National  Stakeholder  Consultation  and  Capacity  Building  Workshop  on  Development  of  Sustainable  

and  Inclusive  Transport  Policy                                                            9-­‐10  April  2015,  Thimphu,  Bhutan    

Role  of  private  sector,  regulator  and  air  traffic  safety  issues:    Experiences  from  Nepal  

   

Mr.  Buddhi  Sagar  Lamichhane  Joint  Secretary  

Government  of  Nepal    Ministry  of  Culture  Tourism  and  Civil  Aviation  

 

Outline  of  Presenta/on  �  Statutory  status  of  Civil  Aviation  in  Nepal  � Air  Transport  in  Nepal  Significant  Milestone  Dates  �  Specific  Aviation  Policy  Issues  � Airports  and  Operation  � Domestic  Airlines    and  Domestic  Air  Transport  � Private  Sector  Participation  �  Security,  Immigration,  Custom  � Bilateral  Air  Service  Agreement  �  Safety  and  Sustainability  of  Air  Transport  � What  we  learn  � Challenges  � Concluding  Remark  

Statutory  Status  of  Civil  Avia0on  in  Nepal  � Civil  Aviation  Act  2015  B.S.  (1958)  � Royal  Nepal  Airlines  Corporation  Act,  2019  B.S.  (1962)  � Aviation  Security  (Management)  Rules,  2046  (1989)  � Civil  Aviation  Authority  of  Nepal  Act  2053  (1996)  � Civil  Aviation  Regulation  2058  (2001)  � Airport  certification  Regulation    2061  (2004)  � Civil  Aviation  Policy  –  2063  (2006)  � Airport  Service  Charge  Regulation,  2067  (2010)  � Civil  Aviation  (Investigation  of  Accidents)  Regulation,  2071  (2014)  

� A  number  of  technical  legal  instruments  (Requirements,  Manuals,  Directives,  Circulars)  

AIR  TRANSPORT  IN  NEPAL-­‐  SIGNIFICANT  MILESTONE  DATES  

�  1949  –  The  date  heralded  the  formal  beginning  of  aviation  in  Nepal  with  the  landing  of  a  4  seated  beach-­‐craft  Bonanza  aircraft.  

 

�  1957  –  Department  of  Civil  Aviation  Established  �  1958  –  Nepal  Airlines  Corporation  started  service      

         Domestically  and  Internationally  

�  1960  –  Nepal  Became  the  member  of  ICAO  �  1967  –  Landing  of  the  Lufthansa  B707  at  TIA  

MILESTONE  DATES………….  

�  1987  –  A  high  altitute  STOL  airport  performance  study  was  conducted.  It  helped  to  construct  Airports  in  the  high  altitude  areas.    

�  1989  –  Landing  of  Concorde  first  and  last  �  1992  –  Adoption  of  liberal  sky  Policy  (A  landmark  departure  in  air  transport  Policy  )  and  the  door  for  private  sector  is  open  in  the  Air  transport  

�  1993  –  National  Civil  Aviation  Policy  Promulgated  first  time  

�  1998  –  Establishment  of  Civil  Aviation  Authority  

�  2006  –  A  new  comprehensive  civil  aviation  policy  adopted                          

NEPAL IMPORTANCE OF AIR TRANSPORT � Geographical location (Landlocked) and Difficult

Terrain (Most of the land more than 83% is Mountainous and Himalayan area)

� Lifeline of remote areas population and means of social integration

� More than 80% tourists enter Nepal via air transport � Tremendous opportunity of Aviation sport activity

� Growing trend of foreign labor market � Increasing trend of domestic air travelers with the

increased economic activity. 9/04/2015   6  

SPECIFIC  AVIATION  POLICY  ISSUES    � Bilateral  Air  Service  Agreement  -­‐  Liberal  to  Open  sky  � Air  Route  –  Integrating  Nepal’s  sky  with    

 International  Transit    air  route  �  Flight  Safety:  

� Aviation  Security:  

� Domestic  Air  Transport:    

� Development  of  Air  Transport  Infrastructure  

� Airport  Facilitation:  

� Human  Resources:    

SPECIFIC  AVIATION  POLICY  ISSUES……    � Remote  Area  Service:  encouraged  by  policy  

� General  Aviation:  Special  priority  area  

� Air  Fare:  Government  of  Nepal  will  determine  (Upper  and  Lower  Margin)  the  rate  of  airfare    in  domestic  sector  and  monitor  strictly.  

