Govt reintroduces bills to split CAAN, establish ASAN

ASAN’s MD to be selected through open competition

KATHMANDU, Feb 3: The government has introduced two bills in parliament to split the Civil Aviation Authority of Nepal (CAAN) into a regulatory body and a service provider. The government has proposed to continue with CAAN as the regulatory body and establish the Air Services Authority of Nepal (ASAN) as the aviation service provider.

The Bill to Amend and Unify the Laws Related to Civil Aviation Authority of Nepal 2025, and the Bill to Establish and Regulate Aviation Services Authority of Nepal were registered in the House of Representatives on Sunday by Minister for Tourism and Civil Aviation, Badri Pandey. If passed, the bills will lead to the division of the jurisdiction of the CAAN and delegate the service provider role to ASAN.

Earlier, the government had introduced a bill to split CAAN into two bodies on February 23, 2020. The National Assembly passed it on August 2, 2021, but the bill became inactive after the House of Representatives' term ended in mid-September of 2022.

The ASAN bill designates the authority with responsibilities previously designated to CAAN including funding, leveling, maintenance and management of airports, approving and issuing flight permits, preparing and carrying out aeronautical maneuvers, providing air traffic services and aviation information services (aeronautical information systems), and providing weather information to flights.

Following two air accidents within two weeks last July, political leaders have been repeatedly advocating for dividing the CAAN into a regulatory body and a service provider.

After registering the bills, Minister Pandey spoke to a group of journalists and explained that the government introduced the Bill to Establish and Regulate the ASAN to develop modern, convenient, and international-standard airports along with a safe and reliable air navigation system, and to improve and enhance air services in Nepal.

The CAAN bill designates the Minister for Tourism as the Chairman of the CAAN and the ASAN bill designates the Secretary of the Ministry of Tourism as the Chairman of the ASAN’s Steering Committee.

Continuing the current practice, a Director General will serve as the executive head of the CAAN. The CAAN bill proposes to vest the authority in the government to appoint either a joint secretary of the ministry or a senior official of the CAAN as the Director General.

Similarly, the ASAN bill proposes appointing a Managing Director as the executive head of the air service authority. The bill vests the authority in a recommendation committee under the bill to appoint the Managing Director who may be appointed from outside the CAAN's staff.

The bill requires the Managing Director to have at least 15 years of work experience, including a minimum of five years of managerial experience in civil aviation, and to hold a postgraduate degree.

The bill, furthermore, proposes appointing the Managing Director through open competition. The three-member recommendation committee, chaired by the Secretary of the Ministry of Tourism, will recommend the appointment, and the government will issue the final decision.

Although the bills have set the terms of the members of ASAN and CAAN boards at four years, the government holds the power to dismiss both the Director General of CAAN and the Managing Director ASAN at any time. The bill allows their removal if their performance is deemed unsatisfactory, if they fail to meet required work capabilities, or if they do not uphold the expected conduct for their position.