Government forms probe committee to study aviation sector

The government has formed a probe committee domestic aircraft.

"The investigative committee will help domestic airlines make more robust, safe and effective," confirmed the Ministry of Culture, Tourism and Civil Aviation. "A meeting chaired by prime minister Sher Bahadur Deuba, who is also in charge of the Ministry of Culture, Tourism and Civil Aviation, formed a five-member probe committee led by joint secretary of the ministry Buddhisagar Lamichhane."

"The committee has former director of Civil Aviation Authority of Nepal (CAAN) Bheshraj Subedi, senior captain Krishna Bahadur Poudel and joint secretary at the ministry Pramod Nepal as members and CAAN general manager Laxman Devkota as member secretary," the ministry added. 

A committee will study the physical and mechanical condition of domestic airlines in Nepal regarding various problems seen in their aircrafts and helicopters recently, a press note issued by the ministry reads, adding that the committee has been entrusted with the responsibility to submit the report within three months with suggestions. "The committee will study and observe the physical, mechanical and archival condition of all the aircrafts flying in and out of Nepal."

The committee is also responsible for reviewing the CAAN’s test report on whether the airline has complied with the safety standards approved by the International Civil Aviation Organisation (ICAO), the press note reads. "It will also examine whether the criteria for crew members have been met."

The probe committee will make suggestions to improve the quality of air safety by studying the safety related work to be followed by the CAAN. “We have a responsibility to ensure the safety of the general public and tourists by making Nepal's air service reliable and trustworthy," the statement reads.

A Buddha Air flight from Kathmandu to Biratnagar managed a safe landing at Kathmandu airport as it failed to land at Biratnagar airport due to technical glitch.

Airlines operators warn of protest

 Airlines operators today warned the government of staging protests, if they are not allowed to resume operations of aviation services.

Issuing a press note, Airlines Operators Association of Nepal (AOAN) said that they have already completed necessary preparations to resume domestic air services as per the directive by the government. “We will be forced to stage protests, if the government decides to further postpone the resumption of aviation service,” the press note reads, adding that they are fully prepared to implement the criteria set by the World Health Organisation (WHO), and the International Civil Aviation Organisation (ICAO) to resume domestic air services.

The government – yesterday – postponed the resumption of aviation service only from September 1, against its earlier decision to resume air services from August 17 due to increasing Covid-19 cases in the last week.

The Airlines Operators Association of Nepal (AOAN) – in its press note – said that they have been incurring a huge loss and reached already on the verge of collapse due to restrictions in the scheduled air services. The government has restricted the airlines – both domestic and international – since March to contain the spread of coronavirus (Covid-19) in the country.

“As the government has listed domestic air service – fixed wing – under an essential service,” the press note reads, adding that it is a primary responsibility of the government to make travelling easier for the needy people. “The suspension of aviation services has affected rescue flights for people affected by floods, landslides, disabled patients and pregnant women.”

Airlines is one of the most affected sectors due to coronavirus not only in Nepal but across the globe.. 

Nepal and Australia sign air service agreement

Nepal has signed air service agreement (ASA) with Australia to operate direct flight service making it the 40th international country for Nepal having such ASA.
With the signing of Memorandum of Understanding (MoU) on air service at the International Civil Aviation Organisation (ICAO) headquarters in Montreal of Canada, Nepali aircraft are allowed to operate flights different destinations of Australia, according to the Tourism Ministry press note.
The air service agreement with Australia was signed by joint secretary at the Tourism Ministry Suresh Acharya and executive director of the Department of Infrastructure, Transport, Cities and Regional Development Jim Wolfe. “With the signing of agreement, now airline companies of both countries can operate seven flights a week,” according to the agreement. “Nepali airline companies have received permission to fly to four Australian cities including Sydney, Melbourne, Canberra and Perth to operate seven flights a week, while flights to airports located in other cities are unlimited.”
Likewise, Australian airline companies can operate seven flights a week to Tribhuvan International Airport (TIA), whereas they can operate 28 flights a week to other airports – after their completion – like Gautam Buddha International Airport and Pokhara Regional International Airport. Meanwhile, there is no restriction for cargo services. “The pact permits unrestricted cargo movement between the two countries besides third country code share with a provision for domestic code share,” the ministry informed.
The designated airline companies of Nepal can use any two intermediate points in South East Asia, South Asia and the Middle East for flight operations, according to the Tourism Ministry, “Likewise, any two points in New Zealand can also be used to operate flights.”
According to the ministry, one of the most important features of the agreement is the ‘principal place of business’ that normally facilitates foreign direct investment (FDI) instead of the traditional ‘principle of airline substantial ownership’ that is currently in practice.
A team led by Tourism Minister Yogesh Bhattarai had departed for ICAO headquarters in Montréal in Canada on September 20 to participate in the ICAO assembly. Nepal has already signed ASAs with a total of 39 countries across the world. However, flights are being operated to a very few destinations, including India, Dubai, Malaysia, Hong Kong, Thailand, Qatar and Japan. The ASA is expected to support Nepal Airlines Corporation as it has been trying to operate direct flights to Australia since very long.
Currently, NAC, Buddha Air and Himalaya Airlines are operating international flights from and to Nepal.