�   Fare  Competition:  expected  and  regulated  

� Airport  operation  and  Management:  Involvement  of  Private  sector  and  community      

               

USE  OF  PRESSURIZED  Vs  NON  PRESSURIZED  AIRCRAFT  

�  For  pressurized  Aircraft-­‐          Policy  prevents  to  import  aircrafts:  Which  are    older  than  15  years  or    

       which  have    completed  economic  design  life  of  75%  or  45000  pressurization  cycle.  

�  For  Non  pressurized  Aircraft:          Policy  prevents  to  important  20  years  and  older  aircraft,  It  is  decided  on  case  to  case  basis  examining  all  the  records.  

� Flight  Operations  Requirement:  ANNEX  6          For  Aircraft  flying  above  10,000  ft,  requires  oxygen  supplement  onboard  aircraft.  Every  pressurized  aircraft  requires  emergency  oxygen  supplement.    

NATIONAL  CARRIER    � Airlines  should  be  developed  with  the  principle  of:    

�  Fair  Competition,    �   Transparency,    �   Passenger  rights,    

� Principally  no  exclusive  right/facility  to  National  Carrier    

� However,  some  policy  bias  and  preferential  treatment  exist  in  practice  

OPERATION  OF  GLIDERS  � Gliders  are  operating  in  Nepal  in  aviation  sports  area.  

� Paragliders,  paramotors  etc  are  popularly  flying.  

� Regulated  by  law  and  oversight  by  CAAN  

� Paragliding  Companies  are  required  to  obtain  license  and  certificate  to  commence  operation.  

� Unmanned  gliders  are  not  authorized  

OPERATION  OF  DRONE  �  Flying  of  Drone  without  permission  is  illegal  .  

� No  regulation  and  procedure  

� The  use  of  drone  seems  increasing  for  different  purpose  (Experimental,  research,  entertainment  etc.)  

� Government  is  on  the  way  to  develop  regulation  regarding  the  operation  of  Drone.  

AIRPORTS  IN  NEPAL  International  Airport   1  (KTM)  

Domestic  Hub  Airports   04  (VTN,  PKR,  BWA,  NGJ)  

Other  Domestic  Airports  (STOL)  

45  

Dom    Airports  Under  Construction  

06  

Airports  In  operation   32  

Airports  not  in  operation  (STOL)  

18  

AIRPORTS  IN  NEPAL  

Airports   Number   Flight  Status  International Airport 1 Handling 90 % of total FLT

Regional Hub Airport 4 ,, 6 %

Domestic Airport 43 ,, 4 %

Total Airport 48 Airport under construction 6

STOL  AIRPORTS  AND  FLIGHT  OPERATION  � Most  of  the  domestic  airports  in  Nepal  are  –  Short  Take  Off  and  Landing  (STOL)  

 

� Difficult  terrain  and  unstable  weather    

� Lack  of  enough    STOL  capable  aircraft    

� Private  operators  are  the  sole  operators  in  STOL  airfields.  

� Social  and  geographic  needs  

� Access  to  the  road  transport-­‐  negative  impact  on  STOL  airport  operation  sustainability  

INTERNATIONAL  AIRPORT  –  TIA,  KATHMANDU  SINGLE  GATEWAY  FOR  INTERNATIONAL  TRAFFIC  

� Single  Runway    -­‐    [Bitter  Consequence  -­‐  Airport  closed  for  4  days  when  there  was  runway  excursion  accident  of  Turkish  airlines    on  March  4,  2015]  

� Airspace  over  congested  due  to  the  variety  of  traffic        And  Single  Approach  for  IFR  Flights  (Rwy  02  only)  � Geographical  Constraint  –  high  terrain  around  the        Kathmandu  valley  

� Dense  population  around  the  airport  � Parking  deficiency  –  For  Domestic  and  International  � Terminal  facility  –  not  enough  

Aerial View of Tribhuvan International Airport (TIA)

RW  02  

RW  20  

TERMINAL  

BAGMATI  RIVER  

N  

Manohara  River  

10,000  Ft.    

