REGULATION ON AIRPORTSGROUND HANDLING SERVICES*

(SHY-22)

PART ONE

General Provisions

SECTION ONE

Purpose, Scope, BasisandDefinitions

Purpose

Article 1-Purpose of this Regulation is to arrange the procedures and guidelines to be applied in order to ensure that airport ground handling services are performed at international level and to determine the charge tariffs related to such services in accordance with Article 44 of the Turkish Civil Aviation Law No. 2920.

Scope

Article 2-This Regulation cover the Directorate General of State Airports Administration and other organizations that operate airports and the ground handling companies which have obtained Working License by satisfying the conditions mentioned in this Regulation.

Legal Basis

Article 3-This Regulation have been prepared on the basis of Articles 2, 12 and 35 of the Law No.3348 on The Organization and Duties of the Ministry of Transport andCommunication andArticle 44 of the Turkish Civil Aviation Law No. 2920 dated 14.10.1983.

Definitions

Article 4-The definitions in this Regulation are as follows;

a)Ministry: Ministry of Transport and Communication,

b)“DHMI” : the Directorate General of State Airports Administration

c)“Ground Handling Company” : a company with a corporate body status which have obtained Working License to perform ground handling services at airports according to the provisions of this Regulation,

d)“Air Carrier” : all local and foreign air carriers,

e)“Local Air Carrier” : operators which have obtained Operating License from the Ministry of Transport by having met the conditions required in the Turkish Civil Aviation Law No. 2920 and the regulations introduced concerning this law,

f)“Foreign Air Carrier” : operators which have obtained Operating License from a foreign state authority,

g)(Amendment: RG-10/04/1997-22960) “Working License Group A” : working licenses to be given for each type of service to corporate bodies authorized to render ground handling services to air carriers by being organized at least at three airports open to international traffic for all of the service types mentioned in Article 5 or for at least passenger services, load control and communications, ramp, cargo and mail, aircraft cleaning, unit load device control according to the provisions ofthis Regulation,

h)“Working License Group B” : working licenses to be given for each type of service to air carriers which will perform all or a part of the service types mentioned in Article 5 for themselves at airports according to the provisions of this Regulation,

i)(Amendment: RG- 14/11/2009-27406) “Group C Operating License”:These are working licenses given for each service type to private legal who are authorized to deliver representation, supervision and administration, Aircraft Private Security Service and Audit, catering service and flight operation service among the types of services listed in article 5 in accordance with the provisions of this Regulation,

j)“Standard Ground Handling Agreement” : the standard agreement to be executed between the ground handling companies and air carriers or by the air carriers between each other, based on the special authorizations specified in this Regulation,

k)“Movement Areas” : the runway, apron and taxiway and the near surroundings made of asphalt, concrete and soil which are used for moving and parking of aircraft and the vehicles and equipment related to the activities of aircraft,

l)“Service Agreement” : the standard agreement which arranges the relations, between ground handling companies that perform ground handling services at airports and DHMI that performs the operations of airports, mutual rights and obligations and penal sanctions for actions against the rules specified in this Regulation,

m)(Amendment: RG-19/09/1999-23821)“Cargo” : any goods carried in aircraft other than letters, supplies and accompanied or mistakenly loaded baggage,

n)(Amendment: RG-19/09/1999-23821) “Cargo Agency” : an agency, freighter or another organization, which does business with an operator and which is accepted by the related authority regarding cargo, courier and express parcels or which performs the required security checks.

SECTION TWO
Types of Airport Ground Handling Services
Types of Services

Article 5- Types of airport ground handling services are grouped as follows;

a)Representation,

b)Passenger Services,

c)Load Control and Communications,

d)Ramp: Ramp, cargo and mail, aircraft cleaning, unit load device control,

e)Aircraft Line Maintenance: Aircraft line maintenance, fuel and oil,

f)Flight Operations,

g)Transport,

h)Catering Services,

i)Supervision and Administration,

j)Aircraft Private Security Service and Audit

Details of airport ground handling service types are determined by aviation instructions of Directorate General of.Civil Aviation

SECTION THREE

ResponsibilityandAuthorizations

Responsibility

Article 6- Airport operators, ground handling companies and air carriers are responsible for fulfilling the provisions in this Regulation.

Furthermore, DHMI is responsible to the Ministry for taking measures to ensure the performance of ground handling services mentioned in this Regulation at international level. In order to ensure this, DHMI constantly supervises and audits, takes or ensures necessary arrangements and measures for deficiencies and irregularities determined and informsthe Ministry about the results.

Financial matters in the Regulations are under the responsibility of DHMI.

