Transportation and Aviation

Communication and navigation (COM/NAV) service charge

Under the Airport Service Charge Regulation, 2078 of the Civil Aviation Authority of Nepal (CAAN), CAAN levies a communication and navigation service charge on aircraft that use its air navigation services (air traffic control, communication, navigation aids, surveillance and meteorological support) at and over international airports and airspace.

• Basis of charge: the charge is levied per flight on the operator of the aircraft, and is fixed in the Schedule of the Regulation according to the type of flight (international or domestic) and the weight (maximum take-off weight) of the aircraft. Overflying aircraft that only cross Nepali airspace are charged on the distance flown in Nepali airspace and the weight of the aircraft.
• International flights: a higher schedule rate, set in US dollars or the equivalent, applies to international flights landing or taking off at an international airport such as Tribhuvan International Airport.
• Domestic flights: domestic flights at an international airport are charged a lower rate in Nepali rupees.
• Collection: the airline or operator pays the charge to CAAN, and it is usually collected together with landing and parking charges.
• Revision and exemptions: CAAN may revise the rates with Government of Nepal approval. Certain flights, such as diplomatic, rescue, relief and state flights, are exempted as provided in the Regulation.

Purpose: the income funds the operation, maintenance and upgrading of air navigation equipment and ensures safe and orderly air traffic.

Introduction

Nepal's rugged terrain, with the Himalayas, hills and a limited road network, makes air transport essential. It is the main link to many remote districts, and it is vital to tourism and the economy.

Prospects (3 marks)

• Tourism: air connectivity serves trekking and mountaineering destinations such as Lukla, Jomsom and Pokhara, and brings in foreign exchange. Pokhara and Gautam Buddha (Bhairahawa) international airports open new gateways.
• Remote area connectivity: it is often the only quick link to Himalayan districts such as Humla, Dolpa and Mugu, and it carries food, medicine and emergency relief.
• Trade and employment: air cargo, transit and aviation services diversify trade away from dependence on India and create jobs for pilots, engineers and ground staff.
• Strategic value: it supports disaster response, diplomacy and Nepal's geographic position between India and China.

Challenges (3 marks)

• Geography and weather: short, high-altitude runways, sudden weather changes and mountain terrain raise accident risk.
• Weak infrastructure: inadequate navigation aids, limited night-landing capability, and congestion at Tribhuvan International Airport.
• Safety and regulation: concerns about regulatory oversight have repeatedly drawn attention from the International Civil Aviation Organization (ICAO) and caused flight restrictions abroad, and a number of crashes have damaged confidence.
• Finance: high operating and fuel costs, with low profitability for domestic airlines, and delays and cost overruns on airport projects.
• Human resources: shortage of skilled pilots and engineers, many of whom migrate abroad.
• External dependence: reliance on foreign carriers and imported fuel, aircraft and spare parts.

Suggestions (4 marks)

• Upgrade infrastructure: expand and upgrade airports such as Tribhuvan, Pokhara, Gautam Buddha and Nijgadh, install modern navigation, radar and landing aids, and develop reliable short take-off and landing (STOL) airfields in remote areas.
• Strengthen safety oversight: make the Civil Aviation Authority of Nepal (CAAN) more autonomous and professional, separating regulation from service operation, and comply fully with ICAO standards.
• Support domestic airlines: offer incentives, subsidies for remote routes and public-private partnership to keep services viable.
• Develop human resources: expand aviation training academies and retain skilled staff through better pay and conditions.
• Expand connectivity and tourism: pursue more bilateral air service agreements and international routes, and link air services with tourism promotion.
• Prepare for disasters: strengthen the capacity for rescue, relief and weather forecasting.

Conclusion

With sound infrastructure, strict safety regulation and skilled people, air transport can become a safe and profitable base for Nepal's tourism, trade and balanced regional development.