Pakistan grounds two airlines for not paying dues

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Abbas Ali
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Pakistan grounds two airlines for not paying dues

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KARACHI, May 22 (Reuters) Pakistan has grounded two private airlines until they pay millions of rupees owed in landing rights and other operational dues, an official of the country's aviation watchdog said on Monday.

Karachi-based Aero Asia (www.aeroasia.com) and Shaheen Airlines (www.shaheenair.com), a concern of the Pakistan Air Force's Shaheen Foundation, owe 444 million rupees ($7.4 million) between them, according to Tahir Ahsan Malik, director of Pakistan's Civil Aviation Authority (CAA), told Reuters.

"They will not be allowed to resume their operations until they clear their dues," Malik said.

Aero Asia's chief operating officer, Humza Tabani, said the CAA's decision came as a surprise for the airline.

"We are in touch with the CAA and hopefully will resume our operations very soon," he said.

Officials of Shaheen Airlines were not immediately available for comments.

Aero Asia has four aircraft, two boeing 737-200 and two MD-82s, while Shaheen has only one aircraft in their fleets.

Pakistan opened its skies to the private sector in early 1991 but two other private airlines went out of business in 1994 when they failed to clear CAA charges.

The suspensions leave only one private carrier, Airblue, operating alongside state-run Pakistan International Airlines, which dominates both the country's passenger and cargo markets.

Pakistan's air traffic market is tiny, but aviation experts believe it could grow due to rapid economic growth.

Source: Arab Times
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AirBlue
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Post by AirBlue »

So now we have PIA and ED flying only ?!...Have Safe air or Pearl Air been granted thier licences yet ?
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AP-BGL
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Post by AP-BGL »

Shaheen Air with only one plane in the fleet??? Didn't they lease three 732ADV from some company a while ago and got them painted in their own livery?
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Post by Amaad Lone »

Crappy airlines should be shut.

Aero Asia has been operating for over ten years, and they still can only boast a fleet of two twenty year old MD-82s (ex-Alitalia) and two really ancient 737-200s, all four planes on wet lease.

Shaheen is disgracefull, one aircraft operational.

This compared to an airline not even two years old and operating a modern fleet of five A320/321s with the full cockpit crew being Pakistani.

I think this is the last nail in Shaheen's coffin and we can see their exsistance come to a sorry end.

However Aero Asia I am sure will bounce back and pay off CAA some of its due to start flying again.

While CAA is collecting its dues, it should also announce a ban on Stage II aircraft in Pakistan, leaving the ancient and noisy 737-200s grounded forever.

Great time for PIA and Air Blue to increase their market share.
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SaadSaeed
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Post by SaadSaeed »

Ouch. Could they survive if they decide to merge? Is that even an option?
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PK777
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Post by PK777 »

HAHAHAHAH!! Good !! They both deserve it, ten years gone and they cant even run an airline nor make any improvements... :roll: :roll: :roll:

I back Amaad 101% on this !!
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Post by PK777 »

Amaad Lone wrote:Crappy airlines should be shut.

While CAA is collecting its dues, it should also announce a ban on Stage II aircraft in Pakistan, leaving the ancient and noisy 737-200s grounded forever.

Great time for PIA and Air Blue to increase their market share.
Agreed
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Post by Abbas Ali »

Aero Asia, Shaheen suspended for not paying CAA dues

KARACHI (May 23 2006):
The inevitable happened, when the Civil Aviation Authority (CAA), in a swift, though belated move, suspended all domestic and foreign operations of domestic carriers Aero Asia and Shaheen Air International (SAI) from 2 pm on May 22 for non-payment of CAA dues.

The regulatory authority, however, allowed flights of the two airlines to take off where passengers had already boarded the aircraft, according to a CAA spokesman here. For the months of April and May, 2006, the dues accumulated by Aero Asia stood at over Rs 88 million, and SAI over Rs 56 million. These pertain to housing, landing and other charges.

Both these carriers had also been flouting CAA directives to operate on socio-economic routes.

While granting additional routes/frequencies to private airlines, the CAA had made it mandatory that they will operate on socio-economic routes, or pay at the rate of Rs 62,500 per flight not operated on these routes, as required. Any default on regular payment of royalty to CAA, private airlines are subject to penalty/debarring from operating additional international frequencies/routes.

