Aviation Law in Nepal: Key Highlights

The following article outlines the legal framework governing aviation law in Nepal. It includes the procedures for obtaining

(i) aircraft registration license,

(ii) air service operation license,

(iii) aircraft leasing and (iv) highlights the power and function of CAAN as both regulator and service provider in the aviation sector in Nepal.

It also mentions the concepts of air accidents, its investigation method as provided in national law and offenses and corresponding punishments related to civil aviation

Primarily, there are three main national legislation governing aviation law in Nepal;

1. Civil Aviation Act, 1959 (2015)
2. Civil Aviation Rules, 2002 (2058) 
3. Nepal Civil Aviation Authority Act, 2053 (1996)

Moreover, here are some International civil aviation conventions that Nepal has acceded to: t

Civil Aviation Authority of Nepal (“CAAN”) is the governing authority which regulates the civil aviation sector in Nepal.

Pursuant to section Nepal Civil Aviation Authority Act, 2053 (1996)", this Act shall extend throughout Nepal and also apply to the following aircraft and persons no matter wherever situated or stationed:

(a) A Nepali citizen.

(b) An aircraft registered in Nepal, and

(c) person on board on such aircraft.

The Composition of CAAN shall be as followed:

Pursuant to Section 5 of Nepal Civil Aviation Authority Act, the Function, Power and Duties of CAAN shall be as follows:

Pursuant to Section 6 of Nepal Civil Aviation Authority Act, the Authority may develop and implement plans to ensure safe, efficient, and standardized air transportation services. These plans include constructing, repairing, and expanding aerodromes with government approval and environmental assessments. Additionally, the Authority will oversee the operation of air transportation services, install essential communication and navigational equipment, and adopt advanced techniques for efficient operations. National and international air routes will be developed and expanded, while standard services and facilities will be provided for passengers. To support the sector, training programs will be implemented to prepare skilled personnel. The Authority will also promote tourism through air transport-related services and undertake any other necessary tasks to enhance air transportation.

Civil Aviation Authority Nepal grants the permit to operate air service in Nepal. Air service cannot be operated without a permit or certificate. Registration process of aircraft is outline below: 

8.1 Registration Process of Aircraft in Nepal

Civil Aviation Authority Nepal grants the permit to operate air service in Nepal. Air service cannot be operated without a permit or certificate. Registration process of aircraft is outline below:

8.2 Aircraft Registration Fee

Aircraft Registration Fee depends on the aircraft type, which are outline in below table:

8.3 Air Service Operation Permit in Nepal

Approval Process for Air Service Operation Permit and Certificate: 

The following procedure applies for obtaining an air service operation permit and certificate in Nepal:

8.4  Fee for Air Service Operation Permit

The applicable fees for air service operation permit shall be as follows:

8.5 Validity and Renewal of Air Operator Permit and Certificate

The Air Operator Permit and Certificate issued under Rule 4 of Civil Aviation Regulation, shall remain valid for a period of one year, unless revoked earlier in accordance with Rule 6 of Civil A.

Before the permit and certificate expire, an application for renewal, along with the fee, must be submitted to the Director General.

The Director General may suspend (up to six months) or cancel the permit or certificate if the operator fails to comply with relevant laws, rules, or terms and conditions.  Notification of the suspension or cancellation will be sent to the licensing office or company registration office. Before suspension or cancellation, the Airline Operating Agency must be given a reasonable opportunity to provide a clarification.

(1) No Aircraft without a valid Certificate of Airworthiness shall operate in Nepal's airspace, except when a temporary permit for test or position flights is issued by the Director General. 

(2) Aircraft operating without or with an expired Certificate of Airworthiness in Nepal's airspace will be immediately detained by an authorized official, and necessary action will be taken.

The airworthiness standard in Nepal shall comply with relevant standard prescribed by the Civil Aviation Act and until those are set, the standards from the ICAO Contracting State that issued the aircraft's certificate shall apply.