Authorizations and Responsibilities of Ground Handling Companies

Article 7- Authorizations and responsibilities of ground handling companies are specified as follows:

a)Ground handling companies are authorized to perform all or a part of the ground handling service types explained in article 5 for scheduled or non-scheduled flights at airports.

b)(Amendment: RG-10/04/1997-22960)Ground handling companies which will obtain Working License Group A mustbe organized at least at three airports open to international traffic for all of the service types mentioned in Article 5 or for at least passenger services, load control and communications, ramp, cargo and mail, aircraft cleaning and unit load device controlat airports, where they will provide services, by also taking into consideration the conditions in Clause “d” of Article 12 of the Regulations.

c)Ground handling companies must exactly maintain its vehicles, equipment and staff that are the basis of the working license even if they do not render services to any air carrier at airports where they are organized.

In case of being organized to render services only to domestic flights, the Ministry determines at how many airports and for which service types such companies will be organized.

d)Paid capitals of ground handling companies having a Working License Group A cannot be less than 3.000.000 (threemillion) US dollars in equivalent Turkish Liras and paid capitals of those having a Working License Group C cannot be less than 200.000 (twohundredthousand) US dollars in equivalent Turkish Liras.

Equivalent US dollars for the capital in Turkish Liras is calculated based on the selling rate of the Turkish Central Bank on the payment date of the capital installments.

e)Companies demanding to obtain a Working License Group A or C must have their commercial registrations, prepare and publish their original contract and submit a notary certified copy of these to the Ministry in accordance with Turkish Commercial Code No.6762.

1)(Amendment: RG-19/09/1999-23821)Any field of work, other than the ground handling service types mentioned in Article 5 of the Regulations, will not be given place as the field of business of the company in the original contracts and commercial registrations of ground handling companies,which will obtain Working License Group A.

However, local air carriers that will obtain a Working License Group A can include other civil aviation activities in their master agreements.

2)Minimum 51% of the shares must be in the name of the holder.

3)(Amendment: RG-10/04/1997-22960)Majority of the officials authorized to manage and represent the ground handling companies which will obtain Working License Group A or C must be Turkish citizens and Turkish partners must have the majority of votes according to the master agreement of the company.

However, provisions of the Law No. 4046 Concerning The Arrangements For The Implementation Of Privatization And Amending Certain Laws And Decrees With The Force Of Law are reserved.

f)Ground handling companies which will obtain Working License Group A must provide DHMI with a final bank letter of guarantee for an indefinite period, the content and form of which will be determined by DHMI, at an amount of 1.000.000 (one million) US dollars for “Royalty Fess” to be paid to DHMI and for their obligations that may arise from the “Service Agreement” that they will execute, and ground handling companies which will obtain Working License Group B or C must provide DHMI with the same type of bank letter of guarantee at an amount of 100.000 (onehundredthousand) US dollars.

(Amendment: RG-10/04/1997-22960)However, the said letter of guarantee is demanded from the carriers of countries, which provide or undertake to provide Turkish air carriers with similar rights of performing ground handling services abroad, by considering the principles of reciprocity.

g)In case any of the partners of ground handling companies, which have Working License Group A or C, plans to transfer all or a part of its shares or to increase its existing share percentage, then they must get permission from the Ministry before the transfer transactions are performed.

h)Rules and charges to be applied at private airports are arranged by the offer of operators of these airports and the approval of the Ministry.

i)In case ground handling companies, which have Working License Group A, become unable to provide services due to unavoidable force majeure to be found acceptable by DHMI, DHMI may want the services to be performed by other ground handling companies, which have Working License Group A for such services, until the related situation is eliminated.

The assigned ground handling company must render the services, for which it has the working license, in exchange for charges to be determined mutually with the company receiving the service. In such a case, it is not required to sign a Standard Ground Handling Agreement mentioned in Article 17 of this Regulation. In case an agreement is to be signed, such agreements must be provisional. However, upon the elimination of the temporary force majeure, such provisional agreements are revoked in case the requirement of being able to render service is determined by DHMI.

j) (Supplement:RG.14/11/2009-27406) The organizations to obtain Group C working Licence for flight operation service must have representation service operating license, and supervision and administration working license at minimum five of Atatürk, Antalya, Esenboğa, Adnan Menderes, Milas-Bodrum, Dalaman, Sabiha Gökçen airports.The organizations with Group A or C working license, must have flight operation working licenses at totally five airports including three international airports open to civil aviation traffic and from Ataturk and Antalya airports if they intent to provide flight operation working service.

Authorizations of Local Air Carriers

Article 8- (Amendment: RG-19/09/1999-23821)Local air carriers are authorized to perform all or a part of the airport ground handling service types, mentioned in Article 5, for themselves by getting a Working License Group B or for another air carrier by getting a Working License Group A.

Local air carriers can also render ground handling services to themselves with the same license at airports for which they have obtained the working license.

In case commercial air carriage operating license of local air carriers, which have working license group A, is cancelled by the Ministry for any reason, ground handling working license will be deemed to have been cancelled as well without giving any notice.

In case a ground handling company or an air carrier, which has a Working License Group A, becomes unable to provide services due to unavoidable force majeure to be found acceptable by DHMI, then the local air carrier having a Working License Group B, which is authorized to perform all or a part of the ground handling service types for themselves, can be authorized by the Ministry upon the proposal of the Directorate General of DHMI to render all or a part of the services, which they are allowed to perform for themselves, to other air carriers as well, until the related situation is eliminated.

