Thematic discussions on two long-awaited aviation reform bills—the Nepal Civil Aviation Authority Bill, 2081 and the Nepal Air Services Authority Bill, 2081—officially commenced on Sunday, June 22, at the International Relations and Tourism Committee of the House of Representatives.
The proposed legislation aims to structurally reorganise the country’s civil aviation sector by separating regulatory and service functions currently housed under a single agency, the Civil Aviation Authority of Nepal (CAAN).
Speaking at the committee session, Minister for Culture, Tourism and Civil Aviation Badri Pandey emphasized that the government’s intent is not to fragment existing institutions but to streamline and strengthen them.
“These bills are not about breaking institutions apart. They are about ensuring a more efficient and structured system,” said Pandey, adding the bills incorporate eight key reform indicators.
Acknowledging employee concerns, the minister added discussions with trade unions had resulted in consensus on moving forward with amendments to address internal dissatisfaction.
In addition to the proposed structural overhaul, the government is also developing a new ‘national aviation policy’ and preparing an ‘umbrella aviation act’, both of which are in their final stages.
The minister also highlighted plans to standardise insurance compensation in air accident cases, removing disparities between domestic and foreign passengers.
Reform Long Overdue, Experts Say
The two bills represent Nepal’s most substantial aviation reform effort in decades. For years, CAAN’s dual mandate—serving as both regulator and operator—has drawn criticism from aviation experts and international bodies for creating conflicts of interest and undermining safety oversight.
Nepal’s safety record remains troubling. According to CAAN, the country has witnessed over 100 air crashes since 1955, with more than 900 fatalities. In the last decade alone, a dozen major incidents have resulted in over 200 deaths.
Two back-to-back crashes in 2024 reignited calls for reform. On July 24, a Saurya Airlines Bombardier CRJ 200 (registration 9N-AME) crashed during take-off at Tribhuvan International Airport, killing 18 of 19 on board. Less than two weeks later, an Air Dynasty helicopter went down in Nuwakot, claiming five lives.
Global Watchdogs Demand Action
International pressure has been mounting. Since 2013, the European Union has banned all Nepali airlines from its airspace, citing safety concerns. The International Civil Aviation Organization (ICAO) has echoed calls for reform, stating that separating the regulatory and service arms is essential for compliance with global safety standards.
The government hopes this restructuring will lead to improved transparency, enhanced safety standards, and ultimately help pave the way for the lifting of the EU flight ban—a move with significant implications for Nepal’s tourism and aviation industries.
With strong participation from lawmakers and momentum gathering around aviation reform, the thematic discussion is expected to intensify in the weeks ahead, as Nepal seeks to align itself with global norms and rebuild trust in its aviation sector.
