ISLAMABAD – The Federal Cabinet has waived a penalty of 10 percentnon-conformance on M/s Air Sial for not acquiring Air Operator Certificate(AOC) within the allowed timeframe to process its Regular Public Transport(RPT) license.
Sources said that Civil Aviation forwarded the request of M/s Air Sial forrenewal of its Regular Public Transport (RPT) license with effect fromSeptember 5, 2019. It was further informed that Air Sial was issued an RPTlicense in 2017, however, the company could not obtain an Air OperatorCertificate (AOC) to start flight operations within a stipulated period oftwo years.——————————
Under para 4.3.1 of the National Aviation Policy (NAP) 2019, “If anoperator (RPT/non-RPT) fails to obtain AOC within a maximum of two yearsfrom the date of issuance of the respective license, then a 10 percent ofthe total security deposit will be levied as non- conformance charge.Subsequently, a fresh license has to be applied while its remainingsecurity deposit shall be refunded.”
It was submitted that CAA has provided details of efforts made by thecompany to complete regulatory requirements and to acquire aircraft byfinalizing the Letter of Intent (LoI) with AerCap. The company has alsoprovided a copy of confirmation letter from AerCap Ireland Limited for thelease of 3 Airbus A320 aircraft and expected deliveries during April andMay 2020.
The company had paid-up capital of Rs. 2.2 billion against the requirementof Rs. 300 million. The company intends to increase the paid-up capital toRs. 2.8 billion soon.
The Board of Directors of the company comprises members from the Sialkotbusiness community. Presently, 46 employees have been recruited whilerecruitment of 654 employees is under process.
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Previously, in January 2019, the Federal Cabinet allowed one-timerelaxation in the then NAP-2015 for not forfeiting the security deposit ofM/s Air Sial and renewal of license for one year. Any subsequent relaxationin the policy is, therefore, the prerogative of the Federal Cabinet.
Aviation Division sought the approval of the Federal government to the“waiver of levy of 10 percent non-conformant charges on M/s Air Sial fornot acquiring AOC within the allowed timeframe” and to process RPT licenserenewal case in the light of delegation of powers approved by the FederalCabinet on October 29, 2019.
After a brief discussion, the Cabinet, in its meeting held January 14,2020, approved the proposal of Aviation Division.
