Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The government has taken a significant step toward restructuring its aviation sector with the registration of two crucial bills in Parliament. On Sunday, the Nepal Civil Aviation Authority (Amendment) Bill, 2081, and the Nepal Air Service Authority Establishment and Management Bill, 2081, were formally submitted to the Federal Parliament Secretariat. These legislative measures are aimed at enhancing regulatory efficiency and improving the management of air services in the country.
Minister for Culture, Tourism, and Civil Aviation, Badri Prasad Pandey, presented both bills before Parliament, emphasizing their necessity in reforming the existing framework. The Nepal Civil Aviation Authority (CAAN) has long been responsible for both regulatory oversight and service operations, a dual function that experts have criticized for creating inefficiencies and potential conflicts of interest. Minister Pandey underscored that the amendment bill seeks to separate these roles to ensure more effective governance of the aviation sector.
The second bill, the Nepal Air Service Authority Establishment and Management Bill, proposes the formation of a new entity to oversee air service management and operations. This initiative aligns with the government’s long-term vision of strengthening Nepal’s aviation infrastructure and service delivery. Officials argue that creating a distinct body for air service operations will enhance safety standards, streamline decision-making processes, and attract greater investment in the aviation sector.
The need for such reforms has been widely acknowledged within Nepal’s aviation industry. Various stakeholders, including airline operators, aviation experts, and international regulatory bodies, have called for clearer distinctions between regulatory and service-providing functions. The European Union (EU), which has maintained Nepal on its air safety blacklist, has repeatedly urged Nepal to enhance its regulatory framework to meet international standards. The proposed changes could be a step toward addressing these concerns and eventually lifting the EU’s restrictions on Nepali carriers.
The introduction of these bills is also seen as a response to Nepal’s growing aviation demands. With increasing domestic and international air traffic, efficient management and strong oversight are essential for ensuring safety, service quality, and infrastructure development. Establishing a dedicated air service authority is expected to improve operational efficiency, enabling better coordination between airports, airlines, and regulatory bodies.
While these bills mark a crucial step forward, they will undergo rigorous discussion and scrutiny in Parliament before they can be enacted into law. Lawmakers, industry experts, and stakeholders will assess their provisions to ensure they effectively address existing challenges. Additionally, successful implementation will require coordination between government agencies, investment in human resources, and adoption of best practices from other countries with advanced aviation management systems.
Nepal’s aviation sector plays a pivotal role in connecting the country’s remote regions, supporting tourism, and facilitating trade. Modernizing its governance structure is a necessary move toward ensuring safety, efficiency, and global compliance. As the bills progress through legislative procedures, their impact on Nepal’s aviation industry will be closely monitored by domestic and international stakeholders alike.
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