Dhaka: Nepal’s aviation sector may be set for significant changes as the Rastriya Swatantra Party (RSP) has put forward a reform plan aimed at tackling long-standing safety and governance issues.

At the center of the proposal is a restructuring of the Civil Aviation Authority of Nepal. The plan suggests splitting the authority into two separate entities—one responsible for regulation and safety oversight, and another for managing airport operations. Officials said, this could improve transparency, strengthen compliance, and bring Nepal closer to international aviation standards.

The reform package also includes a proposal to partially privatize Nepal Airlines, allowing up to 49 percent private investment. The move is aimed at improving management efficiency, reducing financial losses, and enhancing the airline’s competitiveness.

These initiatives come as Nepal continues to face a long-standing restriction from the European Union Aviation Safety Agency, which has barred Nepali airlines from operating in European airspace for over a decade due to safety concerns.

Analysts said, that if implemented effectively, the reforms could help restore international confidence in Nepal’s aviation system and potentially open the door to lifting the European ban.