Govt law to split CAAN

Kathmandu, Dec. 31

The government is at the threshold of splitting the Civil Aviation Authority of Nepal (CAAN).

The Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has completed its preparations to unbundle the aviation sector regulator. A new bill that facilitates the split will be sent to the parliament soon.


Two separate institutions – regulator and service provider – will be created after unbundling the CAAN.


Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai said that in order to save the regulator from the conflict of interest and fulfil the nation's commitments to the international bodies, the organisation was being split.


"We have to be accountable to those international conventions and agreements of which the country is a signatory," he said while addressing the 21^st Anniversary Programme of Civil Aviation Authority of Nepal (CAAN) on Tuesday.


He said that the transformation of organisation would boost the confidence of the staff, develop sectoral expertise and enhance service quality.


"The new move is also expected to help in transferring the latest technological disruptions which the civil aviation industry had witnessed in recent years in order to improve the quality of operation and services," said Minister Bhattarai.


Responding to the threat of the trade union leader Sravan Kumar Yadav to halt the aviation services at the very beginning of the Visit Nepal Year 2020 if the government did not withdraw its decision to split the CAAN, he said that the government was set to make reforms in the aviation sector. "Come, convince me about your demand. The ministry will listen to you," he said.


However, he warned the trade union not to make any activities against the decision taken in good faith. "Protests, strikes, vandalism and padlocking have become the things of the past. We won't spare those who resort to such activities," he stated.


He also said that when the government decides something and the parliament formulates a new law, the civil servants had to follow the rules.


Secretary of MoCTCA Kedar Bahadur Adhikar said that the government's major focus now was to get the country delisted from the EU Air Safety List. "Things are moving in positive direction. This year's air safety audit has given us 66 marks which is above the international average," he said.


He said that CAAN has developed itself as a matured organisation and splitting it would make the sector more competitive. "We don't want conflict of interest. On the other hand, we are obliged by international aviation requirements set by the ICAO," he said.


TIA will handle 4.1 m passengers this year

The Tribhuvan International Airport (TIA) handled about 3.76 million international and 2.73 million domestic passengers by November in 2019 and it is estimated that the numbers will reach 4.1 million and 3.3 million respectively.


The numbers have gone down compared to the previous year as 4.34 international air passengers had used the airport last year. However, only about 2.84 million domestic passengers used the services of the airport last year.


"Number of international air passengers has gone down due to the service closure by some large airlines, problems in foreign employment in Malaysia and impact of runway and taxiway in flight operation in 2019," said Rajan Pokharel, Director General of CAAN.


He said that the total number of passengers this year is projected to increase by 200,000.

He said that the number of airports with blacktopped runway has reached 34. The CAAN has recently finished blacktopping of airports in Doti, Sanphebgar, Dolpa, Lamidanda and Thamkharka while work is underway at Baitadi, Bajhang, Ilam, Resunga and Kalikot airports.


Captain Rameshwor Thapa, President of Airlines Operators Association of Nepal, said that splitting the CAAN was good for private sector and enhancing the quality of business in aviation industry.

"You just worry about providing us good business environment. We will not compromise in air safety and are ready to work with the regulator and government to raise the standards of Nepali aviation industry," he said to the CAAN.

Published in The Rising Nepal daily on 1 January 2020.