"US yet to pay Pakistan $25m compensation: Airport, airspace shutdown"

Tuesday, May 18, 2004

US yet to pay $25m compensation: Airport, airspace shutdown 
By Tahir Siddiqui 
Pakistan - Dawn


KARACHI, The US government has yet to compensate the loss of over $25
million caused to Pakistan due to suspension and curtailment of
international commercial air traffic operations to and from Pakistan in the
aftermath of 9/11. 

Air traffic operations were curtailed in September 2001 on the request of
the US Tactical Military Control, established in Islamabad, to enable allied
aircraft to carry out "unhindered" air operation against Afghanistan. 

Sources in the defence ministry told Dawn that Pakistan had closed some of
its regular routes to the Far East and Europe. They said that commercial air
traffic to and from Pakistan was adversely affected for eight months due to
the uncertain security environment in the region and build-up of the allied
forces against Afghanistan 

"A loss of revenue to the tune of $3 million per month was suffered by the
Civil Aviation Authority due to the suspension and curtailment of commercial
air traffic operations after the 9/11 incidents," the sources said. 

They said that a formal request for compensation documented with the
break-up of losses in different heads was already with the US government.
The total effect of revenue losses for the eight months came to around US$25
million. 

The sources attributed multiple factors to the loss of revenue such as
reduction in the number of landing flights, suspension of operations by
several international airlines, overflying etc. 

They said the number of flights landing per week had reduced to about 70
from over 150 as 14 of 28 international airlines stopped their operations.
The sources said several airports in Balochistan - Pasni, Zhob, Panjgur,
Jacobabad and Quetta - had either been closed down or their operations
severely curtailed. 

The sources said a considerable shortfall in overflying had been another
factor of revenue loss as a portion of the country's airspace was not used
by any airline. An average of US$650,000 loss per month was caused under
this head alone. 

Besides, the sources said, the government had to give considerable rebate to
the commercial concessioners at all airports and it suffered a monthly loss
of over $1.5 million. 

The sources said a huge loss was caused under the head of landing and
housing charges due to the stoppage of over 70 international flights per
week. The suspension of certain international flights, they said, also
affected the normal flow of passenger traffic and the total monthly revenue
loss in the head of aeronautical charges alone amounted to US$1.5 million. 

The sources said the release of compensation was very significant for the
financial position of the Civil Aviation Authority, which was under the
aviation wing of the defence ministry.


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