The Cabinet has directed Ministry of Culture, Tourism and Civil Aviation (MoCTCA) to frame separate acts to split the Civil Aviation Authority of Nepal (CAAN) into two autonomous bodies; regulatory body and air navigation service provider.
The Cabinet meeting on Monday has principally agreed to split the CAAN and directed the ministry to draft regulatory body act and air navigation service provider act for the two separate entities, informed the spokesperson of Cabinet and minister for Communications and Information Technology, Gokul Baskota, today.
The ministry had proposed creating three pieces of legislation to run the country’s aviation body – Civil Aviation Authority of Nepal Act, Nepal Aviation Service Act and Civil Aviation Act – but the Cabinet has given approval to draft two out of the three proposed acts. “A proposal to draft the third bill will be tabled at the Cabinet soon.”
Earlier on September 22 also, the Cabinet meeting had given permission to the ministry to divide CAAN into two different bodies as has been recommended by the European Commission (EC). Both the ministry and CAAN had prepared an act implementation committee, after the permission to split the aviation regulatory body. The ministry and civil aviation regulator both have also jointly prepared two separate drafts of the two necessary acts that are expected to eliminate conflicts and contradictions at the CAAN.
The ministry will now forward the drafts of the acts to the Finance, Law, Justice and Parliamentary Affairs, Foreign Affairs, Home Affairs and Physical Infrastructure and Transport Ministries for feedback and further suggestions. The government plans to table the two bills at the ongoing budget session of Parliament for final endorsement. After the approval from the Parliament, the new law will replace the current Civil Aviation Act 1959 and the Nepal Civil Aviation Authority Act 1996.
Though, the government had formally announced – in 2012 – to split CAAN into two separate autonomous entities, the agenda has been put at the back burner due to various reasons.
Established some 21 years ago CAAN has its own Civil Aviation Act, which gives it the authority to work on aviation services and safety, air transport and surveillance as well as the development of airport infrastructure. After splitting CAAN, the aviation safety and security is expected to be at par with the global standards.
Lack of improvement in safety oversight by the aviation regulator has led the European Commission (EC) to continue its ban on Nepali airlines from flying within the 28-nation bloc of the European Union (EU).
The EC blacklisted Nepal, placing restrictions on Nepali airlines, for the first time in 2013 immediately after the International Civil Aviation Organisation (ICAO) raised significant safety concerns accusing the CAAN of ignoring the precautionary measures aimed at reducing aviation-related disasters.
The ICAO, however, removed Nepal’s aviation sector from its safety list in July 2017. But the EC has not yet lifted its ban on Nepali aircraft to fly to Europe as according to European Aviation Agency, there has been no change in Nepal’s six-year-old status as far as air safety is concerned.
The EU had insisted that Nepal bundle the CANN into civil aviation regulatory and operating body.
“There were concerns that the aviation regulatory body and airport operating body shouldn't be the same,” Baskota said, adding that the Cabinet nod for the two bills is aimed at addressing the security concern of the EU. “The government wants to promulgate CAAN Act and Nepal Airport Authority Act.”
After bundling, CAAN will issue license to airlines, scrap the license, monitor the aviation sector and take action against operators violating the rules, whereas the new Airport Authority will be responsible for aerodrome operations, air navigation services, air traffic control and training.
The Asian Development Bank (ADB) has also agreed to fund the study on splitting the services being provided by CAAN. The ADB has offered to provide $5 million to conduct study on bundling services and capacity building of the CAAN. In 2014, Spanish consultancy Ineco prepared the first draft with a $4.2 million funding from the Asian Development Bank following approval from the board of the CAAN in 2010.
The government can also include the private sector in ground handling – both domestic and international – in the facilitator unit, though CAAN will solely control the aviation sector regulator unit.
The Cabinet meeting on Monday has principally agreed to split the CAAN and directed the ministry to draft regulatory body act and air navigation service provider act for the two separate entities, informed the spokesperson of Cabinet and minister for Communications and Information Technology, Gokul Baskota, today.
The ministry had proposed creating three pieces of legislation to run the country’s aviation body – Civil Aviation Authority of Nepal Act, Nepal Aviation Service Act and Civil Aviation Act – but the Cabinet has given approval to draft two out of the three proposed acts. “A proposal to draft the third bill will be tabled at the Cabinet soon.”
Earlier on September 22 also, the Cabinet meeting had given permission to the ministry to divide CAAN into two different bodies as has been recommended by the European Commission (EC). Both the ministry and CAAN had prepared an act implementation committee, after the permission to split the aviation regulatory body. The ministry and civil aviation regulator both have also jointly prepared two separate drafts of the two necessary acts that are expected to eliminate conflicts and contradictions at the CAAN.
The ministry will now forward the drafts of the acts to the Finance, Law, Justice and Parliamentary Affairs, Foreign Affairs, Home Affairs and Physical Infrastructure and Transport Ministries for feedback and further suggestions. The government plans to table the two bills at the ongoing budget session of Parliament for final endorsement. After the approval from the Parliament, the new law will replace the current Civil Aviation Act 1959 and the Nepal Civil Aviation Authority Act 1996.
Though, the government had formally announced – in 2012 – to split CAAN into two separate autonomous entities, the agenda has been put at the back burner due to various reasons.
Established some 21 years ago CAAN has its own Civil Aviation Act, which gives it the authority to work on aviation services and safety, air transport and surveillance as well as the development of airport infrastructure. After splitting CAAN, the aviation safety and security is expected to be at par with the global standards.
Lack of improvement in safety oversight by the aviation regulator has led the European Commission (EC) to continue its ban on Nepali airlines from flying within the 28-nation bloc of the European Union (EU).
The EC blacklisted Nepal, placing restrictions on Nepali airlines, for the first time in 2013 immediately after the International Civil Aviation Organisation (ICAO) raised significant safety concerns accusing the CAAN of ignoring the precautionary measures aimed at reducing aviation-related disasters.
The ICAO, however, removed Nepal’s aviation sector from its safety list in July 2017. But the EC has not yet lifted its ban on Nepali aircraft to fly to Europe as according to European Aviation Agency, there has been no change in Nepal’s six-year-old status as far as air safety is concerned.
The EU had insisted that Nepal bundle the CANN into civil aviation regulatory and operating body.
“There were concerns that the aviation regulatory body and airport operating body shouldn't be the same,” Baskota said, adding that the Cabinet nod for the two bills is aimed at addressing the security concern of the EU. “The government wants to promulgate CAAN Act and Nepal Airport Authority Act.”
After bundling, CAAN will issue license to airlines, scrap the license, monitor the aviation sector and take action against operators violating the rules, whereas the new Airport Authority will be responsible for aerodrome operations, air navigation services, air traffic control and training.
The Asian Development Bank (ADB) has also agreed to fund the study on splitting the services being provided by CAAN. The ADB has offered to provide $5 million to conduct study on bundling services and capacity building of the CAAN. In 2014, Spanish consultancy Ineco prepared the first draft with a $4.2 million funding from the Asian Development Bank following approval from the board of the CAAN in 2010.
The government can also include the private sector in ground handling – both domestic and international – in the facilitator unit, though CAAN will solely control the aviation sector regulator unit.
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