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‘CAAN Plans To Improve Eight Airports In Remote Areas’

  5 min 14 sec to read

Ratish Chandra Lal Suman,Director General of Civil Aviation Authority of Nepal (CAAN).Ratish Chandra Lal Suman is the Director General of Civil Aviation Authority of Nepal (CAAN). In an interview with Raju Baskota of The Corporate, Suman shared the plans and parameters of CAAN and the International Civil Aviation Organization (ICAO). Excerpts: 
 
What is the progress made thus far in regulating domestic and international air services and in division of work among service providers?
We are in the last phase of regulating air services and the division of work.  We are planning to finalize the process by 2015 and our consultants too have provided a report accordingly. CAAN rules need to be amended for the implementation of the report; we need government support for this and are working towards it. 
 
Could you elaborate on the division of work?
It is important to form different committees for operating an airport, providing services and deciding its rules and regulations. This is an international practice and was discussed since the establishment of CAAN. But air services were very few then although now it is gradually increasing. A systematic process is needed for work division, which is taking time. 
 
Will differentiating work and regulation services mitigate safety risks?
Yes, risk will be mitigated with these measures. Division of work will bring simplicity in work and work load will automatically grow lighter. This in turn will help in risk reduction. We also are expecting to reduce the safety challenges by regulating air services differently on the basis of domestic and international air services. 
 
What have been CAAN’s recent achievements?
We prioritized improving the standard of our airports by adding new technologies and increasing safety. The Air Traffic Controller (ATC) automation system has begun due to this and new radar will be placed by 2015 too. We are also working on minimizing safety challenges and on improving the management system. 
 
Does CAAN itself devise the budget for the improvement of airports?
Government’s grants and the total amount of shares invested are kept in the same basket by CAAN. The aviation authority is allowed to allocate its annual revenue and the government’s grants to areas as required. With such allocations, we have completed construction of seven airports within the past three years. CAAN is also allocating funds to improve other airports. This fiscal year, CAAN is planning to improve eight airports in remote areas. 
 
What is being done to operate Nepali airline services according to the standards and rules of the International Civil Aviation Organization (ICAO)?
CAAN is taking gradual steps for this. Nepal is also working to have safety audits considering ICAO standards. Similarly, we are planning to set parameters for both domestic and international flights, to systemize work process and policies, focusing on the safety of air services. CAAN will request to repair the aircraft’s system for landing and take-off and if it is not complete, we will take action accordingly. 
 
CAAN has added parameters for Air Operator Certificate Requirements (AOCR). Airline companies are calling it impractical. What is your take on the matter?
How is it impractical? Airline companies are not behaving as per the requirement of airline services and now they are calling the new AOCR impractical. A company that can bring an airline worth Rs 500 million can obviously pay the required amount for its certification. For the smooth operation of aircraft, we have set a deposit of Rs 2.5 million for helicopters, Rs 5 million for domestic flights and Rs 500 million for international flights. This parameter must be followed. 
 
What is the progress on CAAN’s decision to buy an aircraft?
CAAN is a regulatory body and is supposed to develop rules and regulations, conduct frequent analyses and training. An aircraft was needed for aviation training. The Authority possessed one aircraft 10 years ago which crashed and has not been replaced since. The Authority has thus allocated Rs 570 million to buy a Twin Otter aircraft. In case this amount is insufficient, some more funds will be provided. We are planning to open a tender to bring a Twin Otter aircraft by September 2015. 
 
There are rumours that CAAN is buying an aircraft to only serve politicians. What do you say?
 We have considered the matter of buying an aircraft very seriously. We will form specific parameters to operate it by providing 10 per cent of the maintenance cost for regular services of aircrafts and 90 per cent for business purposes. The maintenance and insurance costs, and additional parts of the aircraft are all included in the fund allocated for its purchase. 
 
Why is the Authority weak in keeping a clear statement of income and expenditure of airports?
We are analysing the income-expenditure figures of all airports currently. If we analyse the investment and operation costs of all airports, we can see that every airport including Tribhuvan International Airport (TIA) is making a loss. As for the annual operation of flights, only seven airports in trunk routes, that have maximum passenger flows are in profit. 
 
CAAN has a budget of Rs 11 million for this fiscal year. Is the construction of new airports included in it?
Of the total budget, Rs 7 million has come from government grants and share capital and Rs 4 million has come from the Authority’s internal source. The total expenditure of the Authority will mainly go to the construction and capacity enhancement of airports, keeping the government’s suggestions in consideration.
 

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