Civil Aviation Regulatory Commission

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Civil Aviation Regulatory Commission
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Vision

• Safe skies for all operators

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Mission

• "To promote the development of Jordans civil
  aviation safety, security and environmental
  regulatory compliance, while ensuring the
  economic soundness of a liberalized industry

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CARC GOAL

• To achieve worlds best practice in aviation
  safety, security, environmental, and
  aviation economic regulation , independently
  enforcing civil aviation regulations but doing so
  in ways that are consistent, fair and
  transparent, and that show flexibility, good
  judgment and accountability.
• The CARC additionally aspires to be a leading
  aviation regulator within the Region.

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CARC ROLE

• To develop the civil aviation sector in Jordan
  through
• the safety, security, environmental and economic
  regulation of civil aviation operations
• Encourage the aviation industry to maintain high
  standards of safety, security, environmental
  awareness and financial performance
• Issue regulations, orders and instructions on
  matters coming under its responsibility and
• Undertake any function conferred on it by
  relevant Jordanian legislation.

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Air Transport Liberlization

• Introduction
• The Government of Jordan is adopting gradual
  liberalization and open sky concept.
• Declaration of Jordan as an OPEN SKY is
  expected by the beginning of the year 2008 on a
  reciprocal basis and by the end of 2010 without
  imposing restrictions.
• The CARC approach is to maximize economic
  efficiency through the encouragement of effective
  competition wherever feasible, with highest
  consideration to safety ,security, environment
  and consumer protection issues which had been
  developed in accordance to ICAO standards and
  best international practices especially by
  benchmark the EU regulations.

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Air Transport Liberlization Introductioncont.

• CARC started implementing the liberalization on
  national levels by removing the restrictions
  imposed on licensing new carriers and by changing
  the legal regulatory framework to encourage PSP
  in Airport operations, and air transport.
• The Gradual liberalization strategy requires an
  oversight of airline activity with respect to
  safety, security and consumer protection issues.
• The CARC aims to make Jordans international
  aviation market as contestable as possible by
  eliminating all unnecessary restrictions within
  its licensing and other regulatory processes.

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Liberlization Aspects

• Open Skies / update Air Service Agreement (ASA).
• CAA Restructuring/ Separation the operator from
  the regulator.
• RJ Privatization.
• Market Access/ Economic Regulations

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Open Skies

• In 2003 King Hussein International Airport has
  been declared as open airport to scheduled and
  non-scheduled flights and all carriers under
  category (1) are welcome to exercise full
  commercial traffic rights including 5th freedom,
  so as to enhance tourism in Aqaba.
• Jordan is implementing Open Sky policy with
  following Countries
• USA, Lebanon, Yemen, Morocco, Algeria, Tunisia
  Hong Kong, Thailand, Syria, UAE, Iraq, Kuwait,
  Saudi Arabia, Bahrain, Oman, and Azerbaijan.

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Open Skies cont.

• CARC will continue to conduct bilateral air
  transport negotiation for the purpose of
  concluding new air services agreements and/or
  amending the current agreements to include
  liberal elements such as
• Open bilateral market access,
• Multiple designations instead of single
  designations,
• Open regime for the operation of code-sharing
  services including 3rd party code-share, and
• Prices to be based on market considerations
  regime and fair competition.

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Restructuring Accomplishment

• The Establishment of CARC.
• QNCATC Privatization.
• PSP in Airports
• Aqaba Development Company (ADC) The owner of
  king Hussien International Airport (KHIA).
• Airport De Paris (ADP) The BOT investor at
  Queen Alia International Airport (QAIA).

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RJ Restructuring

• Royal Jordanian is currently the sole Jordanian
  operator for scheduled services in the Kingdom.
• Restructuring began in 1998 with outsoursing RJ
  non-core bussiness activities (maintenace,
  training centre, catering, duty free shop, engine
  overhaul).
• Elminating Government Subsidies/ RJ currently
  pays all the fees and airport charges without any
  discrimination .
• RJ is focusing on feasbile and profit operation.

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RJ Restructuring

• Royal Jordanian is allowed to provide the
  majority of ground handling services at the QAIA
  until February, 5, 2008 with the possibility to
  license another ground handler at the airport as
  being selected by the new BOT investor.
• RJ Route exlusivity agreement is subject to
  performance criteria with validity until february
  2010.
• CARC Re-enforces RJ to compete with national and
  international air carriers, without
  discrimination, in accordance with the applicable
  ASA, laws, regulations and agreement.

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Market Access

• CARC has adopted the best practices with respect
  to licensing Jordanian air carrier to operate
  commercial air services, ensuring that consumer
  and user interests are protected, through the
  application of clear and transparent requirement
  (financial fitness, insurance, safety security
  compliance, ownership and effective control).
• In order to assure the liberalization process,
  CARC has adopted transparent, fair and liberal
  policies through openning the market for new
  entrants applying a fair competion environment
  for all operators.
• CARC will ensure user and consumer protection
  through appropriate regulatory powers and
  continuous monitoring of air carriers.

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Airline Market Access

• Domestic market
• The domestic Market in Jordan is limited - one
  route is serving this market - Amman Aqaba
  route.
• This route currently served by one flight per day
  by Royal Jordanian (RJ)
• New entrants to domestic market are allowed, but
  subject to meet ownership, effective control,
  financial fitness, and insurance requirements.
• Foreign Air Carriers do not have any rights to
  compete on domestic market, i.e. there are no
  such cabotage rights in Jordan

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Market Access Current Situation Cont.

