Kathmandu: Minister for Culture, Tourism and Civil Aviation Khadkaraj Paudel ‘Ganesh’ has said a new bill on the responsibilities of domestic air service providers has been introduced to make Nepal’s internal aviation sector more accountable, transparent and passenger-friendly.
Speaking during a theoretical discussion on the bill at the Law, Justice and Human Rights Committee meeting on Tuesday, Minister Paudel said the proposed legislation primarily seeks to clearly define passenger rights, airline responsibilities and compensation provisions for domestic air travel.
He described the bill in simple terms as legislation dealing with insurance and passenger rights, saying Nepal currently lacks sufficient legal provisions covering several issues in domestic aviation, including accidents, damaged or lost baggage, flight delays, cancellations and damage caused to third parties.
Insurance Liability Could Rise to $100,000
Minister Paudel said the insurance liability currently practiced at around US$20,000 could increase to nearly US$100,000 in line with international standards.
However, he warned that increasing insurance obligations could also push up airfares and said the issue should therefore be discussed carefully.
He also said Nepal cannot simply apply the Montreal Convention, which governs international air transport, directly to domestic flights because the capacity of Nepali airlines and the country’s circumstances are different. A separate legal framework for domestic aviation is therefore necessary, he argued.
Minister Questions Double Airfares in Remote Areas
Paudel also raised concerns over the long-standing practice of charging double airfares, commonly referred to as “dollar fares,” on flights to remote areas.
He said he had been unable to find a clear legal basis for the practice and questioned whether domestic and foreign passengers should be treated differently.
Bill to Cover Delays, Cancellations and Lost Baggage
According to Paudel, the proposed legislation will primarily apply to domestic airlines operating within Nepal’s territory. It will address passenger safety and compensation in cases of accidents, flight delays, cancellations and lost baggage, among other issues.
He said the bill would also bring several practices that have existed in the aviation sector without a clear legal foundation under a formal legal framework.
Separate Aviation Authority Bill Also in Preparation
Paudel revealed that another bill is being prepared to split the Civil Aviation Authority of Nepal (CAAN) into two separate bodies—one responsible for regulation and another for service provision.
Many issues raised by committee members, he said, would be addressed through the upcoming legislation related to the Civil Aviation and Air Service Authority.
He clarified that matters concerning Nepal Airlines Corporation are separate, as the national flag carrier operates under its own legislation. Issues related to the corporation will therefore be addressed through amendments to its existing law.
Paudel said the proposed domestic air service bill is ultimately aimed at strengthening passenger protection, improving airline accountability and ensuring that Nepal’s domestic aviation sector operates under a clearer and more comprehensive legal framework.