         INTERNATIONAL  AIRPORTS    –  OF  FUTURE  � TIA,  Kathmandu            Improvement  Project  of  TIA  is  ongoing  under  the  assistance  of  ADB  Loan.  

� Gautam  Buddha  International  Airport,  Bhairahawa                              {Construction  work  already  started}  

� Pokhara  Regional  International  Airport  ,  Pokhara                                                        {Almost  at  the  end  of  process,  construction  work  will  start  in  near  future}  

 

�  Second  International  Airport,  Bara                                                                              Full  fledged  with  parallel  Runway  and  Airport  City          {Government  is  exploring  ways  to  involve  Private  sector            either  by  PPP  or  BOOT  or    any  suitable  method}    

 OPERATOR  CERTIFICATE  � Total  Air  Operator  Certificate  (AOC)  Issued:  61      Operators  with  Valid  AOC  in  operation:  18      Cancelled  AOC:  43  

 � Total  Air  Sports  Operator  Certificate  (ASOC)  issued:  42      Operators  with  Valid  ASOC:  41  

                       Cancelled  ASOC:  1  

           Total  valid  AOC,  ASOC:  59      Government  :  1      Private:  58    

 

Private  participation  is    Extremely  Dominant  

Domes0c  Airlines  in  Nepal                                                        COMMERCIAL    

�  Fixed  Wing  Air  Operator:  11                  a.  Government  Operator:  1,                    b.  Private  Operator:  10    

� Rotor  Wing  Air  Operator:  7                  a.  Government  operator:  0                  b.  Private  Operator  :  7      

� Aviation  sports  Operator:  41                (All  Private  Operator  )                    a.  Paragliding  operator:  38                    b.  Ultralight  operator:    3                                                            

DOMESTIC  AIR  TRANSPORT  � Dominated    Completely  by  –  Private    Sector  � New  areas  of  aviation  explored  like:    Mountain  Flight,  High  altitude  Search  and  Rescue,  Medical  Rescue,  Sight  Seeing,  Filming,  Survey,  Development  Assistance  etc.  

� Aviation  Sport–  A  popular  mode  of  General  aviation  �   Air  transport    service  became  accessible  to  the  general  public  

� Competition  and  quality  in  service  � Means  to  provide  humanitarian  assistance  during  natural  disasters.  

PARTICIPATION  OF  PRIVATE  SECTOR  IN  AIRPORT  INFRASTRUCTURE  The  involvement  of    National  and  International  private  sector  is  open  -­‐-­‐  In  the  development  and  operation  of  Airport  and  Related  infrastructure.  

                 Modes  of  Privatization  –  PPP,  BOT,  BOOT,  OT    IN  AIRLINES  Ratio  of  foreign  investment  authorized:                  a.  International  Airlines:  ………..up  to  80%                  b.  Domestic  Airlines:    ……………..up  to  49%                  c.    Training  Institution:  …………..up  to  95%                  d.  Maintenance  Organization:  ..up  to  95%    For  Domestic  airlines  Income  Tax  Free:  For  the  first  five  years  of  operation  

 

AVIATION  INFRASTRUCTURE  AND  PRIVATE  PARTICIPATION  

� Nepal  Airlines  Corporation  –  PPP  Under  Consideration    

� Second  International  Airport  construction  and  existing  Tribhuvan  International  Airport  operation/management      through  PPP  model  -­‐-­‐    under  consideration.    

� Government  policy  is  to  encourage  private  sector  in  the  development  activities  and  Government  will  be  as  facilitator  and  regulator.  

SECURITY  ,  IMMIGRATION  AND  CUSTOM  � Airport  Security    -­‐  Provided  by  Government  Security  Forces  (Nepal  Army,  Nepal  Police,  Armed  Police  Force)  

� Aviation  Security  –Civil  Aviation  Authority  of  Nepal  and    Nepal  police  

�  Immigration  service  –  Immigration  Department.        For  the  citizens  of  the  most  of  the  Countries    (except  Nigeria,  Ghana,  Zimbabwe,  Cameroon,  Swaziland,  Somalia,  Ethiopia,    Liberia,  Iraq,  Palestine  and  Afganistan)  on  arrival  visa  is  available    at  the  port  of  entry  to  Nepal.  

 

� Custom:  At  the  port  of  entry  

� Entry  procedure  for  foreigner  is  simple  and  efficient.  

