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CAAN cracks down on airfare cartel

KATHMANDU, Nov 10: The government has stepped up efforts to dismantle the cartel involved in charging exorbitant rates for international flights.
By Republica

Asks international airline operators to maintain fair prices


KATHMANDU, Nov 10: The government has stepped up efforts to dismantle the cartel involved in charging exorbitant rates for international flights. The move aims to give respite to the airline passengers from skyrocketing cost of air travel taking advantage of the closure of Tribhuvan International Airport (TIA).  


In a multi-stakeholder meeting held between the senior officials of the Civil Aviation Authority of Nepal (CAAN), the Ministry of Culture, Tourism and Civil Aviation, Tribhuvan International Airport (TIA) and the Ministry of Labour, Employment and Social Security and representatives from domestic and international airline companies on Saturday, the air service providers agreed to regulate stocks of airline tickets being provided to travel agencies. In addition, the government has sought commitment from airline companies for taking full responsibility while fixing and controlling the air fares.


The government intervention has come at a time when the airfares of international flights have gone up multifold in recent days, hitting the travelers hard. After the CAAN decided to partially close the runway of the TIA for expansion, the ticket fares have skyrocketed. 


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The TIA is set to remain closed from 10 pm to 8 am for five months, starting from last Friday, to facilitate the construction of two taxiways. Taking advantage of the decrease in number of flights to and from the airport due to the partial closure, airline operators have started taking undue benefits.


According to the CAAN, only a total of eight international flights of Qatar Airways, IndiGo, Air India and FlyDubai will be affected by the new decision of the government. Until now, these international air carriers have been conducting a maximum of four flights each at the TIA per day. “In this context, it is not fair that these airlines companies hike their airfares up to six-folds,” said Pradeep Adhikari, director general of the CAAN.  


Citing the situation, three federal ministers including the Minister for Culture, Tourism and Civil Aviation Badri Pandey, Minister for Foreign Affairs Arzu Rana Deuba, and Minister for Labor and Employment Sharat Singh Bhandari, on Friday, organized a meeting to find an alternative measure to curb the excessive hike in airfares of international airlines.


Following a five-point agreement with the CAAN, the airline companies have consented to annul the existing provision of the Travel Booking Agent (TBA) in which the designated travel agent companies are provided with excessive stocks to sell the airline tickets. Airline companies have been mandated to implement the measure effectively.  


Likewise, the airline companies concerned will have to abide by the pricing norms that they signed while taking approval from the CAAN to conduct their flights. The clause bars the companies from charging unfair airfares that make the customers suffer.  


According to an official of the CAAN, the airline operators have agreed to make the price range public on Sunday. “The companies will be allowed to maintain air fares only within the prescribed range,” the source said.      


Similarly, the airline operators have to fix ticket fares based on the travel distance. Along with these provisions, the CAAN has also designated its senior officer Bishnu Prasad Poudel to take note of the grievances of air travelers.  


 

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