A recent Cabinet meeting has given approval to table two civil aviation bills in the federal parliament, a move aimed at addressing longstanding concerns over Nepal’s aviation safety.
Minister for Culture, Tourism, and Civil Aviation, Badri Pandey, previously informed New Business Age that the ministry had been awaiting the Cabinet’s approval to present the draft bills in the parliament following their clearance by the Cabinet's Bill Committee.
The two bills – the Bill to Establish and Manage the Air Service Authority of Nepal, 2081 and the Bill to Amend and Integrate Laws Related to the Civil Aviation Authority of Nepal, 2081 – propose splitting the Civil Aviation Authority of Nepal (CAAN) into two separate entities: a regulator and a service provider.
Nepal’s aviation safety has long been criticised due to CAAN’s dual role, which many believe undermines both regulatory oversight and operational efficiency.
Read: Nepal’s Aviation Sector in the Spotlight as EASA Lifts PIA Flight Ban
The European Union banned Nepali airlines from operating within its member countries in 2013, citing Nepal’s poor aviation safety standards . Despite repeated assurances of reform, the ban remains in place.
Since 1955, Nepal has recorded over 100 air crashes, resulting in more than 900 fatalities, according to CAAN. In the last decade alone, over 200 people have lost their lives in nearly a dozen air accidents.
This year saw two major crashes within two weeks. On July 24, a Saurya Airlines Bombardier CRJ 200 (registration 9N-AME) crashed during takeoff at Tribhuvan International Airport, killing 18 of the 19 people on board. The aircraft was on a ferry flight to Pokhara for maintenance. On August 7, an Air Dynasty helicopter crashed in the Shivapuri area of Nuwakot district, claiming five lives.
Preliminary investigations into the Saurya Airlines crash pointed to failures in both regulatory oversight and operational practices.
Read: Saurya Airlines Crash Causes Fear Among Residents Near Airport
Both the European Union and the International Civil Aviation Organization (ICAO) have long urged Nepal to separate CAAN’s regulatory and service functions, emphasizing that this reform is a precondition for lifting the EU’s ban.
Although the National Assembly endorsed the bills – the Civil Aviation Authority of Nepal Bill and the Air Service Authority of Nepal Bill – in 2021, successive governments have failed to act. The parliamentary International Relations and Tourism Committee had also directed the government to table the bills in the Lower House, but they remained stalled.
Minister Pandey recently told New Business Age that while splitting CAAN might not guarantee the lifting of the EU’s ban, it would be a critical factor in the evaluation process.
Read: Government Forms High-Level Committee to Study Civil Aviation Sector
The Cabinet’s decision follows the recent lifting of a four-year ban on Pakistan International Airlines (PIA) by the European Union Aviation Safety Agency (EASA). Earlier this year, Pakistan restructured its Civil Aviation Authority (PCAA), splitting it into three entities: the PCAA, the Bureau of Aircraft Safety Investigation (BASI), and the Pakistan Airports Authority (PAA), according to local media reports.
“It is a momentous day to announce that the European Commission and European Aviation Safety Agency (EASA) has lifted the suspension on PIA flights to Europe,” Pakistan’s Federal Minister for Aviation Khawaja Muhammed Asif wrote on social media platform X , following the lifting of the ban. “Not only this, TCO [Third Country Operator] authorization has also been issued to second Pakistani airline – Airblue Limited.”
“It is made possible due to complete focus of Aviation Ministry to strengthen PCAA and ensuring safety oversight in line with ICAO standards,” reads the post. “Our Govt has taken significant measures to strengthen PCAA including enactment of PCAA Act, smooth segregation of regulator and service providers, appointment of professional leadership and training to build the capacity.”
Read: Both Regulator and Operator at Fault for Saurya Plane Crash: Preliminary Investigation Report
Nepal’s proposed reforms are expected to follow a similar trajectory, addressing international concerns and potentially paving the way for Nepali airlines to regain access to EU airspace.
