Bills to split CAAN open door for private players to operate airports

Summary

The government has registered two bills to split the Civil Aviation Authority of Nepal into separate regulatory and service bodies, with plans to open airport construction and management to private companies. The reform is also aimed at improving aviation safety and helping Nepal get off the European Union’s Air Safety List.

Key Points
  • The government has introduced the Civil Aviation Authority of Nepal Bill and the Nepal Air Service Authority Bill to separate CAAN’s regulatory and service-provider roles.
  • The new framework would allow private companies and public-private partnerships to construct, operate and manage airports in Nepal.
  • Existing CAAN employees would be transferred to the new Air Service Authority, while those wanting to join the regulator must apply within 60 days.
  • The restructuring is intended to strengthen aviation safety oversight and support Nepal’s effort to be removed from the EU Air Safety List.
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