I.O.'S ORDER OF THE CHAIRMAN OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION OF NATURAL MONOPOLIES AND PROTECTION OF THE COMPETITION

of June 24, 2004 No. 274-OD

About approval of Rules of independent use of temporary decreasing coefficients to rates (the prices, rates of charges) regulated services of the airports and air navigation

According to the subitem 2) of Item 1 of article 14 of the Law of the Republic of Kazakhstan "About natural monopolies and the controlled markets", Item 38 of the Actions plan on program implementation of enhancement of the tariff policy of subjects of natural monopolies for 2002 - 2004 approved by the order of the Government of the Republic of Kazakhstan of October 15, 2002 No. 1126, the Rules of establishment and cancellation of temporary decreasing coefficients to rates (the prices, rates of charges) for services of the airports and air navigation approved by the order of the Chairman of the Agency of the Republic of Kazakhstan on the regulation of natural monopolies and protection of the competition against November 5, 2003 No. 263-OD registered in the Register of state registration of regulatory legal acts of the Republic of Kazakhstan for No. 2599, I ORDER:

1. Approve the enclosed Rules of independent use of temporary decreasing coefficients to rates (the prices, rates of charges) regulated services of the airports and air navigation.

2. To department on regulation and control in the field of rail transport and ports of the Agency of the Republic of Kazakhstan for regulation of natural monopolies and protection of the competition (Zhusanbayev E. S.) provide in the procedure established by the legislation state registration of this order in the Ministry of Justice of the Republic of Kazakhstan.

3. To department of administrative and territorial work of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition (Tokareva M. A.) after state registration:

To provide 1) in accordance with the established procedure publication of this order in official mass media;

2) to bring this order to the attention of structural divisions and territorial authorities of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition, the Ministry of Transport and Communications of the Republic of Kazakhstan, International Airport Astana private company, International Airport Almaty joint-stock company and the republican state company "Kazaeronavigation".

4. I reserve control of execution of this order.

5. This order becomes effective from the date of state registration in the Ministry of Justice of the Republic of Kazakhstan.

Approved by the Order of the Acting Chairman of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and protection of the competition against June 24, 2004 No. 274-OD

Rules of independent use of temporary decreasing coefficients to rates (the prices, rates of charges) regulated services of the airports and air navigation

1. General provisions

1. These rules of independent use of temporary decreasing coefficients to rates (the prices, rates of charges) regulated services of the airports and air navigation, (further - Rules) are developed according to the Law of the Republic of Kazakhstan "About natural monopolies and the controlled markets", the Presidential decree of the Republic of Kazakhstan which is valid the law, "About use of airspace and activities of aircraft of the Republic of Kazakhstan", the Program of enhancement of the tariff policy of subjects of natural monopolies for 2002 - 2004 approved by the order of the Government of the Republic of Kazakhstan of October 15, 2002 No. 1126, and other regulatory legal acts of the Republic of Kazakhstan.

2. These rules determine procedure and the mechanism of independent use of temporary decreasing coefficients to rates (the prices, rates of charges) regulated services of the airports and air navigation according to the legislation on natural monopolies (further - regulated services).

3. In these rules the following concepts are used:

again entered flight - the flight along new route performed by the operator of aircrafts who is not carried out by other operators of aircrafts;

rate revenues (the prices, rates of charge) - the profit pledged in applicable fare (the price, rate of charge), representing difference between the rate (the price, rate of charge) for regulated service of the subject approved by authorized body and complete cost of rendering unit of regulated service by the subject;

the request - the address (in any form) the operator of aircrafts to the subject on use of temporary decreasing coefficient to rate (the price, rate of charge) regulated services of the airports and air navigation;

the declared amount of consumption of regulated services of the subject the amount of consumption of regulated services of the subject specified in the request for use of temporary decreasing coefficient planned in the declared period by the operator of aircrafts;

the declared period - the period specified in the request of the operator of aircrafts for use of temporary decreasing coefficient;

complete cost of regulated service - the subject's costs considered in rate (the price, rate of charge) per unit of regulated service according to requirements of rules about special procedure for forming of costs;

profitability of rendering regulated service of the subject - the rate revenues attitude towards complete cost of regulated service;

the subject - the airport or the aeronautical organization rendering regulated services of the airports or air navigation;

conditional variable costs - the subject's costs connected with provision of regulated services, depending on amount of the rendered regulated services;

the operator of aircrafts - the legal entity or physical person which is engaged in operation of aircrafts or offering the services in this area, using regulated services of the airports and air navigation;

authorized body - the state body performing management in spheres of natural monopolies and in the controlled markets.

Other concepts and terms used in these rules are applied according to the legislation of the Republic of Kazakhstan on natural monopolies and the controlled markets.

4. These Rules extends to subjects and consumers of their services - operators of aircrafts.

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