10,000 per aircraft during the entire lease period. Any cost in excess of this amount shall be reimbursed to AICL. If the aircraft have to be grounded beyond the normal scheduled maintenance period for complying with the Ads, lessor shall suitably compensate for such additional grounding. (ii) Lessor shall pay to the lessee for the compliance of optional or recommendatory SBs. Lessor shall reimburse the out-of-pocket expenses incurred by the lessee and also for the downtime of the aircraft. 2. AICL shall be responsible for aircraft maintenance, crew and insurance. The aircraft will be insured for a value lower of the acquisition value or current market value. 3. AICL prefers the aircraft to be delivered at Delhi, under lessor s registration. If this is not possible please indicate where the aircraft will be delivered. Also indicate the place where the aircraft is to be redelivered. 4. Payments made to the lessor will be subject to Indian tax liabilities which will be borne by the lessor and will be deducted at source, if applicable. 5. Quotations for dry lease shall be in US Dollars. 6. The offer should be valid for a period of 4 months from the tender due date. 7. Technical discussions and negotiations will be held at Mumbai, India. The lease arrangement is subject to receiving approvals from DGCA India, Air India & AICL s Board and Government of India. Page 7 of 15
ANNEXURE-II B737-800 TECHNICAL BID Tender No.EY/ DRYLEASE/ 2014 TECHNICAL DETAILS WE AGREE TO COMPLY WITH ALL TERMS AND CONDITIONS MENTIONED IN THE TENDER DOCUMENT A ) Please provide the following details with respect to each aircraft on offer. Name and address of owner of the aircraft. Also please indicate ownership/ financing arrangement of the Aircraft on offer, giving names and addresses of Lessor, Head Lessor, Security Trustee, and Mortgagee etc. If not owned, Please provide documentary evidence of authority to offer the aircraft AICL s requirement regarding the delivery schedule and the number of aircraft are given in Annexure 1. Please specify if the same is acceptable. If not, provide proposed schedule of deliveries and number of aircraft offered. Manufacturer s Serial Number Aircraft type Winglets Yes No Aircraft registration Number Date of manufacture Country of registration Engine type Max. take off weight Max. landing weight (t) (t) Max. Zero fuel weight (t) Aircraft Basic Weight in Delivery Configuration (Empty Weight of Aircraft- does not include weight of Crew, ULDs, Food, Water and other service items) Max. Fuel Capacity (litres) Delivery location : Delhi, India AICL Colours at Delivery Yes No Seating Configuration at Delivery No. of seats. Seat pitch Page 8 of 15
No. of cabin attendant seats No. of toilets Overhead Stowage bins Side bins Center bins Cargo/baggage loading (manual or powered) Are These aircraft equipped/approved for 120 Minutes ETOPS RVSM CAT II / IIIb PRNAV/RNP1 FDR complying with ICAO Annex 6 parameter recording capability Deactivation of Bulk erase facility of CVR Escape Path Marking Smoke detection in lavatories with aural and visual warnings Cargo fire extinguishing system compliant with ETOPS GPS FANS A/B Metric Units (Especially Fuel System) Overwater certification Automated External Defibrillator Yes Yes Yes Yes Yes Yes Yes No No No No No No No Whether galleys will accept ATLAS standard type carts Provide vendor & part no. of ELT (Impact Activated) EGPWS DFDAC card SSFDR If installed SSCVR - If installed ACARS GPS MMR Dual FMC Yes No Page 9 of 15
Oxygen Capacity - Passengers - Crew (B) Please provide the following details with respect to the Landing Gears Nose Landing Gear LH Main Landing Gear RH Main Landing Gear Part No. / Serial No. When was the Last overhaul done When is the next overhaul due Overhaul interval in hours or cycles or calendar time Nose Gear Wheel Part No. Main Gear Wheel Part No. Brake Part No. Nose wheel tire size Main gear wheel tire size Bias/Radial Bias/Radial Brake cooling fan : Installed / Not Installed Page 10 of 15
( C) Please provide details with respect to the following Avionics items ATA Ch System/ LRU Hardware Part No. Software Part No. Vendor 22 AFS 22 FMCS 22 MCDU 22 AFCS/MCP 23 SELCAL 31 EFIS/MAP Display 31 CWS 34 ADIRS 34 MMR 34 GPS 45 Air Borne Data loader (D) In-flight & Passenger Amenities Please specify the chilled galley locations, if any? How many refrigerator units are available in the aircraft? What is the type of chilling units installed for chilling of meals/ bar carts and chiller units for ovens? How are the meal/bar carts chilled in the galleys? Please submit detailed galley diagrams/drawings and Galley Loading Plans of all galleys in the aircraft which is in use presently by the Airline using the aircraft. Please submit dimensions / sizes of all galley insert equipment (eg. Ovens / Oven Cages, standard units, hot beverage flasks, hot cups, etc). Please specify the galley capacity in the aircraft? How many sets of equipment will be delivered with the aircraft? Please provide galley-wise distribution of all equipment available in the following table : Front Galley Complex Aft Galley Complex Description G1A G1B G1C G2A G2B G2C Full Cart (Meal/Bar) Half Cart (Meal/Bar) Waste Cart / Bin Trash Compactor Standard Unit Page 11 of 15
