The Civil Aviation Authority of Nepal (CAAN) was established in 1998 following the enactment of the Civil Aviation Authority Act. As an autonomous regulatory government body, CAAN's prime responsibilities include regulating civil aviation operations and infrastructure, ensuring safety and security compliance, and facilitating the development of the air transport sector in Nepal.
Headquartered in Kathmandu with regional offices across Nepal, CAAN serves as the nation's civil aviation regulator. Key functions include oversight of domestic and international airports, formulation of aviation policies and regulations in line with International Civil Aviation Organization (ICAO) standards, air navigation service provision, air accident probes, and personnel licensing.
CAAN manages and collects revenue from air traffic and aeronautical service charges, which helps fund Nepal’s civil aviation administration. They also coordinate infrastructure projects undertaken to upgrade existing airports and construct new facilities to continuously improve passenger experience and prepare for traffic growth.
Through its broad regulatory and development roles, CAAN enables the steady maturation of Nepal's aviation industry. The authority provides the oversight necessary for safety, security, and operational efficiency whilst laying the groundwork for the sector's future expansion through infrastructure improvements. By promoting high standards across all aspects, CAAN plays a critical part in aviation serving as an economic lifeline for both local and international accessibility to Nepal.
History and Evolution
The Civil Aviation Authority of Nepal has its roots in the Aviation Department established in 1955 under the Ministry of Works and Transport. This department was initially responsible for airport infrastructure development and overseeing aviation operations.
In the decades that followed, aviation infrastructure across Nepal expanded rapidly. By the 1990s, four international airports and multiple domestic airports and airfields were operational. The fast-paced growth highlighted the need for dedicated civil aviation administration and specialized regulation.
Thus, in 1998, the government enacted the Civil Aviation Authority Act, giving birth to the Civil Aviation Authority of Nepal (CAAN) as an autonomous statutory body. CAAN assumed all aviation regulatory functions previously falling under the Aviation Department.
With its formation, CAAN became responsible for implementing ICAO standards, managing Nepal’s airports, providing air navigation infrastructure, conducting aircraft accident investigations, and overseeing personnel licensing and aviation security.
Major milestones under CAAN’s oversight include the opening of Pokhara International Airport in 2022, coordination of one-runway to two-runway upgrades at Tribhuvan International Airport, and an accelerator program for investments in building new airports across Nepal.
As Nepal’s sole civil aviation regulator, CAAN continues to play a pivotal role in creating an enabling environment for the growth of the country's airline industry. By promoting safety and international best practices, CAAN enables the sustainable development of air connectivity within, to, and from Nepal.
Organizational Structure
CAAN has a functional organizational structure consisting of various technical departments headed by a Board of Directors and an Executive Chief known as the Director General of the Civil Aviation Authority.
The Board is responsible for policymaking while the Director General and department heads oversee day-to-day administration and specialized functions. Key departments include:
- Air Transport and Economic Regulation Department - Responsible for aviation policies, airline licensing, air service agreements, tariff regulation, and statistics.
- Air Navigation Services Department - Manages air traffic control, communication, navigation, and surveillance infrastructure. Updates airspace procedures ensuring safe aircraft movements.
- Aerodromes Department - Involved with airport certification, infrastructure maintenance, and new projects at Nepal's international airports and domestic STOL ports.
- Flight Safety Standards Department - Oversees personnel licensing, aircraft registration and airworthiness, aviation training standards, safety promotion, and accident investigation.
- Corporate Planning and Finance Department – Manages financial planning, capital project funding, revenue collection, and internal audit functions.
CAAN also has an Aviation Security Directorate along with Legal and Internal Administration sections. Additionally, several regional and provincial offices exist under the main Kathmandu headquarters.
The current Director General of the Civil Aviation Authority is Pradeep Sharma while the Board consists of representatives from the Ministry of Culture, Tourism and Civil Aviation, airline associates, and aviation experts who guide the overall strategy. Through its specialized departments and tiered authority structure, CAAN coordinates Nepal's civil aviation administration effectively.
Roles and Responsibilities
The Civil Aviation Authority of Nepal (CAAN) has extensive roles and responsibilities that span regulation, oversight, and administration to ensure safe and efficient air transport in Nepal. Here is an overview:
CAAN serves as the regulator and manager for all aspects of civil aviation in the country. This involves comprehensive oversight of airline operations both in Nepal’s domestic airspace as well as international carriers flying to/from Nepali airports.
In terms of airports under its jurisdiction, CAAN has managerial responsibility spanning 24 airports ranging from regional STOL facilities to the international gateways of Kathmandu, Pokhara, and other airports. This includes coordinating infrastructure upgrades, terminal expansions, maintaining runways, taxiways, and aprons as well as navigational aids and lighting systems.
