Government urged to expedite separation of Civil Aviation Authority into two entities

KATHMANDU: The long-standing demand to separate the Civil Aviation Authority of Nepal (CAAN) into two distinct entities—one as a regulatory body and the other as a service provider—has gained renewed urgency. The bill proposing this division has now reached the Council of Ministers, following its review by the Ministries of Finance and Law. Stakeholders and experts have stressed that this step is crucial for enhancing the safety, transparency, and efficiency of Nepal’s aviation sector, which has long been plagued by accidents and international scrutiny.

The bill, which has been under discussion for years, seeks to restructure CAAN, which currently serves both as a regulator and a service provider. This dual role has led to conflicts of interest and inefficiencies, experts argue, particularly in the oversight of aviation safety and the management of airport operations. Minister for Culture, Tourism, and Civil Aviation Badri Pandey, in a recent interaction, revealed that the proposal to bifurcate the aviation body is now under review by the Council of Ministers’ Bill Committee.

“The separation of CAAN into a regulatory and a service provider body is not just a bureaucratic reform—it is essential to improve the safety and operational standards of our aviation industry,” Minister Pandey stated, emphasizing that the bill had moved through the necessary channels and was now awaiting approval from the Council of Ministers. He also informed that a proposal to form a high-level investigation committee, led by a former judge, to probe recent aviation accidents, has been submitted alongside the bill.

Aviation Safety in Focus

Nepal’s aviation sector has faced a series of challenges, including frequent air accidents that have tarnished its safety record. As recently as last year, multiple incidents highlighted the urgent need for regulatory reform. The European Union has kept Nepal on its air safety blacklist since 2013, preventing Nepali airlines from flying into EU airspace. This blacklist is largely due to concerns over CAAN’s ability to independently regulate aviation safety while also managing airport services.

“The need for separating CAAN is not only about improving management but also about restoring international confidence in Nepal’s aviation sector,” said a high-ranking official from the Ministry of Culture, Tourism, and Civil Aviation. “The current structure hampers effective regulation and creates conflicts of interest.”

Call for Action

Aviation experts have consistently called for the separation of CAAN to align Nepal with international aviation standards. The International Civil Aviation Organization (ICAO) has repeatedly recommended that Nepal create a distinct regulatory authority, separate from service providers, to ensure unbiased oversight and enforcement of safety standards.

“Globally, aviation regulators are separate from service providers to ensure transparency and accountability. In Nepal’s case, this change is long overdue,” said aviation expert Arun Subedi.

In addition to regulatory reforms, the government is also focusing on improving infrastructure at key airports. Minister Pandey noted that inter-ministerial efforts are underway to operationalize the Gautam Buddha International Airport in Bhairahawa and the Pokhara Regional International Airport, which are vital for expanding Nepal’s aviation connectivity.

Delayed but Necessary Reform

Despite the progress, the bill to separate CAAN has been delayed multiple times, largely due to political interference and bureaucratic hurdles. However, with the proposal now in the final stages of approval, there is hope that the division will finally be implemented. This step is seen as critical not only for enhancing safety but also for boosting Nepal’s tourism sector, which heavily relies on air connectivity.

With the next parliamentary session scheduled to discuss the bill further, all eyes are on the government to prioritize this reform. As Nepal aims to recover from the economic impacts of the pandemic and revitalize its tourism industry, ensuring a safe and efficient aviation system is seen as essential.

The separation of CAAN into two entities is no longer just a matter of policy—it is a necessity that the government must act on without delay.