Himal Press 
KATHMANDU: Two bills aimed at splitting the Civil Aviation Authority of Nepal (CAAN) – the aviation service regulator – have been presented in the meeting of the House of Representatives on Tuesday.
Minister for Culture, Tourism and Civil Aviation, Badri Prasad Pandey, presented the Air Service Authority of Nepal Bill, 2024 and the Civil Aviation Authority of Nepal Bill, 2024.
Lawmakers will now present their amendments to the Bills following which they will be forwarded to the related House committee for clause-wise discussion.
Although calls to split the regulatory and service roles of CAAN have been made for a long time, the legislation had not moved forward so far. Along with addressing aviation safety concerns raised by different international bodies, these bills are expected to help remove the country from the European Union’s air safety list which prevents Nepali carriers from flying in the European space.
The proposed legislation represents a significant structural reform for Nepal’s aviation sector. At present, CAAN serves as both regulator and service provider, creating an inherent conflict of interest that has been criticized by international aviation bodies, particularly the International Civil Aviation Organization (ICAO) and European Union aviation authorities.
The primary goal of splitting CAAN is to establish a clear separation between regulatory and service functions. Under the new structure, the Civil Aviation Authority of Nepal will function exclusively as a regulatory body, overseeing aircraft and airline company permissions, certification of aerial activities such as paragliding, hang gliding, and ultralight flights, aircraft and airport registration, security standards approval and air navigation service oversight.
Meanwhile, the Air Service Authority of Nepal will handle operational functions including airport construction, upgrading, and management, ground handling services, firefighting and rescue services, aeronautical information services, weather information exchange for flight operations, flight schedule approvals and airport facility optimization.
This split is largely due to international pressure, particularly after the European Union placed Nepal on its air safety list, effectively banning Nepali carriers from European airspace. The separation of regulatory and service functions aligns with international best practices and could help Nepal address safety concerns raised by ICAO and European aviation authorities.
