Newsletter  17  December  2014  

Civil Aviation Authority of Nepal

 

Three INECO consultants led by senior consultant Mr. Jose Luis Pardo de Santayana with Jose Estaban Cerazal and Marta Martinez Puerta visited Nepal during the week of December 1, 2014 and conducted a day-long workshop on December 3 with the high officials of CAAN (listed below) on the Restructuring of CAAN into Regulator and Airport/ ANS Service providers at the Everest Hotel:

CAAN Officials:

1. DG Er. Ratish Chandra Lal Suman 2. DDG Mahendra Singh Rawal 3. DDG Sanjiv Gautam 4. Mr. Devendra K.C. 5. Mr. Devananda Upadhaya 6. Mr. Rajan Pokhrel 7. Mr. Dharmendra Pandey 8. Mr. Krishna Bahadur Thapa 9. Mr. Raj Kumar Chhetri 10. Mr. Shishil Chitrakar 11. Mr. Surya Bahadur Thapa 12. Mr. Sudhir Kumar Choudhury 13. Mr. Pratap Babu Tiwari 14. Dr. Punya Raj Shakya 15. Mr. Bhesh Raj Subedi 16. Mr. Sunil Bhattarai 17. Mr. Suresh Man Singh (Dec. 4) 18. Mr. Hansa Raj Pandey 19. Mr. Madan Lal Kafle 20. Mr. Murari Bhandari 21. Mr. Sanjeev Singh Kathayat 22. Mr. Raju Shrestha 23. Mr. Mukul Mishra 24. Mr. Kul Prasad Simkhada 25. Mr. Sunil Kumar Kushawa 26. Mrs. Manju Paudyal 27. Er. Okil Kumar Chimoriya

Restructuring Plans for CAAN & AANSON The final version, which incorporates many of the comments and suggestions received from CAAN officials, was presented in the workshop under the six headings:

1. Restructuring of CAAN as Regulator 2. Restructuring of CAAN into AANSON as Operator 3. Human Resource Management Plan- Position Map 4. Human Resource Management Plan- Talent

Management 5. Human Resource Management Plan- Wage Policy 6. Organization Transition plan

Mr. Jose Luis Pardo presented the Restructuring Plans. Ms. Marta made her presentation on Human Resource Management Position Map and Talent Management. Mr. Jose Estaban Cerazal, an expert on wage management made presentation on the proposed Wage Policy for CAAN and AANSON. Finally, Team Leader Mr. Santiago Gomez presented Organization Transition Plan. The Restructuring Plan of CAAN involves separation of the existing CAAN into two separate organizations, namely CAAN as Regulator and AANSON as Operator (Airport and Air Navigation Service Provider).

                                                 

         Capacity  Development  of  CAAN                      ADB  Loan  No.2581,  Grant  No.  0181-­‐  NEPAL  (SF)  

Consultants  Present  Restructuring  Plans  of  CAAN  &  AANSON  

28. Er. Deependra Shrestha 29. Mr. Bishnu Prasad Marashini 30. Mr. Sunil Mool 31. Mr. Sachit Pokhrel 32. Mr. Kashi Nath Paudel 33. Mr. Prakash Chandra Sharma 34. Mr. Mahesh Kumar Timilsina 35. Mr. Bal Bahadur Basnet 36. Mr. Bishnu Hari Timilsina 37. Mr. Madhav Prasad Silwal 38. Mr. Krishna Prasad Paudel 39. Mr. Anil Kumar Gupta 40. Mr. Nawin Prasad Adhikari 41. Mr. Bijaya Kumar Sthapit

The consultant team comprised of:

1. TL Mr. Santiago Gomez de Olea 2. DTL Maheswor Bhakta Shrestha 3. Mr. Tri Ratna Manandhar 4. Mr. Mohan Adhikari 5. Mr. Prabha Vaidya, and the three

experts from INECO.

Objectives: Team Leader Mr. Santiago Gomez de Olea welcomed all the participants of the workshop and introduced the visiting experts from Spain. The main objective of the workshop was to appraise the final version of the Restructuring plan of CAAN into two separate entities, CAAN as Regulator and AANSON (Airport and Air Navigation Services of Nepal) as Operator of airports and air navigation services in Nepal. The draft scheme had been severally discussed with the different departments of CAAN during September to December 2013. Jose Luios Pardo, Jose Estaban Cerazal and Marta Martinez Puerta

  Lorem  Ipsum  Capacity  Development  of  CAAN  project                                                                                                                                                                                                                                    December  2014  Newsletter  17    Page  2  

The Restructuring plan follows international best practices, with functions as identified in the Benchmark study, avoid duplication of functions, ensure maximum use of

technical skill of the employees, develop a sustainable career plan in every area of expertise, and to cope up with the organizational requirements of 2020. The organization is based on the eight main functions to control the eight critical elements listed below:

