Nepal plans to split the Civil Aviation Authority of Nepal (CAAN) into two separate agencies, a minister said on Tuesday, in a country where at least 380 people have died in 21 crashes — fixed-wing aircraft and helicopters — since 2000.

Under the new structure, one entity would oversee aviation safety and regulation. The other would manage airports, infrastructure and aviation services. The split targets a conflict of interest that has sat at the centre of Nepal's oversight model for years: one authority both regulates the industry and operates within it.

"Separating these functions will address the inherent conflict of interest in the current structure and strengthen the credibility and effectiveness of safety oversight," Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel told Reuters in a text message.

What does the legislation change?

Paudel last week submitted two draft bills to parliament. Under the drafts, CAAN would cede its service-providing role to a new body, the Nepal Air Service Authority (NASA), which will be created once the legislation passes.

Analysts say the government holds the majority needed to pass the laws, but several months could elapse before the new arrangements take force. Until then, CAAN continues to combine both functions.

The institutional detail matters for airlines and lessors exposed to the Nepali market. Safety oversight credibility is the currency that determines whether a national regulator's certifications carry weight abroad — and whether foreign authorities lift restrictions on its carriers.

Why is the EU ban in play?

The European Union has barred Nepal-certified airlines from flying to Europe, citing safety concerns. The restriction has constrained Nepali carriers' network ambitions andcodeshare prospects for more than a decade of enforcement.

Paudel said Nepal has already submitted a Corrective Action Plan, which is currently under review by the EU. The regulator split forms part of that broader remediation effort.

The safety record driving the overhaul is stark. The 21 crashes since 2000 span both fixed-wing aircraft and helicopters, killing at least 380 people across the country's challenging terrain.

What else is Nepal doing?

Paudel said the government is taking additional steps beyond the structural change, including enhancing industry training. He framed the split as necessary but not sufficient.

"Aviation safety requires continuous improvement, not a one-time structural change," he said.

That framing separates what is legislated from what is promised. The draft bills are real and before parliament; the Nepal Air Service Authority exists only on paper until passage. The Corrective Action Plan is under EU review, not accepted. No date is fixed for any of it.

For Nepal's airlines, the timeline carries commercial weight: until oversight credibility improves measurably, the EU ban stands, and with it the ceiling on European network access. Analysts expect the parliamentary majority to carry the bills through, but the several-month runway to implementation means the current dual-role structure — the very conflict of interest the reform targets — will govern Nepali aviation into next year.