Nepal plans to sign ASA with Australia, Canada

Nepal and Australia are planning to sign an air service agreement (ASA) at the ongoing 40th session of the International Civil Aviation Organisation (ICAO) Assembly in Montreal of Canada, permitting domestic code sharing in Nepal and direct flights between the two countries.
Under the domestic code-share agreement, Australian carriers will be free to enter into code-share agreements with Nepali domestic carriers to any point in Nepal, according to Tourism Ministry. The cabinet – last Thursday – had approved the Tourism Ministry's proposal to sign the air service agreement with Australia. “The government is also planning to sign ASA with Canada.”
The Australian government has expressed willingness to permit seven weekly flights to key cities including Sydney, Melbourne, Brisbane and Perth, according to the Tourism Ministry. “But the Australia has proposed providing unlimited flights to other destinations.”
Nepal will also allow seven weekly flights by Australian carriers to Tribhuvan International Airport (TIA), the ministry informed, adding that Australian carriers will be permitted to operate another 28 weekly services to new airports in Bhairahawa and Pokhara.
Nepal is the third largest source of foreign students to Australia after China and India. Kathmandu is currently Sydney’s largest unserved market globally, with 93,000 people travelling between Nepal’s capital and Australia's largest city annually. But Nepalis are flying via somewhere else. Thus Nepal has been making efforts to sign an ASA with Australia for the last three years. The Tourism Ministry had requested the Australian government to allow 14 weekly flights with any type of aircraft. Sydney-Kathmandu is 5,253 nautical miles or 9,728 kilometres.
Nepal Airlines is also planning to fly to Australia after acquiring two long-range Airbus A330-200s as the current aircraft will not be able to fly non-stop to Australia. “But Nepal Airlines can fly to Australia through a third party code-share agreement,” the Ministry added. “The third party code share is rights granted through a bilateral agreement under which the code is shared between an airline of the bilateral partners and an airline from a country other than the bilateral partner.”
The preferred route between Nepal and Australia is through Guangzhou, China.
The direct flight will also help bring more Australian tourists to Nepal. Nepal received 38,429 Australian visitors last year, up from 33,371 in 2017, according to the data. “In 2014 before the earthquake, some 24,516 Australian tourists visited Nepal.”
Since 1963, Nepal has signed air service agreements with 39 countries, with Cambodia being the latest signatory. On Saturday, tourism minister Yogesh Bhattarai and UAE Minister for Economy Bin Saeed Al Mansoori signed the revised ASA on behalf of their respective governments in Canada on the sidelines of the 40th session of the International Civil Aviation Organisation (ICAO) Assembly being held in Montreal.
Nepal and the UAE had signed the ASA in 1999 for the first time.
Likewise, the government is also in the process of negotiating with the Thai government to revise the old ASA, which was signed in 1971 to operate daily flights to Thailand. 

Nepal-UAE sign revised ASA

Nepal and the United Arab Emirates (UAE) signed a revised Air Service Agreement (ASA) in Canada today.
Tourism Minister Yogesh Bhattarai and finance minister of UAE Sultan Bin Saeed Al Mansoori signed the agreemnent on the sidelines of the 40th session of the International Civil Aviation Organisation (ICAO) Assembly being held in Montreal, Canada.
Nepal and the UAE had signed the ASA in 1999 for the first time.
According to the Tourism Minister, Nepal is also planning to sign ASA with Canada and Australia. “The ASA with Canada and Australia will help Nepal attract more tourists from these countries.  

Panel recommends NAC privatisation

A task force has recommended the government to privatise the national flag carrier, apart from proposing immediate reform measures in 13 areas.
The report also recommended divestment of 49 per cent of Nepal Airlines Corporation (NAC) shares to Nepali and foreign investors and the public. The report has also suggested renaming NAC as Nepal Airlines Company Pvt Ltd, where the government would have 51 per cent stake, float 35 per cent shares for foreign or Nepali investors, 1.5 per cent shares for NAC staffers, 1.5 per cent for civil servants, six per cent for tourism entrepreneurs and five per cent for the public.
“NAC is operating under the Nepal Airlines Act-1962, while a lot has been changed in the aviation sector since last five decades,” former tourism secretary and coordinator of the task force – formed by the government on August 7 to bring reforms in NAC – Sushil Ghimire said, explaining the reason for the NAC’s inability to adapt to the changes. “NAC’s operation modality needs to be changed to make it competitive and commercially viable.”
Former tourism secretary Sushil Ghimire lead the team that includes chartered accountant (CA) Subodh Kumar Karna, management consultant Dim Prasad Poudel, captain Sudhir Sumsher Rai, and the tourism ministry’s joint secretary Buddhi Sagar Lamichhane.
Ghimire – submitting the report to the Ministry of Culture, Tourism and Civil Aviation today also said that the national flag carrier should uphold its corporate social responsibility (CSR), even if it is transformed into a profit-oriented company. “NAC should be operated under public-private partnership model,” he added.
The Ghimire-led committee is the seventh in two decades. Earlier too, many studies have been conducted and they have also recommended privatisation of NAC but the successive governments have not yet dared to reorganise the ailing government entity.
However, tourism minister Yogesh Bhattarai – speaking at a press conference after receiving the report from the task force – directed the ministry to take action based on the recommendations by setting a timetable.
The NAC – which is on the brink of bankruptcy due to debts and a poor operation plan – has been facing financial crisis and the report has recommended the ministry to bring help the government entity to improve its financial health. According to the report, NAC’s total loss stands at Rs 5.21 billion, while has a debt burden of Rs 40 billion. “Its total assets amount to Rs 3.60 billion.”
NAC has failed to pay its installments for the last three quarters due to deepening financial crisis. But the report also suggested the government to renegotiate NAC’s interest rate as it is higher than the market rates. It has been paying an interest of Rs 3 billion annually to its lenders. “Lenders' investments are at risk since the corporation has already defaulted on three instalments,” according to the report.
NAC lenders – the Employees’ Provident Fund (EPF) and Citizen Investment Trust (CIT) – are state-owned entities but they have levied a high interest rate of 10.50 per cent, though the current market interest rate revolves around 6 per cent to 7 per cent.
Apart from recommending the NAC to conduct sector analysis, improve its fleet and flight management, the report has also urged to focus on human resource management as the national flag carrier lacks manpower. “The NAC has neither been able to offer attractive wages to new recruits nor has it given good raise to its current staff due to ailing financial condition,” the report reads, suggesting NAC to utilise information communication technology (ICT), conduct due diligence audit, upgrade its accounting system into Nepal Financial Reporting Standard (NFRS), analyse performance indicators, invest more in infrastructure including transit cargo store, passenger transit hall, hangar, helicopter service, catering services and establish flight training institutes.
Recommending the corporation to immediately add two Airbus 320 aircraft to fly to newly-identified destinations, the report asked the NAC to find out suitable destinations through sector analysis. “The additional aircraft will add flight frequency in the destinations where the NAC is making profit, and operate flights to NAC-identified destinations Riyadh, Seoul, Beijing, Shanghai, Tokyo, and Australia where the passenger flow is high,” the report reads, suggesting the NAC to procure aircraft directly from manufacturer as it maintains transparency and makes the work easier. “The NAC should include a representative of the government or the Finance Ministry in the NAC’s committee while negotiating to procure aircraft.”
The first report – prepared by a high-level committee led by former chief secretary Damodar Prasad Gautam in February 2002 – had also suggested purchasing aircraft directly from the manufacturer to prevent financial irregularities.
Another report by a committee – in August 2002 – led by economist Shankar Sharma had also suggested to either give 60 per cent shares to a foreign strategic partner and the rest was to be divided between NAC (10 per cent), tourism entrepreneurs (10 per cent), corporation employees (5 per cent) and public (10 percent), or dissolve the corporation, establish a new company and then allocate 60 per cent shares to a foreign airline.
Likewise, a report prepared by the International Civil Aviation Organisation (ICAO) in September 2004 had suggested a parent-subsidiary model. The parent company would look after international operations while the subsidiary would look after domestic operations. It had also suggested to gradually privatise the NAC.
In January 2010 too, another committee led by joint secretary at the Tourism Ministry Murari Bahadur Karki, suggested a company model, with 51 per cent shares going to the management partner and 49 per cent to the government.