Additionally, CAAN is directly tasked with air traffic control and airspace oversight. They implement air navigation procedures in Nepali airspace and manage a network of radar systems and communication/navigation infrastructure to facilitate aircraft movements while ensuring separation minima are maintained for flight safety.
From an airline compliance perspective, CAAN stipulates operational regulations covering flight crew licensing, cabin safety, aircraft maintenance, and airworthiness standards that Nepal-based carriers, as well as foreign airlines, need to follow. Ramp checks and spot audits help enforce such safety parameters.
Economic regulation of domestic air transport is another key task, with CAAN regulating market entry, tariffs, competition, and mandatory route dispersion requirements so air connectivity to remote areas is protected.
CAAN also facilitates infrastructure growth through periodic aviation infrastructure development plans that align with predicted traffic and tourism growth. Recent projects include the development of Pokhara International Airport and regional airport upgrades.
The main international airports under CAAN include Tribhuvan International Airport in Kathmandu along with Pokhara International Airport and Gautam Buddha Airport in Bhairahawa. Several key domestic airports also fall under CAAN like Nepalgunj, Biratnagar, and Simara.
Ongoing projects include the runway and infrastructure expansion of Tribhuvan to cater to 12 million passengers annually up from 7 million presently. Upgrades to navigation systems, new terminals, and contact gates are also underway.
Similar initiatives are being executed across other Nepali airports like developing Janakpur as an alternate emergency hub for Kathmandu and constructing a new airport in Nijgadh with parallel runways. Master plans have been drafted for Bhairahawa and Nepalgunj airports as well.
Future development will focus on building more regional airports and domestic hubs to enhance intercity connectivity as Nepal aims to serve 15 million air travelers by 2030. Based on feasibility assessments for over 25 locations, key sites in Lumbini, Dhangadhi, and Pokhara have been identified.
CAAN also has long-term plans to develop joint venture airports via PPP models. Private sector collaboration on operating airports independently or participating in terminal construction has also been making progress to accelerate Nepal’s airport infrastructure advancement.
Major Airports and Projects
The main international airports under CAAN include Tribhuvan International Airport in Kathmandu, Pokhara International Airport, and Gautam Buddha Airport in Bhairahawa. Several key domestic airports also fall under CAAN like Nepalgunj, Biratnagar, and Simara.
Ongoing projects include the runway and infrastructure expansion of Tribhuvan to cater to 12 million passengers annually up from 7 million presently. Upgrades to navigation systems, new terminals, and contact gates are also underway.
Similar initiatives are being executed across other Nepali airports like developing Janakpur as an alternate emergency hub for Kathmandu and constructing a new airport in Nijgadh with parallel runways. Master plans have been drafted for Bhairahawa and Nepalgunj airports as well.
Future development will focus on building more regional airports and domestic hubs to enhance intercity connectivity as Nepal aims to serve 15 million air travelers by 2030. Based on feasibility assessments for over 25 locations, key sites in Lumbini, Dhangadhi, and Pokhara have been identified.
CAAN also has long-term plans to develop joint venture airports via PPP models. Private sector collaboration on operating airports independently or participating in terminal construction has also been making progress to accelerate Nepal’s airport infrastructure advancement.
Aviation Safety and Security
CAAN stipulates comprehensive safety rules, certification guidelines, and operating requirements for Nepal-registered aircraft and airlines. Safety promotion programs including spot checks, pilot refresher training, and accident prevention drive further the safety culture.
By implementing the International Civil Aviation Organization (ICAO) recommended guidelines on personnel licensing, aircraft maintenance, and ground handling - CAAN has ensured Nepal's progressive compliance with global aviation safety benchmarks.
Regarding security, CAAN established the Aviation Security Directorate responsible for overseeing screening procedures, access control, loss prevention safeguards, etc. across all commercial airports in Nepal based on the Convention on International Civil Aviation requirements signed by ICAO members.
CAAN frequently conducts aerodrome emergency mock drills to assess readiness levels amongst airport rescue and firefighting staff. The body coordinates national emergency response planning via dedicated contingency units that can be activated to support search and rescue efforts for potential aviation accident scenarios.
Air traffic service personnel also undergo regular refresher programs on emergency protocols to facilitate the timely exchange of critical information with operational teams in coordinating priorities during any major safety or security incident through CAAN’s aegis.
By reinforcing safety and security across functional areas, CAAN strives to promote public confidence in Nepal’s aviation industry as a reliable and risk-averse travel mode.
Challenges and Issues
Nepal's mountainous terrain and variable weather pose infrastructural and air traffic control complexities. Building runways and installing navigation aids for airports like Lukla or Jomsom amidst steep Himalayan foothills is extremely tough. Low clouds, heavy rains, and high winds also frequently disrupt flight schedules.
