civil aviation layout report 2008€¦ · caa civil aviation academy ... dvor/dme doppler very high...

ACRONYMS/ ABBREVIATIONS

A/BA Accounts/Business AdministrationACC Area Control CentreADB Asian Development BankADS-B Automatic Dependence Surveillance-BroadcastAE Aeronautical/Airworthiness EngineeringAEM Aviation Enforcement ManualAFIS Aeronautical Flight Information ServiceAIP Aeronautical Information PublicationAMHS Aeronautical Message Handling SystemAMSL Above Mean Sea LevelANS Air Navigation ServicesAOC Air Operator CertificateAOCR AOC RequirementsAPANPIRG Asia-Pacific Air Navigation Planning and ImplementationAPT Asia-Pacific TelecommunityASA Air Services AgreementASD Aviation Safety DepartmentAT Air TrafficATC Air Traffic ControlATS Air Traffic ServicesATSEPL Air Traffic Safety Electronics Personnel LicenseAVSEC Aviation SecurityBps bit per secondCAA Civil Aviation AcademyCAAN Civil Aviation Authority of NepalCAAR Civil Aviation Air RegulationsCAEP Committee on Aviation Environmental ProtectionCAR Civil Aviation RequirmentsCASP Civil Aviation Security ProgrammeCE Civil EngineeringCFIT Controlled Flight Into TerrainCNS/ATM Communicat ions, Navigat ion and Sur vei l lance/ Air Traf f ic ManagementCO2 CarbondioxideCOSCAP-SA Cooperative Development of Operational Safety and Continuing Airworthiness ProgrammeCRM Cockpit Resource ManagementCVR/FDR Cockpit Voice Recorder/Flight Data RecorderDGCA Director General Civil AviationDVOR/DME Doppler Very High Frequency Omni Directional Radio Range/Distance Measuring EquipmentELT Emergency Locator TransmitterEU European UnionFA Financial AdministrationFASID Facilities and Services Improvement DocumentFD Flight DispatcherFO Flight OperationsFOI Flight Operations InspectorFOQA Flight Operation and Quality AssuranceFOR Flight Operations RequirementsGA General AdministrationGASP Global Aviation Safety PlanGDP Gross Development ProductGPS Global Positioning SystemIATA International air Transport AssociationIGS Instrument Guidance SystemILS Instrumental Landing SystemJICA Japan International Cooperation AgencyLAG Liquids, Gels and Aerosols in Hand BaggageLOA Letter of AgreementMIS Management Information SystemMRP Machine Readable PassportNAC Nepal Airlines CorporationNAST National Aviation Safety TeamNCAR Nepal Civil Airworthiness RequirementsNFSR Nepal Flying School RequirementsNOTAM Notice to AirmenNSBS Nepal Army Air ServiceNTB Nepal Tourism BoardPBN Performance Based NavigationPEL Personnel LicensingPIC Pilot in CommandPKD Public Key DirectoryPR Public relationsRCAG Remote Control Air GroundRVSM Reduced Vertical Separation MinimaSAAQ State Aviation Activity QuestionnaireSARAST South Asian Regional Association of Safety TeamSARPs Standards and Recommended PracticesSIA Second International AirportSMS Safety Management SystemSOP Standard Operating ProceduresSTO Standard Training OfficerSTOL Short Take off and LandingT/EE/ME Technical/Electronics Engineering/Mechanical EngineeringT/O Technical/OpenTIA Tribhuvan International AirportTMA Terminal Control AreaUNMIN United Nations Mission in NepalUSAP Universal Aviation Security Audit ProgrammeUSOAP Universal Safety Oversight Audit ProgrammeV-SAT Very Small Aperture TerminalWRC World Radiocommunication Conference

A Publication of the Civil Aviation Authority of Nepal (July 2009)

Mailing Address :Civil Aviation Authority of Nepal

Head Office, Babar Mahal, Kathmandu, Nepal. Tel: 4262387, 4262326, 4262518, Fax : 977-1-4262516AFTN : VNKTYAYX, E-mail: [email protected]; [email protected] Website : www.caanepal.org.np

Civil Aviation Report 2008 Publication Committee :Co-ordinator~ Mr. Min Raj Upadhyay, Dy. Director General; Members ~ Mr. Saurabh Ranjan Baral, Mr. Mahesh Kumar Basnet, Mr. Sachit Pokharel and Mr. Sunil Mool

Printed by ~ Gorkha Unity Printers, Anamnagar-32, Kathmandu. Tel: 4102558, E-mail: [email protected]

C O N T E N T S

Director General's Review

Aviation Chronicles

CAAN: Institutional Profile

Organization and Governance

Air Traffic Statistics, TIA

Airlines Affairs

Airport Management & Development

Civil Aviation Academy & HRD

45th DGCA Conference: APAC

Air Navigation Systems & Services

1

7

8

9

12

16

20

23

26

29

Aviation Safety

Projects: TIA & SIA

Aviation Security

Corporate Affairs

Airport Profiles

Finance

Appendix & Annex

The Aviation Policy 2063

33

36

38

40

41

52

54

63

2008Civil Aviation Report 2008

CAAN Report 2008Civil Aviation Authority of Nepal

1

Since the final leg of October 2008 when I took over as DirectorGeneral of the Civil Aviation Authority of Nepal (CAAN), thesucceeding days marked eventful and hectic times. The year underreview and 2009, in part, were significant for us and I have thepleasure in presenting the annual report which highlights ourscope, activities and achievements during that period.

Nepal experienced an impressive air traffic growth in 2008. Thenumber of international aircraft movements at the TribhuvanInternational Airport (TIA) was 14276 � a 29.10 % growth over2007. The international passenger throughput was 1830630 �a 32.36 % rise over 2007. Our air traffic controllers handled atotal of 83,562 flights in the year under review, which is an 8 %increase over 2007. Not only on international, but also in thedomestic front, the traffic growth of 13 %, 17.43 % and 45.42 %was experienced in respect of aircraft, passenger and freightmovement at TIA, respectively, Given the trend, the civil aviationsub-sector will have made a significant contribution to theGovernment�s newly brought out campaign of Visit Nepal Year2011 aimed to bring in 1 million tourists during that year.

On licensing activity, as of date we issued 403 CPL out of which143 are valid. ATPL holders have reached 278. There are 248AMT's with valid licenses. Likewise, valid licenses have beenissued to 36 Dispatchers, 57 ATC's and 19 Radio rated personnelas of 2008. 60 airline survey inspection was performed from July16, 2008 to July 15 2009.

Civil Aviation Academy has so far produced around 2900 trainedpersonnel for air traffic services, radio-electronics maintenance,flight dispatch, security, rescue and fire fighting services � all formanagement of operations. Now, before it is too late, we haveto adopt suitable technology and implement process for this. Iwould also like to touch upon the human resource developmentaspects of CAAN and industry later.

We are aware of and responsive to future needs in the avio-

tourism sector. Despite heavy investment on airport infrastructuredevelopment, installation and maintenance of navigational aidsand overall management of airports our challenge is to ensureregular and reliable air transport to the mountain communities.The government has allowed the operation of single enginedaircraft to benefit charter operators. It can be perceived as agood comeback as there will be less consumption of fuel andbecome affordable for use by both private operators and theneedy. However, without any compromise on safety, necessarymechanism and policy, guidelines will be adopted towardsencouraging private sectors to operate both the tourist and non-tourist sectors.

In view of rapidly growing traffic, CAAN is concerned withimprovement and expansion of Tribhuvan International Airport.It was in response to the request from the Government that ADBagreed to fund a study involving the review of TIA Master Planand air traffic forecast under ADB Project Preparatory TechnicalAssistance (PPTA), and also the infrastructure development planreport of ADB TA 4772. Under this assistance we will see dooropen for massive strengthening and improvement works as pernew air traffic growth trend. Besides, the project will also carryout studies on organisational and management aspect of CAAN.However, considering the need to cope with increased traffic weare geared to expand operational hours of TIA. Runway overlayand apron expansion works have been initiated. We are awarethat despite operational constraints, we need to have a LocalizerDME approach system for precision at TIA. It will be encouragingfor international airlines to utilize TIA in various slots of operations,particularly during night, with increased safety and reliability.Similarly, Common User Terminal Equipment (CUTE) system is inprocess of being established to ensure hassle-free check-in ofpassengers and goods. We have allocated budget for up gradationof Rescue and Fire Fighting Service category from 8 to 9, to meetrequirements in respect of new modern aircraft types as anticipated.

Civil Aviation Report 2008DIRECTOR GENERAL'S REVIEW

Keshab Raj KhanalDirector General

Civil Aviation Report 20092009


Recent achievements and activities

§ Safety Oversight Audit was performed by ICAO Safety AuditTeam from 5 May to 14 May 2009 under the ICAO UniversalSafety Oversight Audit Programme (IUSOAP). Correctiveaction plan is vigorously formulated to respond to the findingsidentified by the audit team. In the upcoming days, CAAN asRegulator is planning to implement State Safety Programme(SSP) and SMS for service providers, operators and suchtraining organizations as are directly associated with operations.Like wise aviation security audit has already been carried outby ICAO in 2006 and our security system has not been asalarming as one might think it is. We are committed to implementany recommendations that are made in the interest of aviationsafety and security.

§ With a view to extending the coverage of Kathmandu AreaControl Canter (ACC) to the western borders of Nepal, therebyalso serving as a reliable leverage of communication for theimplementation of proposed international route L626 betweenKathmandu and New Delhi, a Remote Control Air Ground(RCAG) System was established at Nepalgunj. Equipmentinstallation related manpower training and operational test hasbeen completed. VHF signals from Nepalgunj RCAG weresuccessfully relayed to the Kathmandu ACC, and to aircraft.

§ A High level delegation headed by Secretary of Ministry ofTourism & Civil Aviation Mr. Ramchandra Man Singh withJoint Secretary Mr. Nagendra Prasad Ghimire and DG CAANattended the International Conference on Air Law held underthe auspices fo the International Civil Aviation Organizationat Montreal from 20 April to 2 May 2009. 81 states wererepresented at the conference and presented credentials. The

conference was held for the purpose of considering the draftArticles of the Convention on Compensation for Damage toThird Parties, Resulting from Acts of Unlawful InterferenceInvolving Aircraft and the draft Articles of the Covnention onCompensation for Damage Caused by Aircraft to Third Parties,prepared by the Legal Committee of the International CivilAviation Organization and the Special Group on theModernization of the Rome Convention of 1952 establishedby the Council of the International Civil Aviation Organization.

§ Director General, CAAN Mr. Keshab Raj Khanal and ICAOSecretary General Mr. Taïeb Chérif signed an agreementbetween CAAN and ICAO with on 24 April, 2009 regardingManagement and other Support Services to besupplied by ICAO as specified in the letter of agreement. TheLOA specifices that CAAN has decided to retain the servicesof ICAO in accordance with the provision of the agreement.

§ A Memorandum of Cooperation (MOC) for the developmentof air traffic management technology and personnel wassigned between ACM. Somchai Thean-anant, President ofAEROTHAI and myself on 12 April 2009. As per the MOC,maintenance for system reliability and efficacy and technicaladjustments will be carried out by AEROTHAI. Simultaneously,an opening ceremony for the commissioning of RCAG Systeminstalled at TIA was arranged and presided by Ms. Hisil Yami,the erstwhile Minister for Tourism and Civil Aviation.

§ At the request of CAAN, a TRAINAIR participation assessmentmission was carried out by ICAO between 16 and 21 October2009. The team assessed the facilities, curriculums, andcapability of Civil Aviation Academy (CAA) for TRAINAIRmembership. The mission indicated that CAA is capable ofimplementing the TRAINAIR Programme in the Academythrough an ICAO project. CAAN is in the process of reviewingthe draft project proposal along with � Management ServiceAgreement between ICAO and CAAN� submitted by theTechnical Cooperation Bureau (TCB) of ICAO. In the meantime, CAAN has included the project program in the upcomingannual budget for FY 2066/67 ( 16 July 2009 � 15 July2010). The Project activity will include, among others, settingup of a course development unit, manpower training, anddevelopment of a Standard Training Package, and adaptationof one imported STP.

§ We also signed Special Management Agreement (SMA) withICAO on 25 April 2008. We also entered into a bilateralagreement with the COSCAP-SA Chairman at the 18th SteeringCommittee Meeting of the COSCAP-SA for the delegation ofauthority to regional experts of COSCAP-SA to engage inState�s Safety Oversight functions when these regional expertsare tasked in Nepal.

§ Organized by the International Civil Aviation Organization



3

Director General of CAAN making Inaugural Address on RCAG System.

(ICAO) and hosted by the Department of Civil Aviation,Malaysia, the 45th Conference of Directors General of CivilAviation Asia and Pacific Regions (45th DGCA) was heldfrom 24 to 28 November 2008. A 4 member team ofdelegates led by me participated in the Conference. Thetheme of the Conference was �Cooperating towards enhancedaviation safety, security, efficiency and environment� of whichparticipants discussed how cooperation between States andwith international organizations is important in order to developcivil aviation in a safe and orderly manner. At the occasion,Nepal presented two papers CAA. TRAINAIR Affiliation asCapacity Expansion Solution and Prospects of the ProposedHimalayan Routes in Nepal.

§ In view of the need to facilitate passengers in overcoming thecumbersome processes for paying passenger service chargeat TIA, a new system to include PSC in the airline airfare tickethas been enforced from 1 March 2009.

§ CAAN also signed an agreement with NAC with regard toground handling. As per the agreement, NAC is to pay 10%royalty to CAAN from ground handling charges NAC collectsfrom other international airlines.

§ An arrangement for the provision of a TV monitor has beenmade at the exit of arrival hall to facilitate the greeters andmeters to identify their respective near ones being received.

§ A homework towards empowering the Nepal Transit andGowdown Company with the responsibility of operating thecargo complex in a standard and effective fashion is in progress.

§ Taking into consideration the Nepal tourism Year 2011, traineesof NATHM have been mobilized at TIA as part of tourismpromotion activity.

§ A separate dedicated feederline has been set up to avoid theproblem of load shedding at TIA.

§ In course of managing the domestic apron, a link taxiway hasbeen brought to operation.

Major Works during FY 2065/2066 (July16, 2008 � July 15, 2009)§ Overlay of runway, taxiway and Apron of Simra Airport§ Overlay of Gautam Buddha airport has been completed§ Improvement works at Rara airfield on parking and runway

including apron construction§ Runway expansion and improvement work at Manang Airfield§ Reconstruction of terminal tower building at Phaplu, Dolpa,

Rukum Salle and Rukum Chaurjahari Airport§ Simikot runway expansion and blacktopping work has been

initited

Major Ongoing Works at TIA

§ In order to reduce congestion in the domestic apron, a separateparking area for helicopters is under construction to the easternside of the runway.

§ A parking bay and an equipment yard is under constructionat the international apron.

§ Runway and taxiway overlay of TIA is in progress.

Immediate Future Plan§ An additional sterile hall in capacity of accommodating 300

passengers will be constructed in order to also support NepalTourism Year 2011.

§ Departure and arrival areas will be segregated in theinternational terminal complex..

§ Design estimate for the construction of a new arrival area tothe west of the existing international parking area is in progress.The new setup will have the following features.1. A separate entry/exit road2. Parking for 200 vehicles3. Waiting hall with adequate toilets4. Tea stalls5. Information desk6. Covered walkway from arrival gate to car-park7. Children park supplemented by gardens and greeneries

On the construction of Second International Airport (SIA) atNijgadh of Bara District, the Air Transport Development andPlanning Directorate submitted a report regarding the sitedemarcation, investment cost, land acquisition, and rehabilitationof the human settlements on that area. In order to carry out adetailed feasibility study for such construction under BOOT conceptas decided by the Government of Nepal, a proposal was submittedby Landmark Worldwide of South Korea, and has been evaluatedto be technically eligible. Negotiation with LMW has beenconcluded to include commitment of LMW to submit a report onthe feasibility study for SIA development within 6 months from the





5

date of agreement. LMW has also agreed to prepare a biddingdocument for the second phase work, once the first phase feasibilitystudy is completed.

