The Aircraft Owners and Operators Association of Pakistan (AOOA) criticized the double increase in security deposits and other charges under the Aviation Policy 2023, terming it catastrophic.
The association in a press release denounced the dramatic increase in security deposits, which are now Rs. 10 million, and warned that the move would hurt new investments as aviation companies are eyeing moving their business abroad.
They said the business was already on the brink and it doesn’t make sense that the Pakistan Civil Aviation Authority (PCAA) has demanded an increase in security deposits.
The PCAA should not only implement investor-friendly policies but announce incentives to assist existing players operating in difficult conditions by extending relief in the form of reduced security deposits and other charges, they argued.
Seven out of sixteen flight schools and numerous aviation companies have already left due to overly strict aviation rules in 2015 and 2019, and the new policy would make it much worse.
The AOOA revealed that one large aviation company has already announced the sale of three planes and let go 30 percent of its staff due to the new policy.
The age restriction for importing aircraft was implemented in 2015, and the aviation industry has been declining since then. Age restrictions on aircraft do not even exist in Europe or North America, but Pakistan’s National Aviation Policy sends us to the moon as if we were NASA, the association retorted.
The association regretted that stakeholders were never included in the policy-making process. It complained that Pakistan is the only country where aviation is controlled by bureaucrats with no experience and input from parliament and stakeholders is ignored.