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Home Prime News

CAAN calls on airlines to pay arrears within 7 days

CEO Tab by CEO Tab
March 21, 2022
in Prime News
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CAAN hit by significant fall in revenue collections
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The Civil Aviation Authority of Nepal (CAAN), the regulatory body, has decided to take action against the airlines for non-payment of arrears.

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CAAN is preparing to take action against seven different airlines which are not in operation now but have not paid the remaining arrears.

In a public notice issued on Sunday, the authority has directed the airlines to pay the arrears within seven days.

The authority has stated that the airlines that do not pay the arrears will be brought under the purview of the law. CAAN Director-General Engineer Pradip Adhikari informed that action would be taken if the airlines did not pay the dues within seven days.

“Immediately after this information, the entry permit is suspended. Foreign travel and bank accounts across Nepal will be blocked,” he said.

The defaulting airlines are Necon Air, Shivani Air, Gorkha Air, Mountain Air, Cosmic Air, Skyline Airways, and Air Woodmandap.

Out of this, Necon Air has arrears of Rs 47.225 million, Shivani Air has arrears of Rs 55.51 million and Gorkha Air has arrears of Rs 20.35 million.

Similarly, Cosmic Air owes Rs 3,47,58,070, Skyline Airways Rs 7,80,400, Air Woodmandap Rs 7,38,447 and Mountain Air Rs 6,10,834.

According to CAAN, Karnali Air has paid the arrears. CAAN has stated that action will be taken against other airlines for non-payment of arrears. According to the law, if the arrears of CAAN are not paid, the government will collect the same as the rest.

According to the Airport Service Fee Regulations, those operators and companies will not be allowed to take any kind of service related to air service, airport, and authority in the future.

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