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The government has registered two bills in the House of Representatives on Sunday regarding the division of the Nepal Civil Aviation Authority into a service provider and a regulatory body. Culture, Tourism and Civil Aviation Minister Badri Prasad Pandey has registered the 'Nepal Air Services Authority Act 2081' and 'Nepal Civil Aviation Authority Act 2081' in Parliament.
The proposed bill has developed the 'Nepal Civil Aviation Authority' established in the year 2053 as a specialized organization that works only as a regulatory body in Nepal's aviation sector, which currently works as a regulatory body and a service provider body in Nepal's civil aviation.
Another 'Air Service Authority' Bill has also been submitted in the House on Sunday to make the air service standard and effective in order to develop a modern, convenient and international standard airport infrastructure and a safe and reliable air navigation system in Nepal. The proposed bill proposes to give authority to the public and private sector to operate the airport, share investment, receive financial assistance from donor agencies, etc.
The Universal Safety Oversight Audit conducted by the International Civil Aviation Organization (ICAO) in May 2009 pointed out the quality of the current authority's dual role of regulator and service provider, so Tourism Minister Pandey said that separate organizations are needed for regulatory and service provider work on issues directly related to the safety of air passengers.
In the audits conducted by ICAO in 2013 and 2017, the authority's dual role of regulator and service provider (findings) was also shown. According to Minister Pandey, the audit conducted in the year 2022 also recommended that high priority should be given to clearly separating the work of service provider and regulatory nature from the existing Nepal Civil Aviation Authority.
Earlier in the previous parliament, two bills made to divide the authority were submitted in the National Assembly by the then Tourism Minister Yogesh Bhattarai. Both bills reached the House of Representatives. But after the expiration of the term of the House, both the bills were inactive.
Tourism Minister Pandey has said that the European Union's flight safety concerns will also be addressed after the new law is issued. The EU has banned Nepal Airlines from flying to its member states since 2013. Nepal has been indicating that institutional reform has been initiated by conducting the service provider and regulatory functions through separate organizations in forums such as ICAO Assembly, ICAO DGCA Conference, the international forum related to civil aviation. In the
bill, there is a provision for the authority to issue standards and recommendations, necessary conditions, guidelines, directives, circulars or orders related to air flight safety and their implementation. There is also a provision to carry out or conduct operations related to flight safety supervision of foreign airlines operating in Nepal, to investigate any situation that may or may adversely affect flight safety, to recommend to the committee for safety, and to take necessary action as specified.
It is written in the draft of the law that the senior officer who is in service at the director general of the authority will be appointed for a four-year term. But in this, the government has opened the way for the appointment of the gazetted first class officer (joint secretary) to the post of director general.
The director general and employees affiliated to the regulatory body have been prohibited from directly or indirectly affiliated with service providers, airports, airlines and other organizations regulated by the authority for two years from the date of separation from service.
The 'Air Services Authority' bill has been submitted in the House to develop a modern, convenient and international airport infrastructure and reliable air navigation system in Nepal. The proposed bill proposes to give the right to operate airports to both the public and private sectors.
The draft bill has empowered the Air Services Authority to build, upgrade, operate and manage airports, provide fire prevention and rescue services, and operate ground handling services within the airport.
