Himal Press 
KATHMANDU: The Ministry of Culture, Tourism and Civil Aviation has drafted a new law to make domestic airlines accountable for flight delays, cancellations, loss of baggage and cargo, and passenger inconvenience.
Minister for Culture, Tourism and Civil Aviation Khadak Prasad Paudel has registered the Bill on the Liabilities of Domestic Airline Companies in the upper house of the federal parliament. The Bill, among others, proposes a legal framework governing passenger rights, baggage handling and cargo transportation.
A key provision in the Bill requires airlines to inform passengers at least three hours in advance if flights are delayed, canceled or diverted. If flights cannot operate due to such disruptions or capacity constraints, airlines must arrange alternative transport and provide compensation.
The bill also requires airlines to issue tickets with a clear breakdown of airfare, taxes and service charges.
The proposed law also introduces strict provisions on baggage handling. As per the Bill, airlines must issue baggage tags and ensure that baggage is delivered at the destination based on such tags. If baggage is lost or damaged, airlines must pay compensation of $20 per kilogram up to a maximum of $500. However, airlines are exempt if damage is caused by passenger negligence.
The bill also formalizes cargo transport through mandatory issuance of air waybills, which must include details, such as consignor and consignee information, cargo description and terms of carriage. Cargoes are considered delayed if they are not delivered within three days, and lost if they remain undelivered after 15 days. In such cases, airlines must pay a compensation of $10 per kilogram if the cargo value is not declared. In case the cargo value is declared, airlines must pay the full declared value.
In cases of accidents, the bill proposes compensation of up to $100,000 for death or injury of passengers or third parties. It also requires immediate payment of at least Rs 500,000 for funeral expenses in case of death. Airlines must bear full medical costs for injured victims.
The legislation further holds airlines liable for damage to third-party property caused by aircraft operations.
However, airlines are exempt from liability if disruptions are caused by bad weather, natural disasters, or airport and air traffic restrictions. Liability is also waived if damage or injury results from a passenger’s serious negligence or pre-existing illness.
According to the Bill, the Director General of the Civil Aviation Authority of Nepal (CAAN) slap a fine of Rs 10,000 to Rs 50,000 if airfare and other applicable taxes and surcharges are not shown in the ticket, if flights are canceled due to weaknesses on airlines’ part or if they fail to inform passengers three hours before the flight time about the cancellation, if ailines do not provide cargo waybill or if airlines donot provide compensation to passengers as per the exisitng laws.
The bill aims to protect passenger rights, ensure transparency in airline operations, and establish clear legal standards for compensation and liability in Nepal’s domestic aviation sector.
