ISLAMABAD, Jan 16: The board of directors of the Civil Aviation Authority (CAA) here on Tuesday approved the restructuring of the authority into three units -- regulatory wing, airport services and air traffic control.

The board meeting presided over by the secretary defence, however disapproved a proposal of giving 15 per cent cost of living allowance to its employees as was given to federal government employees last year, sources said.

The board maintained that since the authority had its own salary structure, under which the employees had been receiving raises in their perks, the cost of living allowance could not be granted to them. It, however, approved perks and privileges that would be attached to the offices of director general and deputy director general.

According to the sources, the restructuring plan, which passed through various stages and at one stage was strongly opposed by defence secretary Lt-Gen (retd) Tariq Ghazi and some other officials of the defence ministry, was approved unanimously.

The defence secretary’s plea was that since aims and objects of the authority were clearly defined in the CAA Ordinance 30 of 1982, there was no need of redefining them or restructuring of the authority.

He opposed the restructuring on the basis of LUMS report prepared on a cost of Rs3.8 million, which was almost similar to the one prepared by Dubai-based firm Mackenzie against a payment of $0.25 million, half the amount of contract which was cancelled.