It is the certificate of airworthiness of an aircraft according to its manufacturing design. Aircraft owner, company or manufacturer shall provide an application to the Director General, including necessary details and fees. The design certificate of the aircraft must be included with the application. Upon receiving the application, the Director General can issue the aircraft type certificate after necessary inquiries

The following steps shall be taken for the leasing of an aircraft in Nepal

1. Submit Application: Airlines with a Permit and Certificate under Rule 4 must submit an application to the Director General, including the necessary details and fees as per Schedule-1. Additionally,
   Attach a copy of the aircraft lease agreement with the application.

2. Change of Operation : If aircraft operations need to change, submit a new application with the required fee.

3. Permission and Conditions: The Director General will review the application and may grant permission with additional terms.

Additional Requirement : Clearance of Dues: Permission is only granted after clearing all dues to the Government of Nepal and the Authority.

Submit Amendments: Submit any changes or updates to the lease agreement to the Director General.

Aircraft can fly in Nepalese airspace only after displaying the national mark of the country where the aircraft is registered. The Director-General assigns the national mark to aircraft as per the specified rules.

National Mark Details in Nepalese Aircraft

Aircraft registered in Nepal will have the national mark “9N-“ followed by a group of three capital letters in Roman characters (e.g., 9N-AAA). Aircraft designated for V.V.I.P. (Very Very Important Person) flights will have a hyphen after the national mark, followed by the letter “R” in Roman character, and then two additional Roman letters (e.g., 9N-RAA)

No individual shall engage in, or cause others to engage in, the following activities without obtaining the required Personnel License, Rating, and Certificate:

1. Aircraft flight operations
2. Aircraft repair and maintenance
3. Flight dispatching
4. Air Traffic Control
5. Acceptance, certification, installation, repair, and maintenance of communication and navigation equipment.

The authority to issue Personnel License, Rating, and Certificate for these activities is vested in the Director General. Further, Licenses must be renewed in accordance with the law.

Application for Permit:

The owner of an aircraft or airline must apply to the Director General using the prescribed format to obtain a flight permit for operating in Nepal's airspace or for taking off or landing on any aerodrome or helipad.

Issuance of Permit:

After reviewing the technical aspects of the aircraft, aerodrome, and runway, the Director General may issue the flight and landing permit, either as requested or with specific terms and conditions.

Types of Permits

The Director General may grant flight and landing permits for the following:

(a) Scheduled international flights under bilateral/multilateral agreements

(b) Non-scheduled domestic/international charter flights

(c) Emergency flights (e.g., rescue, ambulance)

(d) Diplomatic flights

(e) Test flights

(f) Private flights

(g) Glider, para-glider, balloon, and similar flights

(h) Aerial surveys or agricultural flights

(i) All types of domestic flights

Emergency Flight Permits:

Permits for emergency flights may be granted verbally, with a record of the permission maintained.

Flight Schedules

National and international airlines must submit their flight schedules to the Director General for approval before operating scheduled flights.

Special Terms for Remote Flights

For safety reasons, the Director General may establish special terms and conditions for operating aircraft in remote or geographically challenging aerodromes.

Annual Safety Audit:

The Director General shall conduct an annual safety audit to ensure that the Airline Operating Agency holding an Air Operator Certificate (AOC) complies with the regulations, certificate requirements, and specified terms, and that the service is technically safe.

Additional Audits:

The Director General may conduct additional safety audits whenever deemed necessary.

Non-Compliance Orders:

If an audit reveals non-compliance with regulations, certificate requirements, or safety standards, the Director General may issue an order for corrective actions within a specified timeframe.

Difficult terrains, harsh geographical condition and recklessness of airline companies have been a major causative factor for air accidents in Nepal. However, Nepal has acceded various international conventions and formulated own laws to compensate the family of the victims of such air accident.

Government of Nepal has the power to create rules concerning the investigation of accidents involving aircraft registered in Nepal. 

Rules can specify following matters;

1. Information about how accidents is reported, including the form and the person responsible for reporting.
2. Application of existing Nepalese laws related to accident investigations, with or without modifications.
3. Prohibition of access to or interference with aircraft involved in accidents until investigations are complete.

Pursuant to 9A Of Civil Aviation Act it has classified different offence in regard to violation of civil aviation law in Nepal. Offence and the punishment is listed in below mentioned table: