CAAN Restructuring: The Earlier, the Better

As discussions begin in the thematic committee of the House of Representatives on the drafts of the Civil Aviation Authority Bill and the Nepal Air Services Authority Bill, the nation is finally confronting an overdue administrative reform. Authorities must not pursue restructuring for its own sake, but rather take a genuine step toward improving Nepal's aviation safety, efficiency, and international standing. The proposed reorganization of the Civil Aviation Authority of Nepal (CAAN) into two distinct entities—one for regulation and another for service provision—is a structural shift with far-reaching implications. Aviation experts and international bodies, including the International Civil Aviation Organization (ICAO), have long urged Nepal to clearly separate its regulatory and service roles. By maintaining both functions within a single institution, Nepal has, for years, ignored a basic principle of air transport governance, raising serious safety concerns. Recent remarks by Minister for Culture, Tourism and Civil Aviation Badri Pandey during discussions on the bill reflect a new level of political commitment. The fact that 75 lawmakers expressed interest in the matter signals that Parliament is taking the aviation sector’s challenges seriously. Alongside parliamentary deliberation, input from stakeholders and experts must be incorporated to ensure a consensus-based solution. However, simply discussing or passing the current bills will not, by itself, ensure Nepal’s removal from the European Union's aviation blacklist. Structural separation of CAAN, though, would meet a key EU precondition.