KATHMANDU, Dec 29: The much hyped Gautam Buddha International Airport (GBIA) seems likely to go out of business as the few airline companies operating flights to and from the country’s second international airport plan to suspend flights citing a low turnout of passengers.   

In the latest development, Himalaya Airlines on Wednesday announced to suspend its chartered flight from the GBIA within just a month and half after starting its business there. The company started its chartered flight to Malaysia from the international airport on November 3. Vijay Shrestha, vice-chairman of Himalaya Airlines, said they were forced to make the decision due to the very low number of passengers.      

Himalaya Airlines began the chartered flight after the Civil Aviation Authority of Nepal (CAAN) imposed a compulsory provision that the airline companies operating three international flights from the Tribhuvan International Airport a day should run the service from the GBIA. Prior to this, Jazeera Airways, which was supposed to start daily flights instead reduced the number of flights from the airport in less than a month after starting its services in September. 

Now, Nepal Airlines Corporation is moving forward to conduct its flight to Malaysia and Qatar from the GBIA. However, the situation with only other two private sector companies operating flights to and from GBIA has raised the question over the long-term sustainability in business of the national flag carrier.   

The country’s second international airport incurred a total construction cost of US $76.1 million. Of the amount, the Asian Development Bank (ADB) has invested around US $37 million in loans and grants, while the OPEC Fund for International Development contributed about $11 million in loans. The remaining amount was funded by the government.

The GBIA has been facing the question regarding the economic viability of air passengers who wish to travel through the airport. Passengers have been forced to incur extra costs when they fly to Kathmandu from Bhairahawa. 

The airport officially came into operation on May 16, 2022.   At present, only Jazeera Airways is running three flights a week at the GBIA. Despite various incentives offered by the government to airlines companies flying from the airport, hardly any company has shown their interest.

According to analysts, high operating costs and the reluctance of the Indian government to open air routes via the Indian land in the proximity of the GBIA are among the reasons behind the lack of interest of the airlines companies to operate flights from GBIA.   

 
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