Eight Main Functions of CAAN: To Standardize, To Inspect, To Supervise, To Approve, To Certificate, To License, To Regulate and To Support, Coordinate/Regulate

Critical Elements of Safety Oversight System

CE-1: Primary Aviation Legislation CE-2: Specific Operating Regulations

CE-3: State Civil Aviation System and Safety Oversight function,

CE-4: Technical Personnel Qualification & Training,

CE-5: technical Guidance Tools and the Provision of Safety_ Critical information,

CE-6: Licensing, Certification, Authorization and Approval Obligations,

CE-7: Surveillance Obligations, and

CE-8: Resolution of Safety Concerns.

Mission: CAAN continuously promotes the highest common standards of safety and security in Civil Aviation, through effective regulation for a sustainable aviation industry.

To achieve this Mission, CAAN organization will have five departments: Airworthiness, Flight & Standards, ANS Safety & Standards, Aerodromes Safety & Standards, and Aviation Security, supported by Quality Assurance and Corporate functions under the Director General.

All together, the CAAN organization will have a staff strength of 141 persons including 32 Managerial, 81 Technical and 28 Assistants

AANSON organization will be focused to serve the air carriers and users of airports and air navigation services, with the main objectives of operating both types of services in a safe and sustainable manner. It must pay attention to:

Ø Enhance the Planning capabilities; Ø Encourage the ability to manage the new

infrastructure and increase the capacity of engineering to design, manage or build them;

Ø Operate all the airports and air navigation services together as a network, and

Ø Manage future airspace including new air navigation infrastructure and systems in order to increase the quality and safety of Nepalese airspace.

AANSON will provide management services that contribute to the development of national and international air transport upholding high standards in safety, security and quality, being respectful with the environment, and applying prudent commercial practices.

  3  

In order to achieve the stated mission, AANSON organization will have five departments, namely,

Ø Air Navigation, Ø Airports, Ø Engineering and Construction, Ø Financing & Development, and Ø Investment & Procurement The list of current and future functions have been established according to the study of Job Descriptions, References from ICAO documents and annexes, and the functions identified in benchmark analysis. Staff strength in the AANSON organization by 2020 is estimated to be 1,050 staffs including 605 persons for Airport Network, 151 for Air Navigation Services, 81 for Engineering & Construction, 63 for Corporate, 50 for Planning & Development etc. Talent Management System

Ms. Marta Martinez Puerta Talent Management System Position Map, which includes Levels, Position Level and Post

Evaluation. Position Map included 7 Levels: (A to E and F1, F2) from Director General level to Section and Professional levels divided into Technical Career and Management Career. Post Evaluation includes 7 criterias: Expertise, Knowledge of the Environment, Responsibility, Autonomy, Problem Solving, Impact on Results and Impact on Customers.

She also explained about Talent management System, involving Career plan, Recruiting plan, Performance Appraisal and Employee Evaluation, Training Plan and Employee Evaluation, Training Plan and Wage Policy. Training plan is the key for professional development, which is an essential part of the Talent Management System.

Establishing a Wage Policy:

Mr. Jose Estaban Cerazal presented Steps to Establishing a Wage Policy and explained in the new salary composition, which will not be less than presently received, will include job post supplement, Bonus, Special gratification, Temporary supplement and Station allowance on top of the Base salary.

Job post supplement is like annual grade reward of 2.5% to 5% in CAAN and 5% to 10% in AANSON (higher reward in key position in order to gain competitiveness).

Bonus system is needed to improve employee’s efficiency and recognition, reinforce or modify Company values, provide flexibility to remuneration system and improve the result at organization level.

Mr. Jose Estaban proposed a value based salary model for CAAN and AANSON. Other supplements like mobile phones, office vehicle, festival allowance, tiffin allowance, medical expenses etc. will be applicable as per existing practice. Pension, Retirement and Gratuity are proposed as per current plan.

Organizational Transition:

The goal of this exercise is to determine the organizational transition process, which will allow to turn the current CAAN into the final CAAN and

AANSON. For this purpose, an organizational transition based on a Provisional and Start Up organization is proposed before the final shape of the new organization is likely to take place by the year 2020.The provisional organization structure was established in such a way that it resembles the final one for ease in transition. It will still be a single organization, taking care of both the operational and regulatory functions. There will be a deputy who will be responsible to perform all necessary organizational changes. The core of the future technical areas should be established on the provisional areas,

There should be a single corporate area, which will take care of all the corporate functions for both Regulator and Operator areas. Engineering and Planning functions will be also centralized. The number of employees will remain based on the preservation criteria.

