Aicraft Title & Registrations: Pakistan

Contributor: Syed Ali Bin Maaz, Partner, Kabraji & Talibuddin

1. Which authority is in charge of the civil aviation registry in Pakistan? Does Pakistan use a single-registry system or is there a dual-registry system in place?

The Pakistan Civil Aviation Authority (the “PCAA”) is the authority in charge of the civil aviation registry in Pakistan and uses a single-registry system. 

2. Is the registry an operator registry or an owner registry (or both)?

Details of both the aircraft operator and the owner are reflected in the register maintained by the PCAA (i.e., the Pakistan Aircraft Register). 

3. What are the requirements and documentation to register an aircraft in Pakistan? Include references to formalities such as notarisation, legalization, etc.

An application for registration of the aircraft in the Pakistan Aircraft Register shall consist of the following information: 

the name of the manufacturer;   the manufacturer’s designation of the aircraft;  the serial number of the aircraft;   the name and addresses of all persons or organizations who have a legal interest as owners of the aircraft;   if the aircraft is the subject of a hire purchase or leasing agreement, the name and address of the person or persons or organization purchasing or leasing the aircraft; and   a declaration as to the truth of the statement set out in the application. 

Additionally, pursuant to Airworthiness Notice AWNOT-005-AWRG-6.0 dated 5 March 2021 (the “Airworthiness Notice”), the following documents need to be submitted to the PCAA for the inclusion of an aircraft in the Pakistan Aircraft Register and for the issuance of a Certificate of Registration (“COR”):  

form CAAF-128 AWRG duly signed by the owner or through a power of attorney, its authorized designee (in original);  proof of ownership of the aircraft/bill of sale (original);  Type Certificate (TC) issued by FAA/EASA/PCAA/NAA, as applicable (required only for first type of aircraft to be registered in Pakistan;   Type Acceptance Certificate (TAC) issued by PCAA (required only for first type of aircraft to be registered in Pakistan;   proof of deregistration/no registration from previous state of registration, in original (as applicable);  aircraft lease agreement, in original (as applicable);  Export Certificate of Airworthiness, in original (as applicable);  approval of the Director General, PCAA to induct the aircraft in Pakistan;  aircraft customs clearance documents (required, when the aircraft is in Pakistan);  documentary evidence regarding legal existence of prospective owner and valid Air Operator Certificate held by prospective aircraft operator (if applicable);  receipt/proof of payable registration fee; and  any other document as deemed appropriate. 

Please note that where original documents are being provided, a notarized and consularized copy of such documents (including any powers of attorney) are also required to be submitted to the PCAA. The PCAA will retain the notarzied and consularizied copies and return the originals. In certain cases, as a matter of practice, the PCAA may accept notarized and consularized copies without requiring the originals thereof.

4. What fees are payable to register an aircraft in Pakistan?

The fee payable in relation to the COR are as follows: 

Initial reservation of registration mark (60 days) – Rs. 9,300  Each subsequent extension(s) in reservation (60 days) – Rs. 15,500 Issue/ re-issue for Ultralight/LSA/ Airship/ Balloons/Amateur built aircraft – Rs. 6,975 Issue/ re-issue for aircraft up to 5,700 kg – Rs. 13,175 Issue/ re-issue for aircraft above 5,700 kg – Rs. 31,000 Out of series/Special registration mark of applicant’s choice – Rs. 775,000  

5. Are there any weight and/or maximum age restrictions to register an aircraft in Pakistan?

There are no specific restrictions as to the weight of an aircraft. In relation to the age of an aircraft, the eligibility for induction is given below (as per ANO-019-AWRG-1.0 dated 27 March 2019) against corresponding types of operation: 

License/ Category of Operations  Maximum Induction Age  Maximum Operation / 

Retirement Age  Regular Public Transport (RPT) domestic / international  18 years (with 35% operational life remaining)  25 years  RPT/non-RPT cargo domestic / international  35% of operational life remaining  OEM recommended age / cycles  charter pax / aerial work pax / 

private aircraft (pressurized) 

domestic / International  18 years (with 35% operational life remaining)  OEM recommended Age / cycles  TPRI (domestic) – pressurized  18 years (with 35% operational life remaining)  OEM recommended age / cycles  TPRI / aerial work / charter / 

flying school (unpressurized)  25 years with 35% operational life remaining or 50% of operational life remaining  OEM recommended age / cycles  private aircraft (Unpressurized)  not defined  OEM recommended age / cycles 

 

RPT: Calendar age of all aircraft, used as passenger transport for scheduled / non-scheduled passenger-carrying services, shall not be more than 18 years at the time of induction with minimum of 35% remaining operational life initially defined by OEM. Operational life expectancy shall be based on international standards considering limitations on maximum hours, flight cycles and age etc. Operations would be permissible up to a maximum calendar age of 25 years. 

