Airport entry pass fee levy: handling agencies may stop work from February 15

Handling agencies that provide different services at the airports and to foreign airlines are likely to stop operations from February 15 in case the newly imposed Airport Entry Pass (AEP) fee is not withdrawn. The Federal government had levied a sum of Rs 5,000 as yearly airport entry pass fee, to be charged from entitled private sector organisations/individuals from January 1, 2012.
This is for the first time that this fee has been levied without taking the stakeholders into confidence. These passes were issued, free of any charge, until December 31, 2011. The move has been resented by the handling agencies, ie Gerry's Dnata, Royal Airport Services and Shaheen Airport Services.
The validity of the existing AEPs was up to December 31, 2011 but was subsequently extended to February 15, 2012. In a joint letter signed by the three agencies, the concerned authorities have been informed that their employees would display the old passes on February 15, but if they are not allowed to perform their duties they would stop work and would not provide any service at the airport and to the airlines. In fact, they have made it abundantly clear that they are not prepared to pay the fee, which has been arbitrarily imposed on them.
The Ministry of Defence letter, announcing the levy of this fee, said: "The fee is required to be deposited by the individual concerned in federal government treasury under Head of Accounts No C-03, receipts from administration and other functionaries C-038, others C-03841 and forward a copy of challan thereof to Deputy Director (Passes), Headquarters, Airports Security Force (ASF), Karachi, for release of the requisite pass/for record."
Copies of the letter have been sent to Secretary, Ministry of Commerce, in respect of leading exporters, Secretary, Board of Investment, in respect of leading investors, Deputy Director, Gilgit Baltistan Council, and Controller, Capital Administration and Development Division, Department of Tourist Services, in respect of major tour operators. Also, to airport functionaries/concessionaries through Director General, Civil Aviation Authority, all other individuals, organs concerned not covered above, and copy for information and necessary action to the Director General, Airports Security Force, Karachi.
The Airline Operators Committee (AOC), which is a recognised International Air Transport Association (IATA) body, has also expressed its disappointment over the levy of this fee. According to AOC sources, it had in a letter to the Director General, ASF, informed him that the annul fee of Rs 5,000 from each employee is exorbitant. It has compared it with the existing passport fee of Rs 4,000, which is valid for five years and not one year as in the case of AEP.
Much to the dismay of stakeholders, the Pakistan International Airlines and government functionaries have been exempted from AEP fee, which they consider as a "clear discrimination" and step-motherly treatment of handling agencies and foreign carriers who are feeling the pinch and have expressed displeasure over the introduction of this "brand new" levy, they said.
As if this was not enough, the Civil Aviation Authority (CAA), which is supposed to attract foreign carriers to use Pakistani airports, is doing just the opposite. The enhancement and introduction of new charges is resulting in foreign airlines roll back their operations from Pakistan.
AOC sources further said that while Malaysian Airlines stopped its operations to and from Pakistan from January 9, and Saudi Arabia based NAS Air also from last month, Cathy Pacific, is also reportedly considering to wind up its offices and services soon. Parking avion bridge, over-flying and handling charges have been increased by 67 percent by CAA, they said.
These airlines were forced to leave Pakistan because the levy of new taxes and charges made their operations unprofitable. From January 1, the Civil Aviation Authority has increased its charges as follows: Economy class passengers from Rs 500 to Rs 1,000, Business class and First class from Rs 1,000 to Rs 2,000. In addition, each passenger would be charged Rs 540 as Infrastructure Development Charge and another Rs 180 as security charge.