Mystery behind Aero Asia's non-payment of CAA dues deepening

[Abbas Ali]

IQBAL MIRZA

KARACHI (June 01 2006): The mystery behind the adamant approach of aero asia in not clearing the Civil Aviation Authority's dues seems to be deepening. All domestic and international operations of aero asia and Shaheen Air International (SAI) were suspended by CAA for non-payment of their dues relating to housing, landing and other charges from May 22.

Realising the gravity of the situation, SAI was quick to make the required payment within two days and got its operations restored. But aero asia, it appears, is in no mood as even after eight days its aircraft are sitting on the ground. Having failed to plead its case with CAA officials, the aero asia's top management is understood to have moved to Islamabad to seek an appointment with the Defence Secretary in the hope of getting the issue resolved its way.

Aviation experts feel that aero asia management might be gaining time but losing opportunity. Its clientele may shift to other carriers and payments, ie staff salary, hotel rent, caterers etc, would further add to their woes.

For April and May alone, aero asia had accumulated Rs 88 million and SAI Rs 56 million as dues, and this had left the regulatory authority, CAA, with no option but to take the punitive action of grounding all their aircraft.

The present imbroglio pertains only to the dues for April and May and not to the entire amount which has been accumulated over the past several years. According to an estimate, private carriers owe around Rs 350 million, and there is no talk of recovery of this amount. Besides the private carriers, national carrier Pakistan International Airlines (PIA) also falls in the category of defaulters. It has been mentioned in PIA's annual report for 2005, released in March, that CAA has claimed additional amount aggregating Rs 3,819 million (for 2004 Rs 3,110 million). The amount relates to CAA's housing, landing and other charges.

But since PIA is a government-supported carrier, CAA avoids coming down heavily for recovery of its dues. The matter, however, is before the Ministry of Defence for amicable solution. Since the government is the guarantor, CAA is not much pushed in this but in the case of private carriers, neither there is any guarantor nor they have provided any security to the CAA to look up to, in case of default.

Source: Business Recorder

[Abbas Ali]

CAA asks Aero Asia to clear dues

KARACHI (June 05 2006): Shaheen Air International and Aero Asia's operations were suspended on May 22, 2006 due to default in their current dues payable to the Civil Aviation Authority (CAA) Pakistan.

Shaheen Air International cleared the outstanding dues within two days and was permitted to resume operations on the same day ie May 24, 2006.

A number of meetings were held between CAA and Aero Asia but to no avail. Finally the matter was put to CAA Board meeting held on June 3. The Board carried out a dispassionate view of the entire situation and the matter was discussed threadbare.

The Board decided that Aero Asia must clear all outstanding dues. The decision of the Board has been communicated to Aero Asia for "actioning" in order to facilitate resumption of its operations.

Source: Business Recorder

[PK777]

Not going to give in are we Aero Asia