CAA plans to expand passenger terminal building of Lahore airport

Estimated cost is Rs43.6 billion, minister for parliamentary affairs informs Senate

ISLAMABAD: Minister for Parliamentary Affairs Sheikh Aftab Ahmed Friday informed the Senate Friday that the Civil Aviation Authority (CAA) has planned to expand the passenger terminal building at the Allama lqbal International Airport, Lahore.

During the question hour session, the minister said the estimated cost of the expansion project was Rs43.6 billion and PC-I had been approved by the CAA Board which was fully empowered to approve projects financed by CAA out of its own resources with involvement of foreign exchange component less than 25% of project cost.



Aftab said the financing was being arranged by the CAA through internal and external sources.

To a question, the minister said that only airport services were being considered for outsourcing whereas the Air Navigation Services would be provided by CAA.

When aircraft starts up and taxis out, it is under the provision of Air Navigation Services (ANS), whereas when it is parked it is under the provision of airport services, he added.

The minister said on ground most services are under the domain of airport services whereas in air they are under the domain of ANS. Reserved activities comprising customs, immigration, security, health, meteorology, plant and animal quarantine, CNS/ATM services and other statutory or sovereign functions would not be outsourced.

To another question, Aftab said that PIA has been converted into a public limited company as per PIAC Conversion Act 2016 after its promulgation on April 19, 2016."Presently, PIA has 35 aircraft in its fleet and currently 14,317 permanent employees are working in the national flag carrier."



The minister said the government has taken several steps to control losses of the airline including appointment of Dubai Islamic Bank by the Privatisation Commission as financial advisor for restructuring of the balance sheet and devising the future course of action for settling loans whereby modalities would be submitted by them.

To question, he said that currently there is no proposal under consideration of the government to purchase new aircraft for PIACL. However, PIACL has invited bids to acquire aircraft on lease, he added.

Aftab said PIACL has not purchased any airplanes during the last five years. However, 19 aircraft on dry lease and five on wet lease have been acquired during the last five years.