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As discussions begin in the thematic committee of the House of Representatives on the drafts of the Civil Aviation Authority Bill and the Nepal Air Services Authority Bill, the nation is finally confronting an overdue administrative reform. Authorities must not pursue restructuring for its own sake, but rather take a genuine step toward improving Nepal's aviation safety, efficiency, and international standing. The proposed reorganization of the Civil Aviation Authority of Nepal (CAAN) into two distinct entities—one for regulation and another for service provision—is a structural shift with far-reaching implications. Aviation experts and international bodies, including the International Civil Aviation Organization (ICAO), have long urged Nepal to clearly separate its regulatory and service roles. By maintaining both functions within a single institution, Nepal has, for years, ignored a basic principle of air transport governance, raising serious safety concerns. Recent remarks by Minister for Culture, Tourism and Civil Aviation Badri Pandey during discussions on the bill reflect a new level of political commitment. The fact that 75 lawmakers expressed interest in the matter signals that Parliament is taking the aviation sector’s challenges seriously. Alongside parliamentary deliberation, input from stakeholders and experts must be incorporated to ensure a consensus-based solution. However, simply discussing or passing the current bills will not, by itself, ensure Nepal’s removal from the European Union's aviation blacklist. Structural separation of CAAN, though, would meet a key EU precondition.
Half of CAAN employees relocated to new building at Sinamangal
The EU placed all Nepali airlines on its aviation security blacklist—a ban that persists even though Nepal was removed from ICAO's grey list in 2018. This continued ban reflects the EU’s frustration with Nepal’s lack of meaningful progress. Nepal’s exclusion from European airspace is not only a bureaucratic setback; it results in significant economic loss. With airlines such as Nepal Airlines Corporation and Himalaya Airlines barred from European routes, the country loses out on tourism and trade. Meanwhile, European carriers continue to land in Kathmandu unimpeded, creating an imbalance that has persisted for over a decade. Despite repeated promises by past governments to reform the aviation sector, the bill to restructure CAAN has remained stalled in Parliament.
The EU has made it clear: without independent regulatory oversight, Nepal cannot expect recognition from European aviation authorities. The delay in reorganizing CAAN reflects a combination of institutional inertia, political apathy, and bureaucratic red tape. But these tendencies come at a cost. The longer Nepal postpones this critical decision, the greater the damage to its aviation sector and international reputation. If implemented with resolve, these reforms will signal a strong commitment to international safety standards and to passenger security. A robust regulatory framework will enable authorities to restore confidence in Nepal’s skies. By passing the long-delayed bill, the parliamentary panel has the opportunity to chart a new course for the aviation sector—one that not only enhances safety but could also lift the decade-long EU ban and open access to lucrative European markets.
