ISLAMABAD: Government is mulling over bringing drastic changes in existing aviation and airport management system by making Civil Aviation Authority (CAA) a quasi-independent regulator and eventually privatising airport managements, air traffic control and national flag carrier – PIA.This is part of a an overarching aviation policy framework currently being finalised under a task force led by deputy chairman planning commission and comprising more than a dozen federal secretaries and heads of relevant agencies, informed sources told Dawn on Thursday.
The sources said initially the CAA would be converted into an independent regulatory authority to focus core activities of safety regulation and air traffic control (ATC). CAA would then become an autonomous entity away from the ambit of Ministry of Defence. A joint committee would be formed to resolve issues pertaining to defence and civilian air space and airport usesoverlap while the sovereignty of airspace would be retained by the state in all the circumstances.
As a result, the CAA would have no control over the airport management which, in due course of time, would be privatised. Inthis context, airport ownership and management would be segregated from the Ministry of Defence to achieve the objectives of policy implementation given the fact there are only one or two commercial airports where military aircraft operate.
The scheduled international air transport services to and from Pakistan would comply with international norms and standardspertaining to aviation safety and security. International transport would primarily focus on competition, national interests and Pakistan’s participation in the aviation market.
The CAA would ensure regulatory control over capacity and frequency enabling all the airlines to unilaterally adjust their services to satisfy the demand. The tariff would generally be deregulated allowing airlines to set it in response to demand.
Likewise, the network of scheduled international air transport services would be complemented by non-scheduled international air transport services, like ad hoc and charter flights to stimulate tourism to Pakistan, develop new air links and joint ventures and support trade and exports.
Pakistan International Airlines (PIA) would be restructured along commercial lines for privatisation in near future.
CAA would continue to make concerted efforts to move towards economic deregulation of domestic and international passenger and cargo services. In this regard, the government would continue to follow open skies policy for cargo operations based on air traffic rights as required under the international civil aviation organisation of the United Nations.
Any form of entry control or economic regulation of airlines in the air transport industry would be discouraged and the existing policy of assessment for new entrants would be strengthened on the basis of their ability to provide a safe and reliable service from financial aspect.
There will be a free market entry for private operators on domestic routes subject to compliance with technical and financial capacity requirements and strict safety regulations and enforcement while airport charges would be brought in line with regional benchmarks. Similarly, the operations of non-viable airports shall be contained through private sector management, management by local governments or possible closure.
New airports, especially, new runway investment, shall be subjected to cost-benefit analysis of the effects on all interested parties.
New aviation framework is aimed at enhancing trade and tourism operations while safeguarding national interests. It will also ensure provision of safe, reliable and efficient services in compliance with international agreements and standards.
The framework would also ensure efficient and productive aviation industry capable of competing both domestically and internationally. The industry would contribute to the development of human resource, meet basic needs and enhance its role in national economy where private participation could realise adequate returns.