Economic Oversight - Brief History

Economic Oversight section of CAA was established in 2008 as per requirements of ICAO Doc 9082 to regulate the rate of Return on Investment (ROI) of monopoly suppliers of air transport services such as Air Navigation Services (ANS) and Airport Services (APS). Later in the year 2010, this section was merged with Directorate of Air Transport to formulate the Directorate of Air Transport & Economic Regulations.

Functions:-

• Economic Oversight Section is responsible for Oversight of Aeronautical & Airport Charges in the larger interest of public. Route Navigation & Airport Charges are to be prepared by Airport Services (APS) & Air Navigation Services (ANS) Divisions of PCAA; in order to recover the cost along with reasonable rate of return on investment. APS and ANS are natural monopolies and are kept in-check by Economic Oversight to prevent from exploitation of their position.

• Prices of other suppliers of air transport services are usually deregulated and are determined by market forces of demand & Supply, by way of competition. CAA, however, works in close coordination with Competition Commission of Pakistan (CCP) to ensure that there is no cartelization among the airlines.
• Economic Oversight is responsible for assessment of financial condition of the operators in accordance with NAP-2015 and other applicable Government & PCAA Rules at the time of Licence(s) Renewal/issuance.
• Additionally, this Section also evaluates the financial & operational performance of operators periodically & prepares reports.

• Economic Oversight assists Government in preparation of special reports.
• This Section assists Government of Pakistan in development & implementation of National Aviation Policy.
• Rendering advice to the Government (if Required) on negotiation & conclusion of Bilateral and Multi-Lateral air services agreements pertaining to economically efficient growth of international air transport in Pakistan.