Sunday, October 4, 2026 12:05 PM

Airlines face up to Rs 1.5m fine for overcharging passengers

Kathmandu, Oct 4: Airlines charging passengers above approved fares during festivals, disasters and other emergencies could face fines of up to Rs 1.5 million under a new law being prepared by the government.

The proposed measure seeks to curb fare hikes at times when passengers have limited travel options and demand for flights surges.

A draft bill to amend and consolidate laws governing the Civil Aviation Authority of Nepal proposes fines ranging from Rs 500,000 to Rs 1.5 million for airlines found selling tickets above fares approved by the aviation regulator.

The Ministry of Culture, Tourism and Civil Aviation has moved the draft forward after collecting feedback from stakeholders.

Under Clause 47(d) of the proposed legislation, operating flights while collecting fares above rates approved by the Civil Aviation Authority of Nepal would constitute an offence.

Repeat violations would carry heavier penalties. An operator committing the same offence after previously being penalised could face twice the normal fine. The provision is intended to discourage airlines from taking advantage of sudden increases in passenger demand.

Domestic air travel typically rises sharply during major festivals, particularly Dashain, Tihar and Chhath, when large numbers of people travel to their home districts.

Demand also spikes during natural disasters and emergencies when floods, landslides or other disruptions block highways and make road travel difficult or impossible. In such situations, flights can become the only practical option for many passengers.

Complaints over steep airfares frequently surface during periods of high demand, particularly around festivals and when disasters disrupt the country’s road network.

The proposed law would give authorities a clearer basis for penalising airlines that breach approved fare limits.

If enacted, the provisions would strengthen regulatory oversight of airline pricing and expose operators to substantially higher financial penalties for repeated overcharging.

People’s News Monitoring Service

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