Civil Aviation Regulatory Commission

1. Civil Aviation Regulatory Commission

2. Vision “Safe skies for all operators”

3. Mission "To promote the development of Jordan’s civil aviation safety, security and environmental regulatory compliance, while ensuring the economic soundness of a liberalized industry”

4. CARC GOAL “To achieve world’s 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.

5. 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.

6. 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.

7. Air Transport LiberlizationIntroduction…cont. • 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 Jordan’s international aviation market as contestable as possible by eliminating all unnecessary restrictions within its licensing and other regulatory processes.

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

9. 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.

10. 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.

11. 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).

12. 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.

13. RJ Restructuring • Royal Jordanian is allowed to providethe 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.

14. 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.

15. 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

16. 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.

17. 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).

18. Economic Regulations…cont. • 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.

19. Aviation Industry Sector Air Operators: • Air Carrier • Royal Jordanian • Royal Wings • Jordan Aviation • Royal Falcon • 3 applications : 2 Fixed Wings & 1 Helicopter

20. Aviation Industry Activities Air Operators: • Air Taxi : • Arab Wings • Raya Jet • 1 Under certification- Waves Jet

21. Aviation Industry Activities Air Operators: • Cargo: • Jordan International Air Cargo/ JIAC • Transworld Airfreight Company/ TRAFIC

22. Aviation Industry Activities Pilot Schools: • Royal Jordanian Air Academy • Mideast Aviation Academy • Ayla Aviation Academy • 1 New application-Helicopter

23. 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

24. Aviation Industry Activities Technician Schools: • Royal Jordanian Air Academy • Mideast Aviation Academy • ATA; Aviation Technology Academy • Jordan Air Academy • 1 Under certification

25. Aviation Industry Activities Repair Stations: • JorAMCo; JordanA/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

26. Aviation Industry Activities Clubs : • Royal Jordanian Falcon • Royal Aerosports Club of Jordan • Royal Jordanian Gliding Club

27. Aviation Industry Activities Manufacturers: • JAI; Jordan Aerospace Industries (SAMA CH -2000) • Seabird Aviation Jordan, Jordan building seeker A/C

28. 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.

29. 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.

30. 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 .

31. Air Traffic Movement At All Jordanian Airports Avg. growth 9.6% Avg. growth 1.6% Avg. growth 9.6% 3.76 M.

32. Air Traffic Movement At QAIA 3.48 M.

33. Air Traffic Movement At AMIA

34. Air Traffic Movement At KHIA

35. Thank You