Civil aviation's conference concludes, Dhaka next destination

Announcing to hold next conference in Dhaka of Bangladesh on November 2020, the 56th Conference of Directors General of Civil Aviation- Asia and Pacific Region (DGCA) concluded here today.
During the closing ceremony, president of International Civil Aviation Organisation (ICAO) Olumuyiwa Benard Aliu, director-general of the Civil Aviation Authority of Nepal (CAAN) Rajan Pokhrel and chairman of Civil Aviation Authority of Bangladesh (CAAB) Muhammad Mafidur Rahman addressed.
The closing ceremony of the conference – with theme ‘Harmonising Efforts to Meet Capacity Constraints’ – also witnessed handover of ICAO flag to the CAAB by CAAN, to host the 57th Conference next year. ICAO organises the conference every year
According to a press release issued by the ICAO, Aliu appreciated concerned bodies of member states for cooperating and collaborating in helping the states live up to their ICAO obligation. “These are important priorities to consider today given the critical relationship between the concerted actions taken by governments to invest in and improve their levels of ICAO compliance, and the resulting increase in international air connectivity which is so essential to the prosperity of all states, especially those with 'landlocked' or 'small island developing' status," Aliu was quoted – as saying – in the press note.
The conference also provided a forum for a sideline meeting between the director-general of CAAN and the deputy administrator of CAAC (China), where they discussed on flights of Nepali airlines to China, flights of Chinese carriers to Gautam Buddha International Airport of Nepal, and other matters of technical cooperation.
Nepali participants also discussed on safety and mutual cooperation with different countries including South Korea, on the sidelines during the conference.
Nepal has hosted the five-day DGCA conference for the third time. Earlier, Nepal had earlier hosted the conference in 1978 and 1998.
The director generals of Asia Pacific's aviation sector, chief of European Union regulatory body, high delegates, representatives from regulatory bodies of countries including the US, the UK, and France and representatives from aircraft manufacturers like Boeing and Airbus attended the conference.
They discussed a work plan on aviation safety, security, capacity, air navigation, economic development and air transport, aviation and environment, technical and regional cooperation and other contemporary issues related to aviation during the conference.
ICAO is also celebrating its 75th anniversary this year and had prepared a special flag – for the occasion – that was hoisted at the peak of Mt Everest this May 23 according to the decision of the council of ministers of the organisation.

