KATHMANDU, Nov 11: The Civil Aviation Authority of Nepal (CAAN) has instructed airline companies to reduce airfares after airlines began charging high fares citing the closure of airports. The directive comes in response to the complaints from passengers who were charged excessive prices for flights despite the resumption of services.
The Ministry of Foreign Affairs, Ministry of Tourism, Ministry of Labor (Department of Foreign Employment), and representatives from Tribhuvan International Airport (TIA) held discussions with airline companies that were charging excessively high fares. CAAN instructed the airlines to reduce their airfares after discussing the unreasonable fare hikes.
During the discussions, CAAN Director General Pradeep Adhikari urged the airlines to lower their rates. While emphasizing that the expansion of the TIA was necessary, Adhikari warned the airlines against exploiting the situation for undue gain, asking them to maintain reasonable fares.
As many as 15 airline service providers including the national flag-carrier Nepal Airlines, and international airlines like FlyDubai, Indigo, Korean Air, Turkish Air and Air India participated in the discussion.
During the discussion with representatives from government agencies, the airline service providers agreed to adhere to the provisions under the ‘Airports Services Association’ regarding pricing. This agreement emphasizes the need to protect consumers from unfair pricing practices.
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All airline operators agreed to declare and publicly disclose their region-wise price range and average fare. Additionally, the discussion led to an agreement with travel agencies to implement necessary arrangements for measures such as limiting volume and setting fair service charges. It was also agreed that budget carriers would stop practicing ‘time before arrival’ for ticket sales.
Despite the agreement, there has been no visible implementation of the measures so far. On the one hand, it has become difficult to secure tickets, while on the other, passengers are being forced to buy tickets at exorbitant prices once they are available.
A travel agency operator based in Bauddha in Kathmandu stated that the significant rise in ticket prices for international flights is due to the airlines engaging in black-market practices. He remarked, “When flight cuts were made during the expansion of the taxiway, passengers should not have faced difficulties in obtaining tickets and fares should not have increased unnaturally.”
According to him, the unreasonable fare hike is not caused by a shortage of planes, but rather by the airlines’ strategy of making tickets available at two to three times the normal price through travel agencies which are only offering high-class (more expensive) tickets.
"Currently, a flight ticket from Delhi to Kathmandu, which should cost around Rs 12,000 to Rs 15,000, is priced at Rs 45,000 to Rs 50,000. Similarly, tickets to Doha, which should cost around Rs 40,000 to Rs 45,000, are now priced between Rs 80,000 to Rs 85,000," he said on condition of anonymity. "The airline companies have seized all the low-priced tickets and are only offering high-class (expensive) tickets."
He explained that this is why passengers are either unable to find tickets or have to pay exorbitant prices. "The airline companies seem to have the intention of forcing passengers to buy expensive tickets, no matter what," he added.
Due to the closure of Tribhuvan International Airport, international flight fares have risen significantly. Since last Friday night, the airport's taxiway has been operating only for 14 hours daily, causing most international airlines to increase their ticket prices dramatically.
Another travel agency operator in Thamel stated that only 70 percent of the international flights are currently operating, which has led to a significant increase in airfare prices. He explained that due to a 30 percent reduction in international flights, ticket prices have increased from around Rs 20,000-Rs 22,000 to Rs 60,000-Rs 65,000.
"On the one hand, fewer flights make it difficult to get tickets, and on the other hand, they are excessively expensive," he said. He attributed the issue not only to the reduced flights and airline companies' arbitrary pricing but also to the lack of a strong regulatory body to manage the situation.
With the significant increase in international flight fares, foreign employment businesses have urged the government to take action. The businesses have been approaching various concerned ministries, requesting a reduction in airfare rates. In this context, foreign employment businesses have submitted a memorandum to the foreign minister and the tourism minister, seeking their intervention.
Tribhuvan International Airport has been closed for 10 hours daily since last Thursday. The airport is undergoing an upgrade, with flights now operating for only 14 hours a day to accommodate expansion work.
According to CAAN, the airport's capacity enhancement project will include the construction of a parallel taxiway to the southwest, an international apron to the north, and a hangar apron to the east of the airport. During the upgrade process, the number of all flights between 10:00 pm and 8:00 am has been reduced.
