Nepal, June 17 -- For more than 15 years, Nepal has promised the world that it would reform its aviation sector. Fifteen tourism ministers have come and gone. Draft laws have been prepared, revised, endorsed, withdrawn and reintroduced. Yet one of the most critical reforms demanded by international aviation watchdogs-the separation of Nepal's civil aviation regulator from its service provider-remains unfinished.

The consequence is visible on the international stage. More than a decade after the European Commission blacklisted Nepali airlines over safety concerns, Nepal remains on the European Union's air safety list. The designation prevents its carriers from flying to Europe and casts a long shadow over the country's tourism image.

On ...