PM urges ICAO to take Nepal off EU blacklist

Prime Minister KP Sharma Oli today urged the European Union (EU) to lift a ban on Nepali airlines from flying across the EU.
Inaugurating the 56th Director Generals of Civil Aviation (DGCA) Conference in Kathmandu today, the premier claimed that Nepal has made significant progress on aviation safety in recent years. “Nepal has addressed concerns relating to aviation security and has made good improvement gradually in recent years,” he said, adding that there is no need to keep the Nepali airlines in the blacklist in European skies. “Nepal has identified tourism as one of its key sectors that can contribute to economic development and air connectivity is an important aspect for the development of tourism sector.”
He also informed the conference about the upgradation going on in Tribhuvan International Airport (TIA) and transformation it to the boutique airport. “Nepal is constructing two new international airports too," he added, urging the guests to support Nepal in attracting 2 million visitors in 2020 and make the Visit Nepal Year 2020 a grand success.
The prime minister, on the occasion, expressed his hope that it would help in determining the future strategy for strengthening safety, for infrastructure development and capacity enhancement in the aviation sector. He also highlighted the need for combined efforts to enhance quality in aviation service by adopting related advanced technology and global new innovations.
The 56th Conference of International Civil Aviation Organisation (ICAO) Director Generals for Asia and the Pacific that has been kicked off in Kathmandu today is organised by the Civil Aviation Authority of Nepal (CAAN).
“Nepal is achieving progress in the aviation safety and sector lately,” minister for Culture, Tourism and Civil Aviation Yogesh Kumar Bhattarai, on the occasion, said, adding that Nepal has initiated many measures to make the aviation sector more effective according to the criterion set by ICAO.
Expressing gratitude for handing over the ICAO president Council Certificate in recognition of the progress Nepal made in the aviation sector, he said that Nepal is formulating the laws to policy reform and fragmenting the CAAN into two bodies including a regulatory authority and service-provider.
CAAN director general Rajan Pokharel, on the occasion, expressed his confidence that such a conference would further support to make Nepal's aviation sector more credible as Nepal was steadily witnessing reforms in is the aviation sector.
On the occasion, president of the Council of ICAO Dr Olumuyiwa Benard Aliu underscored the collective effort of more quality aviation safety in Nepal by incorporating the latest aviation technology.
The five-day conference under the theme ‘Harmonising Efforts to Meet the Challenges of Capacity Constraints’ has witnessed the participation of 390 foreign senior officials from 46 countries in the Asia Pacific. ICAO has 193-member nations including Nepal. This is the third time Nepal is hosting such an event. Nepal is hosting the conference for the third time after 1976 and in 1998 in Kathmandu.
The ICAO Asia Pacific Regional Director Arun Mishra, on the occasion, hailed Nepal’s reforms in aviation to ensure safety and credibility.
The conclusions of this Conference will be presented in the 40th general assembly of the ICAO to be held from ICAO's headquarters in Montreal.

CAAN to host 56th DGCA Conference

Nepal is hosting Director Generals of Civil Aviation (DGCA) Conference in Kathmandu after 21 years.
The Civil Aviation Authority of Nepal (CAAN) is preparing to hold the 56th Director Generals of Civil Aviation (DGCA) Conference on August 19-23 in Kathmandu, the regulator confirmed, adding that Nepal is hosting the conference for the third time. “Nepal has already hosted the conference in 1976 and 1998 twice.”
A team of International Civil Aviation Organisation (ICAO) is arriving tomorrow to inspect the preparation of the conference that will be held with the theme of ‘Harmonising Efforts to Meet the Challenges of Capacity Constraints’. The conference aims at maintaining cooperation and harmonisation among countries of the Asia Pacific region to ensure safe, secure, efficient and economically sustainable development of civil aviation.
Through the conference this time, Nepal wants to promote the country as a safe destination for flight operation, and also to disseminate the information that air safety is improving in the country, though the conference will not be able to lift Nepal from EU blacklist. The EU has banned Nepali aircraft from flying to the European skies.
“The CAAN had requested to organise 56th DGCA Conference in Nepal during the 55th conference held in Fiji last year,” the regulator informed, adding that the conference will also help promote Visit Nepal Year 2020 campaign. “This conference is expected to play a significant role in conveying a message that Nepal is a safe destination.”
Around 350 guests from 46 different countries will take part in the conference. The representatives from 14 different international organisations associated with ICAO, including European Union, Boeing, Airbus and International Air Transport Association (IATA) will participate in the event.
The five-day-long event will witness discussions on air navigation, air security and facilitation, economic development of air transport, aviation and environment as well as technical and regional cooperation, among nations.

Cabinet green signal to split CAAN

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.

Nepal to seek access to all Chinese airports in new aviation agreement

Nepal is seeking access to all Chinese airports as the Chinese airliners have been flying to Nepal but Nepali airlines have not been able to fly to anywhere in China, which according to some experts is ‘Airspace ban’ by China to Nepal.
Likewise, China has proposed to increase flight frequencies to Nepal during the Nepal-China bilateral air service agreement revision meeting next month. The two countries will meet in Beijing on July 23.
Tourism Joint Secretary Suresh Acharya confirmed that Nepal will ask China to allow Nepali airliners to fly to different Chinese cities as the government has set a target to significantly increase Chinese arrivals during Visit Nepal Year 2020, which aims at hosting 2 million foreign tourists.
Nepal has targeted to host at least 500,000 Chinese tourists during the Visit Nepal Year 2020.
Though not a single airliner fly to China, some six Chinese carriers – including Air China, China Southern, China Eastern, Sichuan Airlines, Cathay Dragon and Tibet Airlines – operate flights to Nepal with up to 70 flights per week. The national flag carrier used to operate its service to Osaka, Japan via Shanghai until 2008 under fifth freedom rights, but has not been able to fly to China as the Chinese government has not allowed its airports for Nepali carriers. Nepal Airlines Corporation (NAC) had applied for landing permission at Guangzhou Baiyun International Airport in 2015, but its application has not been approved. Though, Civil Aviation Authority of Nepal (CAAN) suspected that Nepali carriers have been kept out of Chinese airports due to the significant safety concern tag given to Nepal by the International Civil Aviation Organisation (ICAO) in its audit report in 2013, China has not spelled anything but denied NAC request.
Himalaya Airlines – a Chinese-Nepal private airliner – had also submitted applications at the Tourism Ministry on different occasions with a plan to connect Chinese cities such as Shanghai, Shenzhen, Wuhan and Changsha which are key outbound markets with a high consuming capacity, but has not got any green signal from China.
Nepal will add new air routes including the ones asked by Himalaya Airlinesn in the revision meeting, whereas China wants to increase the flight frequency as it has used up all the agreed frequency, he said, adding that Chinese carriers want the revision of the pact to allow more flights with travel demand constantly going up.
Nepal and China signed a revised bilateral air services agreement in February 2014, permitting the operation of 56 flights per week with any type of aircraft on a reciprocal basis. The agreement allowed each country to increase the flight frequency to 70 per week by 2016. Under the old agreement, Chinese airlines were allowed to operate 14 flights per week.