Pressurized non-RPT pax: For charter passenger, Tourism Promotion and Regional Initiative (TPRI), aerial work passenger and private aircraft operations, calendar age of all aircraft shall not be more than 18 years at the time of induction with minimum of 35% remaining operational life initially defined by OEM. Operations would be permissible up to a maximum calendar age/life cycles as defined by OEM subject to airworthiness.  

RPT/non-RPT Cargo: For freighter/cargo aircraft, minimum of 35% remaining operational life would be required as initially given by OEM at the time of induction. Operations would be permissible up to a maximum calendar age/life cycles as prescribed by the manufacturer of the aircraft provided the aircraft is airworthy.   

Unpressurized CH (Pax.) AW & FS: for unpressurized aircraft/helicopter being used for TPRI, charter (Pax.), aerial work and flying school operations, the calendar age at the time of induction, shall not be more than 25 years with 35% of operational life remaining or minimum of 50% remaining operational life would be required as initially given by the OEM, at the time of induction; operations would be permissible up to a maximum calendar age/life cycles as prescribed by the manufacturer of the aircraft provided the aircraft is airworthy. 

6. Does registration of an aircraft in the national registry constitute proof of ownership under the laws of Pakistan?

Applicable law does not specifically state whether registration in the Pakistan Aircraft Register constitutes proof of ownership, but it would provide evidentiary basis to establish ownership in favour of the named owner. Furthermore, to have an aircraft registered in the Pakistan Aircraft Register, inter alia, documentation evidencing proof of ownership is required to be submitted to the PCAA. 

7. How is an aircraft title transfer effected in Pakistan? What are the formalities required to register such title transfer in the national registry of Pakistan (e.g., notarization, legalization etc.)? Please summarize the related costs and procedures.

The title transfer may be effected by way of a duly executed, stamped, and witnessed transfer instrument between the parties. Permission from or notification to the PCAA is required in the cases set out below as per the Airworthiness Notice. 

No Pakistan registered aircraft, whether its COR is in force or not, shall be leased outside Pakistan nor shall there be any change, partial or otherwise in the ownership, possession or use of the aircraft, otherwise transferred to any person, company or corporation, without the prior permission in writing of the Director General, PCAA. Any change in registration details that affects the contents of COR shall require the holder to apply for revised COR e.g., change of owner’s / operator’s title, address, etc1.  

Any transfer of ownership of an aircraft registered in Pakistan shall be notified to the Director Airworthiness, PCAA by the person or persons acquiring ownership within fourteen days of the transfer. In case of any change in aircraft lease agreement which is already submitted with PCAA, it is the responsibility of the holder of COR or its authorized designee to notify PCAA at the earliest, with aircraft operator on board2.  

In each case where change in the registration details affect the data/ information as appears on the COR, updated application form (CAAF-128-AWRG) shall be submitted to HQ Airworthiness Directorate along with associated documentary evidence and duly signed by new owner/ operator/ authorized designee, as the case may be. Former owner(s), his attorney, or his legal heir shall duly complete applicable section on ‘COR’ along with his signature and date. Upon receipt of such request and subject to fulfilment of all relevant requirement, a revised ‘COR’ will be issued with updated particulars as desired3. 

Documents required to be submitted for change in ownership are as follows: 

Prior approval in writing of the Director Airworthiness, PCAA must be obtained.  A duly completed form CAAF-128-AWRG-3.0.   Original bill of sale evidencing the change of ownership of the aircraft.  A notarized and consularizied copy of the bill of sale is also required to be provided. The PCAA, as per practice, returns the original and keeps the notarized and consularized copy for their records. In certain cases, the CAA may accept a notarized and consularizied copy without requiring the original.    The original COR in respect of the aircraft with Section I/II duly filled out. This is required to be executed by the authorized person of the former owner. Originals, notarized, and consularized corporate approvals of the former owner are also required to be submitted.  Corporate approvals authorizing the relevant person(s) to execute the application for change of ownership/registration. Originals of the corporate approvals along with a notarized and consularizied copy are required to be provided.   Any other document/information that the PCAA may require.  Power of attorney/ authority letter if the application is signed by a person other than owner of aircraft.  Payment of fees of PKR 31,000. 

