CAAN's intervention brings relief in international airfare rates

Kathmandu, November 11 — After the intervention of the Civil Aviation Authority of Nepal (CAAN), there has been an improvement in international airfares. Tourism entrepreneurs say that with the reduction in the operating hours of Tribhuvan International Airport, there has been a partial improvement in the situation of 'black marketing' of air tickets. However, they also mention that it will take more than a month to see the full benefits.

The reduction in airport operating hours began last Friday. Airfares had already started increasing before that. For example, the one-way ticket from Kathmandu to Delhi had risen to around 60,000-70,000 rupees. After the intervention of the CAAN, Bishnu Pandey, the Managing Director of Himalayan Club Tours and Travels, says the fare for Delhi has dropped to 40,000-50,000 rupees for November. For the second week of December, the fare has dropped to around 19,000-20,000 rupees. Normally, the fare for Delhi would range from 13,000 to 15,000 rupees.  

Pandey, who is also the secretary of the Nepal Association of Tour & Travels Agent (NATTA), mentioned that while airfares have decreased, tickets are still expensive if one needs to buy them urgently. Even in normal circumstances, tickets bought urgently are more expensive. With the closure of the airport for 10 hours, demand and supply dynamics also caused airfares to rise. However, he added that the abnormal rise in fares seems to be coming under control now.

According to Pandey, the main reason for the decrease in airfares is the cancellation of the TBA (Ticket Bulk Agreement) system. Under this system, travel companies were able to buy tickets in bulk and resell them at higher prices. Since this practice has been discontinued, ticket prices have come down. However, since many tickets had already been booked for November, and some airlines had already purchased tickets in bulk before the decision was made, the expected drop in fares has not occurred immediately.

Pandey also mentioned that the fare increase for other destinations, like China, has followed a similar pattern to Delhi. However, airfares for flights to China or those with a transit there to another country have increased less compared to other routes.

Additionally, the CAAN has adjusted some flights to Delhi, and the resumption of flights from Bhairahawa has also helped in controlling airfare rates.