Economic Oversight - Brief History
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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.
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Functions:-
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Oversight of APS & ANS Providers
- 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.
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Operators
- 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.
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Government of Pakistan
- 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.
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