Boiler Hot Beverage Flask Hot Cup Points Oven (Steam/ Dry Heat) Oven Chiller Chiller Bun Warmer Water Faucet Coffee Makers Ice Bins Please provide the number of each item available in your aircraft in respect of CABINS as per the following table :- Description Cabin attendants seats Bassinet Locations Wheel Chair Coat Compartment Diplomatic Locker Lockable Storages Quantum of Equipment Lessor (E) PASSENGER ENTERTAINMENT SYSTEM What type of entertainment systems are available on the aircraft Audio and Video Projection System, Boarding Music, Announcement Systems and Passenger Information System (Airshow)? Specify make and model / part numbers of the system and software type for both audio and video. (F) The following documents / Certificates have to be provided along with the Technical Bid - Interior layout - Location and number of crew seats - Galley drawings & weights - C of A - C of R - RVSM State approval - CAT-II / IIIb operational approval - PRNAV / RNP1 State approval - Flight Safety Manual - Flight Safety Equipment list, description and Layout Diagrams. - Maintenance program ( MPD tasks Last Done/ Next due status & Maintenance check intervals) Page 12 of 15
(G) Please provide a brief profile of your company along with financial performance of the company for the last three years. The current balance or startup reserves in the amounts equal to the product of time logged and the corresponding maintenance reserve are made available by the Lessor to the Lessee to undertake the maintenance during the lease term. Please confirm availability of the startup reserves in the Technical Bid (Annexure II) and indicate their quantities in the Financial Bid (Annexure III). H) REDELIVERY REQUIREMENTS AICL prefers to carry out all maintenance checks including C / D check in AICL/Air-India Maintenance Facilities approved by Indian DGCA. All hard time and other components installed on aircraft will be with the serviceable tags issued by AICL/Air-India, approved by Indian DGCA. Please indicate the following : Redelivery location : Painting at redelivery : Place Date Signature of Authorised Signatory of the Bidder Name : Designation : Tel No : Fax No. : Email address : Page 13 of 15
ANNEXURE - III FINANCIAL BID Tender No.EY/ DRYLEASE/ 2011/ 01 I) LEASE RENTAL The lease rental shall be in terms of per aircraft per month basis. Lessors should provide lease rentals for each aircraft for eight years lease term with an option to extend the lease by additional four more years Rental per month for aircraft MSN - USD eight years lease term Rental per month for aircraft MSN - USD twelve years lease term II) MAINTENANCE RESERVES: Note: AICL prefers not to pay Maintenance Reserves and shall agree for Financial compensation in lieu of Maintenance Reserves payment. Offers with no maintenance reserve payment will be preferred. If the bidder insists for MR payment please note the following; - Maintenance reserves, if applicable, will be quoted on per aircraft basis. - The maintenance reserves will be payable monthly in arrears. - All the rates should be quoted for 2.5 : 1 ( Hrs to Cycle ratio). Rates table for other Hrs/ Cycles ratios also to be provided - Engine / APU maintenance reserves will be utilised for ALL off-wing repair / maintenance requirements of engine / APU with the following exclusions : (a) repair of damage resulting from service outside the Aircraft operational limits established by the equipment type certificate holder (operational mishandling); (b) repair of damage not occurring in normal operation (e.g. foreign object damage/hostile acts or negligence of any personnel). Please indicate item wise maintenance reserves as shown below for the aircraft : Airframe ( D check) USD per month Landing Gear USD per month Engine off-wing repair/ maintenance USD Engine LLP USD per engine flight hour per flight cycle per engine APU off-wing repair/ maintenance USD per aircraft hour Note: On average, the aircraft to APU hours are in 1: 0.75 ratio Page 14 of 15
III) INSURANCE VALUE Please indicate the amount for which the aircraft is to be insured in USD. Place Date Signature of Authorised Signatory of the Bidder Name : Designation : Tel No : Fax No. : Email address : NOTE: Quotations for dry lease shall be in US Dollars. The offer should be valid for a period of 4 months from the tender due date. Page 15 of 15