Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Ministry of Culture, Tourism and Civil Aviation (MoCTCA) is preparing to increase domestic airfares ahead of the festive season. Recently, a taskforce formed to study airfares recommended the government to increase the airfare in domestic sector. The Civil Aviation Authority of Nepal (CAAN) has claimed that the recommendation to hike airfare is reasonable as domestic airfares are being revised after four years.
“There is a provision of revising the airfare every two years, however, it has almost been five years now that there has been no revision. So, the taskforce might have recommended a hike after studying the current market scenario,” said an official from CAAN.
The taskforce was coordinated by Narendra Thapa, deputy director general of CAAN.
According to the official,MoCTCA is doing necessary study regarding airfares. As the airfare is being revised after a long time there will surely be some changes. Passengers will not be affected before the festive season, however, there has been no discussion held regarding the issue so far, the official added.
The official, however, did not mention the exact amount that the taskforce had recommended for the increase in airfare. It has been reported that the airfares might be increased by up to 20 percent based on the routes. Meanwhile, airline operators have been seeking a reduction in aviation turbine fuel charge as air fares decline along with the drop in fuel surcharge.
Amid this airline operators have been requesting the government to allow resumption of domestic flights. As the government has already allowed the operation of regular international flights from September 2 the domestic airline companies are also urging the concerned authorities to reopen the sector.
However, MoCTCA has again postponed the resumption date of domestic sector from September 16 to October 1.
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