Aviation

Nepal is a landlocked country with hilly terrain. Aviation is the second major mode of transportation after surface travel. Private sector investment was started in 1992 after the post liberalization of aviation policy. According to the data of 2021, the annual passenger movement was over 5 Million Persons.

Nepal has signed Bilateral Air Services Agreements and MoU with 41 different countries since 1963. Nepal adopted a liberal sky policy in 1992 since then it is gradually pursuing an open sky policy in accordance to the civil aviation policy 2006. There are 54 airports in the country, out of which around 34 are currently operational, including 3 International Airports and 4 domestic hub airports at Biratnagar, Bhairawa, Nepalgunj and Dhangadhi.

The country is connected to three international airports. They are Tribhuvan International Airport (TIA), the oldest and the first airport in Nepal which serves the nation's capital and the country's largest metropolitan city of Kathmandu, Gautam Buddha International Airport (GIA) in Lumbini and the third is a new international airport in Nepal which is Pokhara Regional International Airport located at the heart of the tourism city Pokhara. However, Gautam Buddha International Airport (GIA) and Pokhara Regional International Airport has not started international flights.

There are 21 domestic airlines giving service in the country and among them Buddha airline and Yeti Airline are the most prominent among private airlines and they cover more than 72 percent of the market share in domestic sector. Further, there are about 30 International airlines operating in Nepal.

Nepal is a member of International Civil Aviation Organization. The Civil Aviation Authority of Nepal Act is responsible for safe, standard, regular and efficient services for operation of national and international flights, air communication, navigation and transportation. The act also provides for private sector participation in the airport sector wherein licenses be issued for operation of air service, flying and aircraft repair facilities. Other services open for private sector participation includes; hanger facilities, repair and maintenance of aircraft, air cargo handling services.

Major Stakeholders and their Responsibilities

1. The ministry of Culture, Tourism and Civil Aviation (MoCTCA): Formulation of sector policy, multi-lateral/bi-lateral agreements, airfares and tariffs, airport and airline licensing.
2. The Civil Aviation Authority of Nepal (CAAN): Regulate air transport and civil aviation activities, development and maintenance of airports, airline licensing and advising GoN for setting tariffs for passenger and freight.
3. Nepal National Aviation Council: Overall development of the aviation and airline industry in Nepal.

Opportunities in Airport Sector in Nepal

Projects planned for development and up gradation of Airports in the Country

1. Up-gradation of Tribhuwan International Airport
2. Pokhara International Airport (start international flights soon)
3. Gautam Buddha International Airport (start international flights soon)
4. Neejgadh International Airport - Future Plan

Nation's Pride Projects are Gautam Buddha International Airport and Pokhara International Airport which will be national priority project and the great milestone work for our country.

The investment opportunity for private sector is very high as there is a high demand for domestic international aviation sector.

Agencies such as IFC and Asian development Bank, World Bank have strong support for the participation of private investor in this sector and Government has increased support in this sector. There are various new air routes development in pipeline for the investors to make their investment fruitful.

Our expertise is on Equipment, Survey, Design, Civil Work and we are capable to provide liaisoning support necessary to assist principals to secure contract.