4. Policy

4.1. Air Service Agreement

4.1.1 Continuing the existing open air policy, the open air policy will be adopted gradually. 4.1.2 Efforts will be made to enter into bilateral and multilateral air agreements with countries that have great potential for tourism promotion on the basis of equality and reciprocity so that Nepal can benefit to the maximum. 4.1.3 A simple process will be developed to allow Nepali airlines to enter into group membership alliances and code sharing with other international airlines. 4.2 Use of Airspace 4.2.1 Development and expansion of satellite-based international direct air routes will be carried out by adopting modern technologies for safe, efficient and economical flight operations. 4.2.2 Necessary initiatives and coordination will be done with International Civil Aviation Organization and related countries to make maximum use of Nepal's airspace by international flights and to include Nepal in the network of international transit routes. 4.34.3 Flight Safety Standards 4.3.1 High priority will be given to implement the standards and recommendations set by the International Civil Aviation Organization for the enhancement of flight safety. 4.3.2 Necessary standards will be determined to discourage the import of old aircraft. 4.3.3 Air transport related studies (research, aircraft accident investigation, flight safety monitoring) will be developed and monitoring capacity will be enhanced by developing institutional and legal structural mechanisms to maintain the operations according to international standards. 4.3.4 Satellite-based communication, path Air flight management with demonstration and monitoring services or other appropriate systems will be adopted. 4.3.5 Air routes will be restructured and developed to provide air traffic control services through mechanical flight systems in Nepal's airspace. 4.4. Air safety 4.4. 1 International Conventions on Aviation Security, Protocols and Regulations issued by the International Civil Aviation Organization to protect civil aviation from unauthorized interferenceIt will be made stronger and more effective in accordance with the RIT standards. 4.4.2 Arrangements will be made for necessary legal and institutional reforms to strengthen the existing air security system. 4.5. Domestic air service 4.5.1 Based on the evaluation of the reliability of the domestic flight requirements, airport and airport-related equipment and other facilities, the management of the air service operating organization, financial, technical, etc., the license and aircraft operating certificate to operate the domestic air service should be organized and transparent. Procedures will be arranged. 4.5.2 When granting licenses and aircraft operating certificates to new domestic air service operating organizations and when granting licenses to existing air service operating organizations to operate additional aircraft, the license will be given in such a way that they have to provide services to remote areas by keeping the operational base at hub airports outside Kathmandu. 4.6. International air service 4.6.1. When granting license and aircraft operating certificate for international air service operation, a transparent system will be developed so that it can participate in a healthy and competitive manner based on the trustworthiness and evaluation of the managerial, financial and technical aspects of the organization. The responsibility of the nation in the operation of the services of such organizations, according to the air service agreement and memorandum of understanding, the provision of the route, number of flights, seat capacity and traffic rights will be distributed in a transparent manner. However, after evaluating the technical, economic and managerial capacity of the domestic airline operating organization that has successfully provided domestic air service for five years, the license and aircraft operating certificate for international air service operation can be given to the domestic airline operating organization that is capable. 4.6.2. The provision of flight permits to foreign airlines will be continued within the provisions of the air service agreement. 4.7 Conventional Air Transport 4.7.1. Aviation Sports and Adventure SportsThe process of issuing licenses and aircraft operating certificates for commercial aviation activities such as micro light diving, para jumping, gliding heliskiing and hot air ballooning will be simplified. 4.7.2. Domestic, foreign or joint investors will be encouraged to open flight training institutes and a simple and transparent arrangement will be made to allow such institutes to use certain airports. 4.7.3. The domestic and foreign private sector will also be encouraged to operate the maintenance business by evaluating the managerial, technical and financial capabilities of the organization that maintains and maintains the aircrafts. 4.7.4 If any organization or person wants to register a private aircraft, permission can be given with necessary conditions such as not being able to carry out commercial flights. 4.8 Nepal Airlines Corporation 4.8.1 Nepal Airlines Corporation will be transformed into a capable, reliable, trustworthy and commercial service provider organization to enhance its institutional and legal reforms. 4.8.2 The service will be expanded by increasing the number of aircraft while also encouraging private sector investment to increase the reach of the corporation. 4.94.9 Regulation and control of organizations operating air services 4.9.1. Only by meeting the engine performance reliability international practice set by the aircraft manufacturer, the availability of alternative aircraft and the conditions issued by the Nepal Civil Aviation Authority, single engine fixed wing aircraft can be allowed for private, charter, and training purposes. 4.9.2 It shall be arranged that the main commercial place of business of the airline registered in Nepal shall be in Nepal and the aircraft operation control shall be in Nepal or Nepalese. 4.9.3 When granting licenses to air service operating organizations, aircraft maintenance organizations, and training organizations, the system of issuing permits and aircraft operating certificates based on certain standards and monitoring them will be made effective, especially in view of air flight safety. 4.9.4 Flight Safety MonitoringNepalese airlines will be encouraged to operate non-scheduled-charter (passenger-cargo) flights in countries that have diplomatic relations with Nepal. 