In that case, the local air carrier having a Working License Group B, must perform the related services within the frame of charges and principles to be determined mutually with the related company receiving the service.

In such a case, it is not required to sign a Standard Ground Handling Agreement mentioned in Article 17 of this Regulation.

In case an agreement is to be signed, such agreements must be provisional. Upon the elimination of the force majeure, such provisional agreements are revoked after the requirement of being able to render service is determined by DHMI.

Authorizations of Foreign Air Carriers

Article 9- The authorizations of foreign air carriers operating scheduled or non-scheduled flights are specified as follows:

a)Foreign air carriers operating scheduled flights are authorized to perform, for themselves, all or a part of representation, supervision and administration, passenger services, load control and communications, aircraft line maintenance, fuel and oil service types mentioned in Article 5.

b)Foreign air carriers operating non-scheduled flights are authorized to perform, for themselves, all or a part of only aircraft line maintenance, fuel and oil service types mentioned in Article 5.

Catering Services

Article 10- Conditions related to catering services are specified as follows:

a)Catering Services:

1)Catering delivery service can be performed by ground handling companies organized within airport borders, corporations or local air carriers (except foreign air carriers) which have working license for catering delivery service.

2)Transfer of catering products, which are produced outside the airport borders, to aircraft can be performed only by corporations which have working license for catering service.

b)CateringProduction Service:

1)Catering production service can be performed by corporate bodies and local air carriers (except foreign air carriers).

2)International and national sanitary regulations are applicable in execution of catering production services, construction of facilities, using necessary equipment and materials and provision of cleaning.

3)Production of catering for aircraft is subject to the permission of DHMI. In order for such a permission to be given, the corporation that will produce catering must obtain a certificate, stating that production is performed in their facilities according to sanitary regulations, from an authorized healthcare organization which will be designated by the Ministry or by a public corporation to be determined by the Ministry.

4)Catering production of a company, which has not obtained a certificate of conformityalthough a permission had been received from DHMI to produce catering for aircraft, is suspended during the inspections until the certificate of conformity is obtained.

5)The air carrier receiving the catering and the corporation producing the catering are responsible for the conformity of catering production, performed within and outside the airport borders, to the international standards and sanitary conditions.

6)Constructionof catering production facilities within the airport borders is permitted by DHMI by taking into consideration the existing facilities and place availabilities. Though catering production service is subject to permission, it is not obligatory to obtain a working license for this service.

7)The fee to be paid to DHMI by the company performing the catering production service, in exchange for rendering services regarding the catering production provided to aircraft, is determined by a contract between DHMI and the catering production company.

However, the price to be determined cannot be less than 5% per tray at AtatürkAirport and 3% at other airports.

8)The price to be charged for meal, beverage and similar things to be delivered inside catering to aircraft is subject to an agreement between the company delivering the catering and the company receiving the catering.

Special Authorizations

Article 11- Special authorizations outside general authorizations mentioned in Articles 7, 8 and 9 of this Regulation are explained as follows:

a)Services, which are demanded by foreign air carriers and which cannot be performed by ground handling companies and local air carriers, can be performed by other foreign air carriers having working license. Permission must be obtained from DHMI to exercise such authority.

b)In case there is not a ground handling company to perform the ground handling services demanded by air carriers at airports where they operate their flights or if the ground handling company is unable to perform any of the demanded service types, then local air carriers are authorized to perform the services for air carriers.

c)(Amendment:RG-06/07/2006-26220) Regular passenger transport to be performed between the city terminal and/or terminals and the airport and/or from the airport to neighbour cities and districts is arranged by the Ministry according to demands on condition that all legislations related to road transport are complied with.

d)The service of passenger transport on apron is performed by ground handling companies and local air carriers. DHMI is authorized to arrange this service and to determine which companies will perform this service at which airports and for what period of time.

e)Follow-me service is obligatory for international flights at AtatürkAirport and it is performed upon request at other airports and for domestic flights at AtatürkAirport. The said service is provided by DHMI for all air carriers other than local air carriers at AtatürkAirport.

f)Provision of passenger loading bridge at airports and the systems providing 400 Hz energy to aircraft at the bridge are performed or ensured to be performed only by DHMI. In necessary cases, the service can be obtained from ground handling companies.

g)Foreign air carriers performing, for themselves, the ground handling services mentioned in Article 9, can provide the ground handling services mentioned in their licences also for their non-scheduled flights at the same airport operated under the name of the same company.

h)(Amendment:RG-02/11/2005) Local air carriers and ground handling companies, having Working LicensesGroup A or B for ramp service group, can have the labour services and conducting of such labour services exclusively be performed by companies, which have Working License Group C and which are experts in their subject, by initially getting permission from the Ministry and with the condition of concluding an agreement, regarding;

1) Loading and offloading service specified in the ramp service details,