KATHMANDU: The Civil Aviation Authority of Nepal (CAAN) has recorded 43 per cent decline in its annual income owing to the COVID-19 pandemic.

With declined income, the CAAN has failed to launch its planned activities.

The annual progress report released by the CAAN stated that it lost some Rs 4.5 billion in the last fiscal year. It has regular income from PSC, landing, parking, navigation, rent etc.

Airport development fee is another source of income.

In the wake of decreased income, the CAAN has allocated Rs 41.11 billion amounts in its annual budget for fiscal year 2020/21. In the previous year, its annual budget was Rs 46.96 billion.

Director General at the Authority, Rajan Pokhrel, informed that they allocated budget by prioritizing the under-construction international airport.

The budget has also focused on institutional reform, upgrading of airport, communication and safety devices, expansion of international airport, and human resources.

The CAAN had expected increased income after the government had announced Visit Nepal Year 2020.

But, it is nearly five months the country has not have international and domestic flights for commercial purpose owing to the COVID-19 pandemic.