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Airlines hike fuel surcharge

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KATHMANDU, Feb 27: Air passengers will soon have to dig a little deeper into their pockets. Referring to recent hike in the price of Aviation Turbine Fuel (ATF), domestic airlines have decided to increase fuel surcharge in range of Rs 40 to Rs 180 effective from Thursday.



Airlines Operators Association of Nepal (AOAN) endorsed the fuel surcharge hike on Monday, following which senior officials of private carriers said they are enforcing the new fares from Thursday.[break]



“Once the new fare comes into effect, passengers to Simara -- the shortest flight from Kathmandu -- will need to pay Rs 40 more over the existing rates,” said Rupesh Joshi, executive manager of Buddha Air.



Passengers of Buddha Air flying to Simara from Kathmandu on normal fare will now need to pay Rs 2,485. Previously, the company was charging Rs 2,445.

Fares to Dhangadi -- the longest route from Kathmandu -- will be expensive by Rs 180. Buddha Air that was charging normal fare of Rs 9,230 on the route will now charge Rs 9,410 from each passenger.



“Airlines had to raise fuel surcharge as Nepal Oil Corporation (NOC) recently increased price of ATF by Rs 4 per liter,” said Pramod Pandey, director - marketing and administration of Agni Air.



Talking to Republica, officials of different airlines said Monday´s decision would raise airfare for Kathmandu-Pokhara by Rs 60, while flights to Biratnagar will be expensive by around Rs 100.



Private airlines that presently operate with multiple fares in different sectors to serve diverse needs of their clients said all the fares will be dearer in range of Rs 40 to Rs 180, depending on the destination.



NOC had recently raised the price of aviation fuel for domestic flights by Rs 4, making it Rs 109 per liter. Price of ATF has increased by Rs 54 per liter over the span of two years.



As per existing regulations, airlines can increase fuel surcharge when ATF price is increased by more than Rs 4 per liter. Civil Aviation Authority of Nepal (CAAN) reviews airfare every two years on the basis of inflation rate, fuel price and maintenance cost, among others.


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