KATHMANDU, MARCH 20

The Civil Aviation Authority of Nepal (CAAN) has warned that it will initiate legal action against seven non-operating airlines as they have repeatedly ignored several public notices calling on them to clear their arrears.

Issuing a public notice today, CAAN has given a seven-day ultimatum to seven companies to clear their outstanding dues.

According to the notice, CAAN is preparing to blacklist the firms and its operators on the basis of Airport Service Charge Regulations 2010, as per which they may be barred from being involved in any services or run any business related to civil aviation in the future. Moreover, CAAN has also warned that their bank accounts could be frozen and the passports of the management could be revoked, as per Article 27 of Civil Aviation Authority Act, 1996.

According to Account Executive of CAAN, Shikha Sharma, CAAN is compelled to take legal action against the errant airlines as they have ignored to clear their arrears despite the issuance of public notices.

"We have been issuing three notices every year since 2019, which is quite expensive. But none of the operators have taken it seriously," she told The Himalayan Times.

"So, we are now forced to take serious legal action against them. If they fail to clear the arrears within the given timeframe, we have requested that their bank accounts be frozen and their passports also be revoked," she added.

According to the CAAN , the seven airlines - Necon Air, Shivani Air, Gorkha Air, Mountain Air, Cosmic Air, Skyline Airways and Air Kasthamandap - have to clear arrears amounting to nearly Rs 91.70 million.

Of the total amount, Necon Air has to settle Rs 47.225 million in arrears, Shivani Air Rs 5.551 million, Gorkha Air Rs 2.035 million, Mountain Air Rs 610,834, Cosmic Air Rs 34.758 million, Skyline Airways Rs 780,400 and Air Kasthamandap Rs 738,447.

Prior to this, the CAAN had issued public notices on September 24, 2019, February 8, 2021, and August 28, 2021 urging the operators of the airlines to pay the arrears.

A version of this article appears in the print on March 21, 2022, of The Himalayan Times