SATV Kathmandu Oct 3- In a major overhaul aimed at resolving decades-long safety concerns, the government has introduced legislation to unbundle the Civil Aviation Authority of Nepal (CAAN), ending its dual status as both service provider and industry regulator.

Minister for Culture, Tourism and Civil Aviation Khadak Raj Poudel (Ganess) registered the Civil Aviation Authority Bill 2026 and the Nepal Air Service Authority Bill 2026 at the House of Representatives.

Once enacted, the legislation will establish two independent bodies: a standalone Civil Aviation Authority dedicated strictly to safety oversight and licensing, and a separate Air Service Authority tasked with airport operations, infrastructure growth, and air navigation management.

The law governing the operational entity will take effect 91 days after receiving presidential assent.

The structural split directly addresses long-standing critiques from international aviation bodies.

Audits conducted by the International Civil Aviation Organization (ICAO) in 2009, 2013, 2017, and 2022 repeatedly flagged CAAN’s overlapping mandate as a serious conflict of interest.

The issue also contributed to the European Union placing Nepali carriers on its air safety blacklist.

By creating an autonomous oversight framework, officials expect to meet international compliance standards, elevate flight security, and ultimately lay the groundwork for Nepal’s removal from global safety caution lists.