Pakistan formally bifurcates Civil Aviation Authority (CAA) into
two parts
On Thursday, the government implemented a decision to bifurcate
the Civil Aviation Authority (CAA), establishing a distinct entity known as the
Pakistan Airport Authority (PAA), as outlined in a parliamentary resolution.
The aviation ministry issued a notification, effective from
November 10, indicating that both entities would operate independently under
separate leadership, each with its own director-general.
The notification also outlined the allocation of employees and
assets to the respective authority and delineated their areas of focus. The CAA
will handle matters related to licensing, flight standards, air transport,
airworthiness, and regulatory functions. On the other hand, the PAA will
oversee commercial servicing, air traffic control, vigilance, air navigation,
monitoring, renovation, and communication departments of commercial airports.
Pakistan's
aviation regulatory body to undergo split into two entities
The government's plan for segregation includes a two-phase
approach involving the outsourcing of different airports in the country. The
first phase entails the corporatization of airports to attract private
investors, while the second phase involves the participation of the
Privatization Commission, financial advisers, and investment banking firms to
complete the transaction.
The decision to separate the CAA was prompted by the sensitivity
of operations and the involvement of strategic assets, namely the airspace. The
regulatory functions will be entrusted to one entity, while the other will
focus on the development and management of airports.
Despite initial concerns from the Ministry of Defence and Pakistan
Air Force regarding joint airspace management infrastructure, subsequent
discussions led to the suggestion that only commercial operations of airports
should be outsourced. The defence forces would retain oversight of security and
flight operations, with provisions for takeovers in case of war and mandatory
security clearance from the ISI for outsourced operations.
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Aviation Authority (CAA) bifurcation: employees urged to select service
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The decision to establish two authorities was made during a
cabinet committee meeting, considering that only six of the 44 airports were
profitable. The National Aviation Policy 2019 aimed to make the CAA's
regulatory role independent of service providers, and the decision aligns with
the objective of organizational change with minimal adverse collateral effects.
The federal cabinet, in principle, approved the proposal to separate CAA's
regulatory and service provider functions, with the Privatisation Commission
suggesting the incorporation of separate companies for each airport instead of
a single entity for multiple airports.
Source: Express Tribune