Aviation firms term new policy ‘catastrophic’

The Aircraft Owners and Operators Association of Pakistan (AOOA) on Tuesday rejected the doubling of security deposit and other charges under the Aviation Policy 2023 saying the move would prove catastrophic for the already struggling aviation industry. The association in a press statement said the sharp increase in security deposits, which are Rs10 million now, would discourage fresh investments as many aviation companies are planning to shift their businesses abroad due to new policy restrictions. The association regretted that the general aviation businesses were already on the brink of closure and the Pakistan Civil Aviation Authority (PCAA) wanted them to double the money in the name of security deposits. At a time when the economy is slowing down, the PCAA should not only come up with investor-friendly policies but also announce incentives to facilitate the existing players operating in tough conditions by extending relief in the form of reduction in security deposits and other charges, the association suggested.