CAA to be Split Into Two Divisions Under the New Aviation Policy

The Federal Minister for Aviation Ghulam Sarwar Khan has announced that the Civil Aviation Authority (CAA) is being delinked into two divisions – regulatory and services divisions – under the new aviation policy.

He made these remarks on Monday after attending a meeting at Prime Minister Office. The minister said the federal cabinet had proposed delinking regulatory functions from the airport services which was later approved by Prime Minister Imran Khan.

He said the move will benefit the aviation sector in the longer run.

Sarwar added that critical factors like service quality, separate human resource, steady revenue generation, and customer satisfaction will be kept in view while finalizing the move.

The Aviation Minister maintained that CAA’s regulatory side will work under cabinet division while the Airport Services of Pakistan (ASP) will operate under the Aviation Division.

After the separation, the ASP shall be registered with the Security & Exchange Commission of Pakistan (SECP) with the ownership of 43 airports in Pakistan to continue working on commercial models.

After the valuation of assets, interested parties shall be invited for investment in a subsidiary company for initially three major airports including Karachi, Islamabad, and Lahore. Another model shall be to invite open tender for operating initially above three referred airports.

In response to a question related to the timeline of the divisional separation, Khan said that the first phase of the process will be completed by next month.

“And till September 2019, the government will seek stakeholders’ input and processing of the formal approval in its mid-process review phase. Later, the government will make its implementation, administrative allocation, ICAO review, and SMS review till December 2019,” he added.

  • Good move, in my opinion CAA should be responsible for regulatory part and services part should be outsourced to private sector like all big airports of the world.

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