Work force needed in the provisional CAAN and AANSON organization will be 862 persons including 104 in CAAN and 764 in AANSON, up from the present strength of 761 persons in CAAN.

Capacity  Development  of  CAAN  project                                                                                                                                                                                                                                    December  2014  Newsletter  17    Page  3  

  Lorem  Ipsum  

     

Capacity  Development  of  CAAN  project                                                                                                                                                                                                                                  December  2014  Newsletter  17    Page  4  

Capt. Rameshwor Thapa, president of Airline Operator’s Association of Nepal congratulated the Best Pilots. Air transport is the most efficient mode of transport and an important contributor for socio- economic development of the country. He also indicated the declining number of national fleet of aircraft and emphasized that Nepal should  encourage import of more aircraft, besides the age limit, for the sustainability of the industry, which is badly affected by unfairly high fuel price of Rs143 per litre.  

Safety First: Secretary Mr. Suresh Man Shrestha stated that civil aviation has sustained impressive growth in terms of the number of airlines and their network, passengers and cargo transported as well as better safety records and quality of service. Despite Significant Safety Concern (SSC) of ICAO, Nepal is very safe for flying, and called private sector operators for cooperation to improve the lapses for greater success in air safety. He remarked that Best Pilot Award in ICAO Day is a very good beginning and pledged to do his best from the government side to promote safety and regularity of flights.

Thanks: Mr. Suresh Acharya, Joint Secretary of the Ministry presented a Vote of Thanks to all those who participated in the program and helped

make the program successful. He also remembered the strategic objectives of ICAO for 2014-2016, including Safety, Security, Environmental protection and Sustainable development of air transport. He also indicated that Asia Pacific is not only the largest ICAO region but is also developing fast at 7.3% growth in 2014.

Text and Photos by: Maheswor Bhakta Shrestha Dy. Team Leader, Capacity Development of CAAN project

Secretary, Ministry of Culture, Tourism & Civil Aviation Mr. Suresh Man Shrestha organized a Walkathon and Flag Hoisting Ceremony at TIA, Kathmandu to mark the International Civil Aviation Organization Day on 7th December 2014. The walkathon from TIAIP, Sinamangal to TIA ITB was participated by the officials of the Ministry, CAAN, Nepal Airlines and other related offices.

Air transport supports economic, social and cultural developments, and is the safest and most efficient mode of mass transportation. Since the formation of International Civil Aviation Organization by 26 member states, ICAO membership has grown to 191 member states now and in the last 70 years, air transport industry has witnessed extraordinary growth, from 9 million schedule passengers in 1945 to 3.3 billion passengers now. Civil aviation will continue to grow to 6.3 billion passengers by 2030. Nepal joined ICAO in 1960 and since then there has been unprecedented growth in air traffic passenger to over 6 million in 2013 including 3.1 million in international services, 1.5 million in domestic from TIA and 1.4 million at other airports.

Walkathon: General Manager of TIA Mr. Birendra Shrestha welcomed participants of the walkathon from TIAIP Sinamangal to TIA Fountain area, where Secretary, Ministry of Culture, Tourism and Civil Aviation raised Nepal and ICAO flags.    

Formal Program: In a formal program at Union hall, Mr. Rajan Pokhrel, Director of CAAN welcomed all the participants and shared some interesting facts about the beginning of Chicago Convention of ICAO in December 1944. Director General Mr. Ratish Chandra Lal Suman highlighted the theme topic of ICAO Day: Cooperating on Global   Aviation Progress: Celebrating 70 Years of Chicago Convention”. He reviewed the role of connectivity for socio-economic growth, and said Asia- Pacific is the largest region of ICAO with fast (over 13% annual) growth in air traffic. With the development of regional international airport at Bhairawa, connectivity with foreign airline will improve further, he said.  

Best Pilots of the Year: Capt. Prabhu Saran Pathak Prize 2014, instituted by his wife after he died in Agni Air crash in 2012, was announced for the first time to the Best Pilot of the Year achieving the highest safety standards. Capt. Gyan Prasad Rai of Yeti Airlines from the fixed wing and Capt. Pramod Kumar Lama, helicopter pilot of Manang Air were declared best Pilots of the Year 2014 and awarded Rs,25,000/- each cash and certificate by the Secretary of the Ministry of Culture, Tourism and Civil Aviation.

Capt. Gyan Rai has had remarkable safety record through his career of 19,600 hours of flying experience in 33 years since 1981 when he joined Nepal Airlines, moved to Necon Air in 1992 and to Yeti Airlines since 1998. “No pilot is perfect and we have to learn from our mistakes” he said. Senior Helicopter pilot Capt. Pramod Lama had been a VIP pilot since 2006.

CAAN  Celebrates  International  Civil  Aviation  Day  2014