Major Organizational Restructuring Expected In CAA

Pakistan Civil Aviation Authority (PCAA) will undergo major changes at an organizational level soon. It will be split into a regulatory body, navigation service provider and an airport services provider. The announcement was made by Aviation Secretary and DG PCAA Shahrukh Nusrat addressing a press conference on Saturday.

The conference was held at PCAA Headquarters Karachi to share the insight and framework for the implementation of the New Aviation Policy 2019, also called fair sky policy.

Currently, PCAA is working as a regulatory body as well as a service provider in the country. The services are divided into Air Navigation Services (ANS) and Airport Services (APS) broadly creating a conflict of interest. The regulatory role will thus become independent in the coming days and will start working as a separate unit.

Public-Private Partnership

According to the new policy “Airport terminal side may be outsourced to world-class operators of international standing through transparent and competitive bidding.” It also says, “The public-private partnership model would also be implemented to improve revenue streams and the quality of service.”

CAA will still be able to generate revenue from airports through annual fees and taxes. The policy will be implemented on a trial basis on small and medium-sized airports like Skardu and Gilgit.

A reduction in Federal Excise Duty (FED) for airlines and a 10 year tax holiday for new setups of Aircraft and aviation parts manufacturers were also proposed in the new policy.

Via Tribune