Surging air travel demand has overwhelmed the passenger handling capacity of Tribhuvan International Airport in Kathmandu causing congestion. With no alternative large airports nearby, CAAN struggles to renovate facilities fast enough to match growth. Limited night parking bays also reduce aircraft movement flexibility.
While Pokhara Airport's inauguration eases volumes, developing airport infrastructure entails substantial investments. CAAN has limited financial resources with much of its revenue directed towards subsidizing operational losses of Nepal Airlines. Their income from traffic and landing charges also took a hit during COVID-19.
As an autonomous body, CAAN has started facing criticism over transparency issues in large public tenders for airport upgrades lacking competitive bidding. Allegations of misappropriation, wasteful expenditures, project delays, and failure to optimize private sector participation beset the authority.
Further challenges persist around optimal airspace design given overlapping civilian and military aviation activities. Installing advanced Air Traffic Management technology across all airports plus enhancing personnel skills to use such systems remains gradual amidst funding shortfalls.
By prudently managing capital investment plans while addressing revenue stability concerns, CAAN aims to overcome existing constraints.
International Collaboration and Achievements
CAAN closely coordinates with the International Civil Aviation Organization (ICAO) as a council member. Nepal’s improving safety oversight capabilities recently culminated in its removal from ICAO’s air safety watchlist in 2021. CAAN also entered a technical assistance partnership with France’s civil aviation authority to further strengthen regulatory frameworks.
Additionally, CAAN participates in aviation development initiatives like the Asia Pacific Economic Cooperation Comprehensive Asia Development Plan aimed at sustainable air transport liberalization policies.
Key accomplishments include Pokhara Airport winning the PATA Gold Award in 2022 for design excellence. CAAN’s effective COVID response protocols ensuring minimal disruption to air cargo supply chains received WHO recognition as well.
The innovative Community Rescue Program launched recently leverages local volunteers for emergency services at remote airports. CAAN also adopted virtual inspection tools to facilitate continued safety oversight throughout the pandemic travel shutdowns.
Further milestones are reflected in the authority’s effective management of rising air traffic. Total passenger throughput across airports under CAAN supervision touched 10 million in 2022, crossing the pre-pandemic mark. Graded annually by ICAO, CAAN’s air navigation service quality scores also continue on an upward trajectory.
By adopting smart technologies and best practices from global experience, CAAN has enabled Nepal’s aviation industry to responsibly cater to surging demand. Prospects appear positive for greater integration of Nepal’s airports within international air networks.
Future Outlook and Innovations
CAAN has outlined an ambitious future vision for spearheading innovation and sustainable growth to transform Nepal into a regional aviation hub:
Central aims by 2030 include serving over 15 million passengers annually across a network of new airports like Nijgadh, Lumbini, and Pokhara while boosting cargo throughput to 250,000 tons.
Digitalization is a priority with plans already underway to develop a cutting-edge Integrated Aviation Management System incorporating AI and automation for functions like real-time airspace simulations, e-inspection modules, and virtual crash investigations.
CAAN also envisages drone delivery networks, self-driving cars, and biometrics-based passenger experiences becoming mainstream at airports by 2030. More environmentally friendly modular terminal designs are being considered for upcoming airport projects.
Nepal's airspace is expected to be substantially realigned for flexible civil and military aircraft movements powered by next-gen satellite navigation and surveillance systems. Multi-functional smart towers enabling enhanced safety, navigation, and weather insights will also come up across all airports managed by CAAN.
As the apex body, CAAN aims to foster a culture of innovation amongst its workforce and across Nepal's aviation ecosystem while optimizing policies and infrastructure to expand the nation's air connectivity footprint as a prosperous tourism and trade hub.
Conclusion
Established in 1998 as an autonomous regulator and airport authority, CAAN has overseen tremendous expansion in air transport capacity and connectivity for Nepal over the past decades. With air travel crucial for a landlocked mountainous country like Nepal, CAAN's far-sighted planning and oversight across airport infrastructure development, airline regulation and air navigation services catalyzed the current growth phase.
While challenges remain around managing record passenger volumes, financing further upgrades, and improving regional air connectivity, CAAN strives to facilitate sustainable long-term growth through the continuous adoption of emerging technologies and global best practices.
In many ways, CAAN's success mirrors the rise of Nepal's economy with the aviation industry not just boosting international tourism but also expanding trade relationships and providing lifeline access to remote towns. Nepal is also now better positioned to participate in multilateral aviation development partnerships.
As air travel penetration continues to increase in line with income growth, CAAN's strategic role will grow further. By achieving its vision towards innovative and eco-friendly aviation administration, CAAN can proliferate greater human development, social unity, and prosperity for Nepal as a leading regional air hub.
