Aerial Work license

In accordance with Civil Aviation Rules 1994, National Aviation Policy-2019 and Air Navigation Order ANO-001-ATNR, Aerial Work Licence is issued by DG CAA after the approval of the Federal Government, where applicable, for carriage of passengers and cargo in the following categories:-

·      Aerial Work – Domestic

a.    Class-I

b.    Class-II

·      Aerial Work – International

a.    Class-I

b.    Class-II

·      Class-I means operation with aircraft having AUW of less than 5700 Kgs

·      Class-II means operation with aircraft having AUW 5700 and above

Requirements

• Registration of the Company shall be as Private or Public Ltd under the Companies Ordinance 1984 by SECP.

• Minimum Paid-up Capital along with documentary proof incorporated with SECP:                            Aerial Work Class-I    Rs. 13 Million

            Aerial Work Class-II   Rs. 25 Million.

• Foreign investment, if any, is allowed but not more than 49% of the paid up capital, to the extent where the controlling interest remains in local hands.
• Security deposit for Aerial Work Licence Class-I Rs. 2.5 Million and Aerial Work Licence Class-II Rs. 05 Million to be submitted before the grant of License.
• A sound business plan, registration documents like the Memorandum and Articles of Association, share allocation form duly verified by Securities Exchange Commission of Pakistan (SECP), Trust Deed, bank references three years projected book of accounts prepared by registered Charter Accountants Firm, and any other documents to prove to the satisfaction of CAA that the operator is a legally established body capable of operating commercial flights. (To be submitted with application for License).
• Where applicable, evidence of paid-up capital (free of losses) / Equity along with details of foreign investment if any i.e. Bank Statements and Certificates from registered Chartered Accountants Firm / Company. Minimum Equity (net worth) to Assets Ratio should be at least 15%, gradually increasing by at least 1% per annum up to a minimum of 20% over a period of next five years.
• Comprehensive insurance policy covering aircraft, crew, passenger/cargo and third party risks at the level specified by ICAO conventions, prevailing CAA regulations and Government Gazette Notification on Passenger insurance liabilities.
• Security clearance of company in respect of CEO/Owner/Director/Major Share holders shall be mandatory. If any owner / CE / Director(s) are not security cleared or there are serious or adverse observations by the Security / Intelligence Agencies at any stage, the Operator / Company / Individuals concerned shall have to comply with the instructions of the Federal Government / DG CAA. In case of non-compliance within the stipulated time or failure to submit any valid justification in this regard, the licence / AOC shall be liable to suspension / cancellation in accordance with Rules / Regulations / Conditions of Licence.

·         For any shareholding transaction of 51% or more, either singly or in aggregate enabling transfer of controlling interest in a Private Limited Company holding a Licence, prior permission of the DG CAA shall be essential for incorporation in SECP on relevant Forms.

Issuance of Aerial Work License

• An applicant shall apply on prescribed CAA Form duly filled, and signed by Chief Executive of the Company / Managing Partner of the Firm, if applicable, to DAT & ER along with the requisite documents. After verification of documents and resolution of objections, if any, the applicant shall take ID and Password from AT & ER Directorate, and afterwards shall submit the application on-line and also submit hard copies to AT&ER Directorate (twelve sets).
• Applications received will be scrutinized by Air Transport & ER Directorate for acceptance / rejection within 3 days of receipt of the application.
• Applications once accepted will be processed by Air Transport & ER Directorate in consultation with the other concerned Directorates of CAA within a period of 10 days.

• The scrutinized application, if considered to be in order at AT Directorate, will be seen and assessed by DG CAA and subsequently sent to the aviation division for acquiring security clearance. The approving authorities are as follows:

·         DG CAA, for Aerial Work Class-I domestic operations.

·         Federal Government, for Aerial Work Class I & II                                         (Domestic & International) operations.

• On receipt of the approval from the Federal Government / DG CAA, where applicable, Aerial Work License will be issued by AT&ER Directorate after deposit of the security deposit and License issuance fee.

·         The License is only a permission to develop an Aerial Work air operation organization and in no way qualifies the Licensee to start Aerial Work operations which can only be carried out after issuance of an Air Operator Certificate (AOC). It is necessary that before commencement of operations, the Company management should become fully conversant and comply with Civil Aviation Rules 1994; National Aviation Policy-2019, Air Navigation Orders (ANOs), Airworthiness Notices issued from time to time and relevant international practices / requirements.

Fleet Requirement

·         Minimum fleet requirement is: One airworthy aircraft for operations.

·         Fleet registration in Pakistan is mandatory

·         The Applicant intending to import / export an aircraft / helicopter on ownership or lease basis, shall apply to Airworthiness Directorate, CAA

Condition of Air Operator Certificate

·         After the issuance of aerial license to an operator by the Federal Government / DG CAA, it is mandatory that the operator has to obtain an AOC within two years of issuance of License.

Renewal of Aerial Work Licence

·         The Licence holder shall apply to the Director Air Transport & ER, HQCAA, Karachi, on the Company’s Letterhead for renewal of licence along with applicable renewal fee at least 90 days before expiry of the licence. In case of failure, the holder, in addition to the normal fee shall pay surcharge Rs 2000/- per month or part thereof. In case of receipt of application for renewal after expiry of the licence, no waiver or extension to the licence shall be granted until approval of the Competent Authority in the National and General Public interest, as per ANO:-

·         Current annual audited report in line with the NAP-2019, duly signed by the Directors / CEO and their authorized chartered accountant firm.

·         Current Operations Specifications issued by Flight Standards Directorate CAA.

• On receipt of the application, Air Transport & ER Directorate shall seek comments / no objection of the CAA specialist directorates i.e. Finance, Flight Standards, Airworthiness, Consumer Protection and Economic Oversight section and if applicable / required of Legal directorate.
• The licensee should clear all CAA outstanding dues, if any, before application of renewal of the License in coordination with CAA Billing section.
• On receipt of the no objection of the concerned directorates, approval of the DG CAA shall be sought for referring the matter to the Federal Government, as the case may be, for final approval.

·         On receipt of the approval of the Federal Government / DG CAA, the renewed License shall be issued by the AT & ER Directorate.

• Clearance of CAA outstanding dues

·         According to para 4.3.3 of NAP-2019, “if any operator defaults on outstanding dues for a period equivalent of two (02) Fortnightly Bills, its operation shall be suspended and recovery shall be made from attachment and/or sale of its tangible and intangible assets. In case of non-compliance the onus will lie on the regulator while operators’ security shall be forfeited with markup”.

·         Upon default of two billing cycles, following mechanism shall be adopted for taking appropriate and regulatory action for recovery of CAA dues:-

·         Finance Directorate shall adjust the advance three billing cycles / security deposit against outstanding dues and inform AT&ER Directorate for necessary action.

·         Suspension of flight operations with immediate effect

·         Issuance of Show Cause Notice for personal hearing

·         In case un-satisfactory reply, Suspension of Licence with prior approval of Federal Government.

·         Cancellation of licence and recovery of outstanding dues from attachment and / or sale of its tangible and intangible assets.