Aviation Policy-2077 : Private Sector Allowed To Build And Operate Airports

September 2, 2020 | Investopaper

The government, which aims to develop all-accessible air transport services as an important part of the national economy, will now make arrangements for the private sector to build and operate airports.

The government is now going to provide such facility to the private sector through the new ‘Aviation Policy-2077’ which will replace the previous 14-year-old ‘Aviation Policy-2063’. For this, the Ministry of Culture, Tourism and Civil Aviation has prepared the final draft of the Aviation Policy-2077 BS and has sought suggestions from the concerned stakeholders for its implementation.

The new draft of the new aviation policy should be emailed to the Ministry’s Aviation Division within 15 days. The draft of the new aviation policy proposed by the Ministry of Tourism states that the private sector will now be able to build and operate domestic airports and helipads. Until now, such facility was not provided to the private sector and individuals. Now even individuals can buy a private jet and keep it for their own purposes.

The draft of the new aviation policy-2077 made public by the ministry states that domestic and foreign private sector investment will be encouraged in the development and operation of infrastructures such as airports, roads within the airport area, railways, terminal buildings, cargo complexes.

Major Provisions In Aviation Policy 2077

The new aviation policy, proposed by the ministry and prepared for final implementation, has also significantly increased the paid-up capital of airlines. The paid-up capital of international airlines will be increased from Rs 500 million to Rs 2 billion, while that of domestic airlines will also be increased from Rs 150 million to Rs 1 billion.

The previously issued aviation policy-2063 has provision that the paid-up capital of domestic airlines should be only Rs 150 million. In the draft of the new policy, it is mentioned that 250 million paid-up capital will be for permission only. Now, in order to get the operating certificate with permission, the paid-up capital will have to be increased to Rs 500 million. The airlines seeking permission for regular flights should have at least three aircraft.

Similarly, a paid-up capital of Rs 500 million is required to operate a helicopter company. The new air policy also mentions the arrangement of a hospital inside the international airport considering the impact of Corona virus (Covid-19).

Foreign Investment

The new aviation policy stipulates that foreign investment of up to 80 percent of international airlines and 49 percent of domestic airlines will be allowed. Similarly, up to 90 percent foreign investment has been allowed in flying schools, up to 95 percent in maintenance institutions and up to 75 percent in passenger service providers.

The government has decided not to allow domestic airlines to fly based on Kathmandu. In the draft, only airlines operating on the basis of airports outside Kathmandu will be allowed. The government has decided to give discounts and grants to airlines that do not have road transport and fly in remote areas. The policy stipulates that airlines flying to remote airports will be exempted from aviation fuel charges based on the number of flights.

Meanwhile, the government, which has already signed air service agreements with 40 countries, is now planning to sign air service agreements with three more countries. The Ministry of Tourism is preparing new air service agreements with Indonesia, Finland and Russia.


The major provision in the new Aviation Policy-2077 include:

– 100 percent exemption in income tax for those who invest up to Rs 2 billion
– Discount on fuel for companies flying in remote areas
– Independent plant to investigate plane crashes
– 500 million paid up capital to the helicopter company
– Further tightening of aircraft imports
– Up to 95 percent foreign investment will be available in the airline
– Only airlines will be allowed to fly based on the airport outside Kathmandu
– Not allowed to bring aircraft older than 12 years



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