CAAN’s overhaul of regulations aims to foster competitive and robust domestic aviation

KATHMANDU: The Civil Aviation Authority of Nepal (CAAN) is considering a significant shift in its regulations that would require domestic airline companies to meet specific criteria for aircraft fleet size and the conduct of their executives. This move aims to enhance the accountability and compliance of air service providers and promote the overall quality and reliability of domestic aviation in Nepal.

Under the proposed changes, CAAN intends to mandate that all domestic airline companies have a minimum of five aircraft for their operations within the next five years.

This requirement reflects CAAN’s commitment to ensuring that airline operators are adequately equipped to meet the growing demands of Nepal’s aviation sector. Any airline failing to achieve this fleet size within the specified timeframe may face merger or other regulatory actions, according to CAAN Spokesperson Jagannath Niroula.

Additionally, CAAN is introducing new standards that stipulate a minimum of three aircraft for new companies seeking to enter the air service industry. This requirement aims to create a more competitive and robust aviation landscape in Nepal, with the goal of fostering compliance with industry regulations and standards.

If these new rules are implemented, executives and high-level officials of airline companies will face restrictions on their activities. They will be prohibited from engaging in actions contrary to CAAN’s policies and government directives. Public expression of controversial views by these officials will also be restricted.

Furthermore, the proposed guidelines will restrict airline managers and executives from participating in activities, such as tours and travels, that could conflict directly or indirectly with their company’s interests.

CAAN is determined to ensure that airline professionals remain focused on their core responsibilities and avoid any potential conflicts of interest.

The guidelines also address the training and qualifications of airline personnel. Officials who have received pilot and aircraft maintenance training from CAAN will require approval from the authority before engaging in commercial flights or maintenance work for other organizations. These measures are designed to maintain the highest standards of safety and expertise within the aviation sector.

Another significant aspect of the proposed regulations is the restriction on the sale and transfer of shares by promoter shareholders for a minimum of five years after receiving a ‘No Objection Letter.’ This provision aims to safeguard the stability and integrity of domestic airline companies.

Moreover, both government-owned and private airline companies will need to obtain CAAN’s approval before appointing high-level officials. This requirement underscores CAAN’s commitment to overseeing key appointments within the industry and ensuring that qualified individuals are entrusted with important positions.

In summary, the Civil Aviation Authority of Nepal is taking proactive steps to strengthen the domestic aviation sector by introducing new regulations that address fleet size, executive conduct, and various operational aspects. These changes are intended to promote accountability, compliance, and the overall growth of the country’s aviation industry.

Fiscal Nepal |
Sunday September 3, 2023, 11:03:47 AM |

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