Three airlines seek approval for new flights from Pokhara and Bhairahawa

Kathmandu, August 23 - The cases of Pokhara International Airport and Gautam Buddha International Airport in Bhairahawa illustrate the pitfalls of operating without a clear plan and objectives. The government is currently grappling with the challenge of increasing regular flights to these two airports rather than focusing on maximizing revenue from them.

Pokhara International Airport, which officially began operations on January 1, 2023, was funded by a Chinese loan of 1.378 billion yuan, approximately 26 billion rupees. According to the agreement, the government is required to make biannual payments of 1.945 billion rupees each (every six months), totaling around 162 million rupees per month. Despite 19 months having passed since the airport's completion, it has yet to see a single regular international flight.

Similarly, Gautam Buddha International Airport in Bhairahawa, built with high hopes, has struggled to attract business. The construction cost exceeded 30 billion rupees, with the Government of Nepal contributing 37.4 percent and the Asian Development Bank (ADB) covering 62.6 percent. Despite the investment, the airport has not achieved significant business.

After its completion, Jazeera Air briefly operated a direct flight between Bhairahawa and Kuwait. However, the airline ceased operations due to a lack of business, and no other carriers have established regular international flights from Bhairahawa since then. Currently, the airport sees limited activity, with only Nepal Airlines operating bi-weekly flights from Kathmandu to Kuala Lumpur and Bhairahawa. The airport's lack of substantial business highlights the consequences of inadequate planning and preparation by the government.

Government’s offers to attract airlines

Initially, it was anticipated that the operation of these regional airports would alleviate the congestion at Tribhuvan International Airport and boost business for Pokhara and Bhairahawa. However, with no international commercial flights operating even after 2-3 years, the government has introduced a series of incentives to attract airlines. The incentives include:

- VAT exemption on air tickets.

- Exemption from turnover tax for flights departing from these airports.

- Fuel sold at break-even prices with discounts for international flights from Pokhara and Gautam Buddha International Airports.

- Full waiver of the Rs. 3,000 passenger service fee.

- Complete discount on parking, landing, and navigation fees.

- Full exemption of the Rs. 1,000 tourism fee for international flights.

- A 75 percent discount on ground handling charges for international flights.

Culture, Tourism, and Civil Aviation Minister Badri Prasad Pandey has urged international airlines to commence regular flights from Pokhara and Bhairahawa as part of a broader action plan to enhance Nepal's civil aviation sector and ensure the sustainable operation of these airports.

Additionally, the government plans to offer facilities for domestic flights from these airports to encourage Nepalese registered airlines to operate international routes.

The proposed plan was approved by the Council of Ministers on August 12. The Ministry has announced that the plan will be implemented in phases according to the provided timetable.

Three Airlines Ready to Launch Flights

Following the government's introduction of attractive discounts and incentives, three airlines have applied for approval to commence flights from Pokhara and Bhairahawa airports.

Nepal Civil Aviation Authority Spokesperson Gyanendra Bhul told Ratopati that Jazeera Air has requested permission to operate 3 to 4 flights per week between Kuwait and Bhairahawa starting September 26. Additionally, Fly Dubai and Biz Air have also proposed regular flights from Bhairahawa.

Bhul noted that numerous airlines are interested in operating regularly from Pokhara and Bhairahawa, but have not yet received official offers. He attributed this interest to the government's new discount and incentive scheme designed specifically for these regional airports.

Jazeera Air previously operated flights between Bhairahawa and Kuwait but suspended them due to issues. The airline is now seeking permission to resume these flights. Similarly, Biz Air has also requested authorization to begin operations.

For Pokhara Airport, only Air Astra of Bangladesh has expressed interest, proposing flights three times a week. Bhul mentioned that no decision has been made yet regarding this proposal.

The spokesperson emphasized that the Civil Aviation Authority has not yet received detailed information about the discount scheme approved by the Council of Ministers, which complicates the decision-making process. The authority is awaiting clear instructions on the discount terms and conditions.

Starting in October, Tribhuvan International Airport will be closed for 10 hours daily to allow for taxiway expansion, affecting flights and landings until March. To mitigate disruptions, Bhairahawa and Pokhara are being considered as alternative airports. The authority plans to redirect some of Tribhuvan's traffic to these airports, with a goal of reducing Tribhuvan's current traffic by 70 percent, diverting 20 percent to Bhairahawa and 10 percent to Pokhara.

Currently, Tribhuvan International Airport operates 21 hours a day, handling a total of 374 domestic flights and 100 international flights.