RAWALPINDI: The Aircraft Owners and Operators Association of Pakistan (AOOA) on Tuesday rejected the doubling of security deposit and other charges under the Aviation Policy 2023 saying the move would prove catastrophic for the already struggling aviation industry.

The association in a press statement said the sharp increase in security deposits, which are Rs10 million now, would discourage fresh investments as many aviation companies are planning to shift their businesses abroad due to new policy restrictions.

The association regretted that the general aviation businesses were already on the brink of closure and the Pakistan Civil Aviation Authority (PCAA) wanted them to double the money in the name of security deposits.

At a time when the economy is slowing down, the PCAA should not only come up with investor-friendly policies but also announce incentives to facilitate the existing players operating in tough conditions by extending relief in the form of reduction in security deposits and other charges, the association suggested.

Reject doubling of security deposit, age limit on aircraft import

The association recalled that since the introduction of aviation policies in 2015 and 2019, seven out of 16 flying schools and many aviation companies have closed their businesses, adding that the new policy would also be a big failure for aviation businesses.

After the implementation of the new policy this year, one major aviation company has announced selling out its three aircraft besides laying off 30 per cent of its employees.

The age restriction for importing aircraft was introduced in 2015, and from that time onwards the aviation industry is in decline.

“Age restrictions on aircraft even do not apply in Europe or North America, but our National Aviation Policy is sending us to the moon as if we are running NASA here,” the association remarked.

Whatever good has been added to the policy becomes null and void with exorbitant security deposits and age restrictions on aircraft import.

It deplored that the stakeholders were never taken on board in the policy formation process and their input was ignored as was done in 2015 and 2019.

It added that Pakistan is the only country where the aviation industry is run by bureaucrats having no

aviation experience and inputs from parliament and aviation stakeholders are given no importance giving way to autocracy destroying an important economic sector.

Published in Dawn, December 6th, 2023