August 3: The National Assembly on Monday (August 2) passed two bills that has effectively split the Civil Aviation Authority of Nepal (CAAN) into two separate entities.  The decision has made it easier to separate CAAN as an air service provider and regulatory body, which was planned since a long time.

The aviation authority has been divided with the endorsement of the 'Nepal Air Service Authority Bill-2076' and 'Nepal Civil Aviation Authority Bill-2076'. These bills were registered by the then Tourism Minister Yogesh Bhattarai in the National Assembly on March 26, 2019.

Until now, CAAN was working as both the regulator and service provider ever since its establishment under the Civil Aviation Authority of Nepal Act-2053 BS.  CAAN will turn into two separate bodies as regulator and service provider soon.

Raj Kumar Kshatriya, the spokesperson of CAAN, said that the bill has opened doors to split CAAN into two bodies. According to him, when the current structure is divided, the employees working under the regulatory body won't be included as the Nepal Air Service Authority jobholders, while the employees working at the aviation service section won't be able to work in the regulatory body. At present, CAAN has 1,225 employees.

The number of posts has increased with the addition of Pokhara and Bhairahawa airports. After the disintegration of the authority, 125 people and other employees will go to the Nepal Airlines Authority for regulation. "When the authority separates to provide regulation and services, there won't be a conflict of interest," Kshetri said.

The International Civil Aviation Organization (ICAO) had been suggesting CAAN to split as a service provider and a regulatory body since 2009. The European Union (EU) has blacklisted Nepal's aviation sector since 2013.

The EU, which has been showing serious interest in Nepal's aviation security, has banned Nepalese aircraft from operating in European skies. However, the ICAO lifted the ban in 2017.

The bill stipulates that the Aviation Service Authority Nepal (ASAN) will work with the objective of making Nepal's air service safe, standard and reliable, by constructing, upgrading, and operating airports and air navigation services in accordance with international standards.

The bill also states that this authority will work as an autonomous body. In addition, ASAN will provide ground handling services at the airport, approve aircraft flight schedules and issue flight permits. The bill stipulates that the Airlines Service Authority Nepal will do 17 works including helipad-related service.

The newly formed Civil Aviation Authority of Nepal (CAA Nepal) will be established for the purpose of acting as a regulatory body for service providers. As an autonomous body, the authority has 29 tasks.

The body will also issue certificates for recreational aviation activities such as ultralight flights, microlight, hot-air balloon, and paragliding. Similarly, the authority will also provide security supervision to the organizations providing air security, airport operators, airline operators, and other service providers.