During 2008 and on, Nepal�s aviation industry steadily grew.Local air carriers continued to expand their fleet to cope with theincreasing demand on air services. The fleet has now reached72 as of date; it was 66 in 2008 and 59 in 2007.

The year 2008 and to this date of 2009 remained quite hecticfor us in the preparation of volumes of regulatory documents. Inthis regard tireless assistance shown by COSAP-SA ahead ofIUSOAP audit is commendable. With these regulations in placeto complement the national legislative frame work of the State,CAAN deems it a great opportunity to implement such newlyadded scores of procedures, requirements, directives, and manualsas pertained to personnel licensing, air traffic services and airtraffic management, CNS, training, airport operations standards,airworthiness and flight operations.

We are especially satisfied that the Airport Management andDevelopment Directorate continued to monitor the operations andmanagement of domestic airports. On 3 and 4 July 2009, theDirectorate conducted a very important seminar cum symposiumon Professional Operation of Domestic Airports based oncommercial principles; Opportunities and Challenges. Theinteractive seminar was well attended by the Secretary of theMinistry for Tourism and Civil aviation, myself, 8 airport chiefsand high ranking officials from all the Directorates, including Civilaviation academy and TIA. During the Seminar, participantsshared information and experiences about the regulatory activitiesthat CAAN must be actively involved in for enabling domesticairport management to run the domestic airports in as professionaland commercial way as possible. Fruitful discussions were madeduring the 2 day seminar on a variety of problems associatedwith airport operation. A detailed report on the seminar is underway.

With a view to develop the existing Gautam Buddha Airport intoa regional International Airport, priority-wise improvement workshave been put in process. Project under Asian Development Bank(ADB) -South Asia Subregional Economic Cooperation (SASEC)is yet to be finalized before negotiation for loan acquisition isreached. The materiality will facilitate us to see cross-border flightsbetween Nepal and Indian cities of religious and tourist interests.Likewise, in Pokhara another regional international airport will beinitiated. In order to undertake the development of this airportNepal Government is planning to invest US$ 900 million throughloan from the Government of the People�s republic of China.

May I now touch upon what is about establishing an air corridoracross the considerable part of Nepalese airspace. In order toestablish Himalayan Route for the optimum utilization of Nepaleseairspace, it is Himalayan 1 and Himalayan 2. These routes have

been proposed by Nepal since long. Himalayan 1 from Bangkokto Indek of Pakistan direct via Kolkata and Nepalgunj, Nepaland Himalayan 2 from Kathmandu to Hong Kong direct viaBagdogra and Imphal. We have raised the implementation aspectsof this route at many international fora, including the recent DGCAConference. IATA has appreciated this proposal and assuredfullest cooperation in its implementation. These developments willallow the international airlines to over fly Nepalese airspacewhich means benefit of economy on fuel and distance to theoperating international airlines, and a robust revenue to Nepal.Our estimate is that the direct beneficiary airlines will be Air India,Cathay Pacific, Qatar Airways, Saudi Arabian Airlines, NepalAirlines, Dragon Air, Yeti Airlines, China Southern, Air Hong Kongamong other prospective air carriers.

Coordination with ICAO and relevant countries has been intensifiedat the Ministry and organisational level. We are also in processof finalizing the Kathmandu-Lhasa B345 Route upto Beijing andShanghai in the context of the signing of LoA with China on ATSCoordination procedure. With regard to establishing the proposedL626 Kathmandu - Mahendra Nagar - Delhi, We have alreadyinitiated process of implementing Remote Control Air Ground(RCAG) station at Nepalgunj to facilitate the establishment ofL626 route and increase VHF communication coverage.

The government and CAAN are keen to be more flexible onincreasing air seats and frequencies. Nepal has so far reachedair service agreement and MOUs with 35 countries. Bilateralagreements with Qatar, Thailand, India and China are in processof review. Recently, the government has concluded agreementwith Bahrain according to which the frequency of flights has beendoubled from the existing 14 to 28 cargo and passenger flightsa week. CAAN is committed to cooperate the Government forthe maximum utilization of seats.

CAAN, as a service provider as well, has responsibility to fulfillpublic demands. Hence, we are set to strengthen domestic airportsin respect of basic infrastructure with cooperation and support ofthe government and local people. It may be noted that blacktopping of Surkhet and Dhangadhi airport has facilitated airlinesin smooth air services. We have allocated budget for installationof airport lighting system in Simara and Dhangadhi airport. Forupcoming years our focus will be to speed up the upgradationof other domestic airports including 12 remote airports whichhave high tourism and regional development potential, andrestoration of damaged airport infrastructures.

Now at the close, not the least, I should like to touch upon HumanResource Development. During 2008, 100 personnel from CAANreceived abroad training, and another 120 were trained locally.The same year the Academy conducted 27 courses on CivilAviation Air Regulation (CAAR) benefiting 85 participants fromoutside of CAAN, including individual candidates. Likewise, in

the last June of 2009, Air Traffic Team Enhancement (ATTE)workshop was organized at CAA; 9 controllers attended theworkshop. The CAA has planned to conduct CAAR, FOO Basic(2 courses), FOO Refresher (2), SMS - Air Carriers, FD � AIP (4)and language training and testing of pilots from the industry.

It will be pertinent to mention that the Government of Nepalobserved the international civil aviation day on 7th December of2008 with the ICAO mandated theme of Tomorrow�s Aviation:a world of opportunity for skilled aviation personnel. Production,retention and transformation of skilled personnel are some of theburning issues that we all have to account for. Important paperson human resorce development in flight operation, aircraftmaintenance and regulatory mechanism were presented whichhave provided enough leverage to our future planning in manpowermanagement.We are at a point from where we should go forcreating ways and mechanism to replace the traditional mode ofhuman resource development. As stated earlier, CAAN is gearedto be a part of ICAO TRAINAIR programme for standards,uniformity and international recognition in respect of trainingpackages and our ability to deliver. As anchored in the AviationPolicy of 2006, we urge industry organization and academic

institutions to demonstrate capability to create training foraindependently or by cooperating and assisting CAAN. Because,it will be a proactive step, facilitating CAAN and industry towardsadopting technology oriented development and management ofskilled manpower.

At closing,we express our thanks to the government of Nepal,ICAO, and all stake holders, donors, COSCAP SA, EU, industrypartners for their contribution to the activity of CAAN. We areconfident we will be receiving your continued support in the daysahead. I am proud of the outstanding performance, professionalismand commitment my colleagues have demonstrated in formulatingand developing regulatory documents, while also carrying outtheir duties throughout the year.

I hope the report will prove resourceful and thank the pool ofdedicated members of the Publication Committee for thepreparation and publication of this report.



Newly Established RCAG Mast at Nepalgunj Airport



7

1949: The date heralded the formal beginning of aviationin Nepal with the landing of a 4 seater lonepowered vintage Beach-craft Bonanza aircraft ofIndian Ambassador Mr. Sarjit Singh Mahathia atGauchar.

1950: The first charter flight By Himalayan AviationDakota from Gauchar to Kolkata.

1955: King Mahendra inaugurated Gauchar Airportand renamed it as Tribhuvan Airport.

1957: Grassy runway transformed into a concrete one.

1957: Department of Civil Aviation founded.

1958: Royal Nepal Airlines started scheduled servicesdomestically and externally.

1959: RNAC fully owned by HMG/N as a publicundertaking.

1959: Civil Aviation Act 2015 BS. promulgated.

1960: Nepal attained ICAO membership.

1964: Tribhuvan Airport renamed as Tribhuvan InternationalAirport.

1967: The 3750 feet long runway extended to 6600feet.

1967: Landing of a German Airlines Lufthansa Boeing707.

1968: Thai International starts its scheduled jet air services.

1972: Nepalese jet aircraft Boeing 727/100 makesa debut landing at TIA. ATC services taken over byNepalese personnel from Indian technicians.

1975: TIA runway extended to 10000 feet from t h eprevious 6600 feet.

1975: CATC established.

1976: FIC (Flight Information Center) established.

1977: Nepal imprinted in the World Aeronautical Chart.

1989: Completion of International Terminal Buildingand first landing of Concorde.

1990: New International Terminal Building of TIA inauguratedby King Birendra.

1992: Adoption of Liberal Aviation Policy andemergence of private sector in domestic air transport.

1993: National Civil Aviation Policy promulgated.

1995: Domestic Terminal Building at TIA and ApronExpanded.

1998: CAAN established as an autonomous Authority.ASR/SSR brought to operation.

1998: COSCAP-SA Project established.

2002: Expansion of the International Terminal Buildingat TIA and the construction of a new air cargocomplex.

2003: Rara airport (Mugu), Kangeldanda airport(Solukhumbu) and Thamkharka airport (Khotang)brought in operation.

2004: Domestic operation by jet aircraftcommenced.

2005: International flights by two private operators began.

2006: A new comprehensive Aviation Policy introduced.GMG Airlines of Bangladesh, Korean Air and AirArabia started air service to Nepal.

2007: Identification of site location for a new secondinternational airport.

Etihad, Dragon Air, Silk Air, Orient Thai andHong Kong Express commenced their service toNepal.

2009: Establishement of RCAG station at Nepalgunj-to augument coverage of VHF communicationin Air Traffic Control.

AVIATION CHRONICLES

Name:

Address:

Type:

Date of Establishment:

Legal Status:

Main Functions:

Affiliation / Institutional Linkages:

Income Resources:

Civil Aviation Authority of Nepal

Babarmahal, Kathmandu, NepalTel. 4262387, 4262326, 4262518Fax: 977-1-4262516E-mail: [email protected]:

Authority

31 December 1998

1. Civil Aviation Act, 2015 (1959 AD) - Statutory Regulations

2. Civil Aviation Authority Act, 2053 (1996) - Establishment

� Permitting Airlines Operation

� Airworthiness Certification and Manpower Licensing/Rating

� Regulating Air Transport, Air Navigation Services (ATM/CNS), and Aerodromesas per ICAO SARPs.

� Constructing, operating and maintaining airports

� Equipping and maintaining airports with necessary communication andnavigational facilities

Ministry of Tourism & Civil Aviation, Ministry ofInformation & Communication, Ministry of Science &Technology, ICAO, COSCAP-SA, Airlines, NTB,International Funding Agencies, Traveling Public.

Landing, Parking, Housing, Over-flying and RouteNavigation Charges, Security Charges, Charter Charges,Flight Catering Charges, Passenger Service Charges,Concessionaries; Parking of Surface Transport, Fee fromVisitors Deck, Hoarding and Displays, Fuel RefuelingCharges, Rental from airlines and other Agencies, PenaltyCharges, Royalty and Others Deposits, Cargo Complexand Manpower Training, Regulatory fees, GroundHandling Charges, etc.

CAAN : INSTITUTIONALPROFILE



Recent development

The Civil Aviation Authority of Nepal (CAAN) has taken significantsteps in respect of organization and safety governance. In orderto advance safety oversight and exercise authority both in theregulatory and service realm, a newly revised OrganizationStructure has been put in place this year. The revised structurereveals a distinct demarcation between the regulatory and serviceprovider function of CAAN. In the area of Annex 6 and Annex8 CAAN is a regulatory body, however, two major areas whereCAAN discharges service functions are Aerodromes & groundaids(AGA) and Air Navigration Services (ANS) including the regulatoryfunction. Aviation Meteorological provisions are served by aseparate entity of the Government, the Department of Hydrology& Meteorology.

A number of Departments and respective Divisions have beenadded to the previous organization structure. Aerodrome SafetyStandards Department and Air Navigation Services Safetystandards Department are the two entities headed by level 11.The latter is concerned with ANS inspection in the areas ofATM/SMS, AIS, CNS, and PANS/OPS. Similarly the Aerodromesafety Standards Department will be responsible for inspectionin the areas of aerodrome related electro/ mechanic, civil, andRFF. CNS/ ATM Department has been segregated into CNSDepartment and ATM Department.

Organization Update

Civil Aviation Authority of Nepal in Nepal is organised as a singleCivil Aviation Authority of the State. Transformed on December31, 1998 to make flight Operations, Air Communication, AirNavigation and Air Transportation Service safe, regular, standardand efficient, this authority has been established under the CivilAviation Authority Act -1996.

Its vision is

Making Air Services an Effective and Affordable Vehicle For HighEconomic Growth Through Wide Scale Tourism and Accessibility

Its mission is

Ensuring Safe, Secured, Efficient, Standard and Quality Servicein Civil Aviation.

CAAN Board Of Directors

The overall operation, surveillance and management of all theactions and activities of CAAN are directed by a CAAN Boardcomposed of

Minister for Tourism and Civil Aviation as ChairpersonRepresentative Minister of Tourism and Civil Aviation MemberRepresentative, Ministry of Finance MemberNominee, Private Entrepreneurs MemberNominee, Aviation Experts MemberNominee, Airlines including Private Operators MemberNominee, Airlines including Private Operators MemberDirector General, CAAN Member Secretary

Aviation technicality of the Authority is indicated below with thefollowing technical staff constitution within the Head OfficeOrganization

� Management 24� PEL 5� ACFT 3� Airworthiness of aircraft 4� Aerodrome (regulatory) 16� ANS (regulatory) 7� Other 132� Total 191

There are 1065 approved permanent posts. Of these, the numberof staffs working in the system is 889. Head Office harbours 191posts. Whereas TIA, CAA, Other Offices including Civil aviationOffice of respective domestic airports, and STOLPORTS haveprovisions of 455, 38, 356 and 25 such permanent posts.

