Aviation Law
We work consistently in the aviation sector, advising on aircraft finance, sale and purchase of aircraft, aircraft and engine leasing, aircraft registration, aviation insurance and aircraft-related disputes including accident claims. We also advise on the compliance obligations aviation businesses owe to the Civil Aviation Authority of Nepal (CAAN).
The Legal Framework
Civil aviation in Nepal rests on the Civil Aviation Act, 2015 B.S. (1959), which provides the foundational legal basis for the sector, and the Nepal Civil Aviation Authority Act, 2053 (1996), which established CAAN as the autonomous regulator overseeing safety and service provision. The Civil Aviation Regulation, 2058 (2002) fills in operational detail on aircraft registration, aerodrome certification, security and accident investigation.
Nepal has acceded to international conventions including the Convention on International Civil Aviation (Chicago Convention), 1944 and the Montreal Convention. One detail matters greatly for finance and leasing work: Nepal has not adopted the Cape Town Convention on International Interests in Mobile Equipment. Without it, security and repossession rights over aircraft financed or leased into Nepal rest on domestic contract and registration law, so careful structuring of finance and lease documents is the practical safeguard for lenders and lessors here.
Aircraft registration runs through CAAN, which issues the certificate of registration. Foreign-registered aircraft entering Nepal face their own procedural requirements, including designation under an Air Service Agreement and advance permit applications with specific supporting documents.
What We Do
- Aircraft finance and leasing: structuring finance, aircraft lease and engine lease documentation to protect the financier’s or lessor’s position under Nepal’s domestic framework.
- Sale and purchase of aircraft: advising on and documenting transactions and the registration steps that follow a change of ownership.
- Aircraft registration: managing documentation and procedure before CAAN.
- Aviation insurance: advice on a highly technical area given the scale of exposure involved.
- Disputes and accident claims: representation where the stakes and the technical complexity both run high.
- Regulatory compliance: keeping airlines and aviation businesses ahead of CAAN requirements rather than reacting to them.
Our Experience
We have advised international airlines commencing operations in Nepal on the regulatory steps that entry requires, and we work with national and international airlines, banks and financial institutions, insurers and the regulator itself. Seeing the process from more than one side of the table tends to make matters move faster for our clients.