The owner, or a duly authorized representative of the owner, may submit the application for the change in ownership. There is no time period set out under applicable law within which the PCAA is required to effect the change in ownership. On the basis that the necessary documents have been submitted and the PCAA does not request for any additional information/documents, we anticipate that it could take up to three to four weeks for the PCAA to issue the revised COR reflecting the change in ownership.  

8. What information and details are reflected in the certificate of registration of an aircraft?

In practice, the COR contains:  

the nationality and registration mark of the aircraft;  the manufacturer and manufacturer’s designation of aircraft;  the name and address of the owner;  the aircraft serial number;  the operator’s details;  date of issuance; and  the registration certificate number. 

9. Are the entries in the aircraft registry of Pakistan made available to the public upon submission of a specific application to the competent authority? Are there any fees payable for this?

The Pakistan Aircraft Register shall be made available for inspection at such times and subject to such conditions as the Director-General may specify. The fee payable for issuance of Aircraft Extract from Pakistan Aircraft Register is Rs. 11,625. As a matter of practice, the PCAA does not make entries in the Pakistan Aircraft Register public and issues an extract of the Pakistan Aircraft Register provided an application is submitted by or on behalf of the owner of the aircraft.  

10. What kind of aircraft operations can be conducted with aircraft registered in Pakistan (i.e., private use, commercial air transport or both)?

Both private use and commercial air transport operations can be conducted with aircraft registered in Pakistan. 

11. Does the civil aviation authority in Pakistan authorise the operation of foreign registered aircraft? If so, with which countries has Pakistan entered into bilateral agreements on the basis of article 83-bis of the ICAO Chicago Convention for the delegation of regulatory oversight?

A foreign aircraft may be operated in Pakistan upon the provision of a certificate of airworthiness issued or validated by the State of registry of such an aircraft. While the CAA Rules 1994 permit an aircraft registered in a Contracting State4 to fly in Pakistan, we understand from the PCAA that in practice, where an aircraft is on dry lease with a local operator in Pakistan, registration of the subject aircraft is required to be effected in Pakistan (following deregistration of the aircraft from the Contracting State) pursuant to ANO-016-FSXX-3.0 dated 15 March 2018. However, we also understand from the PCAA that aircrafts on wet leases (for short periods) with a local operator in Pakistan may operate without being required to be registered in the Pakistan Aircraft Register, provided, inter alia, they are duly registered in a Contracting State.    

Pakistan has not entered into bilateral agreements on the basis of Article 83-bis of the ICAO Chicago Convention for the delegation of regulatory oversight. However, it has Air Services Agreements with the following Countries 

