Of the six private airlines, which were established following the cabinet committee's decision in 1992, four have closed down, leaving Rs 830 million outstanding to the Civil Aviation Authority (CAA) and fuel companies.
Hajveri's outstanding amounted to Rs 708 million followed by Bhoja 83 million, Raji 26 million and Safe Air Rs 13 million. According to break-up available here Hajveri, Raji, Safe Air and Bhoja owe Rs 38 million, Rs 12 million, Rs 13 million and Rs 83 million respectively to the CAA.
Similarly, Hajveri and Raji owe Rs 670 million and Rs 14 million respectively to the fuel companies. The CAA dues of Rs 146 million and fuel companies dues of Rs 684 total Rs 830 million.
Under the aviation policy, private airlines' operation entailed: only one Pakistani airline to operate on any one international route, domestic operations were unconditional and, operation on already operated route to be allowed subject to agreement with the existing operator.
The first private airline started operation in 1993.
In 2000 the National Aviation Policy (NAP) was revised and the following ground rules were set for private airlines:
-- Minimum fleet requirement, dry/wet lease subject to conditions, fleet registration in Pakistan mandatory and, minimum flights on socio-economic/tertiary routes defined.
-- A study on the working of NAP-2000 and its violations show that the ground rules for establishment and operation of private airlines were not implemented and ANO 91.0051 which requires the private airlines to register at least one aircraft in Pakistan and maintain a minimum fleet of three airplanes was flouted.
-- Flights were also not operated on socio-economic routes.
The domestic market, in fact, was opened to the private airlines with the intention of facilitating the travelling public on domestic routes. It was expected that these airlines would create jobs and develop infrastructure for development of aviation industry.
The licences were issued on the condition that all domestic carriers will share socio-economic routes equitably, but none of the private airlines ever met this requirement fully. And those who willy-nilly did operated, withdrew from such sectors later.
International operation of private airlines under the 1998 policy was also subject to their continued operation on domestic and socio-economic routes, but their international operations continued unabated without meeting these requirements.
The Civil Aviation Authority (CAA), which is the regulatory body, it seems, is purposely overlooking these lapses on the part of private airlines. No airline meets the condition of socio-economic routes.
THE STUDY SHOWS THAT:
-- None of the airlines registered aircraft in Pakistan except Aero-Asia.
-- International operations allowed to all, although domestic operation requirements not being met.
-- Private airlines allowed operations to Gulf points over and above bilateral arrangements, creating capacity glut/fare wars.
-- Private airlines transferring sixth freedom traffic to foreign airlines (eg British Airways, Air France, Lufthansa and KLM) via Gulf points.
-- Private airlines operating wet leased aircraft without creating job opportunities for Pakistani pilots and maintenance personnel.
-- No investment in development of infrastructure.
-- Earnings being siphoned off in foreign exchange in forms of lease and insurance charges.
-- No improvement in quality as using Russian/East European/out dated American aircraft.
-- Granted waivers by the CAA on mandatory equipment/modifications. (Emergency Escape Path Lighting System, ECAS/RMP5, etc).
-- To meet the modern day requirements and the hi-tech environment in the aviation industry, it has been suggested that the CAA must ensure that:
-- Private airlines follow all the rules and regulations and requirements needed under the ANO and the aviation policy.
-- The condition of flights on international routes must be made conditional to operation on socio-economic routes and a deadline must be fixed to abide by this requirement.
-- The international operation of private airlines may be brought under the ambit of bilateral Air Services Agreements and all extra bilateral operations may be stopped forthwith.