Kathmandu, 25 June: The government is preparing to adopt a liberal policy to attract as many airlines as possible to Gautam Buddha and Pokhara International Airports.
For this purpose, the Ministry of Culture, Tourism, and Civil Aviation has prepared a preliminary draft of the “Aviation Policy 2082.” According to the draft, international airlines will be granted “Fifth Freedom Traffic Rights” at Gautam Buddha and Pokhara International Airports.
Under this right, airlines from a second country will be allowed to carry passengers from these airports to a third country. It is expected that this will provide more travel options for passengers, leading to an increase in passenger numbers and additional flights.
The ministry has stated that the preliminary draft of the policy has been prepared for discussion purposes. Currently, Nepal is implementing the Aviation Policy of 2063 (2006 AD), which will be replaced by the new policy.
According to the draft, Nepal will gradually adopt an Open Sky Policy and enter into additional bilateral and multilateral air service agreements based on reciprocity.
Existing agreements will be reviewed. The draft policy also mentions that, based on the capacity and service quality of Nepali airlines operating international flights, flight frequencies and route allocations will be made transparently in accordance with fair air service agreements.
The draft also encourages liberal policies such as ‘third-party code sharing’. Similar policies will be adopted in new air service agreements as well. Furthermore, the policy outlines plans to collaborate with international agencies for the operation, management, and promotion of Gautam Buddha and Pokhara international airports.
Stricter Rules on Importing Old Aircraft
The new policy plans to impose slightly stricter regulations on the import of old aircraft. The existing rule that prohibits the purchase of aircraft older than 15 years will remain in place. However, aircraft that have completed 50% of their economic design life or have undergone 35,000 pressurization cycles will no longer be allowed for import.
Currently, the limits are set at 75% of economic design life and 45,000 pressurization cycles. For non-pressurized aircraft, the existing rule that prohibits the import of aircraft older than 20% of their design life will continue.
Additionally, the new policy will include provisions for establishing a permanent aircraft accident investigation body in Nepal.
Proposal to Increase Foreign Investment Limit
The draft of the new aviation policy proposes raising the foreign investment limit in the aviation sector. Currently, foreign investment is allowed up to 80% in international airline companies. The new policy aims to increase this limit to 90%. However, the 49% limit for domestic airlines will remain unchanged.
The draft policy also mentions that land at currently non-operational airports will be made available to individuals or companies investing in aircraft and related equipment maintenance, aviation training institutes, aircraft manufacturing or design, and similar sectors.
Investors looking to operate flying schools will be granted tax exemptions for the first three years. Regarding the construction of new airports, a joint investment model involving federal, provincial, and local governments will be adopted.
The draft also states that new airport construction will only be permitted if operational sustainability is assured. Additionally, non-operational airports may be allowed for use in educational and recreational flight activities under the new policy.
Private Aircraft Ownership Allowed
The new policy will include a provision allowing individuals and organizations to own aircraft for personal use. However, those granted permission under this provision will not be allowed to operate the aircraft for commercial flights.