Countries  Last ASA Talks  Afghanistan  16-01-2008  Albania  01-07-1972  Algeria  06-02-1976  Australia  02-08-2007  Austria  27-09-2006  Azerbaijan  9-4-2005  Bahrain  13-08-2013  Bangladesh  26-05-2011  Belgium  01-07-1958  Bosnia  22-03-2006  Botswana  17-03-1989  Brunei  8-4-1999  Bulgaria  07-05-1993  Canada  6-10-2011  Chad  15-02-1975  China  15-04-2009  Cyprus  9-10-2003  Czech  21-12-1967  Denmark  31-01-2014  Egypt  06-08-2003  Eritrea  20-09-2006  Ethiopia  6-12-2004  France  17-04-2013  Georgia  01-10-2009  Germany  12-11-1998  Ghana  23-10-1975  Greece  14-12-2010  Hong Kong  11-4-2000  Hungry  06-05-1976  Iceland  19-10-2011  India  15-02-2008  Indonesia  25-05-1993  Iran  15-01-2013  Iraq  8-8-2009  Italy  24-03-2004  Ivory Coast  26-11-1975  Japan  04-10-2010  Jordan  26-07-2007  Kazakhstan  16-02-1993  Kenya  25-02-1997  Korea (DPR)  26-01-1975  Kuwait  17-02-2004  Kyrgyzstan  24-11-2006  Latvia  11-10-2011  Lebanon  16-01-1971  Liberia  16-04-1978  Libya  19-05-1973  Luxembourg  14-10-1997  Macau  27-02-1995  Malaysia  4-7-2007  Maldives  12-2-1981  Malta  17-05-1974  Mauritania  1-9-1979  Mauritius  14-04-2007  Morocco  11-12-1973  Myanmar  12-10-1995  Nepal  27-12-1995  Netherlands  28-11-1998  Niger  27-07-1976  Nigeria  8-6-1993  Norway  31-01-2014  Oman  25-11-2012  Philippines  11-07-1969  Poland  13-10-1970  Portugal  7-6-1958  Qatar  18-02-2014  Romania  28-01-1997  Russia  14-05-2011  Saudi Arabia  29-03-2011  Seychelles  08-06-1979  Sieraleone  21-04-1978  Singapore  11-11-2009  Somalia  20-10-1976  South Africa  09-11-2011  South Korea  20-02-2010  Spain  4-6-2008  Sri Lanka  8-4-2008  Sudan  19-02-1999  Sweden  31-01-2014  Switzerland  19-04-2000  Syria  2-11-2006  Tajikistan  21-10-2009  Tanzania  13-09-1982  Thailand  15-11-2006  Tunisia  29-09-1993  Turkey  17-09-2013  Turkmenistan  25-04-2007  UAE  13-11-2012  Uganda  18-03-1978  UK  25-01-2008  Ukraine  11-7-1993  USA  16-08-1996  Uzbekistan  27-06-2006  Yemen  25-07-2001  Zimbabwe  15-03-1989 

12. Is there a separate register of aircraft mortgages and/or leases and/or security interests in Pakistan?

No, there is not a separate register of aircraft mortgages/ security interests. With respect to the interests of the secured parties, there is no separate register for the recordation of security interests, and there are no provisions in the law of Pakistan which would require a security in an aircraft to be perfected in Pakistan by entry in any domestic register (either with the PCAA or any other government entity) unless the aircraft is owned by a company incorporated in Pakistan5. However, it may be possible to avail a practice developed over time, if a notation is made in the remarks section of the Pakistan Aircraft Register to include a brief description of the security interest in the aircraft.  

13. What are the formalities required to register a mortgage / lease / security interest in the national registry of Pakistan (e.g., notarization, legalization etc.)? Please summarize the related costs and procedures.

Please see the response to question 12 above.  

14. Is a mortgage priority notice an available security instrument for aircraft financiers in Pakistan?

Not applicable. 

15. Does an aircraft mortgage duly registered in the national registry of Pakistan extend to engines and other parts of such aircraft (either installed or not on the airframe)?

There are no provisions in the law of Pakistan which would require an aircraft mortgage or any other security in an aircraft to be perfected in Pakistan by entry in any domestic register (either with the PCAA or any other government entity) unless the aircraft is owned by a company incorporated in Pakistan. However, Pakistan has implemented the Cape Town Convention by way of the Cape Town Convention and Aircraft Protocol (Implementation) Rules, 2004 (the “Implementation Rules), of which Rule 3 recognizes ‘aircraft objects (airframes, aircraft engines and helicopters) as an international interest and capable of being registered in the International Registry pursuant to the Cape Town Convention. As the Implementation Rules, 2004 are a part of local law, such interests can be enforced locally. 

16. What statutory liens (if any) would rank prior to an aircraft mortgage duly registered in the national registry of Pakistan?

There are no provisions in the law of Pakistan which would require an aircraft mortgage or any other security in an aircraft to be perfected in Pakistan by entry in any domestic register (either with the PCAA or any other government entity) unless the aircraft is owned by a company incorporated in Pakistan. 

Note that pursuant to the Implementation Rules, liens in favour of any state entity relating to unpaid taxes or other charges directly related to the use of that aircraft and owed by the owner of the aircraft have priority under the law over an interest in an object equivalent to that of the holder of a registered international interest and shall have priority over a registered international interest, whether in or outside insolvency proceedings.  