BILATERAL  AIR  SERVICE  AGREEMENT  (BASA)  

� The  first  BASA  was  concluded  between  Nepal  and  India  in  1964.  

�   BASA  between  Nepal  and  Bhutan  was  concluded  in  August  7,  1990.  First  time  Nepal  granted  fifth  freedom  traffic  right  to  Bhutan  through  BASA.  

� Nepal  has  concluded  BASA  with  36  countries  till  2015  March.  

� Nepal  is  adopting  Liberal  sky  policy    in  international  air  transport  Since  1992.  

�  International  Airlines  Operating  to  from  Nepal  –  26,  connecting  14  Countries  

Safety  -­‐  for  Air  Transport  Sustainability  �  Safety  is  the  first  priority  in  civil  aviation  � Ministry  of  Culture  Tourism  and  Civil  Aviation  is  policy  maker  in  all  issues.    

� CAAN  is  Safety  Regulator,  Airport  operator  and  ANS  service  provider  

� USOAP  audit  conducted  in  2009  and  ICVM  in  2013  � Government  is  studying  the  possibility  of  the  separation  of  Regulatory  function  from  CAAN.  

� Airlines  are  encouraged  to  develop  safety  culture  within  their  organizations.  

� Progressing  with  international  cooperation  and  assistance.    

SAFETY  AND  SUSTAINABILITY…….  �  The  first  air  accident  was:  DC-­‐3  of  Kalinga  Air  of  India  in    simara  killing  2  passengers  onboard  on  1955/3/8.  

�  The  grave  disasters    in  air  transport  of  Nepal  are:                  Thai  Air,  A320,  Killing  all  113  onboard,  on  1992/7/31                    PIA,  A310,  Killing  all  167  onboard,  on  1992/9/28  �  The  latest  one:  Turkish  Air,  A330-­‐300,  Runway  excursion  No    fatality,  aircraft  sustained  severe  damage,  2015,  March-­‐4.  

�  No.  of    air  accidents  increased  after  (1992)  emergence  of  private  sector  in  airlines  business.  

�  Dozens  of  airlines  vanishes  –  may  be  the  result  of  imbalance  in  protection  and  production.  

�  Government  priority  to  develop  safe  air  transport  environment  in  Nepal,  Significant  progress  

Challenges  REGULATOR  

�       Compliance  of  ICAO  Standard  And  Recommended      Practices  (SARPs)    

�       Operation  Ban  of  EU  �       lack  of    adequate  safety  inspectors    �       Conflict  of  Interest  

         AIRLINES  

�  Sustainability  �  Lack  of  critical  human  resources  �  Difficulty  to  acquire  STOL  aircrafts  �  Undue  competition  

 

                           WE  LEARN  -­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐  ?  � For  the  overall  development  of  country  government  should  recognize  Aviation  sector  as  the  priority  area.  

� Air  transport    in  Nepal  is  Regarded  as  the  vehicle  of:  ü       tourism  development,    ü       infrastructure  development  in  remote  areas,    ü       catalyst  of  economic  activity,      ü       job  creation,    ü       social  integration,    ü       rescue  operation,  ü       modernization  and  globalization  

We  learn………..?  � The  role  of  Private  sector  in  Air  transport  is  proved  as  extensively  important.  Let  them  play  and  regulate.    

� Compliance  and  enforcement  of  safety  regulation  is  prima  facie  for  the  sustainability  of  aviation  industry.  

� Safety  oversight  capability  should  be  strengthened  at  par  with  the  development  of  industry  

� Policy  harmonization  between  different  modes  of  transport  is  beneficial.  

Concluding  Remarks  � There  is  steady  growth  of    (more  than  10%  Annual)  domestic  and  International  air  passenger  in  the  last  five  year  

�  In  domestic  air  transport  sector  the  role  of  Private  sector  is  dominant  

�  In  International  sector  also  Attraction  of  Private  sector  is  increasing  

� Government  policy  encourages  Private  participation  in    the  development  and  management  of  airport  infrastructure  and  airlines  operation.  

� Aviation  Safety  and  security  For  the  sustainability  of  air  transport.  

THANK  YOU  VERY  MUCH  FOR  YOUR  ATTENTION  

ध"यवाद  

ANY  QUESTION