The government is preparing to not just privatise the national airlines, but also to privatise airports in Nepal. A draft regulation allowing the private sector to construct and operate airports within the country on a BOT basis is under consideration.

If successful, private entrepreneurs could develop new tourist destinations and operate flights with their own investment, much in the way some islands in Thailand have private airports. The Ministry of Physical Planning and Works is presently consulting with the Civil Aviation Authority of Nepal (CAAN), Ministry of Culture, Tourism and Civil Aviation, Ministry of Law and the Contractors Association Nepal.

The private sector can propose airports anywhere in the country, complete it in five years and transfer the facility to the government after operating it for a maximum of 35 years. The government has already conducted feasibility studies to construct international airport in Biratnagar, Janakpur, Pokhara, Simara and Lumbini but only one company has so far expressed interest to undertake construction. The government had granted permission to Paris-based Alpa Construction Company to construct an international airport at Lumbini two years back. But the private sector company is yet to submit a detailed feasibility study to the government. CAAN operates 42 airports, but increase in air traffic means there is a need to expand the network.