17. Do the laws of Pakistan provide for possessory rights and/or rights of detention over aircraft in favor of third parties (such as airport taxes, customs duties, air navigation charges, crew’s wages, MRO’s receivables)?

While the PCAA is required to cooperate and assist with the deregistration and export of an aircraft if and when requested by an authorized party under the IDERA, Rule 46 of the Implementation Rules appears to empower state entities, including the PCAA, to detain an aircraft object for violation of law, including safety-related or criminal law or for payment of any amounts owed to any such person and directly relating to the services provided by it in respect of that aircraft object, and thereby impeding the enforcement of the IDERA by the authorized party, enabling it to deregister and physically export the aircraft from Pakistan.

Rule 46(1) of the Implementation Rules provides that “[a] priority nonconsensual right or interest, to the extent it had priority over an interest in an aircraft object equivalent to that of the holder of a registered international interest prior to the effective date of these Rules, shall retain that priority over a registered international interest hereunder, whether in or outside of insolvency proceedings”.

Additionally, Rule 46(2) of the Implementation Rules, states that “[n]othing in these Rules shall affect the exercise by any person including any state entity of powers conferred by any other law for the time being in force, to arrest or detain an aircraft object for violation of law, including safety-related or criminal law or for payment of any amounts owed to any such person and directly relating to the services provided by it in respect of that aircraft object but no such arrest or detention shall adversely affect the priority of an international interest held by a party not violating such law”.

The term ‘priority non-consensual right or interest’ is defined in Rule 2(xl) of the Implementation Rules to mean “a non-consensual right or interest relating to an aircraft object conferred under the law of Pakistan without any requirement for registration of the following types:

a right or interest in respect of an aircraft which, if the aircraft had been a vessel, would have resulted in a maritime lien on the aircraft and its equipment for (A) salvage and (B) damage done by that aircraft;

liens in favour of any state entity relating to unpaid taxes or other charges directly related to the use of that aircraft and owed by the owner of the aircraft”

In view of the foregoing provisions in the Implementation Rules, the issue that requires examination is whether the authorized party named under the IDERA who seeks to deregister and export the aircraft from Pakistan may be impeded by a state entity (e.g. the PCAA) through detention of the aircraft object on account of non-payment of any amounts owed to any such person and directly relating to the services provided by it in respect of that aircraft object despite a duly registered international interest held by the authorized party not violating applicable laws.

In this context, it is relevant to consider the specific declaration made by the Government of Pakistan pursuant to Article 39(1)(a) of the Cape Town Convention which states that:

Pakistan declares that the following categories of non-consensual right or interest:

a right or interest in respect of an aircraft which, if the aircraft had been a vessel, would have resulted in a maritime lien on the aircraft and its equipment for (A) salvage and (B) damage done by that aircraft;

liens in favour of any state entity relating to unpaid taxes or other charges directly related to the use of that aircraft and owed by the owner of the aircraft; have priority under its law over an interest in an object equivalent to that of the holder of a registered international interest and shall have priority over a registered international interest, whether in or outside insolvency proceedings.

Additionally, the Government of Pakistan has made the following declaration pursuant to Article 39(1)(b) of the Cape Town Convention:

Pakistan declares that nothing in the [Cape Town] Convention shall affect its rights or that of that State, any intergovernmental Organization or other private provider of public services to arrest or detain an object under its laws for payment of amounts owed to Pakistan, any such entity, Organization or provider directly relating to the services provided by it in respect of that object or another object.

Given that any state entity exercising or purporting to exercise a right of detention or arrest of an aircraft may only do so if it has been conferred by the laws of Pakistan. It is important to consider the applicable laws to determine if the PCAA is empowered to detain an aircraft on account of non-payment of taxes and other charges relating to the use of that aircraft. It may be noted that the Civil Aviation Ordinance 1960 (the “CAA Ordinance”) read with the CAA Rules empowers the PCAA to detain an aircraft for, inter alia, breach of the requirements of the CAA Ordinance read with the CAA Rules (which include non-payment of amounts owed to the PCAA (such as, but not limited to, airport landing charges)).

Therefore, it seems apparent that the priority non-consensual right or interest resulting in a lien in favour of the PCAA in respect of unpaid taxes or other charges directly related to the use of that aircraft and owed by the owner of the aircraft (or the right of the PCAA to detain the aircraft for non-payment of any amounts owed to it and directly relating to the services provided by it in respect of that aircraft object) shall rank above the registered international interest, albeit that the priority of an international interest held by a party not violating such law shall not be adversely affected pursuant to Rule 46(2) of the Implementation Rules.

