Why Did Nepal Just Sack 30+ Officials from CAAN, Nepal Airlines and Tourism Boards?

The Government of Nepal has dismissed more than 30 office bearers from key tourism and aviation-linked institutions under the Ministry of Culture, Tourism and Civil Aviation, invoking a newly enforced ordinance aimed at restructuring public bodies.

The decision, announced through an official press release on Tuesday, affects entities including Nepal Airlines Corporation, Civil Aviation Authority of Nepal (CAAN), and Nepal Tourism Board, with the government citing legal provisions to justify the sweeping removals. The news comes only day after the Nepal government announced that it was accepting applications for the post of a new Directorate General of CAAN and for the board of directors of Nepal Airlines Corporation.

Government Order Details and Legal Basis for the Dismissal

The Ministry confirmed that the removals were executed under Section (2), Sub-section (1) of the Special Provision Ordinance on Removal of Public Office Holders, 2026.  Officials appointed by the Council of Ministers across multiple boards were relieved of their duties with immediate effect, marking one of the most extensive administrative reshuffles in recent years.

According to the ministry’s statement, the ordinance provides the legal framework to dissolve or reconstitute public bodies deemed misaligned with current policy priorities. The move signals a broader attempt by authorities to recalibrate governance structures across tourism and aviation-linked institutions.

The following table details the people who been removed:

S.No.	Organization / Institution	Position	Name
1	Pashupati Area Development Trust	Member Secretary	Prakash Mani Sharma
2	Pashupati Area Development Trust	Treasurer	Dhirendra Sapkota
3	Pashupati Area Development Trust	Member	Harihar Dhakal
4	Pashupati Area Development Trust	Member	Shishir Parajuli
5	Pashupati Area Development Trust	Member	Babu Sharan Subedi
6	Pashupati Area Development Trust	Member	Dr. Bharat Prasad Badal
7	Pashupati Area Development Trust	Member	Rameshwar Sangraula
8	Pashupati Area Development Trust	Member	Sushma Poudel
9	Pashupati Area Development Trust	Member	Raj Kumar Khati
10	Nepal Airlines Corporation	Executive Director	Amritman Shrestha
11	Nepal Airlines Corporation	Board Member	Ram Prasad Khatiwada
12	Cultural Institution	Chairperson	Chandra Kumar Rai
13	Cultural Institution	Member	Pooja Shrestha
14	Cultural Institution	Vice-Chairperson	Shankar Prasad Lama
15	Cultural Institution	Treasurer	Buddhi Raj Bhattarai
16	Cultural Institution	Member Secretary	Dipak Shrestha
17	Cultural Institution	Member	Shyam Bahadur Mijar
18	Cultural Institution	Member	Gopi Krishna Sharma
19	Cultural Institution	Member	Bidyut Poudel
20	Cultural Institution	Member	Ram Naresh Koirala
21	Cultural Institution	Member	Shriram Yadav
22	Cultural Institution	Member	Rajesh Shakya
23	Cultural Institution	Member	Prakash Bhandari
24	Cultural Institution	Member	Dharananda Kattel
25	Nepal Tourism Board	Chief Executive Officer	Deepak Joshi
26	Nepal Tourism Board	Member	Narendra Kumar Dev
27	Nepal Tourism Board	Member	Kumar Mani Thapaliya
28	Nepal Tourism Board	Member	Khadga Ram Bhandari
29	Nepal Tourism Board	Member	Rajendra Bahadur Lama
30	Nepal Tourism Board	Member	Ram Prasad Sapkota
31	Civil Aviation Authority of Nepal	Member	Rabindra Silwal
32	Civil Aviation Authority of Nepal	Member	Shri Mitra Prasad Pant (Tourism Sector)
33	Greater Janakpur Area Development Council	Chairperson	Shital Sah

Impact On Nepalese Aviation and Tourism Bodies

The restructuring directly affects institutions central to Nepal’s aviation ecosystem, including Nepal Airlines Corporation and the Civil Aviation Authority of Nepal. These organizations play a critical role in regulating operations at Tribhuvan International Airport (KTM), the country’s primary international gateway. In fact, it was CAAN, which deemed Mingbo Airport, the most dangerous airport prior to Lukla, was unsafe for operations. The airport was instrumental in transporting relief goods to the Everest region when Tibetans had fled the Chinese during the cultural revolution.

Industry observers note that administrative changes at the regulatory and airline level can influence operational continuity, fleet planning, and international compliance. The inclusion of the Nepal Tourism Board and Lumbini Development Trust also indicates that the government is aligning tourism promotion with aviation strategy. The plans come at a time when the international airport in Lumbini [Gautam Buddha International Airport (BWA)] is looking for fifth-freedom flights. and the government has brought forth plans to increase the inflow of tourists by 11% in Nepal.

Officials from multiple bodies were removed simultaneously, including board members, executives, and committee representatives. Such a coordinated overhaul suggests a centralized policy shift rather than isolated governance issues.

Comparison With Previous Reforms in Nepal Aviation Sector

Nepal’s aviation sector has witnessed periodic structural reforms, particularly following international scrutiny over safety oversight. In earlier instances, regulatory adjustments were driven by external pressures, including compliance requirements from global aviation bodies.

Bangladesh Monitor reported that Nepal is considering a significant overhaul of its aviation framework, with plans to reorganize the Civil Aviation Authority into two independent bodies:

• One entity would oversee safety regulation
• The other would handle airport operations, a separation intended to improve accountability and align with global best practices.

This development comes about after EU has repeatedly urged Nepal for CAAN to split up into two entities to make aviation safety better in Nepal. Bangladesh Monitor also reported that the government is evaluating a partial privatization of Nepal Airlines, allowing private investors to acquire up to a 49 percent stake. The objective is to enhance operational efficiency (as Nepal saw its biggest scandal in aviation history during the purchase of the Airbus A330), curb persistent financial losses (such as the one seen during the debt trap that is set to be the Pokhara International Airport), and position the carrier more competitively in the regional market.

Industry analysts suggest that if these reforms are implemented effectively, they could strengthen regulatory credibility, rebuild international trust, and potentially pave the way for lifting the long-standing European ban.

Nepal’s Wider Administrative And Economic Context

The government’s intervention comes at a time when Nepal is attempting to strengthen its tourism recovery and aviation capacity. Only a few weeks ago, Nepal ordered its airports to have a breastfeeding room, sent out measures (to CAAN) for safety to prevent accidents such as the crash of a helicopter in Lobuche, Everest region, among other measures.

By removing existing office bearers, the government has created space for new appointments that may align more closely with its strategic priorities. However, the transition phase could introduce short-term uncertainty, particularly if leadership gaps persist.

The ministry has not yet disclosed timelines for new appointments, but industry stakeholders will closely monitor how quickly replacements are installed. The effectiveness of this overhaul will ultimately depend on whether it translates into improved governance and operational outcomes, given that Iran War might increase jet fuel prices and drive some domestic airlines to stop operating in Nepal, given that fuel expenses for airlines in Nepal have gone over 60%.