CAA was directed to put a stringent control mechanism in place to ensure safety, security and efficiency of civil aviation in Pakistan. The airworthiness criteria, in particular, ought to be very stringent to ensure safety of aircraft and comfort of passengers.

Aero Asia and SAI had both depleted fleets with which they were unable to maintain the required standards. Their demand for providing them level playing field to compete with national carrier, PIA, was just a hoax. And, CAA's action on Monday has proved that private carriers badly lacked support to attain the level excellence visible in aviation all around the world.

Aero Asia and SAI did not respond to the changes in the aviation scenario. On the contrary, the fleet condition of both airlines went down from bad to worse. Five out of 10 aircraft in the fleet of Aero Asia, and two out of three aircraft in the fleet of SAI usually remained unserviceable.

Both Aero Asia and SAI are operating in Pakistan for the last 13 years. SAI has only three aircraft in its fleet, which were brought on Pakistan register recently. Aero Asia has 10 aircraft, but not a single aircraft is registered in Pakistan.

It was a mandatory requirement of CAA that private airlines should register their fleet in Pakistan as per following schedule: 20 percent of their fleet by December 31, 2005; 40 percent of their fleet by June 30, 2006; 60 percent of their fleet by December 31, 2006; 80 percent of their fleet by December 31, 2007; and 100 percent of their fleet by June 30, 2008.

Source: Business Recorder
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Abbas Ali
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Post by Abbas Ali »

Aero Asia, Shaheen Airways may resume flights after clearance today

KARACHI:
The aviation regulator has banned domestic and international flight operations of two private airlines on non-payment of outstanding dues of recent months, officials said on Monday.

A Civil Aviation Authority (CAA) official confirmed that the ban on Aero Asia and Shaheen Airways was made effective at 1400 hours on Monday, when the managements of the two airlines were formally informed about the development.

“However, the authority allowed a few flights, which were due in the next few hours to operate as per schedule to prevent passengers from agony,” said the official. “As per agreed understanding Aero Asia has to pay Rs88 million and Shaheen Airways is liable to pay around Rs56 million. The amount is a part of millions of defaulted amount, which has to be paid by the airlines.”

He said the managements of the two airlines were pre-informed about the CAA decision and the ban would remain intact till the further decision by the aviation regulators. The defence ministry in July 2005 amended National Aviation Policy and allowed private airlines to operate the additional routes and frequencies on international routes.

The decision broke decades-old monopoly of the national flag carrier - Pakistan International Airlines - and benefited private operators including Aero Asia, Shaheen Airways and Airblue on the international routes.

The ministry allowed Aero Asia to operate 50 flight per week for Dubai and 28 flights to other destinations in the Emirates. The airline was also allowed rights for four Bahrain flights in a week; five for Qatar; six for Singapore; 12 for different Scandinavian countries and 12 flights a week were allowed to the UK.

Similarly, the decision offered Shaheen Airways to operate 28 flights per week to Dubai; 15 flights to other destinations in the UAE; 12 flights to Oman; three to Qatar; eight to Kuwait; two to Uzbekistan; four to the UK and three flights in a week were allowed to the United States.

The recent ban, however, appears unexpected for the two airlines, which claim they reached the understanding with the highs up in the defence ministry and CAA, on the issue last week, who agreed to continue negotiations with the private airlines.

“We met the higher officials of the CAA and the defence ministry last week, who assured us to continue discussion on the subject this week,” said Kamluddin Ahmed, Director Marketing, Aero Asia.

“The amount CAA claimed against Aero Asia is not justified, as it stands at Rs18.5 million not Rs88 million. We are ready to pay that amount but it is not the way to suspend operations, which has also disturbed our passengers.”

He said the company was in talks with CAA authorities and would make its operations effective from Tuesday following payment of the outstanding dues. “We may resume our operations tonight (Monday) after making our dues clear and then further take up this issue with the CAA and the defence ministry.”

The defence ministry in its report presented before the senate in February 2005 said that PIA was the biggest defaulter of the CAA, as the national flag carrier had to pay Rs2.9 billion on account of use of facilities offered by the authority.

