Cabinet approves new aviation rules to strengthen air passenger protections

KATHMANDU: The Council of Ministers on July 29 approved new legal provisions for domestic air transport that strengthen passenger protections and increase carrier liabilities for flight disruptions, lost baggage, cargo delays and accidents.

Under the rules, airlines must notify passengers with valid tickets at least three hours before any revised departure time when flights are delayed or cancelled. Where cancellations, overbooking, or an inability to accommodate a ticketed passenger occurs, carriers must arrange alternative travel with another operator at a comparable time, provide alternative transport at no extra charge, or issue a full refund.

The regulations set specific financial limits for checked baggage and cargo. Carriers will be liable for lost or damaged checked baggage at a rate of up to $20 per kilogram, with a maximum payout capped at $5,000 in Nepali currency. Shipments without a prior delivery deadline will be considered delayed after three days; items will be treated as lost if not delivered within 15 days of the scheduled delivery date or within 30 days of acceptance.

Compensation for death, serious injury or permanent disability on domestic flights has been raised to a cap of $100,000. The rules require airlines to cover medical care for non-fatal injuries. In fatal cases, carriers must arrange transportation of the body to the family and provide advance payments to cover immediate funeral expenses.

The legal framework also sets out exemptions from liability. Carriers will not be held responsible for cancellations or delays caused by severe weather, natural disasters, air traffic control directives or official government security restrictions. Airlines are also exempt from injury liability when harm results from a passenger’s gross negligence or from a pre-existing health condition.