Definition on Institution operating international Air Service
(a) “Institution Operating International Air Service” means an air service operating Institution that operates regular air flights from Nepal to a foreign country or from a foreign country to Nepal, and the term also include an air service operating Institution operating charter or cargo flights, other than regular flights, from Nepal to a foreign country or from a foreign country to Nepal.
(b) “Institution Operating Domestic Air Service” means an air service operating Institution that operates regular air flights within Nepal, and the term shall also include an air service operating Institution operating charter or cargo flights, other than regular flights, within Nepal.
(c) “License ” means the License issued pursuant to Rule 11 of Air Service Management Regulation 2025 to operate an institution related to civil aviation.
(d) “Act” means the Civil Aviation Act, 2015 (1959).
(e) “Other institutions providing training related to civil aviation” means institutions providing training related to air service operations, ground handling, air cargo management, and other ground classes associated with air service operations.
(f) “Institution related to civil aviation” means an Institution as referred to in Rule 3.
(g) “Authority” means the Civil Aviation Authority of Nepal.
(h) “Fleet” means the type and number of aircraft possessed by the Institution operating air service.
(i) “Ministry” means the Ministry of Culture, Tourism, and Civil Aviation of the Government of Nepal.
(j) “Recognized Training Institution” means an Approved Training Institution (ATO) that provides training related to personal licensing requirements for personnel engaged in civil aviation.
(k) “Institution Operating Commercial Air Service” means the Institution referred to in Clause (a) of Rule 3 of Air Service Management Regulation 2025.
(l) “Operating Certificate” means the Air Operator’s Certificate (AOC) issued by the Authority pursuant to the prevailing civil aviation laws.
How does Institution Related to Civil Aviation operate in Nepal:
| S.N. | Category | Sub-Category |
| (1) | Under Commercial Air Services | (a) Institution Operating International Air Service |
| (b) Institution Operating Domestic Air Service | ||
| (2) | Other Related Institutions | Institutions engaged in the production, repair, and detailed maintenance (overhaul), including testing of aircraft and aircraft parts and components |
| (3) | Under Training Institutions | (a) Flight training institutions (flying schools) |
| (b) Recognized training institutions | ||
| (c) Other institutions providing training related to civil aviation | ||
| (d) Aircraft and aircraft parts repair and maintenance training institutions | ||
| (4) | Under Recreational Aviation Activities | (a) Recreational Aviation Institutions |
| (b) Recreational Aviation Training Institutions |
Explanation: For the purpose of this clause, “Recreational Aviation Activities” means recreational activities operated using ultralight, microlight, paragliding, hang-gliding, skydiving, or hot air balloon equipment, either with or without an engine, enabling flight through the medium of air.
Classification of Institution Operating Air Service:
- The Ministry shall classify international air service operating Institution into Class “A,” “B,” and “C” as follow based on the maximum takeoff weight and the number of aircraft:
| Class | Conditions |
| Class A | Air service operating Institution with at least three aircraft, each having a maximum takeoff weight exceeding 125,000 kilograms. |
| Class B | Air service operating Institution with at least three aircraft, each having a maximum takeoff weight of more than 40,000 kg and up to 125,000 kg. |
| Class C | Air service operating Institution with at least three aircraft, each having a maximum takeoff weight up to 40,000 kilograms. |
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- In the classification if an International Air Service Operating Institution classified under Class “B” or “C” wishes to be classified under Class “A” or “B,” it shall submit an application to the Ministry, and if such air service operating Institution is found to have fulfilled the qualifications required for Class “A” or “B,” the Ministry may classify it under such classification.
- Notwithstanding anything contained, an International Air Service Operating Institution that has obtained a License and is operating at the commencement of this Regulation under Class “B” or “C” may be classified under class “A” or “B” for the relevant category by commencing service with less than three aircraft as prescribed.
- An International Air Service Operating Institution classified under Class “A” or “B”, must commence operation with at least three aircraft as required for the relevant class within four years from the date of such classification.
- If an international air service operating Institution fails to operate with the minimum required three aircraft within the period specified under (4), the Ministry shall classify it into the previous Class “B” or “C,”.
(6) The classification of Institution operating domestic air service shall be as follows:
(a) Institution operating fixed-wing aircraft,
(b) Institution operating helicopters.
What are the types of Commercial Air Services in Nepal
- The types of services to be provided by commercial air service operating Institutions shall be as follows:
| Type of Service | Description |
| Scheduled Flights | Passenger or cargo (freighter), or both services provided under scheduled flights. |
| Charter Flights | Passenger or cargo (freighter), or both services provided under charter flights. |
(2) If an air service operating Institution License ted to operate services under Clause (b) of (1) wishes to operate services under Clause (a) of the same sub-rule, it must submit an application to the Ministry along with the following documents:
(a) Details, specifications, and type certificates of the proposed aircraft to be operated,
(b) Proposed flight schedule for each route,
(c) Business plan including financial projections according to the proposed routes,
(d) Manpower plan necessary for the operation of the proposed flights,
(e) Approved fare rates to be charged on the concerned routes,
(f) Commitment to comply with the liability requirements under the “Convention for the Unification of Certain Rules for International Carriage by Air (Montreal Convention 1999)” (in the case of international air services).
