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Half of the airports in Nepal operating at loss, TIA generates highest revenue in FY 2023/24

The data of the Civil Aviation Authority of Nepal (CAAN) for the fiscal year 2023/24 shows that half of the operational airports in the country are operating at a loss.
By Republica

KATHMANDU, Jan 11: The data of the Civil Aviation Authority of Nepal (CAAN) for the fiscal year 2023/24 shows that half of the operational airports in the country are operating at a loss. Out of the 36 airports operating across the country, 18 are running at a loss. Tribhuvan International Airport (TIA) has generated the highest revenue, with an annual earnings of Rs 12.86 billion in the fiscal year 2023/24.


According to the CAAN data, 18 airports, including the Gautam Buddha International Airport (GBIA), are running at a loss. In the fiscal year 2023/24, the GBIA earned revenue of Rs 211.3 million, while its total expenditure was Rs 212.2 million. The operational cost of the airport alone was Rs 162 million, with capital expenses amounting to 52 million.


According to the data, GBIA’s income decreased in the fiscal year 2023/24 compared to 2022/23, when it had earned Rs 253 million. The airport had been operating at a loss in the year 2022/23 as well. It seems that the cost of operating the airport in the fiscal year 2022/23 stood at Rs 282 million.


Similarly, another airport operating at loss is the Tumlingtar Airport. This airport earned Rs 5.1 million in the fiscal year 2023/24, while its expenses totaled Rs 6.1 million. The operational cost alone was Rs 5.566 million. Additionally, Jumla Airport earned Rs 2.6 million in the fiscal year 2023/24, but its expenses exceeded Rs 2.9 million. Another airport operating at loss is the Bajhang Airport, which earned only Rs 200,000, while its expenses amounted to Rs 2.6 million.


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Similarly, Bhojpur Airport earned Rs 663,000, while its expenses were over Rs 1.445 million.


According to the fiscal year 2023/24, other airports that are operating at loss include Dang, Dolpa, Rara, Rukum, and Rumjatar. Dang earned Rs 500,000 and its expenses were Rs 800,000. Dolpa earned Rs 1.4 million, while its expenses were Rs 1.6 million. Rara earned Rs 2.5 million while its expenditure stood at Rs 2.6 million.


Meanwhile, Bajura Airport earned Rs 2.3 million, but its expenses were over Rs 900,000. 


Similarly, another international airport operating profitably is the Pokhara Regional International Airport (PRIA). It earned Rs 349.3 million, while its expenditure was Rs 133.6 million. Nepalgunj Airport earned Rs 1.311 million, with an expenditure of Rs 49.9 million.


Similarly, Dhangadhi Airport earned Rs 63.9 million in fiscal year 2023/24, with an expenditure of Rs 27.8 million. Bharatpur Airport earned 63.9 million and its expenditure was Rs 13.5 million.


According to CAAN, there are currently 55 airports across the country, including three international airports and 52 domestic airports. Among the 52 domestic airports, there are 11 airports which can accommodate medium-sized aircraft. The remaining 41 airports have runways suitable for Short Take Off and Landing (STOL). Out of those 41 airports, 28 have blacktopped runways.


The remaining 13 airports have graveled runways. It includes Jiri, Langtang, Rolpa, Dhorpatan, Gorkha’s Palungtar, Darchula. According to the CAAN, 9 out of those 13 airports are listed as airports but are not fit for operating flights. CAAN has not been able to remove those airports from the list.


According to CAAN, even among the 28 airports with blacktopped runways, only 18 operate regular flights. The remaining 10 airports do not have regular flight schedules. Despite the high number of airports, the actual number of operational airports for commercial flights is relatively low.


According to CAAN spokesperson Hansraj Pandey, despite their significance, these airports have been neglected due to the lack of flights to remote areas. He said that the Nepal Airlines Corporation should take the responsibility of operating flights to those areas. 


Pandey added that cooperation from all agencies is necessary to bring the loss-making airport into full operation. According to him, the loss can be reduced by increasing the number of aircraft and operating regular flights.


 

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