Civil Aviation Authority of Nepal (CAAN) issues AOC for domestic airlines as well as for ultra-lights, paragliding and other entertainment related services. [break]
An official at MoCTCA said that the recent meeting decided to regulate the domestic AOC, through a separate provision. The objective of new provision was effective regulation to help maintain healthy competition and to discourage companies from obtaining license without operating services, official added.
At present, any interested company can acquire AOC after applying for the license at the ministry for domestic operation. Whereas, in case of international airlines, the ministry calls the application through a public notice for the license whenever necessary. “The recent meeting has focused similar provision for domestic operators as well,” the official added.
In the last five years the government has called the public notice for interested private and foreign joint-venture three times.
As per the current civil aviation regulation, operator should put up a security bond of Rs 1 million and have a paid-up capital of Rs 150 million to get the AOC.
Likewise, to get operating license for international sector, the airlines should have paid up capital of Rs 500 million and a security bond of Rs 5 million. The airlines operating on the international route need to pay Rs 500,000 per route of operation as royalty. For domestic route, operator has to pay Rs 5,000 for STOL (short-take off and landing) and Rs 10,000 for trunk route.
The current provision allows the government to scrap the AOC of any operator who fails to operate flights within two year of acquiring the certificate. “Although this provision is there, it is not enough to discourage unnecessary holding of the license,” the official added.
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