(3) Upon inspection of the application received, if it is found that the Licensed air service operating Institution has fulfilled the conditions under the Act, this Regulation, and the prevailing laws, the Ministry shall grant approval for the change in the type of service.
(4) Notwithstanding anything contained elsewhere in Air Service Management Regulation 2025, an air service operating Institution License ted to operate services shall not be required to obtain separate approval to operate services.
Requirements to Obtain a License:
- Institution related to civil aviation must obtain a License from the Ministry before commencing operations.
- Institution related to civil aviation that wishes to obtain a License shall submit an application to the Ministry in the format prescribed attaching the following documents and details:
(a) Copy of the Company Registration Certificate,
(b) Copy of the Memorandum and Articles of Association of the Company,
(c) Proof of maintained paid-up capital,
(d) Personal details of the directors,
(e) Copy of the citizenship certificate of shareholders, investors, or directors,
(f) Original copy of the police report of shareholders, investors, or directors,
(g) A letter stating that the shareholders, investors, or directors have not been blacklisted under prevailing law,
(h) Copy of the Permanent Account Number (PAN) certificate,
(i) Plan relating to the arrangement of financial resources necessary for service operation,
(j) Official letter signed by an authorized officer on behalf of the Institution related to civil aviation,
(k) In the case of international air service operators conducting regular flights, a bank guarantee issued by a “Class A” commercial bank License ted by Nepal Rastra Bank,
(l) Financial and technical proposal prepared including the business plan, manpower management plan, capital structure, analysis of income and expenditure, and other relevant details.
Paid-up Capital:
| S. No | Type of Airline Institution | Paid-up Capital Requirement |
| 1 | Institution classified under category “A” for international air service (fixed-wing/helicopters) | Minimum of One Billion Two Hundred Fifty Million Rupees |
| 2 | Institution classified under category “B” for international air service (fixed-wing/helicopters) | Minimum of One Billion Rupees |
| 3 | Institution classified under category “C” for international air service (fixed-wing/helicopters) | Minimum of Seven Hundred Fifty Million Rupees |
| 4 | Institution operating fixed-wing aircraft under domestic air service | Minimum of Seven Hundred Fifty Million Rupees |
| 5 | Institution operating helicopters under domestic air service | Minimum of Five Hundred Million Rupees |
| 6 | Institution engaged in aircraft production, repair, and detailed maintenance (overhaul) | Minimum of Fifty Million Rupees |
| 7 | Aviation flight training institute (Flying School) | Minimum of One Hundred Million Rupees |
| 8 | Recognized training institute | Minimum of Ten Million Rupees |
| 9 | Institution providing training related to civil aviation (other than recognized institutes) | Minimum of Two Million Rupees |
| 10 | Institution providing aircraft and aircraft parts maintenance training | Minimum of Twenty Million Rupees |
| 11 | Recreational aviation Institution operating non-engine-powered aircraft | Minimum of Two Million Rupees |
| 12 | Recreational aviation Institution operating engine-powered aircraft | Minimum of Five Million Rupees |
| 13 | Recreational aviation training institute | Minimum of Five Million Rupees |
Basis for Evaluation:
(1) The Ministry shall form an Evaluation Committee to conduct an inquiry into the application received and to submit its opinion.
(2) The Committee formed pursuant to 1 shall evaluate the financial and technical proposals submitted with the application based on the following criteria and weightage:
(a) In the case of Institution operating international air service, as per Schedule-2 of Air Service Management Regulation 2025 ,
(b) In the case of Institution operating domestic air service, as per Schedule-3 of Air Service Management Regulation 2025 ,
(c) In the case of flight training institutions (flying schools), recognized training institutions, or other institutions providing training related to civil aviation, as per Schedule-4 of Air Service Management Regulation 2025
(d) In the case of recreational aviation institutions, as per Schedule-5 of Air Service Management Regulation 2025
(e) In the case of recreational aviation training institutions, as per Schedule-6 of Air Service Management Regulation 2025
(f) In the case of Institution engaged in the production, repair, and detailed maintenance including testing (overhaul) of aircraft and aircraft parts, as per Schedule-7 of Air Service Management Regulation 2025
(g) In the case of aircraft and aircraft parts repair-maintenance training institutions, as per Schedule-8 of Air Service Management Regulation 2025
(3) While evaluating by the Committee formed shall recommend for the issuance of a License only to those institutions related to civil aviation that obtain at least seventy percent of the total full marks for each proposal.
