Kathmandu, Sept 3: Two bills aimed at splitting the Civil Aviation Authority of Nepal (CAAN) into separate regulatory and service provider bodies have been registered in the House of Representatives.
Minister for Culture, Tourism and Civil Aviation Khadkaraj Paudel (Ganesh) registered the Nepal Air Service Authority Bill, 2083, and Nepal Civil Aviation Authority Bill, 2083 on Friday.
Once passed, the bills will separate CAAN’s regulatory functions from airport and air navigation services, ending the existing conflict of interest. Paudel said the reform aims to bring Nepal’s civil aviation sector in line with international standards and make air services safer, more reliable and better regulated.
Under the proposed structure, the Nepal Air Service Authority will handle airport infrastructure development and commercial services, air navigation and technical services, flight safety, risk management and institutional administration.
The Civil Aviation Authority, meanwhile, will function as the regulator, overseeing certification and licensing, aircraft registration, personnel licensing, safety standards, supervision, international obligations and policy coordination.
Paudel said separating regulation from service delivery would strengthen regulatory independence while improving airport and air navigation services. The reform is also expected to address aviation safety concerns raised by the International Civil Aviation Organization and the European Union.
ICAO first highlighted CAAN’s dual role as regulator and service provider during its Universal Safety Oversight Audit Programme assessment of Nepal in May 2009. The issue was raised again in audits conducted in 2013 and 2017.
The 2022 ICAO audit also recommended that Nepal give high priority to clearly separating regulatory and service provider functions. Nepal has repeatedly informed international aviation forums that it is pursuing institutional reforms to establish separate entities for the two functions.
The Nepal Air Service Authority will formally come into existence if Parliament passes the bill. The law will take effect on the 91st day after presidential authentication.
People’s News Monitoring Service
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