Similarly, Aero Asia owed Rs357 million to the CAA and Shaheen Airways was defaulter of Rs425 million. The report also marked Bhoja Air as defaulter of Rs81 million, Hajvari Airline Rs40 million, Raji Air Rs12 million and Safe Air Rs10 million.

Source: The News
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captumair
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Post by captumair »

I totally agree with Amad and 777 these airlines deserve this.
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Post by behramjee »

that PIA was the biggest defaulter of the CAA, as the national flag carrier had to pay Rs2.9 billion on account of use of facilities offered by the authority.
when will this amount owed by PIA to PAK CAA be paid off :?: :roll:
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Post by malpensa26 »

In usa here the other day a lady was short 1 cent and got her power cut off. as matter of principle. needs to be applied. if the dont pay then they should be banned. the country cant pogress unless everything is applied fairly acroos the board. its not fair for the other airlines for them to pay and others make excuses. :roll:
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Post by Abbas Ali »

CAA, Aero Asia row over dues deepens

KARACHI:
Tussle between private airlines and the aviation regulator deepened on Tuesday, as Aero Asia, which was banned to operate domestic and international flights, insisted that dues claimed by the Civil Aviation Authority (CAA) were unjustified.

“There were no outstanding dues against Aero Asia on May 22, 2006, the day CAA issued directives to suspend flights,” said a statement issued by the airline. “CAA demands an inflated amount which is contested by Aero Asia.”

The aviation couple of days back banned domestic and international flight operations of Aero Asia and Shaheen Airways on account of non-payment of dues of current months. The authority said as per agreed understanding Aero Asia had to pay Rs88 million and Shaheen Airways was defaulter of around Rs56 million of the CAA.

The ban on operation of both the airlines continued for the second consecutive day on Tuesday, which the airline statement said caused disturbance to the passengers. “The unilateral decision of continued suspension of Aero Asia flights has affected the travel plans of thousands of passengers who kept crowding all major airports across the country,” it said.

“The misinterpretation and non-acceptance of ministry of defence directives, dated December 17, 2005 and February 13, 2006 by the CAA to treat all domestic airlines alike, has resulted in the prevailing chaos.” The airline claimed that Aero Asia was the only carrier flying for the last 13 years with uninterrupted operations.

Source: The News
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Abbas Ali
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Post by Abbas Ali »

Aero Asia, Shaheen Air planes remain grounded

BY IQBAL MIRZA

KARACHI (May 24 2006):
All Aero Asia and Shaheen Air International (SAI) aircraft remained grounded for the second day on Tuesday as no agreement could be reached between the airlines and the Civil Aviation Authority (CAA) on payment of CAA dues.

Officials of CAA remained engaged in meetings, separately, with the representatives of the two defaulting airlines, without any result.

CAA is reported to have stood firmly on its decision that either the private carriers should clear their dues, or be prepared for rolling back their operations.

CAA presented its proposals regarding the mode of payments and Aero Asia and SAI came up with theirs, but till the close of office hours none of the airlines turned up to say that they were ready to accept CAA's formula for clearance of the dues.

In the morning, a CAA spokesman told Business Recorder: "Enough is enough. They can not take us for a ride any longer. After all, the airlines will not be paying anything from their own kitty. It is public money which they have collected through the sale of tickets and have no right to use that money somewhere else and deprive CAA of its revenues."

Private carriers had been promoted and pampered for too long. Now they should learn to stand on their feet and walk without the help of crutches, he said.

Till late in the evening, no official statement was available from CAA whether the issue had been resolved or not.

Source: Business Recorder
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Post by PK777 »

Abbas Ali wrote:
In the morning, a CAA spokesman told Business Recorder: "Enough is enough. They can not take us for a ride any longer. After all, the airlines will not be paying anything from their own kitty. It is public money which they have collected through the sale of tickets and have no right to use that money somewhere else and deprive CAA of its revenues."

Private carriers had been promoted and pampered for too long. Now they should learn to stand on their feet and walk without the help of crutches, he said.
Well Said !! If we want airlines to progress in the future we need airlines that are effient, healthy and willing to progress for the future.....Why you dont have to look far to see these changes...just look at the aviation industry next door.