The Government of Nepal is in the final stages of splitting the Civil Aviation Authority of Nepal (CAAN)
The Government of Nepal is in the final stages of splitting the Civil Aviation Authority of Nepal (CAAN) into two independent entities to resolve long-standing conflicts of interest. By separating regulatory and service-delivery functions, the government aims to comply with international standards set by ICAO and the European Union. Draft bills for the new ‘Civil Aviation Authority’ (the regulator) and the ‘Air Service Authority’ (the service provider) have been released for public feedback before heading to Parliament.
Under the new structure, the regulatory body will oversee safety, licensing, and standards, while the service provider will manage airport operations, air traffic control, and ground handling. Each entity will have its own board, financial model, and leadership structure; the service provider’s head will be selected through open competition, while the regulator’s director will be government-appointed. Both will have four-year terms with the possibility of one renewal.
The reform introduces stricter enforcement, with fines for safety violations reaching up to NPR 1.5 million. By formalizing this separation, Nepal seeks to improve its global aviation safety ranking and ensure greater transparency and efficiency in the sector. This legislative move marks a critical shift toward modernizing Nepal’s aviation management in line with international best practices.
Danfe Airlines Prepare to Restart Commercial Aviation Operations
Having received a No Objection Letter from the Civil Aviation Authority of Nepal (CAAN), the airline is set to introduce ATR 72-600 aircraft featuring modern glass cockpits and 8 to 10 premium seats. With Pokhara International Airport designated as its main base, Danfe plans to bring the aircraft under its brand by mid-September and commence regional and Kathmandu-linked flights to destinations such as Mahendranagar, Bhadrapur, Bharatpur, Bhairahawa, and Simara before Dashain.
Himalaya Airlines to Expand Network with New flights to Shanghai & Bangkok
Himalaya Airlines, a Nepal-based private international carrier, has announced plans to significantly expand its flight network by launching regular services to Shanghai, China, and Bangkok, Thailand. The airline plans to begin its Kathmandu-Shanghai route on September 7 (Bhadra 22) with two weekly flights scheduled. As part of the flight plan, the return leg from Shanghai to Kathmandu will include a stopover in Kunming, China. Additionally, the airline intends to commence three weekly flights from Kathmandu to Bangkok starting October 27 (Kartik 10).
The decision to expand these routes comes as Nepal experiences a notable resurgence in Chinese tourist arrivals, which have surpassed pre-pandemic levels. Data from the Nepal Tourism Board indicates that tourist arrivals from China in July 2026 grew by 8.65% compared to the same period in 2019, and rose by 61% compared to July 2025. With the peak tourist and festival season approaching, the airline is strategically positioning itself to capitalize on the increasing travel demand between the two nations.
Currently, Himalaya Airlines operates flights to Lhasa and Shenzhen in China, alongside services to various destinations in the Middle East and Malaysia, including Kuwait, Kuala Lumpur, Doha, Dammam, Riyadh, and Dubai. Established in 2014 as a joint venture between Tibet Civil Aviation Development and Investment Company and Nepal’s Yeti World Investment Pvt. Ltd., the airline is now looking to restore its footprint in the Chinese market, where it previously served five destinations before the COVID-19 pandemic led to reduced operations.