Finnair proposes Kathmandu-Helsinki direct flight

The national flag carrier of Finland – Finnair – has proposed to launch direct flights between Kathmandu and Helsinki. Finnair forwarded the proposal to Nepal through the Embassy of Finland in Kathmandu.
According to the Ministry of Culture, Tourism and Civil Aviation (MoCTCA), Finnair’s proposal was forwarded by the Finnish Embassy in Kathmandu. “The government of Finland has submitted a proposal at the ministry,” the ministry confirmed, adding that the ministry is doing its homework.
The ministry has forwarded the Finnish proposal to the Civil Aviation Authority of Nepal (CAAN) and also sought suggestions from Nepal Airlines Corporation (NAC).
“Once the homework is completed, CAAN and NAC will finalise the documentation,” according to the ministry that will forward the final documents to the cabinet for the approval. “The cabinet may approve the proposal after the evaluation.”
After the cabinet’s approval, the ministry will forward it to the Finnish government.
Currently, passengers travelling between Nepal and Europe have been using Turkish Airlines – from Kathmandu to Istanbul of Turkey – or Gulf airlines, apart from India as a transit. But the Finnair has proposed to directly connect Kathmandu – without any transit – with Helsinki. Once the Finnair starts flights to Nepal, the European Union (EU) will also be pressurised to delist Nepal from its safety list. Nepali airline companies are, currently, banned from the European sky – due to a EU safety list – since last six years.
The direct flight from Kathmandu to Europe is also expected to help bring more tourists to Nepal during Visit Nepal 2020.

Finland proposes ASA with Nepal

Finland has proposed signing a bilateral air service agreement (ASA) with Nepal.
The Finnair – the national flag carrier and largest airline of Finland that is headquartered in Vantaa on the premises of Helsinki Airport – has shown interest in operating direct flights to Kathmandu. A flight between Kathmandu and Helsinki is estimated to take around nine hours.
The government has received a formal proposal from the Finnish government to sign an ASA some three weeks ago, following talks with Finnair officials and the Finnish ambassador to Nepal. “Though it is in initial phase, we have been working on the proposal accordingly,” informed the Tourism Ministry.
The agreement is expected to be completed by July, after the ASA document is prepared and both the countries approve it.
Since, the number of Nepalis including students living in the Nordic countries – Denmark, Finland, Iceland, Norway and Sweden – is growing, though the Nepali airlines have not been able to fly to neither Europe nor Nordic countries as the European Commission has imposed ban on all airlines from Nepal to fly on the European sky in December 2013. The European Commission (EC) – the 28-nation bloc – had asked European operators and travel agents to inform European travellers who will have a right to reimbursement if they have booked a seat on a Nepali carrier as part of a journey to Nepal and decide not to use it. Nepal has been removed from the air safety list of the International Civil Aviation Organisation (ICAO) but the European Commission has continued its ban on all Nepali airlines.
Nepal has signed ASA with 39 countries since 1963. Currently, 28 international airlines fly to Nepal from various destinations.

Nepal, Cambodia sign air service pact

Nepal and Cambodia today signed the firstever bilateral air service agreement (ASA) between the two countries. The ASA will allow the airlines of both countries to launch 14 commercial flights a week in either direction.
Tourism minister Rabindra Adhikari and minister in charge of the Secretariat of Civil Aviation of Cambodia Mao Havanall signed the ASA – between the two countries – in the presence of Prime Minister KP Sharma Oli and his Cambodian counterpart Hun Sen.
Though a final agreement to start air services between the two nations will be signed between the civil aviation authorities of both the nations in the near future, the agreement has paved the way for holding direct flights between Nepal and Cambodia, joint secretary at the ministry Suresh Acharya said.
"The agreement also makes provision for code-sharing, including third-country code share, where airlines of both countries can partner with other airlines to facilitate services to each other’s market," he said, adding that the agreement provides unlimited air cargo service between the two countries. "But aviation authorities of the two nations will finalise the details regarding flight frequency, code sharing, cargo and other issues in the near future before starting commercial flights between the nations."
A separate agreement has also been signed to boost bilateral cooperation and cultural exchange between both countries, he added.
Cambodian officials, on the occasion, said that they wanted to establish air links with Nepal, particularly the upcoming Gautam Buddha International Airport in Bhairahawa, during talks at the International Civil Aviation Organisation (ICAO) Air Services Negotiation Event in Antalya, Turkey, in 2015. However, the much delayed airport project is scheduled to be completed by the end of 2019. The government plans to open the airport from next June to help meet its goal of hosting 2 million tourists during the Visit Nepal 2020 campaign.
The international airport in Bhairahawa has been constructed to promote Lumbini – the birth place of Lord Buddha – as a Buddhist pilgrimage hub. Nepal is planning to promote Buddhist pilgrimage through the Gautam Buddha International Airport in Bhairahawa.
According to International Finance Corporation (IFC) – a member of the World Bank Group – the Buddhist Circuit comprising Nepal and India is an important pilgrimage destination for the 450 million practicing Buddhists as well as travelers interested in history, culture or religion across the globe.
Since 1963, Nepal has signed ASAs with 39 countries, with Cambodia being the latest.
Nepal had recently revised the ASA with Thailand and increased the number of weekly flights from 10 to 28.

