KATHMANDU: The Civil Aviation Authority of Nepal (CAAN) has suspended Thai AirAsia’s operations in Nepal after the airline failed to meet regulatory requirements. Just weeks into its approved flight schedule on the Bangkok-Kathmandu-Bangkok route, Thai AirAsia has been barred from Nepali skies for failing to initiate parallel operations from Gautam Buddha International Airport in Bhairahawa. However, reports suggest that non-compliance isn’t the only reason; CAAN’s approval process and Thai AirAsia’s entry into Nepal may have been influenced by high-level political lobbying.
CAAN’s recent decision reveals a troubling picture of influence and regulation circumvention in Nepal’s aviation sector. Insiders say the Thai airline’s re-entry was granted following considerable political interference, including alleged pressure on CAAN to approve Thai AirAsia’s operations, bypassing other applicants. Despite failing to meet operational commitments, Thai AirAsia received continuous permissions until the oversight became glaringly public.
Thai AirAsia’s Troubling Track Record
Thai AirAsia, a subsidiary of Malaysia-based AirAsia, has a controversial history in Nepal. The airline previously faced accusations of financial misconduct, including an alleged NPR 270 million ($2 million) dues evasion between 2012 and 2018, reportedly settled through dubious voucher claims. This incident left CAAN in the position of financially compensating for AirAsia’s unpaid dues.
The Nepali agent for Thai AirAsia, Universal Tours and Travels, headed by businessman Parasar Prasain, recently sought approval for flights by presenting a bank guarantee to cover past dues. Sources close to CAAN suggest that without these political machinations, Thai AirAsia’s re-entry would not have materialized so easily. In this context, CAAN’s suspension of Prasain’s agency appears more of a performative move than a genuine effort to ensure compliance.
CAAN’s Controversial Regulatory Stance
Regulatory inconsistency has become a hallmark of CAAN’s operations, where policies are often adjusted to benefit certain players while penalizing others. While the requirement for airlines to operate from both Bhairahawa and Kathmandu airports is mandated to boost traffic to regional hubs, CAAN has overlooked this clause for other airlines as well. “We requested CAAN to allow us to fly from Kathmandu without Bhairahawa, as there is currently insufficient passenger demand, but they didn’t respond,” claimed an official from an international airline who sought anonymity. Thai AirAsia, however, managed to fly solely from Kathmandu until this recent suspension, raising concerns about the arbitrary nature of CAAN’s regulatory enforcement.
“CAAN’s regulatory framework lacks consistency and transparency. Foreign airlines often complain of discrimination, and when such discrepancies persist, it risks tainting Nepal’s aviation industry as a whole,” stated an aviation analyst.
Unauthorized Flight Raises Red Flags
On Sunday, in a dramatic escalation, Thai AirAsia’s aircraft attempted an unauthorized flight to Kathmandu. CAAN detained the aircraft’s captain for several hours until the matter was sorted, allowing the plane to return to Bangkok that evening. The captain claimed he was misinformed by Universal Tours and Travels that the necessary flight permit was in place. Yet, CAAN’s failure to promptly communicate the airline’s suspension is troubling and points to administrative lapses within CAAN itself.
“Thai AirAsia’s unauthorized entry into Kathmandu reflects poor coordination between CAAN and ground operations,” said aviation expert Dipak Regmi. “Without streamlined communication and timely action, such incidents not only disrupt flights but compromise safety.”
Political Influence Overshadowing the Sector
The Thai AirAsia case underscores how political influence hampers fair play within Nepal’s aviation industry. High-level political lobbying reportedly pushed CAAN’s approval of Thai AirAsia flights, sidelining protocol for regulatory due diligence. This trend is not new; CAAN has previously granted permits under political pressure, even when airlines didn’t meet basic regulatory requirements, impacting Nepal’s aviation industry’s credibility. The tourism sector, heavily reliant on foreign air connectivity, bears the brunt of such inconsistencies, which could deter reputable international airlines from entering Nepal.
Looking Ahead: A Call for Transparency
Nepal’s aviation industry stands at a critical juncture, where rapid modernization must go hand-in-hand with regulatory integrity. The tourism ministry and CAAN need to enforce consistent standards without bending to political pressure, ensuring that airlines comply with all stipulated requirements.
For Nepal’s aviation industry to prosper, transparency and adherence to regulations should be prioritized. The Thai AirAsia debacle has brought to light deep-rooted systemic issues, sparking calls for an independent regulatory body that can enforce fair, corruption-free policies. Nepal’s aspiration to become a regional aviation hub depends on the authorities’ ability to implement reforms that prevent political influence from overruling regulatory mandates.