However, to understand the practical application of Rule 46 of the Implementation Rules from the PCAA’s perspective, we held a meeting with the relevant officials at the Airworthiness Department of the PCAA at their office to discuss this issue on a no-names basis. We understand from them that in an enforcement situation where the authorized party intends to enforce the IDERA to deregister and export the aircraft from Pakistan, the PCAA would assist the authorized party without requiring any payment of the dues owed by the local operator in respect of airport charges relating to that aircraft in line with the true spirit and objective of IDERA under the Cape Town Convention. However, this was revealed to us in an off-the-record discussion. Given that this issue has not been tested in our courts and the fact that the information was disclosed to us without context or reference to a specific case, it is unlikely that we will be able to get an opinion to the same effect in writing from the PCAA despite our request to them. Our past experience with officers of regulators in our jurisdiction reveals them to be extremely reluctant to offer a binding written response.

18. Are foreign law-governed security agreements (e.g., mortgages) recognized in Pakistan in order to validly create a security interest over an aircraft registered in the national registry of Pakistan? If so, are there any formalities/requirements to bear in mind?

Yes, foreign law-governed security agreements are recognized in Pakistan provided such international interests are duly registered with the international registry in compliance with the Cape Town Convention. If executed in Pakistan, such agreements are required to be stamped at the applicable stamp duty at or prior to execution and each party’s signature to the agreement is required to be witnessed by two adult males or one adult male and two adult females.  

19. Are foreign law-governed leases recognized in Pakistan in order to validly lease an aircraft registered in the national registry of Pakistan to a lessee incorporated in Pakistan? If so, are there any formalities/requirements to bear in mind?

Yes, foreign law-governed leases are recognized in Pakistan. If executed in Pakistan such agreements are required to be stamped at the applicable stamp duty at or prior to execution and each party’s signature to the agreement is required to be witnessed by two adult males or one adult male and two adult females.

20. Has Pakistan ratified the Cape Town Convention on International Interests in Mobile Equipment and the related Aircraft Protocol? Has Pakistan made any declarations to better determine the scope of application of the Convention / Protocol in Pakistan? If so, what is the impact of such declarations on aircraft registration issues? Are there any specific aspects relating to the enforcement of IDERA’s to be considered?

Yes. Pakistan has implemented the Cape Town Convention and the related Aircraft Protocol by way of the Implementation Rules. These rules govern the scope of application of the Cape Town Convention. With respect to the enforcement of an IDERA in Pakistan, please note that an IDERA is fully recognized and enforceable under the laws of Pakistan. 

Pakistan has lodged the following declarations under the Cape Town Convention at the time of the deposit of its accession instrument: 

Form No. 1 (Specific declaration under Article 39(1)(a)) Pakistan declares the following categories of non-consensual right or interest: (a) a right or interest in respect of an aircraft which, if the aircraft had been a vessel, would have resulted in a maritime lien on the aircraft and its equipment for (A) salvage and (B) damage done by that aircraft; (b) liens in favour of any state entity relating to unpaid taxes or other charges directly related to the use of that aircraft and owed by the owner of the aircraft; have priority under its law over an interest in an object equivalent to that of the holder of a registered international interest and shall have priority over a registered international interest, whether in or outside insolvency proceedings. Form No. 4 (General declaration under Article 39(1)(b)) Pakistan declares that nothing in the Convention shall affect its right or that of any entity of that State, any intergovernmental Organization, or other private provider of public services to arrest or detain an object under its laws for payment of amounts owed to Pakistan, any such entity, Organization or provider directly relating to the services provided by it in respect of that object or another object. Form No. 5 (General declaration under Article 39(4)) Pakistan declares that a right or interest of a category covered by a declaration made under Form No. l shall have priority over an international interest registered prior to the date of the deposit of its instrument of accession.  Form No. 6 (Declaration under Article (40)) Pakistan declares that the following categories of non-consensual right or interest: (a) rights of a person obtaining a court order permitting attachment of an aircraft object in partial or full satisfaction of a legal judgment; and, (b) liens or other rights of a state entity relating to taxes or other unpaid charges of any type whatsoever (which is not a priority non-consensual right or interest) shall be registerable under the Convention as regards any category of object as if the right or interest were an international interest and shall be regulated accordingly. Form No. 10 (General declaration under Article 52) Pakistan declares that the Convention is to apply to all its territorial units. Form No. 11 (Declaration under Article 53) Pakistan declares that the following court(s): – The High Court of Balochistan, – The Lahore High Court, – The Peshawar High Court, and – The High Court of Sindh. Within their respective territorial jurisdiction, are the relevant court(s) for the purposes of Article 1 and Chapter XII of the Convention. Form No. 13 (Mandatory declaration under Article 54(2)) Pakistan declares that any remedies available to the creditor under the Convention which are not expressed under the relevant provision thereof to require application to the court may be exercised without court action and without leave of the court. 