Organization andGovernance



9

Current Staff Occupancy

TIA 42.63%

1. Other Offices including domestic airports 33.43

2. Head Office 17.93

3. CAA 3.66%

4. Stolports 2.35%

The year 2008 and 2009 saw massive development of regulatory instruments. The list, in place, as at date, is given below:

1. Civil Aviation Act, 2015 (Amendment, 2053)

2. Civil Aviation Authority of Nepal Act, 2053

3. Civil Aviation Rules, 2019 (Amendment, 2058)

4. CAAN Civil Aviation Regulations, 2058

5. Civil Aviation (Investigation of Accident) Rules, 2024

6. Airport Charges Rules, 2038 (4th Amendment, 2061)

7. CAAN Financial Administration Regulations, 2057

8. CAAN Employee's Facility, Service and ConditionRegulations, 2056 (Amendment 2063)

9. Aviation Security (Management) Rules, 2064

10. The Aviation Policy, 2063 (2006).

11. Designated Check Pilot (DCP) Manual

12. Air Operator Certificate Requirements (AOCR)

13. Nepalese Civil Airworthiness Requirements (NCAR)

14. Flight Operations Requirements (FOR)

15. Air Traffic Control Manual(Manual of ATS Standards draft 2009)

16. Search and Rescue Manual (Draft: Second Edition 2009)

17. National Aviation Security Program

18. Airport Emergency Plan (AEP)

19. Flight Operation Inspector Manual (FOI)

20. Airworthiness Inspector Manual

21. Civil Aviation Medical Manual

22. Ground Handling Directives

23. Airport Charges rules 2038

24. AFIS (Aerodrome Flight Information Services) Manual

25. Civil Aviation Requirements for Rules of the Air (CAR - 2)

26. Civil Aviation Requirements for Aeronautical Charts(CAR - 4)

27. Civil Aviation Requirements for Units of Measurements(CAR - 5)

28. Civil Aviation Requirements for Radio Navigation Aids (CAR- 10 Volume - I)

29. Civil Aviation Requirements for Communications Procedures(CAR - 10 Volume - II)

30. Civil Aviation Requirements for Communications Systems(CAR - 10 Volume -III)

31. Civil Aviation Requirements for Surveillance Radar andCollision Avoidance Systems (CAR - 10 Volume - IV)

32. Civil Aviation Requirements for Aeronautical Radio Frequency(CAR - 10 Volume - V)

33. Civil Aviation Requirements for Air Traffic Services (CAR -11)

34. Civil Aviation Requirements for Search & Rescue (CAR - 12)

35. Civil Aviation Requirements for Aeronautical InformationServices (CAR - 15)

36. Manual of Meteorological Standards in Nepal 2009 (DratDepartment of Hydrology & Meteorology)

37. ANS Inspectorate Handbook ( ATM, PANS-OPS, AIS, CNS)

38. FOR 2009 Part I, II and III

39. NCAR 2009

40. PELR 2009

41. Procedures for PELR

42. DGHR 2009

43. AEM 2009

44. RVSM Requirements for aeroplanes

45. CAA: Operational (Directives) Guidelines 2066

46. CAA: Training and Procedures Manual 2009 (underdevelopment)

47. Aviation English: Training and Procedures (underdevelopment)

48. CAA: Instructor Selection and Certification Manual (underdevelopment)

49. AIP Nepal 4th Edition Draft 2009 (Under Development)



2008C

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Civil Aviation Authority of NepalOrganisation Structure

Board of Directors National Civil Aviation Security CommitteeRevenuePerf. EvaluationAir TransportMIS & PR

Monitoring Committees Monitoring CommitteesAviation Safety & SecurityAirportsMission Vision & Busi. Plan

Aviation Medical Board

Director General

Internal Audit & Quality Assurance Secretariate/Board Directorate

Airport Management &Development Directorate

Administration Department

Finance Department

Air Transportation & RegulationDirectorate

Corporate Planning, PerformanceEvaluation & Monitring Directorate

Air Transport Planning &Development Directorate

Tribhuvan International AirportCivil Aviation Office

Civil Aviation Academy

Business Planning, Charges & Analysis Division

Performance Evaluation, R & D Division

MIS, Public Relation & Publicity Division

Asset Mgmt. Division

Aircraft Operation Department

Airlines Affair Department

ICAO/ASA Int'l Relation Department

HRD & Training Department

Domestic Airport Department

Airport Improvement & Development Department

Communication & Navigational Aid Department

Facilitation Department

Aircraft Accident & IncidentInvestigation Div.

Aviation SafetyDept.

Airworthiness Inspection Division

Flight Operation Division

License & Examination Division

ANS Safety andStandard Dept.

Aerodrome Safety& Standard Dept.

ANS Inspectorate (ATM/SMS)

ANS Inspectorate (AIS)

ANS Inspectorate (CNS)

ANS Inspectorate (PANS/OPS)

Aerodrome Inspectorate(Civil)

Aerodrome lnsp. (Ele/Mec)

Aerodrome Inspectorate (RFF)

Civil EngineeringDept.

Aviation SecurityDept.

Aviation Security Division

Aviation Fire Division

Major Project Division

Project Planning, Design &Standardization Division

CNS Department

Air Traffic Mgmt.Dept.

Radio Engineeerig Division

Electro-Mechanical Division

Air Traffic Services Division

Air Space & Air Route Division

AIS/SAR Division




AIR TRAFFICSTATISTICS TIA

TIA- 5 year International Air Traffic

0

2000

4000

6000

8000

10000

12000

14000

16000

Aircraft 7508 9062 12169 11057 11899 14276

2003 2004 2005 2006 2007 2008

0

500000

1000000

1500000

2000000

Passenger 1000101 1140660 1251962 1383041 1627053 1830630

2003 2004 2005 2006 2007 2008

0

5000000

10000000

15000000

20000000

Freight 15585121 12801656 13151121 13110819 13883866 13110819

2003 2004 2005 2006 2007 2008



13

TIA- 5 year Domestic Air Traffic

0

20000

40000

60000

80000

Aircraft 53140 66471 68704 61291 65443 64286

2003 2004 2005 2006 2007 2008

0

200000

400000

600000

800000

1000000

1200000

Passenger 747981 876190 1110914 882717 916429 1036586

2003 2004 2005 2006 2007 2008

0

5000000

10000000

15000000

20000000

Freight 15585121 12801656 13151121 13110819 13883866 13110819

2003 2004 2005 2006 2007 2008



International Movement 2007 vs 2008 (Monthwise)

Aircraft

0

200

400

600

800

1000

1200

1400

2007 945 873 989 998 999 956 950 868 929 1070 1163 1159

2008 1196 1203 1284 1222 1229 1189 1068 1125 1101 1205 1214 1240

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Passenger

0

50000

100000

150000

200000

2007 124292 118517 144592 139743 137733 127948 126242 125241 132402 152752 155554 142037

2008 144490 142779 165350 148881 150631 131824 129077 145149 154438 181782 177930 158299


Freight (kgs)

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

2007 992513 812731 1189715 1373529 1336017 1124298 1000986 1235576 1279315 1214677 1328643 995866

2008 987374 780575 1292081 1101543 1191897 1124396 1142888 1362457 1422132 1229685 1148963 1102155




15

AIRLINES

AFFAIRS


Flight Movement

614

2

774

198

579

276

706

418

1146

240

358

66

1744

1270

120

1399

656

48

386

1147

724

398

756

251

0 200 400 600 800 1000 1200 1400 1600 1800 2000

Air Arabia

Austrian Air

Biman Bangladesh Airlines

Air China

Cosmic Air

China Southern Airlines

Royal Bhutan Airlines (Druk Air)

Etihad Airways

Gulf Air

GMG Airlines

Dragon Air

Hongkong Express

Indian Airlines

Jet Airways

Korean Air

Nepal Airlines Corporation

Yet Airlines

Oriential Thai

Pakistan International Airlines

Qatar Airways

Jet Lite

Silk Air

Thai Airways International

Others

Flight Movement

Freight (kgs) Movement

79383

103

100394

16001

42694

25971

21992

80419

264180

15476

41375

4873

166479

143796

21053

174154

60105

3759

53435

195153

93157

44689

169669

12320

0 50000 100000 150000 200000 250000 300000

Air Arabia

Austrian Air


Air China

Cosmic Air



Etihad Airways

Gulf Air

GMG Airlines

Dragon Air

Hongkong Express

Indian Airlines

Jet Airways

Korean Air


Yet Airlines

Oriential Thai


Qatar Airways

Jet Lite

Silk Air


Others

Airline Market Share TIA



17

Passenger Movement

79383

103

100394

16001

42694

25971

21992

80419

264180

15476

41375

4873

166479

143796

21053

174154

60105

3759

53435

195153

93157

44689

169669

12320

0 50000 100000 150000 200000 250000 300000

Air Arabia

Austrian Air


Air China

Cosmic Air



Etihad Airways

Gulf Air

GMG Airlines

Dragon Air

Hongkong Express

Indian Airlines

Jet Airways

Korean Air


Yet Airlines

Oriential Thai


Qatar Airways

Jet Lite

Silk Air


Others



Air Arabia (ABY)Air China (CCA)Baharain Air (BBA)Biman Bangladesh Airlines (BBC)China Sothern Airlines (CSN)Dragon Air (HDA)Etihad Airways (ETD)GMG Airlines (GMG)Gulf Air (GFA)Jet Airways (JAI)Jet Lite Airways (JLL)Korean Air (KAL)Nepal Airlines (RNA)National Aviation Company India (IAC)Pakistan International Airlines (PIA)Qatar Airways (QTR)Royal Bhutan/Druk Air (DRK)Silk Air (SLK)Thai Airways International (THA)

Int'l Airlines, TIA(based on summer schedule 2009)

In the year 2008, a total of 22 airlines (international)comprising scheduled, non scheduled and charter operated6924 number of flight for departure out of 8008 number ofapproved departure schedules. TIA saw 87% of total flightoperated with 1064 number of concellations. Likewise, therewere 212 char ters f l ight during the year 2008.

Domestic Airlines, TIA(Yearly Data 2009)

Air Dynasty (AD)Agni Air (AG)Buddha Air (BA)Cosmic Air CA)Fishtail Air (FA)Gorkha Air (GA)Impro (Impro)Manag Air (MA)Nepal Airlines (NAC)NSBS (NSBS)Sangrila Air (SA)Shree Airlines (SH)Simrik Airlines (SM)Sita Airlines (ST)UN (UN)VVIP (WIP)Yeti Airlines (YA)

During 2008, a total of 17 domestic airlines (7 schedulesand 10 other non schedule/cht. airlines) transported 1036586 kg of cargo was carried by these airlines. The scheduledairlines were Agni Air, Buddha Air, Cosmic Air, Gorkha Air,Nepal Air, Sita Air, Yeti Airlines.



19

The government and CAAN are keen to be more flexible on increasing air seats and frequencies. Nepal has so far reached air serviceagreement and MOUs with 35 countries. Bilateral agreements with Qatar, Thailand, India and China are in process of review. Recently,the government has concluded agreement with Siri Lanka and Bahrain. CAAN is committed to cooperate the Government for themaximum utilization of seats.

BASA Status

Airport Management and Operations

The Airport Management and Development Directorate isresponsible for operation, management and development ofdomestic airports within Nepal, and is charged with theresponsibility of identifying the need for installing and replacingairport equipment and facilities; implement its operational manualof all the airports; directing, supervising and coordinating airportoperations related activities, and facilitating airports with requiredsystems and services.

The Directorate continued to monitor the operations andmanagement of domestic airports. There are 47 airports in thecountry, out of which 32 are in operation. Upon the completionof the ongoing construction of 6 airports, there will be a total of53 airports. Domestic airports in aspects of management carriesout such functions as ATS, CNS, RFF, Avsec, Passenger servicefacilitation, Financial and revenue management, PhysicalInfrastructure Management and maintenance, air traffic statisticskeeping, etc.

On 3 and 4 July 2009, the Directorate conducted a very importantseminar cum symposium on Professional Operation of DomesticAirports: Opportunities and Challenges. The interactive seminarwas well attended by the Secretary of the Ministry for Tourismand Civil aviation, Director General of CAAN, high rankingofficials from all the Directorates, including Civil aviation academyand TIA and 8 airport chiefs from different Civil Aviation Offices.During the Seminar, participants shared information andexperiences about the regulatory activities that CAAN must beactively involved in for enabling domestic airport managementto run the domestic airports in as professional and commercial away as possible. Fruitful discussions were made during the 2 dayseminar on a variety of problems associated with airport operation.A detailed report on the seminar is underway.

CAAN is aware of and responsive to future needs in the avio-tourism sector. Despite heavy investment on airport infrastructuredevelopment, installation and maintenance of navigational aids

and overall management of airports our challenge is to ensureregular and reliable air transport to the mountain communities.The government has allowed the operation of single enginedaircraft to benefit charter operators. It can be perceived as agood comeback as there will be less consumption of fuel andbecome affordable for use by both private operators and theneedy. However, without any compromise on safety, necessarymechanism and policy, guidelines will be adopted as per theMinistry�s air operator certification towards encouraging privatesectors to operate both the tourist and non-tourist sectors.

Recent Development & Construction Status

§ Overlay of runway, taxiway and Apron of Simra Airport(Initiated).

§ Improvement works at Rara airfield on parking and runwayincluding apron construction (Initiated).

§ Runway expansion and improvement work at Manang Airfield(Initiated).

§ Overlay of runway taxiway and expansion of ChandragadhiAirport (Completed).

AIRPORT MANAGEMENTAND DEVELOPMENT



§ Overlay of runway taxiway and apron at Gautam BuddhaAirport (Completed).

§ Reconstruction of terminal tower building at Phaplu, Dolpa,Rukum Salle and Rukum Chaurjahari Airport (Initiated).

§ Simikot runway expansion and blacktopping (Initiated).

Likewise, Janakpur runway has been extended to 1300 meter,and blacktopped. Overrlaying of runway, taxiway and apron ofPokhara airport have been completed. Very recently, Chandragadhi and Gautam Buddha airport have got their runway, taxiway andapron improved and overlaid.

Recent management activity

The Directorate has recently developed Airport Operations(Management Directive) 2066 (2009) and submitted to the Boardfor approval. An Asset Inspection Team has been formed, which

inspected Janakpur and Pokhra airport. A comprehensive databaseresource of all the domestic airports has also been prepared.

Likewise, Facilitation Regulation Draft has also been developedand sent to the Ministry for approval. A National FacilitationCommittee under the Chairmanship of the Minister for Tourismand Civil aviation has also been formed to act towards facilitatingairports for travelling passengers.

Prospective airports

At present there are There are altogether 15 airports to befrequented by flights from 7 scheduled airlines, the latest entrantin the Nepalese sky being Guna Airlines. See the following table.



21

Airport Ranking

Airport

Pokhara

B i r a t n a g a r

Lukla

Nepalgunj

Surkhet

Simara

Bhairahawa

Jumla

Bharatpur

Jomsom

Chandragadhi

Tu m l i n g t a r

D h a n g a d h i

Lamidada

Janakpur

Aircraft

19708

12282

12219

9717

8054

4460

4189

3640

3512

3456

2995

2188

1700

1524

952

Passenger

234230 2

266267 1

92172 4

116795 3

21582 12

66181 6

67705 5

31871 9

19127 13

44077 8

60400 7

27648 10

15663 14

23123 11

14819 15

Cargo

177236 7

773049 5

2739491 2

1303791 4

7157670 1

25446 11

57535 10

1541287 3

1867 15

107893 8

646745 6

96724 9

5766 13

13578 12

3848 14

Airlines

Airports

Biratnagar

Nepalgunj

Pokhara

Bhairahawa

Chandragadhi

Janakpur

Simara

Bharatpur

Lukla

Jomsom

Surkhet

Dhangadhi

Jumla

Simikot

NA

19

30

9

-

4

8

7

3

4

1

1

2

BA

49

28

28

21

14

28

28

14

7

YA

63

18

49

14

14

97

3

1

Agni

7

-

-

7

Sita

-

6

21

42

49

7

6

4

Guna

14

-

28

Total

152

82

135

42

28

28

70

22

153

10

13

8

5

3

However, for 2008, in terms of air traffic movement, the ranking of 15 airports is given in the followingtable.



Domestic Frequency of flights

CAAN considers its manpower a valuable asset. In 2008, 100personnel received training exposures abroad where as 120others were trained locally. The same year the Academy conducted27 courses on Civil Aviation Air Regulation (CAAR) benefiting85 participants from outside of CAAN, including individualcandidates. Likewise, in the last June of 2009, Air Traffic TeamEnhancement (ATTE) workshop was organized at CAA; 9controllers attended the workshop. The CAA has planned toconduct CAAR, FOO Basic (2 courses), FOO Refresher (2), SMS- Air Carriers, FD � AIP (4) and language training and testing ofpilots from the industry. Civil aviation Academy, since 1974, hasbeen functioning as a sole institution to train manpower requiredfor Civil Aviation authority of Nepal in the various disciplines.

TRAINAIR Mission

CAAN is geared to be a part of ICAO TRAINAIR programmefor standards, uniformity and international recognition in respectof training packages and its ability to deliver

At the request of CAAN, a TRAINAIR participation assessmentmission was carried out by ICAO between 16 and 21 October2009. The team assessed the facilities, curriculums, and capabilityof Civil Aviation Academy (CAA) for TRAINAIR membership. Themission indicated that CAA is capable of implementing theTRAINAIR Programme in the Academy through an ICAO project.CAAN is in the process of reviewing the draft project proposalalong with � Management Service Agreement between ICAO

CIVIL AVIATION ACADEMY AND HRD



23

and CAAN� submitted by the Technical Cooperation Bureau(TCB) of ICAO. In the mean time, CAAN has included the projectprogram in the upcoming annual budget for FY 2066/67 ( 16July 2009 � 15 July 2010). The Project activity will include,

among others, setting up of a course development unit, manpowertraining, and development of a Standard Training Package, andadaptation of one imported STP.

