KATHMANDU, FEBRUARY 2

The government registered two bills in the House of Representatives with the objectives of separating the service provider and regulatory roles of the Civil Aviation Authority of Nepal proposing to give CAAN only the regulatory roles.

The government registered The Bill to Amend and Integrate Laws related to Civil Aviation Authority of Nepal, 2025 and The Bill to Establish and Manage Nepal Air Service Authority, 2025.

The European Union has blacklisted Nepali airlines since 2013 over safety concerns and one of the suggestions that the EU has made is to separate Nepal's civil aviation regulatory body from air service provider roles.

Preamble of the Bill to Amend and Integrate Laws related to Civil Aviation Authority of Nepal proposes to give CAAN the sole duty of regulating aviation sector.

The new bill stipulates, among other things, that CAAN will deal with civil aviation services such as the issuance of permits, registration, operations, cancellations, determining qualifications of aviation personnel, testing, licensing, and determining safety standards that the air service operators need to comply with. The bill also proposes that CAAN will work as a leading regulatory institution for overseeing the aviation sector, ensuring proper aviation safety and development in line with international standards. The bill also stipulates that CAAN will improve safety standards and services.

Minister of Culture, Civil Aviation and Tourism Badri Prasad Pandey wrote a note on the bill saying that if the bill is enacted into law, it would remove conflict of interests.

Critics have been saying that at present there is a conflict of interest as CAAN works as both regulatory body and service provider and CAAN cannot effectively probe air disasters.

Minister Pandey also wrote the new bill would also address aviation security concerns raised by International Civil Aviation Organisation ( ICAO) and the EU.

The bill stipulates that the CAAN will regulate the operation of air navigation services, airport operations, and civil aviation-related trainings. The bill also envisages the work related to certification and operation of aircraft, gliders, ultralights, microlights, balloons, paragliding, skydiving, and other recreational flying activities for CAAN.

The bill says that CAAN will have the responsibility to issue permits, licenses, and certifications related to aviation activities, and it will oversee the operation and inspection of aviation services, including safety standards. The bill also says that CAAN will regulate aircraft registration, assign identification and national symbols, and ensure compliance with international aviation safety standards.

In The Bill to Establish and Manage Air Service Authority, the Minister of Culture, Civil Aviation and Tourism Pandey stated that the bill is in line with ICAO's reports that repeatedly raised question about the dual role of CAAN – regulatory and service provider roles. It will remove conflict of interests.

This bill stipulates, among other things, that Air Service Authority (ASA) will have the responsibility to manage the airport's resources, including maintenance, operations, and coordination.

The bill stipulates that ASA will provide the necessary services at the airport and its surroundings, including ground handling services for the smooth coordination of flights and operations.

It further says that ASA will manage aviation operations, including visual and instrument flight rules, ensure aircraft operations are properly coordinated and safe, including air navigation and communication protocols.

The bill proposes that ASA will provide air traffic services and aeronautical service information and coordinate for search and rescue operations when required and provide timely weather information for flight operations. It also says that ASA will provide air chart and give permission for flights. It will implement rules endorsed by CAAN.

Critics also say that if the civil aviation regulatory body is not free from service providing responsibility, it cannot act independently to investigate air disasters.

The government had registered similar bill in the previous HoR but those bills became invalid after the previous HoR's tenure ended before 2022 parliamentary elections.