Sep 21, 2024

CAAN to take action against fixed-wing airline companies for not clearing dues

CAAN to take action against fixed-wing airline companies for not clearing dues

KATHMANDU, August 11: After collecting the due amount from the helicopter company, the Civil Aviation Authority of Nepal (CAAN) is ready to take strict steps to collect from the airline (fixed-wing ship) company as well. "The authority is not only interested in collecting the dues but also for the financial improvement of the airline company," a senior official of the authority said, "The employees should be satisfied with the salary facilities, otherwise there will be a serious impact on security,” he added.
Lately, some airlines have faced financial crises and some have even closed down. The authority has accelerated the internal audit and found that some helicopter companies and airline companies are also in a serious financial crisis according to the authority.
According to the authority, six airline companies have yet to pay Rs. 129.3 million for using its services. 
Out of which, Guna Airlines owes 59.6 million, over Rs 18.7 million, Summit Air, Rs 29.5 million by Shree Airlines, Rs 3.8 million by Tara Air, Rs 8.3 million by Saurya Airlines, Rs 9.1 million by Sita Air.
Buddha Air and Yeti Airlines have no arrears, according to the authority.
Therefore, the authority said that it is going to give time to solve the financial problem by suspending the flight as it may cause a serious accident while flying the plane by putting the pilot into financial problems.
"It is not the authority's intention to cause trouble to the airlines by stopping the flights," said the official, "this is also an opportunity for the airlines to improve their financial situation," he said.

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