Proposed ProgrammeTraining Program including Curriculum Development

ATS Faculty

Duration

hours No. of Participants

ATS Refresher

Approach Control � Non-Radar

Basic ATS

Air Traffic Team Enhancement

Safety Management Course

Language Proficiency Test

Civil Aviation Regulation

Flight Dispatcher � AIP

Flight Dispatcher Orientation

Ramp Safety

FOO Basic

FOO Refresher

Engineering Faculty

Basic Radar and RDPS

VOR/DME Rating

Radio Refresher Course for Tech. assistants

Security Equipment Rating

E/T Engineering Induction Course

Electro-mech. Engineering Induction Course

ATSEP Training Course- 1 group

Communication Specialization and Rating � 1 group

Basic VOR/DME Course

ATSEP Training for Radio/Line-technician

Seminar on ATSEP Training in CNS Environment- 1group

Seminar on Electromechanical Training in CNS Environment- 1group

AVSEC Faculty

Basic AVSEC Senior-1 group

Field Based - 5 groups

TIA Orientastion - 5 Groups

PPS Training - 2 Groups

X-ray Operation for Customs -1 group

AVSEC Awareness -1 group

AVSEC Awareness Seminar

AVSEC Training follow up- 1 group

140

300

1310

30

23

50

20

15

107

18

4 weeks

4 weeks

5 weeks

5 weeks

1 day

1 day

10 -- 14

6

18 followed by the next round of 16

6-10

10-15

6-10

1-6

1-15

1-15

10-15

6-8

4-8

6-12

4-8

10-12

4

6-12

6-12

6-12

6-12

60-100

30-50

15

20-25

20

16

15

15



Rescue and Fire Fighting

Basic Firemanship 2 groups

RFF Field based

Curriculum Development Division

ATS

Engineering

Rescue and Fire Fighting

AVSEC

Curriculum related to other faculties of CAAN

Computer

Basic � 2 groups

Advanced 2 � groups

MS Powerpoint � 2 groups

Administration

Administration Training Junior � 1 group

Administration Training Senior � 1 group

16 weeks

5 days

No of Design

6

6

8

8

10

Hrs.

70

300

1310

150

150

32

24

No. of Updates

8

5

7

9

8

Participants

6-11

6-11

6-11

10-16

10-16

The CATC produced basic technical expertise in Air Traffic Control(ATC), Aeronautical communication operations (ACO),Communication and Navigational aid Maintenance (ATO), andRescue and Fire Fighting Services (RFFS).

Civil Aviation Academy has introduced 3D simulator for ATStraining from 2004. English language proficiency test lab hasalready been installed to meet the ICAO language proficiencyrequirement. Similarly, to meet the security audit requirements fortraining an AVSEC lab hasbeen put in place.

Language Proficiency

As per ICAO new requirements, CAA is planning to conducttraining and testing to ascertain the level of proficiency of controllersand pilots in 2009, with an aim to fully comply by mid 2010.Ahead of the training, CAA has programme to host a series ofseminar/workshops, namely:

§ Implementing ELPR: Orientat ion Seminar 1 day§ Tester�s and Rater�s Preparatory workshop 1 day§ Test Trialing§ Talk/ interactive seminar on the scope of tasks and

responsibilities of SMEs, Linguists, and instructors§ Climb to Level 4 and higher: Trainees� Workshop

In order to ensure smooth and regulated transition to the high-stake ELP training and testing, and as required by PersonnelLicensing Requirements 2009, Aviation English: Training andTesting Procedures is underway. CAA has in general preparedCAA: Training and Procedures Manual, which is being processedfor submission to DGCA for further approval by CAAN Board.



25

Organized by the International Civil Aviation Organization(ICAO) and hosted by the Department of Civil Aviation, Malaysia,the 45th Conference of Directors General of Civil Aviation Asiaand Pacific Regions (45th DGCA) was held from 24 to 28November 2008. A 4 member team of delegates led by DirectorGeneral Mr. Keshab Raj Khanal comprised of Dr. Er. Niroj RajPandey, CAAN Board Member; General Manager of TIA, Mr.TR Manadhar, and Mr. Saurabh Ranjan Baral, Manager at CAANparticipated in the Conference. The theme of the Conferencewas �Cooperating towards enhanced aviation safety, security,efficiency and environment� of which participants discussed howcooperation between States and with international organizationsis important in order to develop civil aviation in a safe and orderlymanner. Nepal Presented two papers CAA; TRAINAIR Affiliationas Capacity Expansion Solution and Prospects of the ProposedHimalayan Routes in Nepal.

In his opening address, the President of the Council ofICAO, Mr. Roberto Kobeh González, pointed out that the currentglobal financial crisis and the volatility of fuel prices have causedstructural changes in the air transport industry. Airlines have takenup steps to counter the increase in oil prices, such as abandoningnon-profit routes, adjusting capacity to weaker demand, reducingthe workforce and contemplating mergers. ICAO�s latest mediumforecasts point to an industry recovery by 2010. For the airlines,the prospects are for an operating loss for 2008. Passenger trafficshould demonstrate lower than earlier anticipated growth in 2008and 2009. Despite this, Mr. González stated that the globalindustry has shown enormous resilience and the challenge willcontinue to be cope effectively with growth in order to ensure theintegrity of all air transport operations.

The five-day Conference reviewed the action items arisingfrom the 44th Conference and discussed six theme topics, whichwere 1. Air Navigation Planning and Implementation, 2.

Communication/Navigation/Surveillance and Air TrafficManagement Implementation Activities, 3. Aviation Safety, 4.Aviation Security 5. Air Transport and 6 Technical and RegionalCooperation. More than 100 papers were presented bypar t icipating States or international organizations.

ACTION ITEMS ARISING FROM THE 45TH

CONFERENCE OF DGCAs

Agenda Item 1

Action Item 45/1 Recognizing the importance of informationsharing and exchange to enhancesurveillance of foreign aircraft, theConference:

a) urged Asia Pacific States to adopt theICAO ramp inspection checklist in Doc8335 for foreign operators; and

b) requested that ICAO Asia and PacificRegional Office look into developing adatabase for the voluntary sharing oframp inspection data, taking intoaccount the need to protect such safetydata.

Action Item 45/2 Recognizing that ICAO Assembly ResolutionA36-22 indicates the importance of ICAOto provide continuous leadership in the areaof aviation environmental protection, theConference:

a) reaffirmed ICAO's leadership inaddressing international aviationemissions and climate change issues;

45th Conference ofDirectors General of Civil Aviation

Asia and Pacific Region



and

b) requested ICAO to consider organizinga workshop in the Asia pacific regionto facilitate discussions and sharing ofinformation on best Practices in aviationenvironmental protection.

Action Item 45/3 Agenda Item 3

Recognizing the benefits that can be derivedfrom implementation of ADS-B, theConference invited the ICAO APANPIRGADS-B Study and Implementation Task Force(ADS-B SITF) to develop guidance materialfor harmonized regulations of ADS-Bsystems on aircraft.

Agenda Item 5

Action Item 45/4 Recognizing theneed for a systems oriented approach tosafety, the Conference urged States toimplement the recently pu blishedamendments to Annex 6, including the StateSafety Programme (SSP) and SafetyManagement System (SMS) frameworksas a means of aligning SSP and SMSregu la t ions and imp lemen ta t ionrequirements.

Agenda Item 8

Action Item 45/5 Recognizing thatregulators, airport administrations, airnavigation service providers and airlinesincreasingly call upon ICAO to provideadvice and assistance to implement SARPsand develop their civil aviation through thestrengthening of their administration, themodernization of their infrastructure,procurement of equipment and thedevelopment of their human

resources; the Conference:

a) draws the attention of regulators, airportadministrations, air navigation serviceproviders and airlines to AssemblyResolution A36-17 and the assistanceprovided through ICAOexecuted in-country technical cooperation focusingon safety, security, aviation medicine,aviation meteorology and SARPscompliance, infrastructure and human

resource development projects, as wellas sub-regional and regional technicalcooperat ion projects , such asCOSCAPs, CASP-AP, CAPSCA andCAEMSA; and

b) supports this Assembly Resolution inencouraging regulators, airpor tadministrations, air navigation serviceproviders and airlines in the Regions,whenever appropriate, to seekassistance of ICAO for the identification,formulation, analysis, implementationand evaluation of civil aviationdevelopment projects.

Action Item 45/6 Noting the increasing international concernon the potential safety risks associated withaviation f lags of convenience theConference invites the ICAO RegionalOffice to look carefully into the contents ofthe Paper submitted by Australia on thesubject.

Action Item 45/7 Acknowledging that the DGCA Conferenceprovides an important opportunity f

o r r e g i o n a lconsideration and discussion of key aviationissues the Conference:

a) recognizes the fora as a suitableplatform to share ideas and providesuggest ions for improving theeffectiveness of the DGCA Conference;and

b) recognizes that the APCL provides auseful mechanism for discussing suchideas.

Action Item 45/8 Noting that many small States lack theresources to meet the requirements of Annex13 the Conference:

a) agrees to establish a working/studygroup to consider establishment of aregional mechanism for dealingcollaboratively with accident andincident investigation; and

a) requests ICAO TCB to consider thepossibility of undertaking such as astudy through various mechanismavailable at i ts disposal. 45th



27

CONFERENCE OF DIRECTORSGENERAL OF CIVIL AVIATION ASIAAND PACIFIC REGIONS APPENDIX AKuala Lumpur, Malaysia : 24 to 28November 2008 A-3

Action Item 45/9 Recognizing the need for human resourcedevelopment the Conference:

a) supports the holding of a seminar in2009 for Training Directors to discusspr ior i t ies in human resourcedevelopment and training needs in theregion;

b) urges States to participate in theSeminar; and

c) appreciates the offer by the SingaporeAviation Academy to host such aSeminar.

Agenda Item 9

Action Item 45/10 States desirous tohost future DGCA Conference to advise

the ICAO Asia Pacific Regional Office.

Action Item 45/11 The Conference agreed that a brief meetingof the Heads of Delegation be introducedon trial basis on the first day of the 46thConference.


CAAN Report 200828Civil Aviation Authority of Nepal DG CAAN Mr. Keshav Raj Khanal and ICAO Secretary General Mr. Taïeb Chérif signing on Management

Services Agreement between ICAO and CAAN at ICAO headquarters, Montreal, Canada.



28

AIR NA

VIGAT

ION SY

STEM

SAN

D SER

VICES


29

Air Navigation Services

In 10th April, 2009 CAAN board issued directive to establisheAir Navigation Services safety and standard Department andaerodrome safety and standard department to manage andregulate safety oversight system in the field of Air NavigationServices (ANS) and aerodromes. The ANS Department cameinto action with safety overright audit in PANS/OPS, ATM, AISand CNS field before the USOAP Audit. The findings andrecommndation were scrutinized and used for the USOAP Auditthat look place in May 5-14 2009.

Air Traffic Management

This year has been a purely eventful year for Air TrafficManagement Department. ATS department was renamed as ATMdepartment with the sepration of CNS/ATM Department intoCNS and ATM Separate Departments.

The ATM Department is manly tasked with preparation of USOAPAudit activities including development of different documents inthefield of ANS. Civil Aviation Requirments and drafts of AIP Nepal,safety Management Manual, Manual of ATS standards whereprepared.

Air Traffic Services

� This year Air Traffic Services Procedures continued to bereviewed in some of the airports including TIA. New NDBbased departure & approch procedures introduced atBiratnagar. Holding procedures based on NDB were alsoestablished.

Visibility check points were established at Chandragadhi &

Dhangadhi Airports.and visibility requirements to operate inthese airports are fixed as 3000m.

VFR holding points and instrument approach/departureprocedures of TIA were reviewed and under assement forimplementation.

� CAAN further continued coordination and preparatory works for theestablishment of new ATS Route L626 (Kathmandu- Mahendranagar-Pantangar-Sikandarabad-Delhi) as RNAV-10 (RNP10) Route. CAANsubmitted requests to the Ministry for approval, and necessarycoordination with India and ICAO are being made for the establishmentof the same.

� With the objective to implement Performance based navigation inNepal as ICAO has urged the member states for the implementationof PBN. based on Asia Pacific Regional Implementation Plan, CAANis also initiating for the same. GNSS Database preparation isunderway.. CAAN is also planning to produce National PBNImplementation plan and implementing GPS Approach and Departureprocedures in some domestic airports.

With a view to verify magnetic variation of Nepal which is depictedas 1o W in aeronautical charts and AIP Nepal, the ATM departmentcarried out revarification of the same with the help of department ofSurvey. The observation of pole star from Nagarkot triq point datafound out to be the variation of 0o 26' E from the true North. Furthersurvey work in different parts of Nepal has been programmed in thenew fisical year to determine the magnetic variation for the wholecountry.

Airspace and Air Routes� CAAN continued to review the airspace and air routes for the

smooth air traffic flow given the increased air traffic movement inthe Nepalese sky. For the smooth flow of the traffic and forminimizing delaysome new routes and Atc procedures are beingdeveloped.

In view of the development of new route structure in the Asia PacificRegion, Nepal continues to place its interest to benefit all airspaceusers from the establishment of Himalayan routes which pass acrossKathmandu FIR.

Himalayan Route Nepal reiterated in different forums the multiplebenefits of the Himalayan route specifically the route to andfrom Hong Kong/ Kunming via Kathmandu to Delhi andMiddle east which overlies Nepalese airspace.

� The Himalayan Route will not only ease the traffic flow overBay of Bengal but also, will be the shortest route from HongKong to Middle East/Europe via Kathmandu & vice versa.

In terms of fuel, time and cost savings, this route has enormousbenefits. Nepal intends to draw the attention of operatingairlines as well as IATA and ICAO to continue support for thepromulgation of this route.



Proposed Himalaya- 2 route: Kathmandu-Kunming

·Trans Himalaya Route

Nepal has also proposed the opening of Trans Himalayan Routeeither as an extention of present route B345 Lhasa � Kathmandu(Twoway} kathmandu� Lucknow (oneway) to Beijing and Sanghaior to be joined with B 213 in mainland China for all airlines.

Aeronautical Information Service� In the fiscal year 2008/2009 the AIS Division in coordination with

other departments and TIA reviewed AIP Nepal and Draft of AIPNepal 4th Edition has been Produced . The new edition contains allthe necessary aeronautical data and currently under revision andcorrection befor mass production and dissemination

� Nearly 70000 international NOTAMs made their entry to theInternational Notam Office at Tribhuvan International Airport.International Notam Office circulated around 500 NOTAMsduring 2008. All the concerned airlines were provided withPre flight Information every month,. TIA distributed NOTAMsummary among domestic and international offices and airlineseverymonth.

� A new Aeronautical Chart of Nepal in scale of 1:500,000 has beenproduced. The aeronautical data and information to be depicted inthe chart are under check and revision before its mass production.

� CAAN purchased 406 digitized topographical maps from Departmentof Survey, Government of Nepal in addition to 276 maps acquiredearlier totaling 682 covering the whole country. The data includes thetopographical map of all the airports routes . CAAN has planned toproduce different charts and maps including GNSS charts from thesedata base.

ATC Traffic handling

Air Traffic controllers handled a total of 14276 movements ofinternational flights at TIA during 2008. On domestic sector theyhandled 69286 flights, totaling 83562 flight movementscompared to a total of 77342 flight movement during 2007. Thisshows that Air Traffic controllers handled nearly 6000 more trafficto their workload. Similarly Air Traffic controllers in domesticairports handled more traffic than the previous year iThe numberof flights also increased in other airports like Lukla, chandragadiand Surkhet. In TIA, the workload is shared between aerodromecontrol, Approach and Area control centre where as the task isperformed by the aerodrome Towers in other airports. TIA, as theonly international airport has bigger traffic with the topographicalconstraints, and limited airspace

ATC Training and Rating

To ensure a high degree of ATC standard, the Rating and TrainingDivision at TIA is responsible for performing the following tasks,among others:

� ATC Licensing

� OJT Rating

� Yearly Renewal Proficiency Check

� Medical Updating of Rated Controllers

� Supervision and Proficiency Check

Following are the major tasks performed by the Division inthe year under review:

� 15 controllers working at various controlled airports underwentrating renewal proficiency check on ADC/APP positions. Thisaccounts for 3 at Biratnagar, 4 at Pokhara, , 2 at GautamBuddha of Bhairahawa, 4 at Bharatpur and 2 at Simara.

