A ministry official said the proposal to permit more international airlines has been approved and that the ministry was issuing the notice shortly.[break]
This is the third time in the past five years that the government is issuing such notice. When the notice was called in December 2009, the government had awarded licenses to Unity Airlines and Dynamics Airlines. However, both the licenses were scrapped after the firms were found involved in fraudulent activities. The government had awarded license to BB Airways, which is promoted by TBI Group, in January this year. The airline is preparing to start operation in four months.
According to the official, a company having paid-up capital of Rs 500 million and security bond of Rs 5 million can apply for the license. “The interested company can get document of Terms of Reference (ToR) by paying Rs 50,000 to the ministry. The license will be awarded within 3-4 months of the evaluation of their proposals,” the official added.
Besides, the company will need to pay Rs 50,000 per route as royalty.
After reviewing the application, the ministry will issue license under three categories- Class A, B and C. The operator with Class A license can operate flights on long haul routes (flights lasting more than three hours). Similarly, airlines with Class B can operate flights lasting three hours and Class C can operate flights lasting less than three hours.
Domestic operators with a minimum of five years of operation, however, can apply for international license anytime.
International firms interested to start Nepal-based international airlines will have to form a joint venture entity in Nepal. The government allows up to 85 percent foreign in international airlines.
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