(4) The Committee formed shall submit its report, along with its recommendation, to the Ministry within twenty-one days from the date of its formation.
Decision regarding the License:
- The Ministry shall make the necessary decision on the application submitted by the institution related to civil aviation for the License pursuant to Rule 6 of Air Service Management Regulation 2025, based also on the report of the Evaluation Committee under Rule 8 of Air Service Management Regulation 2025
- Before making a decision, the Ministry may obtain opinion from the Authority or other body as necessary.
- The Ministry shall provide information of the decision, the applicant within seven working days from the date of such decision.
Submission of Bank Guarantee:
The Institution operating international air service conducting regular flight shall submit a bank guarantee equivalent to twenty-five lakh rupees valid for at least three years as security.
Issuance of License:
(1) The Ministry shall issue a License in the format as prescribed in Schedule-9 of Air Service Management Regulation 2025 to the civil aviation-related Institution whose decision for issuance of License
Provided that, the License to the Institution operating international air service conducting regular flight shall be issued only after submission of the bank guarantee.
(2) The Institution operating international air service obtaining License or the Institution operating domestic air service under Sub-rule (6) of Rule 4 of Air Service Management Regulation 2025 of Air Service Management Regulation 2025 shall have to operate service with at least three aircraft within five years of obtaining the License.
- The responsibility to obtain permission from the concerned country for international flight and to complete other procedures shall lie with the Institution operating international air service obtaining the License.
Duration of the License:
The duration of the License shall be four years.
Renewal of the License:
(1) The civil aviation-related Institution wishing to renew the License shall have to submit an application to the Ministry attaching the following documents and details at least thirty days prior to the expiration of the License:
(a) Copy of the License,
(b) Details of the equipment License ted,
(c) Details of the physical structure,
(d) Status of technology transfer,
(e) Copy of updated tax clearance certificate,
(f) Audit report of the latest fiscal year,
(g) Details of employed domestic and foreign manpower,
(h) Business progress report.
(2) Notwithstanding anything written, the civil aviation-related Institution, which had obtained the License from the Ministry at the time of commencement of this Rules but whose License duration has expired, may submit application within thirty days from the date of commencement of this Rules for renewal of such License.
Provided that, the License which has been expired for more than one year cannot be renewed.
(3) In relation to the application received, if it is found during necessary inquiry that the applicant has complied with the conditions prescribed by the Act, this Rule, and other prevailing laws, the Ministry shall decide to renew the License within twenty-one days from the date of receipt of such application and shall provide information thereof to the applicant.
(4) Before making decision regarding renewal of the License, the Ministry may obtain opinion from the Authority or other body as necessary.
(5) The License of the civil aviation-related Institution that does not submit application for renewal of the License within the period mentioned in the License as per this Regulation shall automatically be cancelled.
(5) The concerned air service shall have to bring and operate such fleet within two years from the date of approval to add or change the fleet.
(6) If the concerned air service fails to operate by adding or changing the fleet within the period, it may submit application to the Ministry for extension of such period, and if found appropriate after inquiry of such received application, the Ministry may extend the period for addition or change of fleet for maximum up to one year.
(7) If the fleet is not brought and operated within the period pursuant to Sub-rule (5) or the period extended, the approval given for such fleet addition or change shall automatically be cancelled.
Right to Add Route:
(1) If the License obtained Institution operating air service wishes to add a route, it shall submit an application to the Ministry by mentioning such matter and attaching the following details and documents:
(a) Copy of the License,
(b) Copy of the operation certificate,
(c) Operation status of the fleet mentioned in the License,
(d) Copy of updated tax clearance certificate,
(e) Audit report of the latest fiscal year,
(f) Details of the route desired to be added.
(2) While making inquiry upon the application received, if it is found that the applicant has been operating service by complying with the conditions prescribed at the time of License issuance, the Ministry may grant permission to add the route.
Designating Operation Base:
(1) While granting the License, the Ministry shall designate the operation base of the civil aviation-related Institution by evaluating air infrastructure, service necessity, airport traffic capacity, among others.
(2) If it is necessary to add or change the operation base designated, the civil aviation-related Institution shall submit an application to the Ministry mentioning the reason and justification for such change along with the following details and documents:
(a) Copy of the License and operation certificate,
(b) Document substantiating the justification for addition or change of operation base,
(c) Copy of updated tax clearance certificate,
(d) Income-expenditure details of the civil aviation-related Institution.
Airline Designation and Operating Authorization:
(1) The Ministry may, pursuant to this Rule, grant airline designation to Institution operating air service registered in Nepal desiring to operate international flights, and operating authorization to a foreign air service operating Institution desiring to operate flights into Nepal. While designating the airline or granting operating authorization, it shall be done in accordance with the bilateral air service agreement.
