POKHARA, Jan 10: Paragliding flights in Pokhara have now become affordable for an average middle-class family of Nepal after the end of the syndicate system. The fees have taken a nosedive due to competition in the market after the end of a one-door system for fixing the rate of paragliding flights.

Paragliding companies have started charging as less as Rs 3,000 to Rs 4,000 for a paragliding flight. The fee was Rs 12,000 until a few days ago. This rate is charged for 15 to 20 minutes of flight duration, according to the entrepreneurs.

Paragliding flights were halted for some time due to the dispute over whether to implement a one-door system in the paragliding flight or to allow the business to be conducted competitively. The flight was disrupted for almost two weeks due to the dispute between paragliding entrepreneurs, the entrepreneur's umbrella organization Nepal Airsports Association (NAA) and the pilots.

The Civil Aviation Authority of Nepal (CAAN) then banned paragliding flights stating that flying amid controversy would be dangerous. However, the flights resumed after all stakeholders agreed to allow the entrepreneurs to fix the price themselves in line with the spirit of the open market policy.

As a result, the entrepreneurs have fixed a maximum price of Rs 4,000 for paragliding in the sky of Pokhara after the end of the dispute. “In a bid to attract customers, some companies are flying for just Rs 3,000,” an entrepreneur said.

"We offer the service to our guests for Rs 4000. We decided to lower the price in the competitive market,” said Shailendra Rawat, director of Himalayan Frontiers Paragliding Company. According to him, this price is only for the flight of 15 to 20 minutes.

“Earlier, the same service was offered at Rs 12,000. The NAA had fixed the price making it mandatory for the entrepreneurs not to charge less than Rs 12,000. But now this price has dropped to Rs 3,000 to Rs 4,000,” he said.

According to Rawat, after the flight was stopped due to the dispute between the entrepreneurs, the umbrella organization and the pilots, the CAAN instructed NAA not to fix the price. The authority has made it clear that NAA cannot fix the price in a competitive market. 

“Therefore, the price took a nosedive due to competition. It was decided to opt for open market competition due to the problems created by carteling,” he said.

Director of Blue Sky Paragliding Company, Narayan Parajuli, said that they are preparing to fix the price similar to that fixed by other entrepreneurs. "Until a few days ago, we had operated paragliding flights for Rs 8,000. However, when other companies offered the service for Rs 3,000 to Rs 4,000, we were also forced to reduce the price," said Parajuli, "But we are yet to decide how much to charge. The price will be determined by holding discussions with the pilots. The price has definitely gone down, but we do not want to compromise on quality and safety issues.”

Parajuli said that the fee for paragliding was Rs 12000 until some time ago, which he said was high for domestic guests but suitable for foreigners. He said that since the pilots take 60 percent of the income, the income of the pilots will drop with the new price. 

Meanwhile, Rawat fears unhealthy competition.

"Now we fear unhealthy competition after the price reduction. There are concerns that the risk will increase when the company is in a hurry to fly more guests to make up for the loss," said Rawat, who is also an advisor to NAA. 

 
• paragliding
 
• Pokhara