CAAN seeks MoTCA nod to buy aircraft

KATHMANDU, March 13: Civil Aviation Authority of Nepal (CAAN) has approached the Ministry of Tourism and Civil Aviation (MoTCA) for release of frozen fund of around $4 million so that it can procure a new aircraft.



A board member of CAAN told Republica that the aviation regulator has asked MoTCA to forward the proposal to the finance ministry. CAAN is preparing to operate a STOL (short-take-off and landing) aircraft to make its regulatory jobs more effective.[break]



Ranjan Krishna Aryal, who heads a sub-committee formed for the procurement of aircraft at CAAN, said, “The board meeting of CAAN has forwarded the letter to the tourism ministry. The tourism ministry will now forward the proposal to the finance ministry.”



The government had frozen the fund after it formed CAAN to replace the Department of Civil Aviation in 1998. The department had deposited $4 million that it received from insurer of its ill-fated Twin Otter aircraft that crashed in August, 1998.



CAAN had formed the sub-committee about three years ago. The committee, however, has not been able to initiate the procurement process owing to shortage of fund.

“CAAN must have at least one aircraft to perform its regulatory and technical jobs,” Suresh Acharya, joint-secretary of MoTCA, said, “Operating cost of CAAN will come down once the new aircraft comes into service.”



Sources at MoTCA said CAAN is spending Rs 800-100 million a year for such jobs because of the lack of aircraft.



CAAN officials plan to use the aircraft for rescue operation and lease out to private operators to generate additional revenue.

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