(2) Institution operating air service wishing to obtain airline designation or operating authorization shall submit an application to the Ministry at least sixty days prior to the commencement of regular flights, enclosing the following details and documents:
(a) Copy of the company registration certificate,
(b) Copy of the citizenship certificate of the shareholders or members of the board of directors of the Institution operating air service,
(c) Address of the head office of the Institution operating air service, along with telephone, fax, telex, and email address,
(d) Copy of the operation certificate,
(e) Copy of the License,
(f) Certified document evidencing approval of the operation manual by the regulatory authority,
(g) Detailed description of the equipment of the aircraft,
(h) Document certifying ownership of the aircraft,
(i) In case of aircraft lease purchase, a certified copy of the agreement allowing operation on the intended route,
(j) Contact details of the officials responsible for airworthiness, licensing, flight operations, and accident investigation,
(k) Comprehensive air security and flight safety program of the Institution operating air service, in the format of Schedule-17 (Annex-17) of the Convention on International Civil Aviation (concluded in Chicago, United States of America, on December 7, 1944),
(l) Official certificate regarding the duties, responsibilities, and authority of the chief executive officer of the Institution, in accordance with the related laws of the Institution operating air service,
(m) Details regarding liabilities related to passengers, cargo, baggage, and third parties, along with a certified copy of the insurance policy made accordingly,
(n) In the case of a Institution operating foreign air service, certified signature of the representative of the concerned airline (certified by the chief executive officer of the respective airline),
(o) Approved fare rates applicable for the respective route,
(p) If there exists any management agreement with other airlines, the certified document thereof.
(3) For a foreign Institution operating air service wishing to operate flights into Nepal, an official letter designating the airline for Nepal from the concerned country must be received through diplomatic channels.
(4) The documents submitted by a foreign Institution operating air service wishing to operate flights into Nepal must be certified by the civil aviation regulatory authority of the concerned country.
(5) A foreign Institution operating air service which has obtained operation authorization, when applying for route addition or modification in the Ministry, shall also submit a document evidencing approval from the regulatory body related to civil aviation of the concerned country.
Work Consent, Labor Approval, and Recommendation for Non-Tourist Visa:
(1) In the event that a Institution related to civil aviation holding License requires the employment of foreign manpower, such Institution shall submit an application to the Ministry, accompanied by the following particulars and documents, in order to request work consent approval, labor approval , and recommendation for a non-tourist visa:
(a) Details and supporting documents substantiating the necessity and justification for employing foreign manpower,
(b) Copy of the passport of the foreign manpower,
(c) Copy of the tourist visa of the foreign manpower,
(d) Copy of the appointment letter and the contract agreement concluded with the foreign manpower,
(e) In the case of technical manpower, a copy of the License related to the concerned service,
(f) In the case of foreign manpower appointed to work in a Nepalese air service company, a copy of the appointment process (a copy of the advertisement published in a national daily newspaper of Nepal concerning the fulfillment of the post),
(g) Personal details disclosing the identity of the foreign manpower,
(h) Details of work progress, if the foreign manpower sought to be employed had previously worked in Nepal,
(i) Copy of the License of the Institution related to civil aviation submitting the application,
(j) A plan for the replacement of such foreign manpower, if work approval, labor License, and recommendation for a non-tourist visa are sought more than once.
(2) The applicant may submit the document mentioned under Clause (c) of Sub-rule (1) to the Ministry prior to obtaining the recommendation for a non-tourist visa.
Transactions to be Conducted Through a General Sales Agent (GSA)
- Foreign airline operators intending to operate commercial flights in Nepal must conduct their business through a General Sales Agent (GSA) registered in Nepal, in compliance with prevailing laws.
- Foreign airlines seeking to operate in Nepal are required to apply for airline nomination or operating permission (approval) and such applications must be submitted through a registered General Sales Agent (GSA).
- Airline operators already operating commercial flights in Nepal without a GSA prior to the enactment of these regulations must appoint a General Sales Agent (GSA) and submit the relevant details to the Ministry within one year from the effective date of the regulations.
Explanation: For the purpose of this rule, a General Sales Agent (GSA) refers to a representative appointed by a foreign airline to carry out its authorized representation and commercial transactions within Nepal.
Change of Institution Name:
(1) If the Institution related to civil aviation holding a License wish to change its name, it shall submit an application to the Ministry along with the following particulars and documents:
(a) Decision of the Board of Directors of the Institution related to civil aviation,
(b) Letter concerning the updated share records issued by the Office of the Company Registrar,
(c) Statement specifying the reasons and objectives for the name change,
(d) Copy of the updated tax clearance certificate,
(e) Certified copy of the Permanent Account Number (PAN) certificate,
(f) Copy of the License.