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Domestic Airlines to Increase Airfare Again

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Domestic Airlines to Increase Airfare Again
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Tamish Giri

March 19: Airline companies of Nepal have decided to increase the airfare of all domestic flights effective from March 20 due to the increase in price of Aviation Turbine Fuel (ATF).

This is the second time in 15 days that the airlines companies have increased airfare citing fuel surcharge. Domestic airliners had previously increased the airfare on March 5. 

The Airline Operators Association of Nepal (AAON), the umbrella body of domestic airline companies in Nepal, said a statement on March 19 that all its members will increase the airfare of domestic flights from March 20. 

According to AAON, the member airlines, in coordination with the Civil Aviation Authority of Nepal (CAAN), decided to increase the airfare following the decision of the Nepal Oil Corporation (NOC) on March 16 to increase the price of ATF by Rs 2. 

NOC increased the price of ATF for domestic flights by Rs 2 per liter from midnight of March 16.

Previously, NOC had also increased the price of ATF for domestic flights on February 16, and subsequently the airline operators had raised the airfare on February 20.

According to AAON, airfare is determined based on three components- airfare fixed by the government, fuel surcharge, and airport taxes.

AAON along with CAAN and the Ministry of Tourism have set a pricing formula comprising of all three components of airfare pricing. Based on the formula, the airfare is determined and submitted to CAAN. 

According to the statement issued by AAON, the association and its member airlines have decided to increase the airfare following the rise in fuel price on March 16 and the government's decision on May 10, 2018, that allows AAON and airline operators to adjust the fuel surcharge in accordance to the fuel price.

After the rise, the airfare of mountain flights from Kathamndu has increased by Rs 70. Previously, after the rise in ATF on March 5, AAON had set the fuel surcharge for mountain flights from Kathmandu at Rs 2470 per person. It has now been increased by Rs 70 to Rs 2540. So the individuals willing to enjoy the mountain flight will need to pay Rs 70 extra.

The airfare of the Kathmandu-Dhangadhi route has witnessed the maximum increase of Rs 90 per ticket while the airfare of the Kathamndu-Pokhara route has been increased by Rs 30 per ticket and by Rs 20 in the Kathamndu-Bharatpur route.

Likewise, the airfare of the Kathmandu-Bhadrapur route has been increased by Rs 60 per ticket.

Kathamndu-Simara airfare has also increased by Rs 20 with the rise in fuel surcharge of Rs 20.

 

 

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