Construction of international airport in Pokhara starts, finally

Construction work of Pokhara Regional International Airport formally started from today, some 15 months after the foundation stone for the regional airport was laid.
The then Prime Minister KP Sharma Oli had laid the foundation stone for the national pride project on April 13, 2016. Similarly, CPN (Maoist Centre) supremo Pushpa Kamal Dahal, CPN-UML senior leader Jhalanath Khanal, then deputy prime minister duo Kamal Thapa and Bijay Kumar Gachhadhar, former foreign minister Ananda Prasad Pokharel and Nepali Congress General Secretary Shashanka Koirala had also laid stones at the construction site.
Albeit the construction was started on July 11, 2017, tourism minister Jitendra Dev today formally inaugurated the construction of the airport.
Dev, on the occasion, said that the project could be a milestone for the development and prosperity of the country once it comes into operation. It is one of the three new international airports planned in the Himalayan country.
Initially the Rs 22 billion-national pride project was planned to be completed by July, 2020. But Dev said that the project will be completed by July, 2021, also due to 15-month delay in starting construction work after laying foundation stone.
Of the 21 projects categorised as national pride projects by the government, five falls under the Ministry of Culture, Tourism and Civil Aviation. Dev also said that he would spare no effort to make sure that the national pride project is completed within the deadline.
Director general of Civil Aviation Authority of Nepal (CAAN) Sanjiv Gautam, on the occasion, said that Pokhara has waiting for this moment for almost 42 years. "The progress in expansion of Tribhuvan International Airport (TIA) and construction of Bhairahawa International Airport is not so satisfactory," he said, adding, "But Pokhara Regional International Airport project should be completed on time."
Completion of construction on time is important, as our plan is to repay the loan secured to build the project by using revenue of the airport," he added.
According to the CAAN, the loan will be repaid in 26 installment, two installments per year.
Project manager of China CAMC Engineering Yang Jerry, on the occasion, said that they have begun building dormitories for worker. "We will start major construction works after the monsoon ends," he said, committing to complete the project in time, if they get support from the locals.
The government had signed a $215.96 million concessional loan agreement with China's Export and Import (EXIM) Bank – in March 2016 – to construct the Pokhara Regional International Airport. The loan has to be cleared within 13 years of the completion of the seven-year grace period.
China CAMC Engineering – the main contractor of the Pokhara Regional International Airport Project that bagged the contract in May 2014 – is constructing the project in Engineering Procurement Construction (EPC) modality under 4D model according to the criteria set by International Civil Aviation Organisation (ICAO).
The government had acquired more than 3,100 ropani of land spread in Ward No 14, 15, and 18 of Pokhara Municipality four decades ago. It acquired another 521 ropani later on.
Rabindra Adhikari, president of the parliamentary Development Committee, said adding that the locals of Pokhara have worked very hard to see this day. "We have now authorised the construction company to fulfill our decades-long dream," he added.
Lawmakers Sarada Poudel and Sita Giri, Airport Construction Project director Pradip Adhikari, former president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Ananda Raj Mulmi, president of Pokhara Chamber of Commerce and Industry Bishwa Shankar Palikhe, among others stressed on the need for the State to prioritise the construction of supporting infrastructures along with the construction of the airport.
Once the airport is ready for operation, it will have 2,500 meters long and 45 meters wide runway, which can handle medium category jets like Boeing 757 and Airbus 320, according to the project office.

Nepal passes ICAO air safety audit

Nepal has passed a safety audit conducted by International Civil Aviation Organisation (ICAO), whichhas led to removal of Nepali airline companies from the Significant Security Concerns (SSC) list of the global aviation watchdog.
The Civil Aviation Authority of Nepal (CAAN) today informed that the ICAO formally notified Nepal that the 'significant safety concern' (SSC) issued to Nepal in July 2013 has been resolved. Meanwhile, the CAAN also clarified that Nepali airlines are yet to be removed from the Air Safety list of European Commission (EC).
The ICAO has removed Nepal from its Significant Safety Concern list," CAAN director general Sanjiv Gautam said, adding that EC has but yet not removed from its Air Safety list. "Nepal will however appeal EC to remove from the list based on the ICAO decision, though there is a slim chance of removal just because of this report.
CAAN is however planning to send a request letter along with the latest ICAO audit report to the EC within a couple of weeks, CAAN informed in the press meet.
The SSC validation committee meeting held in July 20 in ICAO headquarters in Montreal, Canada has decided to resolve the SSC after studying the two-member report from Nepal. ICAO had sent a two-member audit team including Captain Eugene Voundri and Aeronautical Engineer Edmund Bohland earlier from July 4 to 11 to study aviation laws and situation of flight operations here. The team had audited aviation legislation, flight operations, personnel licensing and air worthiness of Nepal’s aviation sector. They had also conducted field observation of national flag carrier Nepal Airlines Corporation (NAC) along with Himalayan Airlines. " The audit report states that Nepal succeeded to meet the ICAO standards," he said, adding that Nepal’s compliance rate was 66.08 per cent, higher than ICAO’s mandatory compliance rate of 60 per cent, according to the report.
The ICAO usually conducts audits of eight elements of aviation including primary aviation legislation, specific operating regulations, safety oversight functions, technical personnel qualification and training, provision of safety critical information, licensing and certification, surveillance obligations, and resolution of safety concerns.
ICAO monitors Nepal’s aviation safety oversight capabilities through the ICAO Coordinated Validation Mission (ICVM). The mission is generally invited by a state when it is fully confident that it has fully complied with the international safety standards.
In July 2013, an ICAO mission visited Nepal to validate the corrective measures taken by the country to address the deficiencies pointed out by the global aviation watchdog in 2009. But having found detected several lapses during the on-site audit held from July 10-16, the UN supervisory body had given the significant safety concern (SSC) tag to Nepal’s aviation sector in its audit report in August 2013. The global aviation body had included Nepal in its bad books in 2013 after it was unsatisfied with the progress made by Nepal to make its airspace safe.
Following the SSC, the European Commission (EC) had in December 2013 blacklisted all Nepali carriers for the worst record of air safety oversight. But CAAN officials said they are optimistic that EC would lift Nepali carriers from its safety blacklist in the upcoming safety committee meeting to be held in Brussels, Belgium this November.

ICAO team starts aviation standard audit from today

A team of International Civil Aviation Organisation (ICAO) formally started audit of Nepal's aviation sector from today.
In an interaction with officials of Civil Aviation Authority of Nepal (CAAN) in Kathmandu, the two-member team – captain Eugene Voundri and aeronautical engineer Edmund Bohland – of ICAO presented its mission and work schedule.
According to the spokesperson of CAAN Birendra Prasad Shrestha the ICAO team started its work. "The team presented its work schedule for conducing audit of four areas of aviation safety; aviation legislation, flight operations, personal licensing and air worthiness," he said, adding that the team has kept both site inspection and study of documents in their schedule. “They are likely to audit documents related to Nepal's aviation safety and also make site inspections till Friday, and compile all their study reports by Sunday."
The team will brief CAAN officials about the findings of their study next Tuesday.
CAAN is hopeful that ICAO will remove Significant Safety Concern (SSC) tag given to Nepal after studying report prepared by the team. The SSC indicates that aviation sector needs to make improvement on safety aspects. "It is not that Nepali aviation sector is blacklisted by ICAO,” Shrestha added.
ICAO had given SSC tag to the Nepali aviation sector in 2013.
The Safety Management Division of CAAN has spared no effort to improve Nepal's air safety standards, claims the aviation sector regulator.

Fiscal year end junket of government officials cost country dearly

The fiscal year end junkets of the government employees cost the country billions.
Most of the government officials have already embarked on study and observation tours to foreign countries and remaining are packing their bags spending over billion of the taxpayers’ money.
According to a Finance Ministry official, the foreign junkets in the last months of the fiscal year could cost over billion to the government exchequer. The bill includes over 1,200 trips of civil servants since last 2 months. "But the visits made to India have not been counted."
Though some visits from India to European destinations – including field trips, exposure visits, study tours, familiarisation and observation tours – were sponsored by organisers, most of the travel bills have been paid by the taxpayers' money, according to the official.
Government officials get between $150 to $200 in travel and daily allowance depending on their designation. According to existing provision, government secretaries get $200 in allowance for day, while joint-secretaries and under-secretaries get $175 and $150 respectively, the official insormed.
However, the allowance could be much higher, in case of a trip is sponsored by big donors and multilateral agencies. UNDP provides a minimum of $350 per day.
Four teams from Culture, Tourism and Civil Aviation Ministry including secretary Shankar Prasad Adhikari and joint secretaries Suresh Acharya, Ghanashyam Upadhyay and Bharat Mani Subedi – totaling to 30 officials – have left for Poland, Pakistan and other countries, leading separate delegations from the ministry today, though the International Civil Aviation Organisation (ICAO) team is visiting Nepal for a safety audit of the country’s aviation sector last evening. Likewise, director general at the Civil Aviation Authority of Nepal (CAAN) Sanjiv Gautam has already left for a week-long Myanmar tour, while the two-member ICAO team began air safety audit today,” according to CAAN.
Similarly, Ministry of Agriculture Development has also forwarded a proposal to the Finance Ministry for its approval to send at least 95 – including 60 ministry officials – on a study tour to East Asian countries. Agriculture secretary Suroj Pokhrel and joint secretary Kashi Raj Dahal have already left the country to attend international seminars, a ministry official informed.
The Finance Ministry has also approved foreign tours of over 50 officials. According to a record, at least 33 officials have already left for China, Belgium and USA, while 13 have been waiting for tickets to fly to European countries.
Yet another ministry that has sent its employees to the foreign junket is Ministry of Forest and Soil Conservation. Some 21 officials of the ministry are already on a visit to the Philippines and Cambodia last month.
Likewise, Ministry of Federal Affairs and Local Development Secretary Dinesh Kumar Thapaliya returned from a 10-day tour to London today, while another joint secretary from the ministry has already embarked on a tour of Indonesia.
Senior officials have embarked on foreign trips at a time when the Parliament has also been holding ministry-wise budget deliberations. It is mandatory for secretaries and senior officials of the concerned ministries to be present for budget discussion during the House debate.
Though the government has restricted foreign junket, the attraction of civil servents seems not to be decreased due to also good travel allowances. The government had, in 2015, introduced a policy to discourage such visits, but it could not deter the civil servants from making all-paid trips to foreign lands.

