CAAN has proposed to raise domestic charge to Rs 300 per passenger from the existing Rs 169.50. The charge will be applicable for passengers embarking on destinations across the country from Tribhuvan International Airport. [break]
Similarly, it has proposed raising airport tax to passengers leaving to other destinations from Pokhara airport to Rs 200 per person. It has also suggested raising airport tax at airports in rural destinations. As per CAAN´s proposal, airport tax at Jumla airport will be increased to Rs 100 from the existing Rs 56 per person.
CAAN officials claim that even the proposed tax structure is not sufficient to support its future growth. “We will work out further revisions after this proposal is approved by the government,” a source at CAAN told myrepublica.com.
The aviation regulator has also proposed the government to double the existing landing charge that it had been collecting from airlines. CAAN sources said the landing charges will vary as per airports.
CAAN proposed revision in existing fee structures, realizing that airlines were paying only a negligible amount for infrastructures and other facilities provided by the aviation regulator. CAAN forwarded the proposal to the Ministry of Tourism and Civil Aviation a few weeks ago for cabinet nod.
“It has already been more than five years that we revised our rates. Besides, the rate charged by us at present is very negligible,” the source said, elaborating reasons behind the decision to hike landing, navigation and airport service charge.
The new rates will come into implementation 90 days after it is approved by the cabinet.
The latest decision will impact all domestic airlines - six passenger airlines, six helicopter operators and nine paragliding companies.
Eyeing non-aeronautical revenue
CAAN has also started doing groundwork to search for the ways to increasing its non-aeronautical revenue. According to sources, CAAN has decided to use the land of Pokhara and Bharatpur airports for commercial purpose.
“We are at the initial stage of studying whether to build infrastructure on our own or lease the land to private sector,” a CAAN source told myrepublica.com.
Vehicle parking areas and shops in airport premises are the only source of non-aeronautical revenue for the aviation regulator.
CAAN has a network of 54 airports across the country. But only 35 of them are operational at present.
Though CAAN was developed into an autonomous institution about a decade ago, CAAN officials say the government hasn´t handed over all its property to the aviation regulator.
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