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The Nepali government has introduced more liberal aviation policy, allowing up to 80 percent foreign investment to establish Nepal-based international airlines companies, the local daily Kantipur reported on Wednesday.

 

"The government has aimed at promoting tourism and trade through the liberal policy," the vernacular newspaper read.

 

The policy endorsed by the Council of Ministers on Monday is to ease the entrance of domestic and foreign private companies in the areas including the construction of airports and their expansion, as well as establishing maintenance companies and aviation schools.

 

Likewise, domestic airlines providing services for five years regularly will be given priority to acquire international aviation licenses.

 

The companies wishing to acquire license for international flights will have to manage paid up capital of 7 million U.S. dollars. No Nepali airlines that acquired license for international aviation so far, have been able to provide continuous service in international flights due to their relatively weak financial condition.

 

Likewise, the paid up capital of 2.1 million dollars are required to acquire license for domestic aviation and 1.4 million dollars for establishing an aviation school as per new provisions.

 

(Xinhua News Agency November 29, 2006)