Daily Times

Set to annunciate a revised National Aviation Policy (NAP, 2014) through the ministry of aviation, the vision of the government is to ensure “a safe, secure, dynamic, fair, innovative and customer-centric approach to transform the aviation industry into a potent catalyst for the socio-economic well-being of the nation.” The objectives are: (1) comply with the International Civil Aviation Organisation (ICAO) standards of safety, security and efficiency aspects of air transportation; (2) restructure the Civilian Aviation Authority (CAA) for greater safety, autonomy and positive, proactive governance; (3) adopt the best international practices of public-private partnership for the operation and management of airports; (4) develop state-of-the-art infrastructure and technology for the provision of safe, efficient and quality air navigation services and airport services; (5) create a level playing field for national airlines; (6) promote general aviation for pilot training, tourism, plant protection, cloud seeding, and (7) enhance training and skills in the field of general aviation.

For “safety and security” the new policy envisages: (1) an independent Safety Investigation Board (SIB) reporting directly to the minister of aviation with adequate resources provided as a separate head in the budget. A regulatory body would be established to regulate standards of aviation security as per CAA standards and the Airport Security Force (ASF) Ordinance, 1975. (2) State-of-the-art technology and equipment to be procured to ensure security at airports, all imported equipment being exempt from all taxes/duties.

To resolve the conflict of interest between the regulator and service provider, the CAA shall be split under the Director General (DG) CAA into the following three entities with adequate financial and administrative autonomy. The aviation safety regulator shall be headed by the Deputy Director General (DDG) CAA, the airport services shall be headed by the DDG CAA airport services and the air navigation services shall be headed by the DDG CAA air navigation services. One has reservations about this instead of the Aviation Safety Regulator (ASR) reporting to the DG CAA, the DG ASR must directly report, like the SIB, to the minister of aviation. The DG CAA should have only airport services and air navigation services under him.

The revised NAP will pursue a unilateral “open sky” policy with SAARC and ASEAN countries, and a bilateral one with others on the principle of reciprocity and allow an open sky policy for cargo operations to designated foreign airlines of our bilateral partners, based on third, fourth and fifth freedom traffic rights. For “airport infrastructure development”, the NAP envisages: (1) public-private partnership models adopted for operations, management and development; (2) available land at all airports will be utilised effectively for commercialisation and growth of the aviation sector; (3) construction of new commercial airports in the private sector be permitted; (4) machinery/equipment/material imported the first time for development of “green airports” be exempt from all duties/taxes; (5) cargo village facilities be developed on a public-private partnership model starting with Karachi and New Islamabad Airport. Multi-model transport links, perishable cargo facilities/cold chain facilities, warehouses, IT infrastructure, etc, will also be developed; (6) maintenance, repair, overhaul (MRO) organisations be developed; (7) incentives for foreign investment in MRO to include: (a) five years’ tax holiday; (b) no CAA charges on allocated land for MRO business for five years; (c) no duty and taxes shall be levied on import of tools, related machinery, manuals and technical subscriptions, and (8) the CAA will make changes in the regulations to absorb the experienced national resource of retiring aviation engineers and technicians from the armed forces gainfully in the MRO.

For operational infrastructure development, the CAA shall: (1) develop a future air navigation plan in accordance with the Global Air Navigation Plan (GANP); (2) upgrade its communication, navigation and surveillance infrastructure as required for Performance Based Navigation (PBN). Satellite Based systems and technology will be introduced and implemented to keep pace with GAN requirements, and (3) improve coordination between civil and military aviation authorities with respect to flexible use of airspace (FUA).

The “operational policy guidelines” for airline registration, fleet size, age of aircraft includes: (1) registration in Pakistan by all operators being mandatory; (2) five airworthy aircraft minimum fleet size for both domestic and international operations where the operator will be eligible for international operations after successful domestic operations for two years; (3) paid up capital for such airlines enhanced from Rs 100 million to 500 million; (4) calendar age of aircraft not more than 12 years at the time of induction; (5) aircraft older than 18 years shall not be allowed, and (6) foreign airlines shall be permitted to take equity stakes of up to 49 percent in domestic carriers.

For socio-economic routes: (1) no landing and housing charges at secondary airports for scheduled services; (2) domestic carriers shall operate on at least one primary or one secondary route — (a) on primary routes at least 10 percent of total capacity of available seat kilometres (ASKs) floated on trunk routes, or (b) for secondary routes at least five percent of ASKs floated on trunk routes. For socio-political routes the guidelines will be: (1) charter operators be encouraged to operate scheduled commuter services to/from Gwadar, Turbat, Panjgur, Khuzdar, Dalbandin, Zhob, Rawalakot and Muzaffarabad. Political integration shall be the prime objective of this plan with economic advantages expected to accrue over time. (2) Incentives to include no tax, no charges by the CAA, permission for wet lease operation up to one year and privilege to operate (with 19 seat or below aircraft) after one year of successful operation, and (3) no sales tax on fuel used for the entire trip on the selected routes (average fuel consumption for each type of aircraft for each round trip shall be determined). Tickets sold on these routes shall also be free of sales tax/FED.

The formulation process of NAP 2014 involved studying: (1) aviation policies of Australia, the US, UK, Singapore, China, Canada and India to analyse the gap between NAP 2000 and global trends and the best practices of aviation in 2014; (2) all stakeholders in the aviation industry were consulted and their recommendations included; (3) professional aviation policy consultants from the world’s largest aeronautical university, Embry Riddle of Florida, were engaged to guide and make recommendations after reviewing the aviation policy draft.

The need is to develop a first class CAA management that will shed the bureaucratic straitjacket and corrupt mindset to implement NAP 2014. Those in the senior hierarchy presently do not inspire much confidence. Dealing with the corrupt and inefficient in the present societal environment is a disaster. In one case, air bridges at an international airport in Pakistan have been leased out for almost Rs 115 million over five years through a glib talking agency while the CAA got only Rs 45 million. Guess who pocketed the Rs 70 million difference? A 15 percent agency commission is well earned but 250 percent? One believes Captain Shujaat Azeem has put a stop to this. If the National Accountability Bureau (NAB) cannot send some people to jail for this, it is not doing its job!

Captain Shujaat Azeem has his work cut out for him in the presence of a well-entrenched aviation mafia. He needs to be eulogised and encouraged for “letting 100 flowers bloom” in the aviation industry of Pakistan, this time well thought out, purposeful and well regulated. Nawaz Sharif’s 1993 “open skies” policy was a sincere attempt to open up the country to more “foreign direct investment” but this window of opportunity was misused at great cost to Pakistan. Appointing Captain Shujaat Azeem, a competent professional and a very successful entrepreneur as the de facto aviation czar, one must give credit to the prime minister for having the courage to revisit the original 1993 decision and revise NAP 2000 in a pragmatic fashion.

The writer is a defence analyst and security expert