15 ministers, 15 years later, Nepal’s aviation overhaul remains grounded

For over 15 years, Nepal has repeatedly pledged to overhaul its aviation sector, yet critical reforms remain stalled. Despite the tenure of 15 tourism ministers and numerous drafts of legislation, the separation of Nepal’s civil aviation regulator from its service provider, a key demand from international watchdogs, has not been achieved.

The consequences of this inaction are starkly visible internationally. Nepali airlines have been blacklisted by the European Commission for safety concerns for more than a decade, barring them from flying to Europe and tarnishing the nation's tourism reputation. The EU's latest air safety list update on June 9 maintained this designation, citing a lack of meaningful progress in governance and safety reforms.

Now, the government led by Balendra Shah has once again committed to this long-delayed reform. The national budget announced on May 29 includes a concrete deadline for the first time: splitting the Civil Aviation Authority of Nepal (CAAN) by mid-January 2027. This move aims to divide CAAN into two distinct entities, one for regulation and safety oversight, and another for airport operations and air navigation services, addressing the inherent conflict of interest in the current single-body structure.

Officials from the Ministry of Culture, Tourism and Civil Aviation express confidence that the process is advancing. Joint secretary Indu Ghimire stated that draft bills are undergoing internal assessment and are on track for submission to the law and finance ministries, aiming to meet the January deadline. However, the history of these proposed bills, the Civil Aviation Authority of Nepal Bill and the Air Service Authority of Nepal Bill, reflects Nepal's chronic struggle to implement reforms, dating back to initial legislative drafts in 2014.

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We are working on the civil aviation bills internally. We have planned to send the draft bills to the law and finance ministries once the internal assessment is complete. We are on track to meet the mid-January deadline.