Safety versus Business: CAAN’s conflicting roles

The Civil Aviation Authority of Nepal (CAAN), the country's autonomous civil aviation regulatory body also wears the hat of a service provider, which is conflicting in nature.

As a regulator, it ensures civil aviation safety, security, and efficiency through regulations.

As a service provider, it provides services in the areas of Air Navigation Services and Aerodrome Operations, including operating the country's entire airports.

In 2022, the global aviation watchdog, International Civil Aviation Organisation (ICAO) asked Nepal to split the aviation body for this dual role, under high priority.

The European Union (EU) which has banned Nepali airlines from flying to its aerospace following the 2012 Sita Air crash that killed 19 people, seven British citizens included, also sees this split as one of the preconditions if the Nepali airlines are to find their airways to the EU aerospace.

The separation of authority however has been on the discussion table for the past one and a half decades since the 2007/08 Three-Year Interim Plan made the recommendation.

In 2020, a bill for separation of authority was registered in the National Assembly (upper house) and passed in 2021 but the bill failed to make progress at the House of Representatives (HoR). The bill has since remained in limbo.

Experts see this functional separation as vital to meet civil aviation safety standards because CAAN’s current two roles have conflicting interests, and separation would mean that it could exclusively work on aviation safety and security.