� In respect of TIA, the Division performed renewal proficiencycheck of 60 controllers on various positions. Out of which31 on Approach Radar, on Approach Non-Radar positions.Likewise, Aerodrome Rating of 60 controllers and Area ControlRating of 44 controllers were accomplished in 2008.

� On ACC position at TIA, 8 controllers underwent initial rating;7 others had their initial rating processed for Approach Non-Radar, and 6 for Approach Radar.

� The Division also conducted theoretical class relating to areacontrol service for ATCs working on OJT at TIA. Similar classeswere run to benefit ATC working on OJT for Aerodrome Controlservice.

� In connection with preparation for initial rating examinationfor Non-Radar Approach, OJT ATCs were provided withsimulation training.

� Updating of medical validity and record keeping of controllersworking at various workplaces under CAAN were other tasksaccompl ished wi th regard to l icense renewal .

Communication and Nav. Aids Rating

� As at date ther are 12 personnel rated for Radar/RDPS systemoversight and operation. Similarly on DVOR/DME andcommunication (Radio aids) 8 and 13 personnel have so farbeen rated.

Aeronautical communication andMessageHandling

As per the The ICAO Asia pacific regional plan that all the Stateswithin the region should gradually transform from AFTN toAMHS/ATNby using a high speed data network with moderncommunication protocols. CAAN has initiated work in the up-gradation of the conventional message handling system. To upgradeexisting 50 baud TP lease line to 9600 bps - 64 kbps, CAAN willhave the gradually upgraded message handling system transformedfully by 2010 For the replacement of the existing 7 years oldAMSS by ATS Message handling System (AMHS), tender hasbeen floated and presently under evaluation in order to carry outfeasibility study for the establishment of the system.



31

Communications and Equipment Installation� This year Nepalgunj airport got face lift as 15 year old airfield

lighting system and approach lights has been replaced. The workhas been completed within 2065/066 fiscal year.

� ATC console and all the associated equipment and system of theexisting control tower got transferred to a newly annexed floorbuilt upon the existing one.

� DVOR/DME of Biratnagar and Bhairahawa airport are in processof replacement. Additional land acquisition for the DVOR/DMEsite at Biratnagar is in progress.

� Installation of DVOR/DME at TIA replacing the existing unit willbe carried out in the current fiscal year.

� CAAN is considering to install an ILS localizer antenna at thenorth end of the runway to serve approach from the south at TIA.

Communication, Navigation and Surveillance� To improve the existing communications, Navigation and

Surveillance(CNS) equipments to accommodate the future airnavigation requirement in Nepal various works have been initiatedby CAAN. With regard to expand the VHF coverage of AreaControl Center (ACC), the establishment of RCAG station atNepalgunj.and subsequent linkage in the V-SAT Network, hasbeen completed in the fiscal year 2008/2009 and commissionedin July 2009. The Area Control Centre with RCAG system atPhulchoki and supplemented by RCAG Nepalgunj is now on testoperation. Flight test as well as the test operation showed that therequirement of VHF coverage for the proposed Kathmandu-Mahendranagar (L626)-Delhi route as well as VHF coverage forfar western Nepal will be catered by the establishment of Nepalgunj RCAG.

� ATS direct speech circuit through V-SAT link with Kolkata, Varanasi

and Delhi has been initiated. Principally, an agreement of Indianside on the same is awaited.

� V-SAT phone was procured to facilitate accident investigationpurposes.

� In order to minimize the use of HF communication betweenKathmandu, Biratnagar, Nepalgunj, Bhairahawa, Pokhra, andSimara civil aviation offices, ISDN Data Link Communicationhas been provided. However communication has not been startedin some keeping in view the coordination requirements with NepalTelecom Company and World Link.

� The existing Radar System covers airspace within Kathmandu TMA(50 NM) but the coverage is limited due to terrain around theKathmandu valley. In addition to the existing radar CAAN has submittedplan to the government for the extended radar coverage with an additionalSSR for the required level of surveillance outside the coverage ofexisting radar. Feasibility study on the introduction of ADS Bsystem in Nepal was carried out by Helios Company of UKin 2007and CAAN continued to explore the possibility ofImplementation of ADS B to cater for the future surveillancerequirement of Nepal.


CAAN Report 200832

RCAG Antenna mast at Nepalgunj RCAG Antenna mast at Phulchoki

AVIATION SAFETYUniversal Safety Oversight AuditProgramme (USOAP)The 32nd Session of the ICAO Assembly (Assembly ResolutionA32-11 refers) resolved the establishment fo the USOAP. comprisingregular. mandatory. systematic and harmonized safety audits ofall Contracting States. The mandate for regular audits foresawthe continuation of USOAP and the term safety audits suggestedthat all safety related areas should be audited.The 35th Session of the Assembly considered a proposal of theCouncil for the continuation and expansion of the USOAP as of2005 and resolved the programme be expanded to cover allsafety-related Annexes (Assembly Resolution A35-6). The Assemblyalso requested the Secretary General to adopt a comprehensivesystems approach (CSA) for the conduct of safety oversight audits.

USOAP Audit of NepalUnder the ICAO Universal Safety Oversight Audit Programme(USOAP) Audit for Nepal was Audited by USOAP audit team from5-14 May 2009. In this connection Civil Aviation Authority ofNepal (CAAN) nominated ATS Chief as the National SafetyOversight Coordinator (NSOC) to prepared for the audit. DirectoATM Department Mr. Sanjiv Gautam as NSOC served as thefacilitator and primary point of contact for all audit related processes.For the preparation of USOAP Audit, CAAN also designatedauditee counterparts in all audit protocol areas. They are, Legislation(LEG), Organization (ORG), Air Navigation Services (ANS),Aerodromes and Ground Aids (AGA), Airworthiness (AIR), PersonnelLicensing System (PEL) and Operations (OPS). Ministry of Tourism& Civil Aviation responsible for audit protocal Accident and IncidentInvestigation (AIG) tock part in the onsite audit for the same.After the onsite audit, CAAN is fully initiating works to address thefindings in all protocol areas which include LEG, ORG, PEL, OPS,AIR, ANS & AIG and corrective action plan is being formulatedto respond to the findings identified by the auditing team.Like wise aviation security audit has already been carried out byICAO in 2006 and our security system has not been as alarmingas one might think it is. We are committed to implement anyrecommendations that are made in the interest of aviation safetyand security.

COSCAP-SA CooperationCOSCAP-SA has proven to be an efficient and cost-effectivemeans of providing expert support. Regionally recruited inspectorsof COSCAP-SA in the disciplines of flight operations, airworthiness,air traffic management, personnel licensing and aerodromes havecontributed to the formation of ANS safety and standards andaerodrome safety and standards inspectorates in Nepal. Nepal

duly appreciates those experts for their assistance in preparingfor ICAO USOAP Audit that took place 5- 14, May 2009.In the aftermath of the audit, CAAN has performed a survey of 6thrust areas � aircraft operations, ANS, Airworthiness, PersonnelLicensing and Aerodromes, and special subjects including AIG, inorder to identify needs for COSCAP-SA assistance in overcomingthe findings as identified by the Audit, thereby enabling CAAN toreach and maintain required standards of aviation Safety in Nepal.Assistance will be sought based on the thrust of priority for eacharea of concern. A preliminary synopsis reveals that there are 23areas of special concern which are assigned high priority

Safety Management SystemCAAN as Regulator is planning to implement State SafetyProgramme (SSP) and SMS for service providers, operators andsuch training organizations as are directly associated withoperations. The implementation of Safety Management System(SMS) in the air navigation services, aerodromes and the operaters,CAAN has already initiated the works to review safety regulationsand to develop State Safety Programme and preparetion ofgeneric SMS manual for service providers.

ANS Safety & Standards and AerodromeSafety & StandardsConsequent to the decision of the 206th Board meeting of theCivil Aviation Authority of Nepal held on 2065.12.28 (10th April,2009) DGCA Nepal issued directives to establish and managethe Safety Oversight System in Nepal, the revised organizationstructure and associated details with regard to Air NavigationServices (ANS) Safety Standard Department and AerodromeSafety Standard Department.The directive ensures some separation between the Service Providerand Regulatory functions of CAAN and facilitates a mechanismthat will put in place an effective and consistent safety oversightsystem of Air Navigation Services (ANS) and Aerodrome andGround Aids (AGA) within CAAN.ANS Safety Standard department comprise of four units consistingAir Traffic Management/Safety Management System (ATM/SMS),Procedures for Air Navigation Services-Operations/Maps andCharts (PANS-OPS/Maps and Charts), Aeronautical InformationServices/Search and Rescue Service (AIS/SAR), Communication,Navigation and Surveillance (CNS). While Aerodrome SafetyStandard Department comprises of three units consisting CivilEngineering, Electrical and Mechanical Engineering and Rescueand Fire Fighting.ANS Safety and Standards Department is responsible for varioustasks with judicious use of ANS Inspectors employed in the Division



33

Licensing and Exam Division conducted various examinations during July16 2008 to July 20 2009.

FOR/ATPLCPLPPLFOO/DISPATCHERFLIGHT ENGINEERTYPE EXAM � TECH., PERFORMANCE, ORAL

4511125

123456

Examination TypeS.No. Number of Exams

License Profile as of date is as follows:

PPL - HELICOPTERPPL � AEROPLANECPL - HELICOPTERATPL - HELICOPTERCPL � AEROPLANEATPL - AEROPLANEFOO - LICENSEULTRA-LIGHTAUTHORIZATIONFLIGHT ENGINEERGROUND INSTRUCTOR AUTHORIZATIONINSTRUCTOR PILOTFLIGHT INSTRUCTOR

20297

23181170

119217

2

12345678910111213

PARTICULARSS.No. VALIDISSUED INVALID275526348252601

163758

2

07261911717143144541322



of ATM, AIS, PANS-OPS and CNS and shall carry out regularinspections and monitoring in the areas which fall under CAANas ANS service provider functions in accordance with the CAANAct, Rules, and laid down Standards and Procedures usinghandbooks to execute the given tasks.Similarly aerodrome safety department is responsible for varioustasks with judicious use of aerodrome Inspectors employed in theDivision of Civil Eng, ELE/MEC, and shall carry out regularinspections and monitoring in the areas which fall under CAANas aerodrome operator functions in accordance with the CAANAct, Rules, and laid down Standards and Procedures usinghandbooks to execute the given tasks.Aviation Safety Department is responsible for various tasksassociated with� Safety audits� Inspections � airlines, airworthiness, and flight operations� Manual developments and implementation� Licensing of pilots, controllers, dispatchers, maintenance

personnel, flight engineers� Implementation and follow ups regarding flight operations

requirements� Airworthiness functions as mentioned in Flight Operations

Requirements manual� Proficiency checks of pilots� Conduct examinations for licensing and authorization purposes

Some major Achievements:Documents/ Manual Development� FOR 2009 Part I, II and III developed� NCAR 2009 developed· PELR 2009 followed by Procedures for PELR developed� DGHR 2009 developed� AEM 2009 issued� Dangerous Goods Unit established in ASD� All pertinent ICAO documents, manuals and applicable

Annexes collected and updated in the technical library� SMS plan implemented in commercial air transport operation

in phase-wise manner� SSP developed and is in process of approval by DGCA� Corrective Action Plan Team (CAPT) for respective functional

areas of civil aviation has been formed to prepare actionplans vis-à-vis USOAP 2009 Findings

� RVSM Requirements for aeroplanes developed� SARAST/ ARAST participation in flight operations/ ATM/

Airworthiness from CAAN; SASI discussed and implemented� SARAST/ARAST outcomes discussed among operators� Regarding NAST, national aviation safety issues discussed

and resolved with participation of all stakeholders� Two domestic operators awarded AMO, apart from an

independent AMO plus three Aviation Parts Suppliers in Nepal

Aircraft Maintenance Technician (AMT) Licence Record

8Data Not Available

96Total AMT LicenceInvalid

248Total AMT Licence Valid

252Total AMT LicenceIssued

No.Detail

Nepalese Registered Aircrafts' Record

5:Sports3.

19:Rotor Wing2.

50:Fixed Wing1.

TotalNo.Aircraft TypeS.N.

74:Registration Mark Valid at present

No.Detail

Progress Report

0202Basic AMT Exam0503Sports aircrafts

1611Rotor Wing

3934Fixed Wing

6048C of A Valid :

0409C of A IssuedC of A Status :

0203De-Registration

0909Aircraft Registration

RemarksF/Y

2065/066(in No.)

F/Y2064/065(in No.)

Detail

0310New Issue

Maintenance/Supplier Approval/Validation:

6055Airline Survey Inspection

0709Ramp Inspection

0303New Aircraft Type Validation

3820AMT LicenceAuthorizationRenewed

4353AMT LicenceAuthorization Issued(Including Foreign + Nepalese)

0112AMT LicenceIssued

RemarksF/Y

2065/066(in No.)

F/Y2064/065(in No.)

Detail



35

Second International AirportAir Transport Planning and Development (ATPD) Directorate is anewly annexed component of organization created in 2007, andhas started working under the leadership of a 12th level DeputyDirector General. This Directorate is responsible for formulatingprojects for executing the processes involving the feasibility studyof new airports, including international and regional airports, theirconstruction and operations modality, among others. The Directoratehas developed a tentative draft of its proposed organizationstructure, which is in process of submission to CAAN Board forapproval. The Directorate will have two sub-components includingEngineering Department and Administrative Department. Majorfunctions of the Engineering Department are standardization,project formulation, environmental engineering and technicalaudit. The Directorate will employ around 62 staff, including 48technical personnel.

On the construction of Second International Airport (SIA) atNijgadh of Bara District, the Air Transport Development andPlanning Directorate submitted a report regarding the sitedemarcation, investment cost, land acquisition, and rehabilitationof the human settlements on that area. In order to carry out adetailed feasibility study for the construction of a secondinternational airport under BOOT concept as decided by theGovernment of Nepal, a proposal was submitted by LandmarkWorldwide of South Korea, and has been evaluated to betechnically eligible. Negotiation with LMW has been struck, whichincludes commitment of LMW to submit a report on the feasibilitystudy for SIA development within 6 months from the date ofagreement. LMW has also agreed to prepare the bidding documentfor the second phase work, once the first phase feasibility studyis completed.

Regional International AirportWith a view to develop the existing Gautam Buddha Airport intoa regional international airport, priority-wise improvement workshave been put in process. Though

the ongoing construction and expansion of the airport is beingtaken place under the Engineering Department, process has beeninitiated to receive funding from ADB in the first phase, which willinclude 2600m long and 45m wide runway construction, amongall other associated basic infrastructures and facilities constructions

and installation. In this regard, ADB is in process of funding undertourism projects of the government. Likewise, a plan has beenconceived towards developing another regional internationalairport at Pokhara.

The Directorate is also carrying homework for privatizing TenzingHillary Airport (Lukla) as a pilot project in the first phase, as perthe concept of CAAN to privatize domestic airports in the longrun.

