CAAN mulls making an airline company operate at least five aircraft for regular flights

KATHMANDU, Sept 3: The Civil Aviation Authority of Nepal (CAAN) is considering making a domestic airline company to have at least five aircraft for their operations in the next five years.

Preparing a draft on the 10th amendment of Air Service Operation Certificate Guidelines, the sector’s regulator has sought to make the domestic air service providers well equipped with adequate numbers of aircraft. “Any airline company failing to do so within the stipulated time period, could be taken to merger,” said CAAN Spokesperson Jagannath Niroula.

According to the new standards prepared by the CAAN, any new company willing to operate air service must have a minimum of three aircraft now. Niroula said through the new guidelines, the authority aims to make the companies operating the air services more accountable and also to make the new companies comply with the terms and conditions.

Provided the new rules come into force, the chairman, share investor, executive director, managers and high level officials of the airline company should not carry out activities contrary to the policies and actions of the authority and the government. They will be barred from expressing controversial views publicly.

Likewise, the managers and incumbent officials of the airline companies must not be involved in activities and commercial work, such as tours and travels, which directly or indirectly contradict with the company’s interests.

If the officials of any airline company have received training for pilot and aircraft maintenance works provided by the CAAN, they are not allowed to be involved in commercial flights and maintenance work in any other organization without receiving approval from the authority. The guidelines also talk about barring the pilots involved in other commercial activities except flying.

Promoter shareholders cannot sell and transfer their shares for a period of at least five years after receiving the ‘No Objection Letter’. No government-owned and private airline company can appoint high position officials without taking approval from the authority, states the proposed guidelines.

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