 Pakistan has also lodged the following declarations under the Aircraft Protocol at the time of the deposit of its accession instrument: 

Form No. 19 (Declaration under Article XXX (1) in respect of Article VIII) Pakistan declares that it will apply Article VIII. Form No. 21 (Declaration under Article XXX (2) in respect of Article X providing for the application of the entirety of Article X) Pakistan declares that it will apply Article X in its entirety, and that the number of working days to be used for the purposes of the time limit laid down in Article X(2) shall be in respect of the remedies specified in Articles 13(1)(a), (b) and (c) of the Convention (preservation of the aircraft objects and their value; possession, control or custody of the aircraft objects; and immobilisation of the aircraft objects) not more than ten (10) calendar days and in respect of the remedies specified in Articles 13(1)(d) and (e) of the Convention (lease or management of the aircraft objects and the income thereof and sale and application of proceeds from the aircraft equipment) not more than thirty (30) calendar days. Form No. 23 (General declaration under Article XXX (3) in respect of Article XI providing for the application of Alternative A in its entirety to all types of insolvency proceeding) Pakistan declares that it applies Article XI, Alternative A in its entirety to all types of insolvency proceeding and that the waiting period for the purposes of Article XI (3) of that Alternative shall be sixty days. Form No. 26 (Declaration under Article XXX (1) in respect of Article XII) Pakistan declares that it will apply Article XII. Form No. 27 (Declaration under Article XXX (1) in respect of Article XIII) Pakistan declares that it will apply Article XIII. Form No. 34 (General declaration under Article XXIX) Pakistan declares that the Aircraft Protocol applies to all its territorial units. 

21. What are the requirements and documentation to deregister an aircraft from Pakistan? How does the aircraft deregistration process work?

Pursuant to the Airworthiness Notice, an aircraft is liable for deregistration from Pakistan aircraft register if: 

The aircraft suffers destruction.  The aircraft is permanently withdrawn from use.  The aircraft is transferred to the aircraft register of another state.   The owner or the “Authorized Party” (as per IDERA) or his authorized designee requests deregistration of aircraft at any time.  

In case any of the conditions listed in 1 through 3 prevail, the COR shall be deemed cancelled and if, it is in the possession of the owner(s)/ authorized designee of the owner, it shall be duly filled in for applicable section and forwarded to Director Airworthiness, PCAA along with application form CAAF-128-AWRG and requisite fee for deregistration.  

 Where cancellation/deregistration of an aircraft is being sought for which ‘IDERA’ is still in force with PCAA, an application is required to be filed which can only be initiated by the ‘Authorized Party’ as declared in IDERA (or his authorized designee) along with necessary enclosures.  

 Following documents are required for deregistration:  

Duly filled out application for cancellation of registration CAAF-128-AWRG-4.0 which will require the following information:  Reason for cancellation of registration;  Confirmation of the capacity of the applicant i.e. registered owner, authorised party as per IDERA, authorised designee, or ‘other’;  Proof of ownership along with relevant power of attorney/authority letter if the application is signed by a person other than the owner of the aircraft;  Section-III/IV of Original COR duly filled;  Duly filled out form CAAF-196-AWRG-1.0;  Return of the original IDERA.  Applicable deregistration fee (please refer to our answer to Question 21 below)  Pursuant to paragraph D5.3 of the Airworthiness Notice, it is to be noted that an original COR or any other on board documents shall not be required to be submitted together with the application for cancellation of registration of the aircraft, on which ‘IDERA’ is still in force with PCAA, in order to effect its deregistration. In all cases, where the aircraft is still operational, the applicant may choose to return original COR after confirmation of deregistration from Pakistan aircraft register or change of registration details as applicable. Moreover, in order to satisfy deregistration request, PCAA may ask for any additional document/letter from the applicant to support his request.  