TIA Master PlanThe Asian Development Bank is currently reviewing and updatingthe air traffic forecast for TIA as well as Infrastructure DevelopmentPlan Report of ADB TA 4772. The study is being carried out byLeading Edge Aviation Planning Professional of Malaysia inassociation with Joshi Associates of Kathmandu on behalf of ADB.As per the TIA Master Plan, a great deal of works will have to beaccomplished. The progress report submitted by the consultantslists the following features of TIA Master Plan:

i) relocation of existing military and Nepal Airlines hangarsto the east side including construction of link taxiways andaprons but excluding the erection of hangars:

ii) Shifting the existing domestic apron to the new remoteapron on the east side and later to the future domesticapron in the area currently occupied by the walkway andthe sterile are/departure lounge to fully meet the forecastneeds in the year 2028;

iii) Construction of a Temporary Domestic Terminal buildingto serve till 2015-16;

iv) Runway Extension to the South by 300 m with attendantinstallation of full length Cat I precision approach lights(first 300 m to be of inset-type) replacing the currenttruncated version;

v) Shifting the Runway 20 threshold by 138 m to provide a300 m Runway End Safety Area (RESA) for aircraft landingfrom south;

vi) Provision of an abbreviate Simple Approach Lighting System(SALS) 300 m long , inset-type, for Runway 20;

vii) Provision of an ILS/Localiser antenna at the north end ofthe runway for providing more accurate landing guidanceto aircraft landing from south;

Projects: TIA & SIA



Fire fighting services at TIA have sufficient extinguishing capacity. However, CAAN is planning to upgrade FireFighting and Rescue Services to catagory 9 at TIA

viii) Refurbishing the existing International Terminal Building toserve till 2015-16;

ix) Improvement of existing Communications, Navigation andSurveillance (CNS) equipment in the Short term includingprovision of an ILS/Localiser;

x) Provision of runway centerline lights and upgrading existingvisual aids to support night operation; and

xi) Augmentation of power supply by procuring an 850 KVAgenerator and a 150 KVA Uninterrupted Power Supply(UPS) unit for airfield ground lights.

xii) Construction of new remote domestic aircraft parking apronon the east side and shifting the existing domestic apronto the east side;

xiii) Construction of a new parallel taxiway from RWY 20threshold up to current taxiway no. 5 with associated linktaxiways; Plan for eventual extension of this parallel TWYto the threshold of RWY 02;

xiv) Construction of new International Terminal Building (ITB)capable of handling the traffic demands up to the year2028 constructed in stages ;

xv) Develop a new access road to the new ITB and a newmulti-level car park of this new ITB;

xvi) Construction of a new International apron to swerve thenew International Terminal Building built in stages;

TIA Improvement Project: Some highlights ofimprovement

§ Initiation of Runway and taxiway overlay

§ Completion of 30% of international parking (Apron)construction

§ Design, estimate, tender document preparation for therelocation of domestic terminal, apron expansion,construction of aircraft maintenance hangar under CAAN�sown resources;



37

(1) The 28th Meeting of National Civil Aviation Security Committeewas held on 11th March 2008 i.e. 2064/11/28 underchairmanship of the then Honbl Prithvi Subba Gurung, Ministerof Tourism and Civil Aviation

The Meeting took various important decisions regardingapproval of the following aviation security related documents.

a) Airport Security Programme for TIAb) Airport Security Programme for Domestic Hub Airportc) Airport Security Programme for Domestic Airportd) Aviation Security Standard Operating Procedure for Domestic

Airport low frequency of flighte) Standard Operating Procedure for the search and disposal

of suspected devicesf) Standard Operating Procedure for Provision of Assistance,

including permission to land to an aircraft subjected to an actof Unlawful Interference and detaining such aircraft afterlanding.

g) Standard Operating Procedure for Travel of Armed Personnelon Board Aircraft

(2) Also the following Aviation Security related documents hasbeen approved by Director General Civil Aviation Authorityof Nepal

i) Standard Operating Procedure for Aviation Security Audit,Survey, Inspection and Test on 25th June 2008 i.e. 2065/3/11

SECURITYAVIATION



ii) National Civil Aviation Security Quality Control Programmeon 27th June 2008 i.e. 2065/3/13

iii) Standard Operating Procedure for Calibration of SecurityEquipment on 17th October 2008 i.e. 2065/7/1

(3) The following Aviation Security related documents have beenprepared and forwarded to National Civil Aviation SecurityCommittee for approval.

A) Standard Operating Procedure for the Threat AssessmentB) Standard Operating Procedure for the Background Check of

Persons Ismplementing Security Control

(4) The ICAO follow up audit visit was conducted by TonyBlackiston from 14th-15th October 2008 and one high levelcommittee has been formed to deal with the variousrecommendations made.

(5) One day Aviation Security Work Shop on topic "Challengeson Aviation Security and Problems of Domestic Airport" washeld at Bharatpur on 19th December 2008 with participantsfrom Civil Aviation Authority of Nepal, Civil Aviation Offices,and Airport Security Guard Offices, representative from Yeti

Airlines, Simrik Air, Shivani Air, Buddha Air, Sita Air and DistrictAdministration Offices.

(6) As per the requirement of National Civil Aviation SecurityProgramme, Aviation Security Inspection of following Airportshas been conducted during year 2008 :

i. Tribhuvan Internation Airportii. Nepalgunj Airportiii. Biratnagar Airportiv. Bhairahawa Airportv. Pokhara Airportvi. Simara Airportvii. Chandragadhi Airportviii. Dhangadhi Airportix. Lamidanda Airportx. Surkhet Airportxi. Simikot Airportxii. Tumlingtar Airportxiii. Janakpur Airportxiv. Jomsom Airport



39

The Corporate Planning, Performance Evaluation and MonitoringDirectorate is responsible for� Identification, formulation and implementation of short term,

mid term & long term commercial projects.� Provision of professional advisories and support.� Update assets records� Diversification of products by identifying alternate resources.� Monitoring and follow-up of projects.� Inspection and evaluation of airports.� Periodic collection, compilation, editing and review of quarterly

progress report and information documents.� Publicity and publication of Annual Reports, Souvenirs and

information/activity supplements.

Recent Developments� With the active participation of the Directorate, a high level

budget formulation committee was formed to prepare, discussand review budget programmes of the entire Authority forthe FY 2066/67CAAN Board Members Mr. NP Ghimire,Joint secy of the Ministry of Tourism and Civil Aviation andMr. Bodh Raj Niraula, DG of Customs Department, reviewedthe budget program.

� Following intense discussion with NAC, an agreement wasstruck between CAAN and NAC on the subject of obligingNAC to disburse charges to CAAN in lieu of income NAC

has been generating out of ground handling of internationalairlines by NAC. As per the agreement, NAC is to disburse10% of the ground handling charges to CAAN from FY2066/67.

� Preparation of annual budget for fiscal year 2065-66.� Incorporation of PSC in the air ticket for international

embarkation� Publication of Civil Aviation Report 2007, 10th Anniversary

Souvenir and supplements in the National Daily.� Assets evaluation and report submission to the Ministry.� Submission of Three Year Interim Plan (TYIM) 2064/5-66/67

and comprehensive Economic Survey 2064/65 on civilaviation sub-sector.

� Information feed for ADB-TA �Civil Aviation SectorDevelopment Plan.

� A new Division by name of Assets Management Division hasbeen annexed to the Directorate

� Accomplishment of asset evaluation of Pokhra, Bharatpur,Gautam Buddha airport

� CAAN provided self and commercial ground handlingpermission and certificate to NAC. As per the agreementsigned with NAC, NAC is to pay 10% royalty to CAAN fromground handling charges collected by it from internationalairlines.

Corporate Affairs



AIRPOR

T PROF

ILES


41

Pokhara, the most popular tourist destination after Kathmandu, liesabout 200 Km. west of Kathmandu Valley. At an altitude of 2712ft. amsl, the Pokhara City serves as the platform for trekkers andmountaineers to Annapurna area. The Pokhara valley itself offerspicturesque looks of Fistail (Machhapuchhre), Annapurna andDhaulagiri mountains, beautiful lakes like Phewa, Rupa and Begnasand deep gorges, falls and caves. The airport, the second busiestafter TIA has already served as a base for helicopter to rendercharter flights to various tourist as well as remote destinations, andit takes 30 minutes by air to reach Pokhara from Kathmandu.

Now a days, the operations of gliders, especially hang gliders,para gliders & micro light are also the major attractions foradventurous and sports tourists visiting Pokhara. There is an institutionwhich has been given apporoval to provide knowledge and trainingregarding adventure & recreational aviation. The profile of theairport at a glance is as follows:

ProfileCoordinates - 281200N and 0835854 E

Elevation - 2712 ft. AMSL

Runway Configuration - 04/22

Surface - Bitumen

Runway Dimension - 1433 x 30 m.

Terminal Capacity - 120 Pax per hour

Apron Capacity - AVRO Category -3

Twin Otter Category - 1

Design Aircraft - ATR, Beech 1900, and SAAB340.

Services - Air Traffic Control

RFF - Category V

Pokhara Airport

Freight (kgs)

0

100000

200000

300000

400000

500000

Freight 465252 227645 430580 365871 378443 170506

2003 2004 2005 2006 2007 2008

Passenger

180000

190000

200000

210000

220000

230000

Passenger 211671 214645 209155 198265 211751 225532

2003 2004 2005 2006 2007 2008

Aircraft

0

5000

10000

15000

20000

25000

Aircraft 19887 13795 14267 12710 13155 19708

2003 2004 2005 2006 2007 2008



Biratnagar Airport serves as the hub of Eastern DevelopmentRegion. The Airport supports 6 STOL Airports- Taplejung,Bhojpur, Phaplu, Rumjatar Lamidanda and Tumlingtar.This airport stands number 1 in terms of passenger movement.CAAN is planning to develop this airport as a regional hubcapable to operate medium sized Jet Airplane like Boeing757.

ProfileDate of First Service - July 6, 1958Aerodrome Reference - 262903NPoint

0871552EElevation - 236 ft. AMSLRef. Temperature - 40°CRunway Configuration - 09/27 (East/West)Surface - BitumenRunway Dimension - 1524 x 30 m.Apron Capacity - HS-748, DHC-6Service - Air Traffic ControlRFF - Category VDesign Aircraft - HS-748, ATR-42,

SAAB-340

Biratnagar Airport

Freight (kgs)

0

200000

400000

600000

800000

Freight 204079 281622 389083 276533 468619 743558

2003 2004 2005 2006 2007 2008

Passenger

0

50000

100000

150000

200000

250000

300000

350000

Passenger 147485 176839 324338 202631 207657 251436

2003 2004 2005 2006 2007 2008

Aircraft

0

2000

4000

6000

8000

10000

12000

14000

Aircraft 9582 11233 12059 9859 11323 11731

2003 2004 2005 2006 2007 2008



43

Gautam Buddha Airport is a domestic hub airport in the WesternDevelopment Region. After the introduction of jet operation, theair traffic movement has increased substaintially. CAANhas already begun to upgrade this airport as a regionalinternational airport capable to serve medium sized jet aircraft.In consideration of its prospects due to the existence of LordBuddha's birth place Lumbini, CAAN has introduced a plan toacquire 25 Bighas of land in addition to already accomplishedacquisition of 62 bigha land for the development of GautamBuddha Airport into regional international airport. In this regardprocess has already begun at the state level for funding by ADBon this project.

ProfileDate of First Service - July 4, 1958Aerodrome - 273026N andReference Point 08832505EElevation - 358 ft. AMSLLand Assets - 84 Bigahas and 3 KatthasRunway Designation - 10/28Runway Dimension - 5000 x 100 ft.Surface - BitumenServices - Air Traffic ControlRFF - Category VDesign Aircraft - HS-748, ATR-42, SAAB-340

Gautam Buddha Airport Aircraft

0

1000

2000

3000

4000

5000

6000

Aircraft 4740 5247 5202 4042 3755 3761

2003 2004 2005 2006 2007 2008

Passenger

0

20000

40000

60000

80000

100000

120000

140000

Passenger 71191 78859 128258 66499 52495 60882

2003 2004 2005 2006 2007 2008

Freight (kgs)

0

20000

40000

60000

80000

Freight 53191 74957 76183 44905 55135 51809

2003 2004 2005 2006 2007 2008



Nepalgunj Airport is a major domestic hub after TIA in terms ofnumber of airport network. This airport stands number 3 in terms ofaircraft and passenger movement. After the introduction of FK-100Jet Aircraft, passenger movement at this airport increased by 14.25%in 2005 (up to November) against the figure in the year 2004.

ProfileDate of First Service - March 15, 1961

Aerodrome - 280606N and

Reference Point 0813959E


Ref. Temperature - 42°C

Runway Designation - 08/26 (East/West)

Surface - Bitumen

Runway Dimension - 1524 x 30 m.

Apron Capacity - 2 HS-748, 2 DHC-6

Services - Air Traffic Control service

Flight Information Service

RFF - Category V

Design Aircraft - HS-748, ATR-42, SAAB-340

Nepalgunj AirportAircraft

0

5000

10000

15000

Aircraft 12609 11698 13032 13597 10088 6772

2003 2004 2005 2006 2007 2008

Freight (kgs)

0

1000000

2000000

3000000

4000000

Freight 1433531 2307469 2366761 3415495 1849399 852775

2003 2004 2005 2006 2007 2008

Passenger

0

20000

40000

60000

80000

100000

120000

140000

Passenger 102744 106654 132354 113480 102722 78284

2003 2004 2005 2006 2007 2008



45

Bharatpur Airport

Bharatpur Airport is a fast growing domestic airportin terms of aircraft and passenger traffic. The traffictrend for five years shows a steady growth of aircraftand passenger movement at this airport. The aircraftmovement reached the highest in 2007 totalling 3489compared to 2896 in 2006. From tourism point of viewthis airport has the potential of serving a connecting linkwith Meghauli airport which is situated in proximity ofanother wild reserve-Tiger Tops.

ProfileDate of First Service - March 5, 1961Coordinates - 2 74 0 41 N - 0 8 4 2 5 4 6 EElevation - 600ft. AMSLRef. Temperature - 35°CRunway Designation - 15/33 North-West/South-EastRunway Dimension - 1158 x 30 meter.Surface - BitumenService - Air Traffic Control

ServiceDesign Aircraft - Beech 1900, and Jetstream

Aircraft

0

1000

2000

3000

4000

Aircraft 1776 3080 3098 2896 3489 2908

2003 2004 2005 2006 2007 2008

Freight (kgs)

0

2000

4000

6000

8000

10000

Freight 8849 5232 4305 1867

2005 2006 2007 2008

Passenger

0

10000

20000

30000

40000

50000

Passenger 20208 39060 42901 26179 21645 15586

2003 2004 2005 2006 2007 2008

Passenger waiting hut of at Meghauli Airport, Which sets a perfectexample of eco-tourism friendly infrastructure. Modern Bharatpur Terminal Building



Simara AirportSiimara airport lies in Bara District, Narayani Zone, in CentralDevelopment Region of the Kingdom of Nepal. Simara airport isone of the first few airports in Nepal which used to have a verygood record of air traffic movement with Kathmandu when roads,bridges were not a reality and means of surface transport werealso not sufficient. Simara Airport is lthe most strategic domesticairport of Nepal for two reasons. It is only 39 miles far fromKathmandu by air. On the other hand, Raxaul, an Indian city isonly 20 kilometres away from this airport. The first flight servicefrom this airport was started on July 4, 1958 and was given witha grass airfield before it was paved in 1999. Furthermore, theimportance of this airport is due to its location near to Birgunjwhich is a commercial and industrial town linking Raxaul as well.CAAN is planning to undertake further improvement of the airport.The immediate priority accorded by CAAN is for expansion ofoperational runway to serve � 3 C � type of aircraft. In view ofthe prospects of this airport, a request has been made to thegovernment seeking financial support of donors for the installationof airfield lighting system and strengthening runway and terminalfacilities.

Date of First Service - July 4, 1958Coordinates - 270945N-0845854EElevation - 450ft. AMSLRef. Temperature - 37°CRunway Designation - 01/19 North/SouthRunway Dimension - 4000 x 150 ft.Surface - BitumenService - Air Traffic Control ServiceDesign Aircraft - ATR, Beech 1900, and

SAAB 340.

