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Charter Licence

In accordance with Civil Aviation Rules 1994, National Aviation Policy-2015 and Air Navigation Order ANO-001-ATNR-2.0, Charter 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:-

  • Charter –Domestic
    1. Class-I
    2. Class-II
  • Charter –International
    1. Class-I
    2. Class-II
  • Class-I mean operation with aircraft having AUW of less than 5700 Kgs.
  • Class-II means operations without any aircraft weight limitations

Requirements

  • Registration of the Company shall be as Private or Public Ltd under the Companies Ordinance 1984 by SECP or on Partnership deed by Joint Registrar of Firm.
  • Minimum Paid-up Capital for Charter Class-I; Rs. 25 Million and Class – II; Rs. 50 Million with documentary proof incorporated with SECP.
  • 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 Charter Class-I  Rs. 2.5 Million and Charter Class-II Rs.5.0 Million as well as a bank guarantee of an equivalent amount from a scheduled bank acceptable to CAA. (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 airline is a legally established body capable of operating commercial flights. (To be submitted with application for licence).
  • 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 5%, gradually increasing by at least 1% per annum up to a minimum of 10% 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 is 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 Charter 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 to submit the application on-line as well as hard copies to AT&ER Directorate. (sixteen sets).
  • Applications received will be scrutinized by Air Transport & ER Directorate for acceptance / rejection for process 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 15 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 Federal Government, where applicable. The approving authorities are as follows:

·         DG CAA, for Charter Class-I domestic operations.

  • Federal Government, for Charter Class I & II                                                      (Domestic & International) operations.
  • On receipt of the requisite approval from the Federal Government, Charter License will be issued by DG CAA after deposit of the security deposit, bank guarantee and License issuance fee.
  • The License is only a permission to develop a Charter air operation organization and in no way qualifies the Licensee to start charter 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-2015, Air Navigation Orders (ANOs), Airworthiness Notices issued from time to time and relevant international practices / requirements.

Fleet Requirements

·    Minimum fleet requirement is: Two airworthy aircraft (with similar seating capacity preferably) for passenger operations and one airworthy aircraft for Cargo operations.

·         Fleet registration in Pakistan is mandatory for issuance of an AOC

·      In relation to purchase, wet / dry lease of the aircraft, requirements outlined in NAP-2015 would be applicable in letter and sprit and the same shall be oversighted by the Airworthiness Directorate, HQCAA.

  •  The Applicant intending to import / export an aircraft / helicopter on ownership or lease basis, shall apply to Airworthiness Directorate, CAA along with the applicable documents with a copy endorsed to DAT&ER and DFS.

International Operations

Pakistani designated airlines shall be eligible to commence operations on international routes after six months of continued satisfactory operations on domestic routes, meeting following performance parameters:-

  • Following guidelines shall be observed for all charter operations:
  • Domestic charter operation shall be allowed to Pakistani operators using Pakistani registered aircraft including helicopters flown by Pakistani pilots.
  • International charters originating from Pakistan shall be allowed to Pakistani operators only (except Hajj, Umra and other religious pilgrimage operations to and from other countries which may be regulated as per bilateral arrangements with those countries).
  • There should be no restriction on round trip tourist passenger charter groups on all international routes irrespective of the scheduled operations.
  • On routes adequately served by scheduled operators, one way passenger service will not be allowed with an aircraft having more than 19 seats. This is to protect the interest of scheduled operators on these routes.
  • The licence shall be issued for a year and is renewable annually.

Condition of Air Operator Certificate

  • After the issuance of charter license to an operator by the Federal Government / DG CAA, it is a regulatory requirement specified in NAP-2015,  ANO 91.0001, AOC Guide CAAD-617 issued by Flight Standards Directorate and National Aviation Policy-2015, that the operator has to obtain an AOC within 365 days of issuance of License.

Renewal of Charter License

  • The License holder (Licensee) shall apply to the Director Air Transport & ER, HQCAA, Karachi, on the Company’s Letterhead for renewal of License along with applicable renewal fee as per FEE SCHEDULE given in ANO-001-ATNR-2.0 at least 60 days before expiry of the License along with the following documents. In case of failure, the holder, in addition to the normal fee shall pay surcharge Rs 2,000/- per month or part thereof. In case of receipt of application for renewal after expiry of the License, no waiver or extension to the License 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-2015 of Para 4.3 (a) & (b), duly signed by the Directors / CEO and their authorized chartered accountant firm. (

·         Current Operations Specifications issued by Flight Standards Directorate CAA.

·      Comprehensive Aircraft insurance liability documents for passenger, aircraft and third party in conformity with operations specifications, in line with applicable CARs,1994 and Government Gazette Notifications, Carriage by Air Act 2012.

  • 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 Director General 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.

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