CAAN Issues Ultimatum to Nepal Airlines Over Delay in Appointing Permanent Safety Chief

The Civil Aviation Authority of Nepal (CAAN) has issued a formal warning to the state-owned Nepal Airlines Corporation (NAC) for failing to appoint a permanent Accountable Manager, a key leadership position required to ensure adherence to international flight safety standards.

Repeated Warnings Ignored

In an official letter dated August 17, 2025, CAAN’s Flight Safety Standards Department notified NAC’s Board of Directors that it had yet to receive a “substantial response” regarding the appointment, despite having raised the matter on two previous occasions, on B.S. 2082/01/15 and B.S. 2082/03/20.

According to CAAN, the continued delay in nominating a qualified Accountable Manager constitutes a “condition of non-compliance” with national aviation regulations and international safety requirements. Such a lapse could have serious implications for the airline’s operational certifications and safety oversight.

Importance of the Role

The Accountable Manager is a critical position in any airline, tasked with ensuring that the company complies with all aviation safety standards, regulatory requirements, and operational procedures. This individual is also the primary point of contact between the airline and the civil aviation authority regarding safety management systems and compliance issues.

Without a designated and approved Accountable Manager, an airline risks lapses in safety accountability, reduced operational oversight, and even potential suspension of its Air Operator Certificate (AOC), a license essential for conducting commercial flights.

Interim Appointment by CAAN

As a temporary solution, CAAN has assigned Senior Captain Deepu Raj Jwarchan, who currently serves as NAC’s Operations Director, to assume the duties of the Accountable Manager effective August 15, 2025. This interim appointment is intended to keep safety compliance in place while NAC resolves the leadership gap. The letter from CAAN makes it clear that this arrangement is only provisional and that the airline is expected to put forward a permanent nominee without further delay.

Potential Impact on NAC’s Air Operator Certificate

CAAN’s warning emphasizes that NAC must nominate a suitable candidate “as soon as possible” to maintain the validity of its Air Operator Certificate. The AOC is the legal authorization that allows NAC to operate commercial passenger and cargo flights both domestically and internationally.

Failure to comply could lead to regulatory penalties, restrictions on operations, or even the suspension of flight activities until compliance is restored. Such an outcome would not only damage the airline’s reputation but also disrupt air connectivity and passenger services.

CAAN’s Firm Stance on Safety Compliance

The civil aviation regulator’s tone in the letter is firm, concluding with the statement that “further action will be followed accordingly” if NAC does not resolve the issue promptly. This signals that CAAN is prepared to take more severe measures should the airline fail to meet the compliance requirement.

Aviation safety experts note that such warnings are rare and reflect a regulator’s serious concerns about operational governance. They also stress that leadership stability in safety-critical roles is essential for maintaining industry trust and meeting the standards required by international bodies such as the International Civil Aviation Organization (ICAO).

Background: NAC’s Operational Challenges

Nepal Airlines has faced ongoing operational and management challenges over the years, including leadership turnover, financial pressures, and competition from private carriers. The airline has been under scrutiny from CAAN and other stakeholders to improve safety management systems and ensure full compliance with regulatory requirements. The delay in appointing a permanent Accountable Manager is the latest in a series of governance issues, raising concerns about the efficiency of decision-making within the organization.

The Way Forward

To resolve the matter, NAC’s Board of Directors will need to identify a qualified candidate who meets CAAN’s criteria for the position. This includes not only the necessary technical and managerial expertise but also a strong track record in aviation safety oversight.

Given the urgency of the situation, industry insiders expect NAC to prioritize this appointment in upcoming board meetings. Appointing a permanent Accountable Manager will not only satisfy CAAN’s regulatory demands but also demonstrate the airline’s commitment to improving operational governance.

CAAN’s warning to Nepal Airlines serves as a strong reminder of the importance of maintaining leadership stability in safety-critical roles. The regulator’s intervention underscores that aviation safety compliance is non-negotiable and directly tied to an airline’s operational license.

With the interim appointment of Senior Captain Deepu Raj Jwarchan, NAC has a temporary safeguard in place. However, the pressure is now on the airline’s leadership to act swiftly and secure a permanent solution, one that will ensure not only regulatory compliance but also passenger confidence in Nepal’s flag carrier.

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