Aircraft

0

1000

2000

3000

4000

5000

6000

7000

Aircraft 4954 5610 6335 5108 3671 4296

2003 2004 2005 2006 2007 2008

Passenger

0

20000

40000

60000

80000

100000

120000

Passenger 73631 89413 110109 82933 59638 66136

2003 2004 2005 2006 2007 2008

Freight (kgs)

0

50000

100000

150000

200000

Freight 161580 41940 49981 60800 26544 33065

2003 2004 2005 2006 2007 2008



47

Janakpur Airport

Janakpur Airport lies in the central region of the country and isthe birthplace of Goddesi Sita, daughter of King Janak andconsort of Lord Rama. It is a religious tourism centre due to theexistence of Ram- Janaki Temple and is listed in World Heritagesite. It is located at about nearly 383 Km. south - east ofKathmandu. Located towards south of Janakpur City, this airportis well connected with road network and there is a railwayconnection from Janakpur to Indian City, Jayanagar. The numberof Indians coming to visit this holy place is increasing rapidlyand has become a popular pilgrimage tourism destination.Religio-cultural value also lies in famous Mithila art which typify wallpaintings, handicraft and paper art and painting - all traditionalin form and content. They visit Janakpur and then fly to Kathmanduto visit Pashupati Nath Temple. This airport has potential toattract more Indian visitors if air link is extended to nearby citiesof India cities like Patna, Varanasi and others. Janakpur runwayhas now been extended to another 300 m, the blacktoppingof which is completed. A brief profile is given below:

Date of First Service - October, 1979Coordinates - 272338N-0855528EElevation - 256ft. AMSLRef. Temperature - 35°CRunway Designation - 09/27 East/WestRunway Dimension - 1006 x 30 MeterSurface - AsphaltService - Air Traf f ic Control ServiceDesign Aircraft - DHC-6, Beech 1900

category

Aircraft

0

1000

2000

3000

4000

Aircraft 2351 2935 3607 3226 2958 952

2003 2004 2005 2006 2007 2008

Passenger

0

10000

20000

30000

40000

50000

60000

Passenger 36847 49381 53497 50909 46363 14819

2003 2004 2005 2006 2007 2008

Freight (kgs)

0

10000

20000

30000

40000

50000

60000

70000

Freight 10430 32079 33543 39687 58084 8348

2003 2004 2005 2006 2007 2008



Tenzing-Hillary Airport (Lukla)

Lukla, the gateway to the Mount Everest, is a world famoustourist airport situated at an altitude of 9100 ft. above msl. Thisairport lies in the Solukhumbu District in Eastern Nepal. A trailto Mt. Everest base camp and Sagarmatha National park startsfrom here. This airport is also the busiest STOL port of Nepal aswell as a major hub for earning foreign currency from tourists.In peak seasons Lukla Airport handles more than 50 traffic aday. Approach and take off is one way allowing aircraft to enterand exit trough a narrow entwined valley. Flights can be operatedin all seasons. The airport has a runway gradient of about 14%. The profile of the airport at a glance is as follows:

ProfileCoordinates - 274116 N and

0864353 E


Runway Designation - 07/25

Surface - Bitumen

Runway Dimension - 1600x100ft

Service - Aerodrome Flight

Information Service

Design Aircraft - DHC-6

Aircraft

0

2000

4000

6000

8000

10000

12000

14000

Aircraft 8616 7892 7377 8800 10969 12219

2003 2004 2005 2006 2007 2008

Passenger

0

20000

40000

60000

80000

100000

Passenger 70959 71422 53943 61992 80733 92172

2003 2004 2005 2006 2007 2008

Freight (kgs)

0

500000

1000000

1500000

2000000

2500000

3000000

Freight 1203000 1672606 1271297 1771811 2445792 2739491

2003 2004 2005 2006 2007 2008



49

Chandragadi AirportSituated in Jhapa District in Far Eastern Nepal, Chandragadhiairport is the gateway for tourists coming from North IndianStates of India as well as from Bhutan and Bangladesh. It islocated 17km from Birtamod and 34km from Kakarvitta the exit/entry point to India. Once stagnant due to low passenger demand,Chandragadhi has been making a headway since the advent ofprivate air operators in the domestic sector in 1992. Chandragadhiairport is one of the key domestic airports in Nepal operationalsince 1963. For long period of time it served as a grass airfieldbefore it was paved to bituminous surface by CAAN, which wascompleted in 7 years in FY 2003/2004 (2059/ 060).Considering the potentiality of the airport, HMG decided torenovate its infrastructure. As a result, airport is now providedwith new asphalt runway, a new terminal building with new apronin place.Chandragadhi handles many schedule flights a day with differenttypes of aircraft such as ATR, Beech 1900, SAAB 340 etc.

ProfileDate of First Service - November, 1963Coordinates - 263413N-0880433EElevation - 300 ft. AMSLRunway Designation - 10/28Runway Dimension - 5000 x 150 ft.Surface - AsphaltService - Aerodrome FlightInformation ServiceDesign Aircraft - HS 748, ATR, Beech1900 and SAAB 340

Aircraft

0

1000

2000

3000

4000

5000

Aircraft 2602 3678 3059 3194 4196 2995

2003 2004 2005 2006 2007 2008

Passenger

0

20000

40000

60000

80000

100000

Passenger 51869 62304 54292 57767 80182 60400

2003 2004 2005 2006 2007 2008

Freight (kgs)

0

20000

40000

60000

80000

Freight 39772 18861 50398 64674.5

2005 2006 2007 2008



Dhangadhi Airport

Dhangadhi airport is located at Geta VillageDevelopment Committee of Kailali district in Seti Zoneof Far-Western Development Region. The airport islocated 125 km to the West of the current area hub ofNepalgunj. The airport is close to the Indian borderand close to the Royal Suklaphant Wildlife Reserve.This airport has direct air links to Kathmandu and servesas Hub airport to remote airports of Far- Western andMid-Western Development region. As there is no hubairport in Far-Western Development region, CAAN hasalready initiated towards extending and developingthe runway to 1800m, the 1200 m segment of whichhas been blacktoppedsuch that it can cope with "3C"type aircraft as against 1500m length grass field atpresent. CAAN had earlier initiated this developmentwork with Public Private Partnership approach and hasalready completed the construction work of 1200 meterlength runway and has initiated the 600 meter runwayextension.

Aircraft

0

500

1000

1500

2000

Aircraft 1638 1047 1480 1711

2005 2006 2007 2008

Passenger

0

2000

4000

6000

8000

10000

12000

14000

Passenger 8451 8608 13298 10123

2005 2006 2007 2008

Freight (kgs)

0

5000

10000

15000

20000

25000

30000

35000

Freight 9776 12191 32728 5886

2005 2006 2007 2008



51

Despite continues downturn since 1999/2000 till2002/2003, the profit loss scenario shows comeback from2004/2005. CAAN possesses medium term and long termloans from ADB, OPEC and Nepal Government. The existinghigh foreign interest rate of 10.25% on foreign loan hasbeen reduced to 8% from the FY 2063/64 (16 July 2006- 15 July 2007). Since the reduction can not compensatefor the overall structure and liabilities of the organization,it is recommended that the reevaluation on the interest ratebe made.

According to the budgeted cash flow for the year2064/2065 (16 July 2007/15 July 2008), the operatingcost of Rs. 734.27 million and vapital investment of Rs.996.16 make a total expenditure of 1730.43 million. Thisaccounts for 57.57% share in capital expenditure and42.43% in operating expenses. In addition, a totalexpenditure of Rs. 413.62 million inclusive of Rs. 233.53million in lien of principal along with interest payable to the

government and Rs. 70 million and Rs. 0.5 (forpension/facility fund and Employees' union respectively).

Income of CAAN has not been very encouraging in thepast years. Since cash inflows are not sufficient to coverhuge investments needed for expansion and modernizationof the infrastructure and recently airlines movement also hasbeen decreased. Therefore, CAAN would not be in aposition to repay the whole interest outstanding on ADBloan at the prescribed interest rates of 10.25% from F/Y2055/056. Although the Govt. has ammednded the interestrate to 8% with effect from F/Y 2063/64, However, focussingon its financial position CAAN has already submitted theproposal to Nepal Govt. to apply the new interest rate fromwith effect from establishment day of CAAN ie 2055/9/16(3/12/1998) or as prevailing market rate. Response fromNepal Govt. is still awaited. The reduction on interest rateeffective from F/Y 2055/056 will enable to cover net deficitshown above.

FINANCE

* Half yearly Figure**Upto Chaitra Actual + 3 month Projected Figure*** Budgeted Figure

F/Y

2055/56*

2056/57

2057/58

2058/59

2059/60

2060/61

2061/62

2062/63

2063/64

2064/65

2065/66**

2066/67***

Income

416.73

911.62

1,177.61

1,174.26

1,164.84

1,253.47

1,368.46

1,561.55

1,567.15

1,932.22

1,916.90

2,274.71

Expenses

90.34

293.44

276.82

358.36

399.09

400.81

421.78

485.38

820.78

618.22

564.47

1,008.86

NPBIDT

326.39

618.18

900.79

815.90

765.75

852.66

946.68

1,076.17

746.36

1,314.00

1,352.44

1,265.85

Interest

106.01

222.81

259.54

306.61

308.73

121.90

287.41

262.77

169.99

153.98

170.00

124.80

Depreciation

568.96

1,046.44

1,290.76

826.80

706.11

598.84

512.17

443.68

387.67

598.60

464.64

598.60

I. Tax

50.01

148.78

179.45

135.61

Net Profit (Loss)

(348.58)

(651.07)

(649.51)

(317.51)

(249.09)

131.92

147.10

369.72

138.70

412.65

538.35

406.84

Remarks

Awaiting AGO's Certification









Awaiting Certification by Board

Actual & Projected

Projected

Figures in MillionIncome & Expenditure Scenario





53

l AOC Status of Domestic Airlines

l Summary of Projects

l Traffic Data 2008

l Traffic Data 2007

l Traffic Data 2006

l Traffic Data 2008 (Int'l Monthwise)

l The Civil Aviation Policy 2063

APPENDIX & ANNEX



APPEN

DIX &

ANNE

X



55



57

Civil Aviation Authority of NepalTribhuvan International Airport

Traffic Data 2008

DEP ARR TOTAL IN OUT TOTAL IN OUT TOTAL IN OUT TOTAL

JAN 597 599 1196 66084 78406 144490 523956 463418 987374 16130 10233 26363

FEB 602 601 1203 66831 75948 142779 384131 396444 780575 10027 8691 18718

MAR 641 643 1284 78009 87341 165350 609120 682961 1292081 11208 7387 18595

APR 611 611 1222 68750 80131 148881 481132 620411 1101543 7144 9734 16878

MAY 615 614 1229 61150 89481 150631 553090 638807 1191897 10658 7302 17960

JUN 595 594 1189 54659 77165 131824 470600 653796 1124396 10522 7487 18009

JUL 533 535 1068 57171 71906 129077 492878 650010 1142888 10550 14581 25131

AUG 563 562 1125 64079 81070 145149 609518 752939 1362457 7895 13763 21658

SEP 549 552 1101 74163 80275 154438 661652 760480 1422132 4808 6065 10873

OCT 602 603 1205 94897 86885 181782 531039 698646 1229685 10953 4930 15883

NOV 608 606 1214 80027 97903 177930 488923 660040 1148963 20460 7376 27836

DEC 620 620 1240 74271 84028 158299 511960 590195 1102155 28141 17635 45776

TOTAL 7136 7140 14276 840091 990539 1830630 6317999 7568147 13886146 148496 115184 263680

MONTH MAIL ( In KGS )FLIGHT MOV. PAX CARGO ( In KGS )

2008C

ivil Aviation Report 2008

CA

AN

Report 2008

Civil A

viation Authority of N

epal

59

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tion

Au

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ty o

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tern

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Tra

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Da

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007



Civ

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via

tion

Au

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61

Background

Air transport in Nepal remains the most reliable means for domesticand international linkage given the geographical location andtopography of the country. The Aviation Policy, 2063 (2006) hasbeen enforced in realization of the need to have a clear policyof the Government in order to contribute to the promotion oftourism and trade through safe, affordable, economical, market-oriented, reliable and effective air transport by developing airportscapable of rendering long and short haul flights with the use ofphysical infrastructures as well as modern technology as requiredfor standard air services, while ensuring flight safety and aviationsecurity in conformity with international standards.

In precedence of the new Policy, the preexistent NationalAviation Policy, 2050 BS (1993 AD) had been issued with aview to also involving the private sector in the air transportservices. Also having regard to the changing situation of theworld and the internal requirement of the country, theGovernment of Nepal made an amendment to the foregoingNational Aviation Policy for the first time in 2053 (1996),aiming to attract as many tourists as possible through thedevelopment of civil aviation. In view of the significantadvancement made by the globe in the field of civil aviation,a significant increase in air traffic globally, and particularlyin the Asia and Pacific Region, increasing importance oftourism among the global communities, industrial developmenthaving taken place in the globe through privatization,involvement of the private sector in the field of civil aviationand increasing alliance between airlines, among others, itwas hence expedient to make timely improvements in theprevious Aviation Policy; and the present Aviation Policyfocuses on the national/domestic flight safety, on the assuranceof aviation security and operation of services in consonancewith international standards.

A number of matters contained in the existing Aviation Policyhave already been incorporated in laws and come into force.

The existing Aviation Policy has been timely revised by removingsuch provisions, and incorporating matters to ensure airtransport, provide facilities to, control and regulate, air services,and grounds prescribed for issuing license to flying schoolsand repair and maintenance bodies. This Policy will makecontribution to achieve the long-term goal of attracting toNepal as many tourists as possible, by simplifying the provisionson charter flights in order to encourage the airlines operatorsensuring air services essential for remote areas and makinginternational flights. In addition, this Policy is also expectedto render contribution to the promotion of the overall socialand economic activities of the country as well as that oftourism, industry, trade and commerce, through a balanceddevelopment of air transpor t, by maintaining a closecoordinat ion of t ranspor t sector with other means.

Goal

The goal of this Policy is to develop the air transport system,by enhancing the participation of the private sector, as well,based on the concept of open sky policy, while making airservices safe, reliable, standard, easily available, accessiblefor the general publ ic , sus tainable and ef fect ive.

Objectives

§ There are following policy objectives in order to achievethe goal mentioned in clause 2.

§ To so develop the aviation industry in the country that itwil l be at par with the world aviat ion industry.

§ To maintain the highest standards of flight safety andaviation security.

§ To develop healthy and competitive air services by attractingand encouraging native and foreign private investors inthe operation of airlines, construction, operation, andmanagement of airports and development, expansion andoperation of the services and facilities related with airtransport.



63

The Aviation Policy2063 (2006)

§ To build and develop international airports with the state-of-art facilities as well as other appropriate airports forthe fulfillment of the air service requirements of the country.

§ To do institutional development and strengthening of civilaviation related training institutes to fulfill the need oftrained and professional human resources in the field ofcivil aviation.

§ To develop civil aviation as a reliable service industry ofthe country and as an appropriate means of air recreationand adventure travel.

Policies:

Air Services Agreement

§ Continuity will be given to the existing liberal sky policy,and open sky policy wil l be pursued gradually.

§ Initiation will be taken to make bilateral and multilateralair services agreements with those countries with amplepossibilities of tourism promotion, based on equality andreciprocity, and in such a manner as to yield maximumbenefits to Nepal.

§ A simple process will be developed to give approval tothe Nepalese airlines to have membership alliance as wellas code sharing with other international airlines groups.

Use of air space

§ Development and expansion of international direct airroutes based on satellite will be carried on, while availingthe modern technologies for the safe, ef ficient andeconomical flight operations.