 

22. What fees are payable to deregister an aircraft from Pakistan?

The current fee/charges for the purposes of deregistration of an aircraft is PKR 10,850. 

23. Is the consent of the mortgagee / lessor (as the case may be) required in order to deregister an aircraft from Pakistan?

Yes, provided the lessor/mortgagee is named as the Authorized Party under the IDERA. However, please note that pursuant to Rule 16(2) of the Implementation Rules, a creditor (i.e. a chargee under a security agreement, a conditional seller under a title reservation agreement, or a lessor under a leasing agreement) shall not procure the deregistration of an aircraft without the prior consent in writing of the holder of any registered interest raking in priority to that of the creditor. In addition, pursuant to Rule 16(4) of the Implementation Rules, a chargee proposing to procure the deregistration of an aircraft otherwise than pursuant to a court order shall give reasonable prior notice in writing of the proposed deregistration and export to: (a) interested persons specified in sub-clauses (a) and (b) of clause (xxxi) of Rule 2 (i.e. a debtor or any guarantor); and (b) interested persons specified in sub-clauses (c) of clause (xxxi) of Rule 2 (i.e. any person having rights in or over the aircraft object) who have given notice of their rights to the chargee within a reasonable time prior to the deregistration and export. 

24. What are the usual practical difficulties (if any) involved in deregistering aircraft from Pakistan?

The practical difficulties that may arise in procuring the deregistration of an aircraft from Pakistan are as follows: 

Resistance from the lessee: the lessee may resist the deregistration of an aircraft by refusing to cooperate in delivering the aircraft back to the owner/lessor. Consequently, legal proceedings may have to be instituted against the lessee. The lessee may also employ tactics to delay and drag legal proceedings for as long as possible by seeking adjournments.   Notwithstanding our response to question 17 (i.e., that based on our understanding from the PCAA, in an enforcement situation where the authorized party intends to enforce the IDERA to deregister and export the aircraft from Pakistan, the PCAA would assist the authorized party without requiring any payment of the dues owed by the local operator in respect of airport charges relating to that aircraft in line with the true spirit and objective of IDERA under the Cape Town Convention) the PCAA may nevertheless require the relevant dues to be cleared before the aircraft is deregistered from the Pakistan Aircraft Register. The authorized party may need to follow up with the PCAA diligently to ensure timely deregistration of the aircraft.  

25. How long does deregistration take, both where there is co-operation from the defaulted party (mortgagor / lessee / Operator) and where there is no such co-operation from it?

There is no time prescribed under law within which the deregistration request is required to be processed. However, in practice the PCAA has processed deregistration requests within three to four weeks provided the necessary documents have been submitted. 

26. Please outline the applicable repossession rules under the national laws of Pakistan (and the Cape Town Convention, if applicable) following an event of default under a mortgage or a lease, including registration issues with the national registry in Pakistan.

The repossession remedies available are set out under Rules 13, 15 and 21 of the Implementation Rules. Pursuant to Rule 13(1) of the Implementation Rules, in the event of default as provided in Rule 18 of the Implementation Rules, the chargee may, inter alia, to the extent that the chargor has at any time so agreed, without the necessity of applying to a court for an order, take possession or control of any aircraft object charged to it and the chargor shall be under a legal duty to give such possession or control in the manner and within the time the chargor has so agreed. Additionally, Rule 15 of the Implementation Rules provides that in the event of default under a title reservation agreement or under a leasing agreement as provided in Rule 18, the conditional seller or the lessor, as the case may be, may: (a) terminate the agreement and take possession or control of any aircraft object to which the agreement relates; or (b) apply for a court order authorising or directing either of these acts. Further, under Rule 21 of the Implementation Rules a creditor who adduces evidence of default by the debtor shall, pending final determination of its claim and to the extent that the debtor has at any time so agreed, be entitled to obtain from a court speedy relief in the form of, inter alia, possession, control or custody of the aircraft object.