Domestic airfare comes down

Published On: December 7, 2016 09:57 AM NPT By: Susheel Bhattarai  | @sushbhattarai

KATHMANDU, Dec7: Domestic airfare has come down by as much as Rs 310.

A meeting of Airlines Operators Association of Nepal (AOAN) held on Tuesday decided to reduce domestic airfare by Rs 90 to Rs 310, depending on routes. The umbrella body of domestic airlines decided to reduce airfare after the Nepal Oil Corporation (NOC) slashed price of Aviation Turbine Fuel (ATF).

According to Prajwal Thapa, a member of the AOAN, the airfare to Simara, the nearest airfield from Kathmandu, will cost Rs 90 for lower, while airfare to Dhangadhi, the farthest airport from Kathmandu, has come down by Rs 310.

The new airfare will come into effect from Wednesday.

Air passengers will now have to pay Rs 2,505 for Kathmandu-Simara flight, while the flight to Dhangadhi from Kathmandu will cost Rs 10,410.

NOC slashed price of ATF by Rs 8 per liter on Sunday. 

According to an agreement between the government and the domestic airlines, airlines must to adjust airfare whenever price of ATF increases or decreased by at least by Rs 4.

NOC had reduced ATF prices with effect from Monday, citing drop in oil prices in the international market. The state-owned petroleum monopolist has fixed price of ATF at Rs 86 per liter for domestic airlines. Likewise, it has reduced the price of ATF for international airlines to $750 per 1,000 liters from existing $831 per 1,000 liters. 

NOC, however, kept the price of petrol, diesel, kerosene, and cooking gas unchanged.

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