§ There will be taken and made necessary initiation andcoordination with the International Civil AviationOrganization (ICAO) and related countries for the optimumuse by international flights of the air space of Nepal andfor the inclusion of Nepal in the network of internationaltransit routs.

Flight Safety

§ Top priority will be accorded to the enforcement of thestandards and recommendations set and made by theInternational Civil Aviation Organization (ICAO) for theenhancement of flight safety.

§ Necessary standards shall be set in order to discourageimports of old aircrafts.

§ Oversight capacity will be enhanced by developinginstitutional and legal infrastructures to carry out studyand research works on air transport, aircraft accidentinquiries and flight safety oversight, as well, in consonancewith international standards.

§ Management of air flights with satellite communication,guide and oversight facilities or other appropriate systemswill be carried out and pursued.

§ Air routes will be restructured and developed in order torender air traffic control service through the instrumentalflight system in the air space of Nepal.

Aviation Security

§ In order to protect civil aviation against unauthorizedintervention, civil aviation will be further strengthened andmade further effective in consonance with internationalconventions, protocols related with aviation security andthe standards set by the International Civil AviationOrganization (ICAO).

§ Provision will be made to bring about necessary legal andinstitutional improvements for the consolidation of theexisting aviation security arrangements.

Domestic Air Services

§ Provisions of systematic and transparent procedures willbe made on the issuance of the permission to operatedomestic air services and of the air operator certificatebased on the assessment of the requirements of domesticflight, equipment and other facilities installed in airports,and the reliability of the management, financial, technicalaspects as well as other aspects of airlines operatingorganizations.

§ While issuing the permission and air operator certificateto new domestic airlines operator organizations and issuingpermission to the existing airlines operator organizationfor fleet expansion, permission will be issued on conditionsthat services will also be provided in remote areas, aswell, by making the operation base at the hub airportsoutside Kathmandu.

International Air Services

§ Transparent provisions will be developed on the issuanceof the permission to operate international air services andof the air operator certificate based on the assessmentand reliability of the management, financial, technicalaspects of the organizations in such a manner that theycan participate in a healthy and competitive manner. Suchright will be distributed in a transparent manner, takingalso into account the liability/responsibility to be borneby the nation in the operation of services of suchorganizations, provisions of route schedule, number offlights, seat capacity and traffic right as contained in airservices agreements and understandings.

§ Provided, however, that permission and air operatorcertificate may be issued to any domestic airlines operator



organization, which has successfully provided domesticair services for at least five years and continued suchservices and which appears to be competent on theassessment of the technical, financial and managerialaspects of such organization, for the operation ofinternational air services.

§ The provision of giving flight permission to any foreignairlines organizations in accordance with air servicesagreements will be kept on.

General Aviation:

§ The procedures for issuing the permission and air operatorcertificate for aviation sports and adventurous and research-oriented aviation activities such as micro light, hang gliding,para-jumping, gliding, heli-skiing and hot air ballooningwill be simplified.

§ Native, foreign or joint investors will be encouraged toopen flying schools, and simple and transparent provisionsshall be made to allow such schools to use specific airports.

§ Based on the evaluation of the managerial, technical andfinancial capacity of the organization carrying out repairand maintenance of aircrafts, the native and foreign privatesector will also be encouraged to carry on the businessof aircraft repair and maintenance.

§ If any organization or person wishes to register a privateaircraft, permission may be given, specifying the necessaryterms and conditions, without authorizing to makecommercial flights.


§ The institutional and legal improvements of the NepalAirlines Corporation will be made in order to convert itinto an efficient, reliable, credible and business serviceprovider organization and to enhance its capacity.

§ In order to increase the access of the Corporation,investment from the private sector will also be encouraged;and its service will be expanded by increasing the numberof aircrafts.

Regulation and Control of Air Service Operators

§ Permission may be given to any aircraft having one enginefixed wing for personal, charter and training purposesonly after the fulfillment of, and in view of, the engineperformance reliability as prescribed by the manufacturerof such aircraft, international practices, basis of theavailability of alternative aircraft and the terms andconditions prescribed by the Nepal Civil Aviation Authority.

§ Provision will be made that the principal place of businesstransaction of any airlines operator organization registeredin Nepal will be situated in Nepal and the operational

control of aircraft will be vested in Nepal or a Nepaleseperson.

§ The provision of issuing permission and air operatorcertificate to the airlines operator organizations, aircraftsrepair and maintenance organizations and flying schoolsbased on certain criteria, particularly in view of flightsafety and carrying out monitoring thereof will be madeeffective.

§ Provision will be made to ensure flight safety oversight,and the Nepalese airlines will be encouraged to operatenon-scheduled/charter (passenger/cargo) flights in thosecountries which have diplomatic relations with Nepal.

§ Provision will be made for the protection of the rights andinterests of consumers, by making transparent the obligationof the airlines operator organization and the provision ofinsurance.

§ Legal reforms will be made in order to make transparentand effective the procedures of operating aircrafts onlease.

§ Provisions will be made for the issuance of necessarypermission and air operator certificate by the Civil AviationAuthority of Nepal to airlines operator organizations,aircrafts repair and maintenance organizations and flyingschools , by pursu ing the one window sys tem.

§ Permission may be given to Nepalese airlines operatororganizations to operate aircrafts registered in foreigncountries if the provision of flight safety oversight is foundto be in consonance with the provisions of the ChicagoConvention.

§ The permission and air operator certificate of those operatororganizations who are involved in an unfair competitionand who fail to meet the specified flight safety standardswill be suspended or cancelled.

Technology Development and Transfer

The private sector will be encouraged to the activities suchas research and technology transfer for the development ofaviation.

Categorization and Operation of Airports

§ The airports will be categorized and operated as follows:(a) International Airport;(b) Regional Hub Airport;(c) Airport in the area with road transport access;(d) Airport in remote area.

§ Keeping in view the long-term development of air transportof the country, a new international airport with the state-of-art facilities will be built and developed with theparticipation of the Government of Nepal and the private



65

sector with a view to developing Nepal as a transit hubin the Asia and Pacific Region.

§ Airports will be gradually upgraded keeping in view thegeographical location, density of population, regionalbalance, tourism promotion, proximity with another airport,and potentiality of cost effectiveness.

§ Necessary infrastructures will be prepared to developBiratnagar, Pokhara, Bhairahawa, Nepalgunj andDhangadhi Airports as regional hub airports and expandair services with adjoining countries. Air services will beoperated in remote areas, taking these airports as theoperation base.

§ A slot system will be so developed as to be ancillary tomake a balance between the increase in airport use timeand the air traffic distribution, by making necessaryarrangements for flight support equipment at airports.

§ The upgrading and modernization of airports will begradually carried out, by making a plan of the developmentof airports.

Airport Service Facilities

Ground handling service

The ground handling service at airports will be kept on beingmade more qualitative and competitive.

Hanger and aircraft repair and maintenanceservice

The interested private sector investors will also be encouragedto develop appropriate hanger facilities and establish andoperate aircraf t repair and maintenance workshops atTribhuvan International Airport as well as other airports.

Air cargo service

The private sector investors will also be encouraged to developand operate appropriate air cargo at Tribhuvan InternationalAirport as well as other airports.

Air fuel supply

There will be made a reliable provision of high quality airfuels supplies.

The private sector will also be encouraged to identify andexpand possibilities of non-aeronautical income sources, byupgrading the passenger facilities, while developing andexpanding airport hotels, duty free shops, confectionary shops,flight kitchens, golf clubs, business and entertainment centers,as well.

Human resource development

Institutional and legal reforms will be made in order to have

the Training Institute of Civil Aviation Authority of Nepalaffiliated with universities and the Train Air Program of theInternational Civil Aviation Organization (ICAO) and developthe Institute as a professional institution capable of carryingout quality control and oversight of training and educationalactivities operated by the private sector.

The native and foreign investors will be encouraged to operatetrainings so that the requirement of human resources in thefield of air service can be fulfilled.

Participation of private sector

§ In developing air transport structures such as airports andinfrastructures like roads, railways, terminal buildings,communication and guide inside the airport area, andoperating other industries and organizations there, theinvestment of native/foreign private sector will be openon the Build-Operate-Transfer (BOT), Operate-Transfer(OT), Build-Own-Operate-Transfer (BOOT) basis or anyother appropriate basis.

§ Permission may be given for foreign investment in aircraftoperation, training, repair and maintenance and passengerservice provider industries, as follows:

§ International airlines -Up to 80 per cent§ Domestic airlines - Up to 49 per cent§ Flying school - Up to 95 per cent§ Repair and maintenance institutions -Up to 95 per cent

Provision will be made to issue residential visas to expatriatehuman personnel who are involved in any industry, business,service and project related to air transport, and theirdependent family members if any foreign investor makesan investment amounting to five million US Dollars or morein the field of air transport in Nepal, and such visas willremain valid until such foreign investment exists in Nepal.

Airfare§ The Government will, on the recommendation of the Civil

Aviation Authority of Nepal, fix the airfare for every flightsector, specifying the upper and lower ceiling thereof.

§ The Civil Aviation Authority of Nepal may intervene inthose airlines which, instead of operating the service atthe rate of airfare fixed by the Government, collect excessfare and are involved in unfair competition and take legalaction against such airlines.

International Charter Flights

Permission procedures will be simplified in a manner toencourage international charter flights (passenger/cargo).

The Civil Aviation Authority of Nepal

§ The Civil Aviation Authority of Nepal will be kept on being



strengthened as an efficient aeronautical regulatory bodyand profession institution to effectively carry out the activitiesof regulation, control and expansion of the civil aviationsector.

§ The Authority may, with the approval of the Ministry, usethe land for the business purpose and earn income for theoperation of the activities mentioned in this Policy and forits economic development and diversification, on thecondition that the ownership over such land remains safe.

Working Policies

Permission

A one window system will be developed so that acts andactions pertaining to the issuance of permission to airlineoperator institutions, aircraft repair and maintenance institutionsand flying schools which are related to air transport and otherinstitutions generating human resource required for air transport,issuance of air operator certificate to those institutions havingobtained such permission, operation base fixation, alterationof equipment, route change and upgrading will be carriedout by the Civil Aviation Authority of Nepal in a transparentand integrated manner, subject to the policy approved by theGovernment.

Flight Safety

§ In the case of pressurized aircrafts, the import of thoseaircrafts which are more than fifteen (15) years old orwhich have completed 75 per cent of the economic designlife or 45000 pressurization cycle, whichever occursearlier, will be prohibited.

§ In the case of non-pressurized aircrafts, the import of thoseaircrafts will be decided on a case-to-case basis and onfull examination of the records of such aircrafts. Providedthat, generally, permission will not be given to import thoseai rcraf t s , which are more than 20 years o ld .

§ In the case of the both types of pressurized and non-pressurized aircrafts, as mentioned above, whose life hasreached more than half the economic design life, a structuralintegrity program will be prepared, and flight operationwill be allowed only on the basis of such program.

Capacity and Capital Investment

Any airline operator institution operating domestic scheduleflights must have at least three (3) aircrafts. Out of these, atleast one aircraft must be fit for operation at airports in remoteplaces and the ownership of one aircraft must be vested inthe airline operator institution.The following institution musthave the minimum paid-up capital as follows:

§ International airlines -500 million rupees

§ Domestic airlines - 150 million rupees

§ Flying schools - 100 million rupees

§ Aircraft and its spare parts repair and maintenanceinstitutions -50 million rupees

§ Aviation sports -10 million rupees

The promoters of any airline operator institution must not bein arrears payable to the Government of Nepal, Civil AviationAuthority of Nepal and any organization owned by theGovernment of Nepal and must not be black listed by theNepal Rastra Bank.

Development of Air TransportInfrastructures

Tribhuvan International Airport

§ Tribhuvan International Airport will be expanded andupgraded gradually as per the long-term plan of TribhuvanInternational Airport, by mobilizing the Government ofNepal, Civil Aviation Authority of Nepal and privateinvestment, as well.

§ Institutional reforms will be made in order to make themanagerial capacity of Tribhuvan International Airportmore effective and strengthened.

New International Airport

§ A new international airport will be built for the expansionof air transport, also keeping in view the standardsprescribed by the International Civil Aviation Organizationfor international airports with the modern facilities.

§ A master plan of the new international airport will beformulated by making evaluation of the previous feasibilitystudies and additional necessary studies and keeping inview the long-term impacts.

§ The acquisition and management of land required forbuilding the airport, tourism site, environment impactassessment and migration plan will be taken into account.

§ A master plan of big roads linking the major cities of thenation will be formulated and industrial development willa l so be eva lua ted , fo r bu i ld ing t he a i rpor t .

§ In order to bring about the necessary resources for thebuilding and development of the airport, procedures willbe fixed and implemented upon studying various modalitiesof investment in such a manner as to attract native andforeign private investors.

Regional Hub Airport

Participation of the private sector will be brought out for thebuilding and development of airports which have long-termimportance in regional balance and air transport development;



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the mode of investment is 70 per cent, out of the totalconstruction cost, by the Government of Nepal (inclusive offoreign assistance), 15 per cent by the Authority and theremaining 15 per cent by the local bodies. In the event ofalteration (increase/decrease) in the investment of privatesector, the investment of the Government of Nepal will befixed in proportion thereto. A provision will be made that ifthe portion of investment to be so made increases or decreases,the investment of an investor can be made in shares or asloans in proportion thereto.

Existing Pokhara Airport

The Civil Aviation Authority of Nepal will do study, set andimplement an appropriate concept for the operation of variousbusinesses at the existing Pokhara airport according to thebusiness concept, following the building and operation of anew airport in Chhinedanda Pokhara.

Small Airports/Heliports/Helipads

The following working policies will be followed while issuingpermission to build and operate airports and heliports withthe people's participation or investment of the local bodiesor with joint investment, by making evaluation of the need ofhe country, geographical location, density of population,regional balance, tourism promotion, proximity with anotherairport, and potentiality of cost returns:

§ The distance between the proposed airport and the nearestairport must be generally 20 nautical miles in mountainousand hilly areas and must be at least 40 nautical miles inTerai and inner Terai areas.

§ Provided that distance will not be calculated for the buildingof heliports/helipads.

§ No permission will be issued to build new small airportsunless and until some portion of the financial investmentrequired to build such airports is met by the local people'sparticipation and contributed by the local bodies isguaranteed. Provision will be made to issue permission byfixing the priority based on the guarantee to bring aboutas much investment as possible through the people'sparticipation in the building of airports.

§ Such technical standards and procedures as prescribedby the Authority for the operation of airports, heliportsand helipads will be fulfilled.

§ The provision of security in consonance with the aviationsecurity program must be guaranteed.

Air Navigation Service

The modality will be set, upon doing necessary study research,and implemented for making more effective the air navigation

service of Nepal, by making timely improvements in the system.

Development and Expansion of Remote Area AirServices

Given that air transport is the only means in hilly areas, keepingthe view of the following provisions will be made for theupgrading and strengthening of such airports in remote areas,where it would take a long time to have motorable roadslinking with the network of national highways, as are importantfrom tourism viewpoint and can be ancillary to makecont r ibu t ion to reg ional and economic ba lance.

§ Provisions will be made to have construction developmentworks by bringing about the people's participation, asrequired, and activating consumers' committees, andthrough such committees, to the extent possible, for theupgrading of air services in remote areas.

§ Land, as required, must be made available through thelocal bodies.

§ There must be a guarantee that the local administrationcan provide aviation security.

§ The Remote Area Air Service Operation Fund will be madeeffective to make air services in remote areas easilyavailable and regular.

Operation and Management of Airports

The Civil Aviation Authority of Nepal may contract out theoperation and management of any airport to any local bodyor any organization fulfilling the standards fixed by theGovernment of Nepal.

Existing Airports

An action plan will be prepared and implemented in a phase-wise manner for the facilities and upgrading of the existingairports.

Monitoring and Evaluation

The Government will monitor the implementation and evaluatethe effectiveness of this Policy.




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