Monday, June 4, 2012

Govt to issue new licence for international flight operation

KATHMANDU, JUNE 4, 2012

The government, with an aim to promote new private companies and the existing ones, has announced the application to issue licence for the establishment of airlines or extension of domestic airlines for international air service operation by private airlines.

“We are trying to promote the existing domestic airline companies and at the same time also trying to introduce new private companies to start airline services,” said joint secretary at the Ministry of Culture, Tourism and Civil Aviation Suresh Acharya.

The ministry is planning to issue two licences –– one for cargo service and the other for passenger service. The ministry on May 25, 2012 had announced for proposals requesting for International Airlines Operating Licence by interested companies.

International companies currently have 94 per cent market share of the Nepali airline sector. “There are a number of private companies interested and through this announcement we are planning to provide them the opportunity,” he said.

According to a decision of the Council of Ministers on December 8, 2009, registered private companies can apply for a licence for operating international flights. At the same time, existing private airlines in Nepal can also apply for international flight operation licence.

There are 28 international airline operators, 10 fix-wing operators and five rotary-wing operators. According to the Civil Aviation Authority of Nepal (CAAN), Kingfisher Airlines has postponed its flights among the 28 different international operators.

Meanwhile, three different international operators –– Malaysian Air, Air Asia and BB Airways –– will soon start flights from Tribhuwan International Airport. Malaysian Air will start its flights from June, Air Asia from June 3 and BB Airways is preparing for its flight from September. BB Airways is promoted by TBI Group — an investment company led by Non-Resident Nepalese Association treasurer Bhawan Bhatta.

According to the ministry, the private companies willing to apply for the international flight operation licence must follow the country’s civil aviation regulations. The airline first needs to get permission from the ministry before approaching CAAN for its evaluation.

A new airline needs a bank guarantee of Rs 500 million and should have at least three aircraft, either on lease or on purchase basis, before it starts operations. The potential international airlines should put up a security bond of Rs 5 million and have a paid up capital of Rs 500 million. The company should also pay Rs 50,000 for the terms of reference document.

An airline that fulfills these terms of reference must obtain the air operator certificate within a year and start flights within the next year.
 
Source: THT

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