NATTA flays CAAN's decision to distribute bonus

Nepal Association of Tour and Travel Agents (NATTA) – the umbrella association of Nepali travel agents and tour operators – has opposed the decision of Civil Aviation Authority of Nepal (CAAN) to distribute bonus to its staffers.
Issuing a statement, NATTA has said that the decision taken by former tourism minister Jeevan Bahadur Shahi was against CAAN Act 1996, Bonus Act 1973 and Bonus Rules 1982.
The decision has thrown cold water on our hope that CAAN would spend the money collected from air passengers to expand existing airports and develop infrastructure of Tribhuvan International Airport (TIA), NATTA said in its press note.
The CAAN currently collects taxes in two separate baskets. The government has authorised the CAAN to raise Rs 1,000 per passenger in airport development tax, which comes to Rs 1.70 billion annually.
In April 2013, the CAAN board authorised collection of development tax from the travellers departing from TIA to raise funds to repay its loans and finance ongoing improvement projects for a period of five years. The CAAN is authorised to spend this amount solely on development of airport infrastructure.
In addition, the CAAN collects another Rs 1,130 as passenger service charge from each international traveler, which amounts to Rs 1.80 billion a year.
However, CAAN is in the process of being split into two separate entities – service provider and regulator – which will require additional funding. It has also been upgrading Tribhuvan International Airport (TIA) by acquiring a loan of $70 million from the Asian Development Bank (ADB), despite collecting millions of rupees from passengers to develop airport infrastructure.
How can the regulator that is also under debt distribute bonus is not only legal but ethical issue, the tourism sector said. "CAAN's regulation also forbids bonus distribution, if safety is compromised."
The decision to extend bonus comes at a time when the efficiency of Nepal’s aviation sector, including its human resources, has been widely questioned at national and international forums for lack of investment and training facilities. Nepal has been put in the bad books for the worst record of air safety oversight since 2009 by the UN aviation watchdog. The European Commission has also included Nepal in its air safety list for poor safety record in 2013.
NATTA has also reminded that the European Union (EU) and International Civil Aviation Organisation (ICAO) have kept Nepali Airlines in blacklist as CAAN has not upgraded infrastructure of TIA and improved safety standards at Nepal's only international airport.
The decision has paved way for CAAN to distribute Rs 159 million to its 800 staffers. Each staff will get an average of Rs 199,062.
Meanwhile, the anti-graft body has started begin investigation on the matter.
Commission for the Investigation of Abuse of Authority (CIAA) has formally launched an investigation into the decision of CAAN to distribute bonus to its employees from money collected from passengers to develop airport infrastructure.
"We have seized necessary documents from the Tourism Ministry today over the decision to distribute bonus to CAAN employees,” said spokesperson of the CIAA Jib Raj Koirala
Though, the tourism ministry officials had recommended that distribution of bonus from money collected from taxpayers for development of airport infrastructure was not appropriate, the outgoing tourism minister Shahi had approved the decision to dole out bonuses. The tourism minister chairs the CAAN board.
The CAAN had decided to distribute Rs 530 million as bonus to its employees from profits earned during fiscal years 2011-12 to 2014-15.
Although the Bonus Act 1974 paves the way for organisations like the CAAN to distribute bonus from their profit, the Bonus Regulation 1983 forbids not-for-profit government-owned entities established to promote administrative, industrial, agriculture and other sectors from extending bonuses. The CAAN – as a regulator of the country's aviation sector – has been set up with the objective of ensuring safety, security and efficiency in the aviation sector. 

CAAN renewes Simrik Air AOC without licence renewal

In a serious case of aviation safety lapse, the civil aviation regulator – Civil Aviation Authority of Nepal (CAAN) – has renewed Air Operator Certificate (AOC) of Simrik Airlines despite the expiration of the airliner's flying licence 15 months ago.
"How did the CAAN renew the AOC of an airline, whose licence has been expired," questioned a senior CAAN official. "It demands a serious investigation into such safety lapses," he added.
According to the rule, the airline should start the process of renewing its AOC from the CAAN, only after the issuance of the licence.
The International Civil Aviation Organisation (ICAO) has given the significant safety concern tag to Nepal’s aviation sector in its audit report in August 2013 on the ground of th country's inability to oversee air safety. Nepal is already under EU black list due to lapses in aviation safety.
The Tourism Ministry is in dilemma over whether or not to renew Simrik Airlines’ flying licence that expired 15 months ago. Ministry officials have been conducting rounds of meetings exploring legal grounds to renew the permit of the airline that has been grounded since Monday, though its licence has expired more than a year ago.
Today, the issue was discussed at the Prime Minister’s Office. "The airline’s flying licence has expired,” tourism secretary Prem Kumar Rai said, adding that the private airliners has now two alternatives; either begin a fresh process to obtain a new licence or convince the minister to table a proposal at the Cabinet to extend the permit in recognition of its contribution to the industry.
The airliner's chairman captain Rameshwor Thapa also runs a newspaper Annapurna Post, apart from being the ex-president of Airlines Operators Association of Nepal (AOAN).
However, such carelessness has once again raised serious safety question on Nepal's sky that has already been under scanner from the European Union (EU). But the ministry officials are waiting for the appointment of a new Tourism Minister to get the issue sorted out.
According to the regulation, domestic airlines must renew their licenses every four years. They have to renew the permit within one year after its expiry. But Simrik Airlines has been flying till Monday without renew the permit for 15 months.
The airline – issuing a press release – said that it was unable to renew its licence due to last year’s earthquakes and subsequent trade embargo. Though, it has apolisised with its customers, it’s a sheer careless in the part of airlines safety.
Simrik Airlines has in its press release also said that it has initiated the process to renew the licence. "The process could be delayed as the minister is yet to be appointed,” the statement reads.
According to ministry officials, it will take at least a week to issue a new licence, if the airline applies for the new licence. However, the airline should pay an additional Rs 600,000 to renew its route permit. The carrier has got permits on 20 domestic routes. The royalty for each route stands at Rs 30,000, which the airlines should pay again. To initiate a fresh licence process, it has to show a bank guarantee of Rs 2 million and should have a paid-up capital of Rs 20 million.