By Our Reporter
For decades, flying within Nepal has often demanded more patience than confidence. Flight delays are treated as routine. Last minute cancellations are accepted as unavoidable. Passengers are frequently left waiting at airports with little information and few options. When baggage goes missing or flights are disrupted, obtaining compensation has been difficult, if not impossible. For many travelers, buying an airline ticket has rarely guaranteed reliable service.
The government’s proposed Domestic Air Carrier Liability Bill, 2026, promises to change that. If enacted and enforced in its true spirit, it could become one of the most significant consumer protection reforms in Nepal’s aviation history. More importantly, it signals a shift in thinking: airlines should no longer see passengers merely as customers who buy tickets, but as consumers with enforceable rights.
Nepal’s domestic aviation industry plays a vital role in connecting remote districts where road access remains unreliable or nonexistent. Air travel is not a luxury for many citizens. It is often the only practical way to reach hospitals, schools, government offices, or business destinations. Yet despite this critical role, passenger rights have remained surprisingly weak. Airlines have enjoyed considerable operational flexibility while passengers have had limited legal protection.
Its requirement for airlines to compensate passengers for delays, cancellations, denied boarding, lost baggage, and accidents establishes a principle that should have existed years ago: service providers must be accountable for failures that arise from their own negligence. Equally important is the provision requiring airlines to notify passengers of delays or cancellations at least three hours in advance whenever possible. Information is often as valuable as compensation. Travelers can adjust plans, avoid unnecessary expenses, and make informed decisions when airlines communicate honestly.
The proposed increase in compensation for deaths and permanent disability from US$20,000 to US$100,000 is another welcome reform. The previous limit, rooted in international agreements dating back to the early and mid-twentieth century, no longer reflected economic reality or the value of human life. While no amount of money can compensate for the loss of a loved one, fair compensation acknowledges responsibility and provides financial security to grieving families.
The bill also addresses an issue that has frustrated countless travelers: baggage. Compensation for lost or damaged luggage introduces long overdue accountability. Likewise, mandatory disclosure of airfare, airport charges, and government taxes promotes pricing transparency and discourages hidden costs that often confuse passengers.
Perhaps the strongest feature of the bill is its focus on enforcement. Mandatory insurance, substantial financial penalties, and even the possibility of suspending an airline’s operating certificate send a clear message that compliance is not optional. Consumer rights carry little meaning unless backed by effective enforcement.
The real challenge begins after Parliament passes the bill. Nepal has enacted many progressive laws that later struggled because implementation remained weak. Regulatory agencies often lack adequate oversight, inspections become inconsistent, and penalties are applied selectively. This bill must not meet the same fate. The Civil Aviation Authority and other regulatory bodies will need sufficient independence, resources, and political backing to enforce the law fairly across every airline.
Airlines, too, should view this reform as an opportunity rather than a burden. Better customer service builds long term trust. Clear communication during disruptions, prompt compensation, and professional handling of complaints improve public confidence far more than aggressive cost cutting ever will. Airlines that consistently respect passengers ultimately strengthen their own reputation and competitiveness.
Passengers also have responsibilities. Compensation mechanisms should never be abused through fraudulent or exaggerated claims. The credibility of the new system depends on honesty from both airlines and consumers. Public awareness campaigns explaining passenger rights, complaint procedures, and compensation timelines will therefore be essential.
Parliament now has an important responsibility. Lawmakers should resist pressure to dilute the bill in favor of commercial interests. Constructive improvements are welcome, but the central objective must remain intact: putting passengers at the heart of Nepal’s aviation system. Consumer protection should never be viewed as anti-business. In fact, stronger passenger rights often create healthier industries by encouraging better service, greater transparency, and higher operational standards.
The government must also ensure that airlines have adequate time and technical support to comply with the new requirements without compromising safety. At the same time, regulators should establish a fast, transparent, and accessible mechanism for passengers to file complaints and monitor how airlines resolve them.
Nepal’s aviation industry has earned international recognition for connecting some of the world’s most challenging terrain. It now has an opportunity to earn equal recognition for respecting those who rely on it. This bill offers the chance to replace uncertainty with accountability and frustration with confidence.
For too long, passengers have carried most of the burden whenever flights went wrong. It is time that responsibility landed where it belongs. Parliament should move swiftly to endorse the bill, regulators must enforce it without fear or favour, and airlines should embrace a culture that values service as much as profit. Only then will Nepal’s skies become not just more connected, but more passenger-friendly.
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