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Government Prepares Draft Law to Split CAAN

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Government Prepares Draft Law to Split CAAN
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November 5: The government has prepared a draft law to split the Civil Aviation Authority of Nepal (CAAN) into two separate entities – a regulatory body and a service provider.

According to the Ministry of Culture, Tourism and Civil Aviation, it has incorporated suggestions from the finance, home and foreign ministries in the draft. Now, the ministry is awaiting for suggestions from the law ministry before forwarding the draft to the Council of Ministers.

Secretary at the Ministry of Culture, Tourism and Civil Aviation Kedar Bahadur Adhikari said that the draft is almost ready and will be presented to the cabinet after Tourism Minister Yogesh Bhattarai returns from his foreign trip.

The draft has proposed splitting CAAN into Civil Aviation Authority as the regulatory body and Air Service Authority as the service provider.

The government decided to split the CAAN into two entities as per the demand of the International Civil Aviation Organisation (ICAO) and the European Union, which has banned Nepali airline companies.

Nepali airline companies have not been able to operate flights to European countries due to the ban imposed by EU. The government believes that splitting CAAN will help address the concerns of EU.

EU imposed the ban on Nepal in 2013 following the deaths of 19 passengers, including seven Britons, in a plane crash of Sita Air in September 2012.

The government decided to split CAAN into regulatory body and service provider about four months ago to make air service in Nepal safe and effective.

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