• International Market
• Jordanian Air Carriers are in principle allowed
  to access and compete in the international market
  subject to the requirements on ASAs and to
  charter regulations and conditions as stipulated
  in the REA specifically the D-minimus
  requirements further of meeting the Route
  Licensing and Economic Operating Regulations
  requirement.
• The Foreign Air Carriers are allowed to access
  and compete in the Jordanian market according to
  the ASA, concluded between Jordan and other
  countries.

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Economic Regulations

• Economic Operating Regulations/ are applied for
  the granting and continued validity of an
  Economic Operating License (EOL) in relation to
  air carriers established in the Kingdom.
• Charter Regulations/ The approval of charter
  flights to and from the Kingdom of Jordan, to
  encourage the operation of non-scheduled flights
  which is subject to effective and
  non-discriminatory control.
• Applications of airlines from Countries that are
  listed under Category 2 or 3 by international
  regulatory bodies (ICAO, FAA, EC) are not allowed
  to operate into Jordanian Airports.
• CARC Technical Regulations are FAA based last
  year a decision has been taken to shift our
  Regulations (JCARs) to be in alignment with
  European standards (IASA).

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Economic Regulationscont.

• Route Licensing Regulations/ are applied for
  granting and continued validity of a Route
  License to Jordanian air carriers to operate
  scheduled services on international routes where
  there is scarce capacity under the terms of the
  ASA.
• Airport Economic Regulation/i.e. Price monitoring
  regulatory environment will be established for
  Jordan Airports Company following the separation
  of the airport operator from the CARC.
• EU Consumer Protection regulations may be adopted
  as a model in the Kingdom, if CARC deems it
  necessary.

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Aviation Industry Sector

• Air Operators
• Air Carrier
• Royal Jordanian
• Royal Wings
• Jordan Aviation
• Royal Falcon
• 3 applications 2 Fixed Wings 1 Helicopter

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Aviation Industry Activities

• Air Operators
• Air Taxi
• Arab Wings
• Raya Jet
• 1 Under certification- Waves Jet

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Aviation Industry Activities

• Air Operators
• Cargo
• Jordan International Air Cargo/ JIAC
• Transworld Airfreight Company/ TRAFIC

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Aviation Industry Activities

• Pilot Schools
• Royal Jordanian Air Academy
• Mideast Aviation Academy
• Ayla Aviation Academy
• 1 New application-Helicopter

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Aviation Industry Activities

• Training Centers
• Jordan Airline Training Simulation
• ICAO AVSEC Regional centre.
• IATA Regional Training Office.
• AACO- Arab Air Carriers Organization
• Regional Training Center
• Queen Noor Civil Aviation Technical College

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Aviation Industry Activities

• Technician Schools
• Royal Jordanian Air Academy
• Mideast Aviation Academy
• ATA Aviation Technology Academy
• Jordan Air Academy
• 1 Under certification

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Aviation Industry Activities

• Repair Stations
• JorAMCo Jordan A/C  Maintenance Company
• JALCO Jordan Air Motive Limited Company
• JAC Jordan Aeronautical System Company
• MEAA Mideast Aviation Academy
• RJAA Royal Jordanian Air Academy
• Aircraft Component Overhaul / Royal Jordanian Air
  Force

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Aviation Industry Activities

• Clubs
• Royal Jordanian Falcon
• Royal Aerosports Club of Jordan
• Royal Jordanian Gliding Club

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Aviation Industry Activities

• Manufacturers
• JAI Jordan Aerospace Industries (SAMA CH -2000)
• Seabird Aviation Jordan, Jordan building seeker
  A/C

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CARC Expectations

• Airport Company establishment by the beginning
  of 2008.
• ANS Company establishment by year 2009.
• Deceleration Jordan as Open Sky on reciprocal
  basis by the beginning of 2008, in order to
  declare JORDAN as open sky by end of year 2010
  without any restrictions.
• RJ to be privatized by the beginning of 2008.
• ADP will take over QAIA operation and expansion
  by the 15th of November, 2007.

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CARC Expectation .. Cont.

• Licensing new Air Carriers for domestic and
  international markets, with highest consideration
  on safety ,security, environment issues.
• Licensing new Routes, not previously served
• More ASA on liberal approach are to be concluded.
• Effective implementation of economic regulations
  and consumer protection.
• Human resources training and rehabilitation
  intensified.
• Continuous growth of air traffic movement to and
  via JORDAN.

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CARC Expectation .. Cont.

• Horizontal Agreement between Jordan and EC the
  final signature of this agreement is expected to
  be within this year (2007).
• This Agreement is considered to be important step
  towards concluding the comprehensive agreement,
  which address our concern and be beneficial for
  both parties, particularly assisting Jordan to
  build its internal capacities and capabilities in
  different relevant fields such as
• Air Navigation
• Flight Safety
• Flight operation
• Airworthiness Engineering
• AVSEC.
• Human resource training .

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Air Traffic Movement At All Jordanian Airports
Avg. growth 9.6
Avg. growth 1.6
Avg. growth 9.6
3.76 M.
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Air Traffic Movement At QAIA
3.48 M.
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Air Traffic Movement At AMIA
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Air Traffic Movement At KHIA
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Thank You