CAA/05/ASLA/59

CIVIL AVIATION AUTHORITY

Directorate of Safety, Security and Economic Regulation


GUIDELINES


PROCEDURE AND STANDARD REQUIREMENTS FOR THE LICENCE TO OPERATE SCHEDULED/NON-SCHEDULED PASSENGER/CARGO SERVICES IN AND OUT OF UGANDA


  1. PROCEDURES FOR APPLICATION OF AIR SERVICES LICENCE (ASL)

    1. The intending operator submits to CAA a written expression of interest to invest in air transport sector.

    2. CAA opens a file and forwards an application form to the operator to complete and return with a non-refundable fee of US $200 plus VAT 18% or its equivalent in Uganda Shillings.

    3. The application, on a duly completed form, shall be submitted to the Office of Director Safety, Security and Economic Regulation (Civil Aviation Authority) on/ or before a date not less than six (6) months to the expected date of utilization of the Air Services Licence.

    4. CAA evaluates the application form and if the information supplied therein is lacking, the operator is invited for interaction during which all possible assistance is given to him/her.

    5. On completion of the evaluation process, the Authority shall cause to publish the applicant in the print Media at least 30 days before the applicant is due to appear before the Air Services Licensing Committee of the Board of Directors of CAA. The Licensing Committee transacts its business at a public meeting.

    6. If the applicant requests for special consideration, for example, a provisional licence, the fee for the application shall be US $ 5,000 (US Dollar five thousand only).

    7. Prior to issuance of an Air Services Licence, the applicant will be required to execute a performance bond through a reputable bank which must be located in Uganda (or have its branch /subsidiary located in Uganda). A standard format of the Performance Bond will be issued to the applicant by the Authority.

    8. Before commencement of the air services the applicant must apply and qualify for the issuance of an Air Operator’s Certificate (AOC).

    9. Following the issuance of the ASL and AOC, the applicant must commence operations as stipulated below:

      • New applications – three (3 Months from the date of Offer to grant ASL

      • Renewal will not be granted to any applicant who has failed to utilize the initial Licence.

      • Resumption of services – six (6) months from the date of suspension, that is, the suspended services may be resumed without fresh application provided the suspension does not exceed six months and provided that the suspension was immediately communicated to the Authority in writing.

    10. Conduct of operations - Proper Airport Operating procedures relating to handling of cargo and/or passengers must be complied with at all times in accordance with the Convention on International Civil Aviation (Chicago Convention of 1944).

  2. REQUIREMENTS FOR APPLICATION FOR ASL

    1. The application for the grant of an Air Services Licence must contain the following information:
      • Name and address of the applicant

      • Type(s) of air services to be provided ( being applied for)

      • Proposed operational base of the applicant

      • Details of routes to be operated where applicable

      • Number and types of aircraft to be utilized, and

      • Time and frequency of the service(s) where applicable

    2. In addition, the following documents must accompany the application:

      1. Certified copy of the Certificate of Incorporation ( Original may be required for sighting)

      2. Particulars of Directors of company , i.e., Name, profession, contact address(es), nationality, Country of Residence

      3. Copy of Memorandum and Articles of Association

      4. Proof of ownership of aircraft or long- term aircraft lease agreement./ arrangement. In the case of Lease arrangements, the aircraft must be under full operational control of the applicant and fulfill the flight safety standards of Uganda

      5. A copy of Certificate of Registration

      6. A copy of Certificate of Airworthiness

      7. Copies of Insurance Certificates ( Hull, Third Party, Cargo and Passenger Liability)

      8. Evidence of applicant capability and capacity to finance the proposed air services and meet financial obligations to CAA - The applicant will be required to submit evidence of ability to finance operations up to:

        • US $ 500,000 or equivalent in Uganda Shillings for domestic services

        • US $ 1 (one) million or equivalent in Uganda shillings for Regional Services

        • US $ 2 million or equivalent in Uganda shillings for International Services.

      In case the applicant is a subsidiary of another company the following must be submitted:


      • Name of the parent company

      • Physical (Location) and Contact address of the Headquarters / Controlling Office of the Parent Company

      • Names, Nationalities of the Shareholders and Directors of the Parent company

      • Certified copy of the Certificate of Incorporation
      • Audited Financial Statements of the Parent Company for two (2) years

      1. A copy of the applicant’s company Business Plan. Please read below (in Paragraph iii) for information to be included in the Business Plan

    3. BUSINESS PLAN REQUIREMENTS

    4. The business plan referred to in sub paragraph (h) above must cover the first 2 years of operation, in order to demonstrate that the company is able to handle its actual and potential obligations for a period of 24 months from the start of the operations, and its fixed and operational costs for a period of six (06) months without taking into account earnings from its operations.

      The business plan shall contain the following elements in detail:

      • The company objectives and the resources available to achieve them, including the total amount of paid up capital of the airline at the time it is expected to commence services, any banking accommodation arranged, and any planned capital-raising programmes.

      • budgeted statement of financial performance of the airline for the first year of operation that is in tabular format and shows income and expenditure levels itemized by major items, together with a schedule that sets out the key assumptions made (e.g, flight frequency, load factors, fares and rates to be charged, etc.) in arriving at the figures.

      • A statement of financial position that shows the different forms of assets and liabilities of the enterprise immediately prior to the date of application and as predicted over the airline’s first year of operation.

      • A cash flow analysis on a month-by-month basis for the airline’s first year of operation, and information on the financial arrangements to deal with those months, if any, in which there are negative cash flows.

      • A list of commitments and guarantees given by the enterprise and/or its directors and management team, together with contingent liabilities

      • Market analysis and strategy; and

      • A summary of the history of the airline/ company and relevant qualifications and work experience of the senior management personnel of the airline (other than technical and operational personnel).

      A guideline to the business plan is provided by the Authority.


Notes: Subject to the particular nature of services being applied for, and / or the prevailing situation at the time of application, additional requirements may be demanded.


DIRECTORATE OF SAFETY, SECURITY & ECONOMIC REGULATION

JUNE 2014