Kathmandu, May 3: Private airline companies operating domestic flights have said they are on the verge of having to suspend services due to a sharp rise in aviation fuel prices.
In a letter addressed to Minister for Culture, Tourism and Civil Aviation Khadkaraj Poudel (Ganesh), the Airline Operators Association has requested relief measures and concessions for airline companies.
The letter states that aviation business is facing crisis due to the global spread of the coronavirus, the “Gen Z movement” on September 8 and 9, 2025, and the ongoing war in the Middle East (West Asia).
It also mentions that with the increase in fuel prices, flight operating costs for member airlines have risen dramatically, while the number of tourists arriving in Nepal has notably declined.
As a result, airline companies are facing severe financial strain on a daily basis and have warned that they may be forced to halt their services altogether.
Airlines have reported that fuel expenses now account for 55–60 percent of their total operating costs, while their overall business has declined significantly.
They have requested a 50 percent discount on various fees charged by the Civil Aviation Authority of Nepal, including landing, parking, navigation, housing, and rental fees, in light of the current difficult situation.
The airlines have also called for amendments to the airport service charge regulations to reduce rates. Additionally, they have requested a 20 percent tax concession under the Income Tax Act by recognizing airlines as a special industry.
Furthermore, they have urged that fees currently being collected in US dollars by the Civil Aviation Authority be set in Nepali rupees instead.
People’s News Monitoring Service.
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