4.9.5 The liability and insurance system of airline operating organizations will be made transparent and the rights and interests of consumers will be protected. 4.9.6 Legal reforms will be made to make the process of bringing aircraft charter to 9VBCV transparent and effective. 4.9.7 Arrangements will be made to issue necessary licenses and aircraft operating certificates from the NE PAL Civil Aviation Authority to the airline operating organizations, maintenance organizations and air flight training organizations by adopting a one-door system. 4.9.8. According to the provisions of the Chicago Convention, if it is found that there is an arrangement for flight safety monitoring, approval can be granted so that the aircraft registered abroad can be operated by the Nepali Air Service Operating Organization. 4.9.9. Unfair competition and organizations that do not meet the prescribed flight safety standards will have their licenses and aircraft operating certificates suspended or revoked. 4.10. Technology development and transfer Private investors will be encouraged in activities such as research and technology transfer for the purpose of aviation development. 4.11. Airport classification and operation 4.11.1. Airports will be classified and operated as follows: a) International Airports b) Regional Airports c) Airports in areas accessible by road traffic d) Airports in remote areas 4.11.2 . A new international airport with modern facilities will be constructed and developed with the participation of the government of Nepal and the private sector, with the intention of developing Nepal as a transit hub in Asia and the Pacific region, in view of the country's long-term air transport development. 4.11.3. Airports will be gradually upgraded in view of geographical location, distribution of population, regional balance, tourism promotion, proximity to other airports, cost-effectiveness. 4.11.4. Biratnagar, Pokhara, Bhairahawa, Nepalgunj and Dhangadhi airportsRoo will be developed as regional air airports and the necessary infrastructure will be prepared to expand air services to neighboring countries. Air services will be operated in remote areas based on those airports. 4.11.5. The slot system will be adopted to bring balance between the increase in airport usage time and air traffic distribution by arranging appropriate aviation support equipment at the airport. 4.11.6. A plan for the development of the airport will be prepared and the work of upgrading and modernization will be implemented gradually. 4.12. Airport Service Facilities 4.12.1. Ground Management Services Ground management services at airports will be made more qualitative and competitive. 4.12.2. Hangar and aircraft maintenance facilities Private sector investors who want to develop suitable hangar facilities and establish and operate aircraft maintenance workshops at Tribhuvan International Airport and other airports will also be encouraged. 4.12.3. Air Cargo Services Private sector investors will also be encouraged in the development and operation of suitable air cargo complexes at Tribhuvan International Airport and other airports. 4.12.4. Air Fuel Supply A reliable system of high quality air fuel supply will be arranged. 4.12.5.Other Facilities Airport Hotel (Airport Hotel), Duty Free Shop, Confectionery Shop, Flight Kitchen, Golf Club, Commercial and Recreational Center etc. by developing and expanding the level of passenger facilities and identifying the possibilities of non-aeronautical income sources and Private investors will also be encouraged to expand. 4.13. Manpower development 4.13.1. Institutional and legal reforms will be made to develop the Nepal Civil Aviation Training Institute as a professional organization that controls and monitors the quality of training and educational activities conducted by the private sector in connection with the Train Air Program of the International Civil Aviation Organization and the World University. 4.13.2. Be able to supply the manpower needed in the air serviceDomestic and foreign investors will be encouraged to conduct training. 4.14. Participation of the private sector 4.14.1. Development of infrastructure such as air transport structures such as airports, roads within the airport area, railways, terminal buildings, communication, roadways etc. Construction-Operation-Transfer Operation-Transfer Construction-Ownership while operating other industries and institutions - Operation-Transfer or other appropriate process will be opened to domestic/foreign private sector investment. 4.14.2. Foreign investment in aircraft operation, training, maintenance and passenger service provider industries can be approved as follows - - International airlines - up to 80 percent - Domestic airlines - up to 49 percent - Training institutions - up to 95 percent - Maintenance institutions - Up to 95 percent

4.14.3 If foreign investors invest US$5 million or more in the air transport sector in Nepal, foreigners involved in such air transport-related industries, businesses, services and project purposes. As long as there is foreign investment in Nepal, arrangements will be made to provide resident visas for the sake of the people and their dependent families. 4.15. Airfare 4.15.1. Based on the recommendation of Nepal Civil Aviation Authority, the government will determine the maximum and minimum air fare for each flight segment. 4.15.2. The Nepal Civil Aviation Authority may intervene and take legal action against the airlines that charge higher fares without operating the service at the air fare rates set by the government and have unhealthy competition. 4.16. International charter flights The permit process will be simplified to encourage international charter (passenger/cargo) flights. 4.17. Nepal Civil Aviation Authority 4.17.1. Nepal Civil Authority will be strengthened as a competent civil aviation regulatory body (aeronautical regulatory body) and business organization to effectively conduct the functions of regulation, control, and expansion of the civil aviation sector. 4.17.2 Land Ownership of land shall be protectedBy doing so, the authority can earn income by bringing the land for commercial purposes with the approval of the ministry for conducting the operations mentioned in this policy and for the economic development and diversification of the authority.