Private Airlines Seek Government Relief Amidst Financial Crisis

Kathmandu. The Airline Operators Association of Nepal has demanded immediate relief and concessions from the government, stating that private airlines in Nepal are facing a severe financial crisis. 

The association's conclusion is that operating flights has become difficult due to the long-term effects of COVID-19, the 'Gen Z' movement, and the excessive increase in aviation fuel prices due to the ongoing war in the Middle East. 

The association has warned that if the government does not intervene, air services may be completely halted in the future, as the cost of fuel has made it impossible to sustain expenses. 

According to the association, the share of fuel in the total expenses of airlines, which used to be 30 to 40 percent some time ago, has now increased to 60 percent. 

Companies are facing a double blow from the sharp increase in flight costs on one hand and a decrease in the number of tourists coming to Nepal on the other. The association's chairman, Pratap Jung Pandey, has emphasized the need for the government to bring a special relief package to save the airline industry and provide smooth services to passengers in the current crisis. 

Operators have requested at least a 50 percent discount on landing, parking, and navigation fees charged by the Civil Aviation Authority of Nepal. They also demand that the Airport Service Fee Regulations 2078 be amended and the seasonal service fee levied on domestic flights be completely removed. Operators have expressed dissatisfaction that despite the airline industry being classified as a 'priority industry', they have not received the corresponding tax exemptions and facilities. 

The association has also demanded that the government set all fees currently payable in US dollars in Nepali rupees, citing losses due to fluctuations in foreign exchange reserves and exchange rates. Operators claim that paying in dollars has added an extra financial burden on the companies.