Regular Public Transport

REQUIREMENTS

• Registration of the Company shall be as Private or Public Ltd under the Companies Ordinance 1984.
• Minimum paid-up capital of Rs. 100 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 of Rs. 10 million and 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 License application).
• Mandatory investment plan in maintenance/training infrastructure to support A & B checks or equivalent standards.
• Comprehensive insurance policy covering aircraft, crew, passenger/cargo and third party risks at the level specified by ICAO conventions and Government Gazette Notification on Passenger insurance liabilities.

ISSUES OF AIRLINE LICENSE

• The applicant will submit a formal application on CAAF-ATNR-001-1.0 along with all requisite documents including processing fee as per AT Fee Schedule to Director Air Transport & ER, HQ CAA, for consideration and evaluation.
• 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, will be cleared by DG CAA and thereafter referred to the Competent Authority, i.e. Federal Government, for approval under Rule 177 of Civil Aviation Rules, 1994.
• On receipt of the requisite approval from the Federal Government, RPT License will be issued by DG CAA after receipt of the security deposit, back guarantee and License issuance fee.
• The License is only a permission to develop an RPT organization and in no way entitles the Licensee to operate an aircraft. This can only be done after issuance of an Air Operator Certificate (AOC). It is necessary that before setting up an airline, the Company management should become fully conversant with Civil Aviation Rules 1994; Air Navigation Orders (ANOs), Airworthiness Notices issued from time to time and relevant international practices/requirements.

CONDITIONS FOR OPERATION

• Minimum fleet requirement is three aircraft for passenger operations and one aircraft for Cargo operations.
• Aircraft may be inducted on dry lease or ownership basis subject to conditions laid down by the Government / CAA.
• Fleet registration in Pakistan is mandatory for issuance of an AOC
• The restriction on age and origin of aircraft are as follows:
  • In case of Eastern origin/ Russian aircraft, the maximum age at the time of induction shall be 15 years and 75% cycles of structural life, or 75% hours; or less as given by the manufacturer according to the current modification status
  • In case of western/European aircraft, there shall be no age limit except for the criteria of 75% cycles of structural life, or 75% hours; or less as given by the manufacturer according to the current modification status
  • Exception to age criteria may be permitted for socio economic/tertiary routes subject to meeting the 75% cycles of structural life, or 75% hours; or less as given by the manufacturer according to the current modification status
  • Exception to age criteria may be permitted for operations by cargo aircraft subject to meeting the 75% cycles of structural life, or 75% hours; or less as given by the manufacturer according to the current modification status
  • Exception to airworthiness criteria of 75% cycles of structural life, or 75% hours; or less may be permitted for short term leasing, under 90 days, for a specific purpose

ACQUISITION OF AIRCRAFT

• The operator shall have minimum three aircraft registered in Pakistan to avoid inconvenience to the traveling public.
• For operations with Pakistan registered aircraft, Airworthiness Directorate will issue the Certificate of Registration and Certificate of Airworthiness.
• For maintenance and certification of aircraft, Director Airworthiness may be consulted for guidance on applicable requirements and procedures.
• Wet Leasing of foreign registered aircraft shall not be permissible for initial issuance of an AOC. There shall be no permanent addition to capacity by inducting foreign registered aircraft on wet lease other than pure cargo aircraft. Wet leasing of aircraft from foreign countries would only be allowed in extra-ordinary circumstances i.e. unforeseen surge in the market demand or sudden shortage of airline capacity due accident / incident subject to provision of full justifications to the Airworthiness Directorate, CAA. Wet leasing of foreign registered aircraft, shall not exceed a period of 90 days. Any extension beyond 90 days, Federal Government would be the competent authority.
• For foreign registered aircraft, a transfer agreement between the State of Registry and State of Operator is required to be concluded (before the commercial agreement between the lessor and lessee operator) under Article 83 (bis) of the Chicago Convention read with Civil Aviation Rule 368-A. The “Author and OPI” for the transfer agreement will be the Chief Legal Services, CAA.

DOMESTIC OPERATIONS

• All RPT License holders can freely operate on domestic routes. The following domestic routes must be serviced as a minimum:
  • Minimum of two trunk routes, one of which should include Peshawar, Quetta, Multan or Faisalabad.
• Minimum of two frequencies per week on one socio-economic or one tertiary route.
• In case of inability to service on socio-economic or tertiary routes, a royalty will be paid to PIA (Pakistan International Airline) @ Rs. 500,000 per month.
• Eight destinations i.e. Chitral, Gilgit, Skardu, Gwadar, Panjgur, Turbat, Pasni and Jiwani are treated as socio-economic routes.
• Tertiary routes include Sukkur, Rahim-Yar-Khan, Moenjodaro, D. I. Khan, Bahawalpur, D. G. Khan, Zhob, Nawabshah, Saidu Sharif, Hyderabad, Jacobabad, Ormara, Dalbandin, Khuzdar, Bannu, Rawalakot, Parachanar, Muzaffarabad and Sehwan Sharif.

INTERNATIONAL OPERATIONS

• Allocation of international routes will be determined by the Federal Government in the light of the following factors:
  • Operations to countries where “open-skies” or “multiple designations” of airlines is available.
  • Where PIA (Pakistan International Airline) is not operating to its full entitlement, the surplus capacity of PIA on these routes may be given to private airlines.
  • Operations on routes on which PIA has been designated as the Pakistani carrier but is not operating.
• Linking of international operation with continued operations on domestic routes for at least one year and meeting all mandatory conditions of domestic operations to justify acquisition of international route.

CONDITION OF AIR OPERATOR CERTIFICATE

• After the issuance of RPT License to an operator by the Federal Government, it is a regulatory requirement specified in ANO 91.0001 and AOC Guide CAAD-617 issued by Flight Standards Directorate, the operator is to obtain an AOC within two years of issuance of License. The operator shall comply with all the requirements of Civil Aviation Regulations.

RENEWAL OF RPT (AIRLINE) 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 AT FEE SCHEDULE at least 60 days before expiry of the License. In case of failure, the holder, in addition to the normal fee shall pay surcharge Rs 10,000/- 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 i.e. Federal Government is being sought or waiver/extension granted by the DG CAA in the National and General Public interest.
• The Licensee is to submit the current annual audited report, duly signed by the Directors / CEO and their authorized chartered accountant firm along with current Operations Specifications with their aircraft insurance documents in line with the latest Government Gazette Notifications.
• On receipt of the application, Air Transport & ER Directorate shall seek comments / no objection of the CAA specialist directorates i.e. Finance, Flight Standards and Airworthiness and if applicable / required of Legal directorate.
• If there are any CAA outstanding (aeronautical / non – aeronautical) dues against the licensee/operator or any other objections, the licensee should clear the same before renewal of the License unless agreed by the Director General CAA or the Federal Government.
• On receipt of the no objection of the concerned directorates, approval of the Director General shall be sought and the matter shall be referred to the Federal Government for approval.
• On receipt of the approval of the Federal Government, the License shall be renewed by the Air Transport & ER Directorate.