The Ministry of Culture, Tourism and Civil Aviation has for the time being ruled out the possibility of allowing the private airline operators to hike air ticket prices.
Keshab Khanal, Deputy Director of Civil Aviation Authority of Nepal (CAAN), told Nepalnews that the Minister of State for Culture, Tourism and Civil Aviation, Yakila Sherpa, has made it clear that there would be no consideration, at the moment, on the demands put forth by the Airlines Operators Association of Nepal (AOAN) for hike in airfare.
“The minister has made it clear that the airfares cannot to be increased for the time being,” Khanal said. When asked about the recommendations of Airfare Review Committee under the CAAN regarding the airlines operators’ demands, he said, “The debate ends here because the minister has already objected to the demands for airfare hike.” He, however, informed that homework on this matter was going on.
Citing growing losses due to increase in fuel prices and the duty on landing, parking and registration, the AOAN had last month warned that it would unilaterally hike airfares with effect from 1st January 2006 if the government did not heed to its demand immediately.
Meanwhile, AOAN president Bikash Rana said the association has agreed to the ministry’s request not to increase the airfare for some time.
“We have agreed not to go for airfare hike for some time. We are going to wait for about one month,” Rana said talking to Nepalnews. Brushing aside the claim that ministry has denied permission for hike in air ticket prices, he said, “Private operators can increase airfares any time even as the ministry wants otherwise.”
The private airlines operators are mulling airfare hike between 15 to 24 percent, according to the AOAN president.