February 5: The Civil Aviation Authority of Nepal is preparing to hike the price of air tickets. The authority has formed a committee to review domestic airfare. Once the study is over, CAAN is likely to increase the airfare determined seven years ago by 20 to 25 percent.

According to the Domestic Airfare Regulation Guideline 2073, CAAN enjoys the right to determine the airfare specifically for three different sectors. Accordingly, CAAN determines the minimum and maximum airfare in accessible, remote (STOL) and tourist sectors. Currently, the airline companies are implementing the airfare determined by CAAN in the year 2073 for the accessible sector and in the remote sector in 2075.

Airline companies have repeatedly requested the government to increase the airfare saying that the airfare has not been reviewed for a long time. The authority is now prepared to review airfare. CAAN’s Information Officer Gyanendra Bhul said that since the airfare determined seven years ago is still being implemented, so it be reviewed in a timely manner.

He said that CAAN has formed a committee and held discussions with the stakeholders. This committee will prepare a modality for airfare and recommend it to the Ministry of Culture, Tourism and Civil Aviation. The committee will submit a report with recommendations to the ministry regarding the review of airfare within three months. The proposal to increase the airfare will be submitted to the Council of Ministers. The new airfare for domestic flights will be implemented after the cabinet approves the proposal.

"Since it is a technical matter, the data of the affiliated airlines is required for this," said Bhul, adding, "The price of aircraft spare parts and the exchange rate of US dollar were different seven years ago. Therefore, the airfare will obviously increase after the review.”

CAAN determines the minimum and maximum airfare and the airline companies set prices based on demand and supply within the limit.

Apart from the fare set by CAAN, the price of air fuel is also included in the air ticket purchased by the passengers. Airline companies levy fuel surcharge on the basis of its price hike.

Rupesh Joshi, the marketing manager of Buddha Air, a private sector air service provider company, said that they have been asking for an increase in airfare since a long time.

"The air fare that should be increased every two years has not been increased for seven years," said Joshi, adding, "The price of dollar has increased significantly in seven years and the aviation sector has requested the government to review the airfare.”