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  •    REGULAR PUBLIC AIR TRANSPORT LICENSE

    CATEGORIES OF AIRLINE LICENSE
    REQUIREMENTS
    ISSUE OF RPT (AIRLINE) LICENCE
    DEVELOPMENT OF INFRASTRUCTURE
    CONDITIONS FOR OPERATION
    ACQUISITION OF AIRCRAFT
    DOMESTIC OPERATIONS
    INTERNATIONAL OPERATIONS
    ISSUE OF AIR OPERATOR CERTIFICATE (AOC)
    RENEWAL OF RPT (AIRLINE) LICENCE
     

    CATEGORIES OF AIRLINE LICENSE

    Regular Public Transport (RPT) Licence is issued by DG CAA with the approval of the Federal Government for carriage of passengers and cargo services.

    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 Licence).
    • 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 Licence 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.

    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, HQ CAA, for consideration and evaluation.
    • Applications received will be scrutinized by Air Transport Directorate for acceptance/rejection within 3 days of receipt of the application.
    • Applications once accepted will be processed by Air Transport 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 Licence will be issued by DG CAA after receipt of the security deposit, back guarantee and licence issuance fee.
    The Licence is only a permission to develop an RPT organization and in no way entitles the Licencee 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.

    DEVELOPMENT OF INFRASTRUCTURE

    The Company shall make adequate arrangements in the following areas:

    • Aircraft maintenance, overhauling and provision of spare parts.
    • Provision of cockpit & cabin crew.
    • Reservation & ticketing.
    • Ground handling.
    • Flight Operation.
    • Refueling Arrangements.
    • System to ensure compliance with all applicable rules and regulations.

    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 lease aircraft induction from foreign countries would be allowed only in an extra-ordinary circumstances i.e. unforeseen surge in the market demand or sudden shortage of the operator’s capacity due accident / incident of aircraft. Wet lease permission of foreign registered aircraft shall not be more than 90 days unless satisfied the Director General CAA.
    • 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 Licence 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.

    ISSUE OF AIR OPERATOR CERTIFICATE (AOC)

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

    • The applicant has demonstrated that his equipment, organization staffing and training program are adequate to secure the safe operations of the types of aircraft to be included in the AOC

    • The applicant can establish and maintain a satisfactory method of supervision of the flight operations

    • The aircraft are provided with servicing and maintenance facility and a system of maintenance control is established.

    • The management structure is appropriate and personnel selected by the operator for specified management positions possess the required experience and qualifications

    Manuals should have been prepared in advance, which describe in detail how company personnel would be required to carry out their duties. These manuals are as under:

    • Flight Operations Manual
    • Manual of Standard Operating Procedures (SOPs).
    • Flight Crew Training Manual.
    • Exposition Manual.
    • MEL / MMEL.
    • Dangerous Goods Manual, etc.,

    Aircraft meet the appropriate standards and have been proven in flight to be acceptable for the operations proposed.

    The operator shall be issued with the relevant type of AOC after the successful demonstration of the regulatory and operational requirements to CAA.

    Once certificated, the operator is responsible for ongoing compliance with the requirements of the relevant legislations. The CAA is required to continually monitor the operations to ensure compliance. Failure by the operator to comply may result in suspension or cancellation of the AOC. The application for AOC is to be prepared with the requirements prescribed in Appendix ‘A’ to CAA AOC Guide available at Flight Standards Directorate.

    RENEWAL OF RPT (AIRLINE) LICENCE

    • The Licence holder (Licencee) shall apply to the Director Air Transport, HQ CAA, Karachi on the Company Letterhead application Form where applicable for renewal with appropriate Licence renewal fee as per AT FEE SCHEDULE at least 45 days before expiry of the licence. In case of failure, the holder, in addition to the normal fee shall pay surcharge Rs 20,000/- per month or part thereof. In case of receipt of application for renewal after expiry of the licence, no waiver or extension to the licence 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.
    • On receipt of the application, Air Transport 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 licencee/operator or any other objections, the licencee should clear the same before renewal of the licence 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 licence shall be renewed by the Air Transport Directorate.  
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