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Plan to unbundle CAAN in ‘final stage’

Kathmandu, December 16

The government claims its plan to unbundle the Civil Aviation Authority of Nepal into two units has reached its final stage. The CAAN officials say a bill proposing the unbundling has been sent to the Cabinet and the Council of Ministers is likely to endorse it soon.

After the government’s endorsement, the Federal Parliament will discuss the bill in order to forward it to President Bidya Devi Bhandari for endorsement.

The government hopes that once the unbundling is over, the European Commission will lift the ban imposed on Nepali airline companies. The EU body had revised its air safety list just last week, continuing the six-year-old ban on Nepal.

The bill has proposed cutting off the CAAN’s rights and responsibilities about the operation of airports. Whereas the CAAN will only be responsible for regulatory affairs, a separate body, named the Aviation Service Authority, will be established to manage all airports of the country.

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