Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In a significant development for Nepal’s tourism and aviation sector, Thai AirAsia, which is part of the AirAsia Group, has received permission to operate flights in Nepal. The Civil Aviation Authority of Nepal (CAAN) has granted Thai AirAsia permission to operate flights in Kathmandu on the condition that they also conduct flights to Bhairahawa. According to CAAN, Thai AirAsia has been permitted to conduct seven flights per week.
Expanded Flight Operations
Of these, the airline will operate four flights to Bhairahawa and three flights to Kathmandu each week. This expanded connectivity is expected to significantly enhance the accessibility of key tourist destinations in Nepal, thereby boosting tourism and supporting the local economy. Bhairahawa, home to the Gautam Buddha International Airport, is a gateway to Lumbini, the birthplace of Lord Buddha, making it a crucial destination for both religious and cultural tourism.
Efforts and Agreements
Thai AirAsia had been making significant efforts to obtain flight permission for routes from Bangkok, Thailand, to Kathmandu and Bhairahawa. Previously, the parent company, AirAsia, had exited Nepal without settling outstanding dues to Kathmandu Airport, amounting to NPR 240 million. Due to these unpaid dues, CAAN was initially hesitant to grant flight permissions to Thai AirAsia for re-entry into Nepal.
Subsequently, AirAsia negotiated to settle the outstanding amount in installments and provided a bank guarantee. They agreed to pay NPR 250 million over a 24-month period and have been making regular installment payments for the past six months, according to CAAN. This settlement has paved the way for Thai AirAsia to resume operations, promising to enhance Nepal’s aviation infrastructure and tourist inflow.
Boost to Tourism
The entry of Thai AirAsia into Nepal’s aviation market is anticipated to have a positive impact on the tourism sector. With increased flight options, tourists from Thailand and other parts of the world will find it easier to visit Nepal.
This move aligns with Nepal’s broader strategy to revive and promote tourism, which has been significantly affected by the global pandemic. The increased connectivity will facilitate smoother travel experiences for international tourists, encouraging more visitors to explore Nepal’s rich cultural heritage, adventure tourism opportunities, and natural beauty.
Enhancing Aviation Sector
Moreover, the introduction of Thai AirAsia flights is set to enhance competition in the Nepal aviation sector, potentially leading to better services and lower airfares. This is a welcome development for frequent flyers, businesses, and tourists alike. The increased flights between Kathmandu, Bhairahawa, and Bangkok will also support business travel, fostering closer economic ties between Nepal and Thailand.
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