Tuesday, February 15, 2011

Domestic airfare goes up

The domestic air travel is going to be expensive by Rs 250 to Rs 500 from Wednesday in all sectors.
"Though the government permitted us to increase airfare from February 13, we are increasing the airfare effective from Wednesday," said Rupesh Joshi, marketing manager of Buddha Air.The airlines were asking the government to let them increase airfare as it has been five years that they have not revised the airfares. "Though, airfares are revised every two years, this time it is being done after five years," he said, adding that the airlines have increased the fares to only 33 per cent from what the government permitted.
The Ministry of Tourism and Civil Aviation has on the basis of the inflation rate of the last five years, permitted the airlines to hike the airfare. Generally, every two years, the airfare has been revised based on the increasing price in the market.
The government had formed a committee to revise the airfare in November, 2010 and the committee had submitted its report to the Ministry of Tourism and Civil Aviation in December suggesting the airfare hike.
The Airlines Operators Association of Nepal (AOAN) has requested the government to revise airfare upward due to rise in Air Turbine Fuel (ATF), insurance fee, lease tax, VAT, renewal fee in the last five year.However, the operators have adjusted the minimum airfare and fuel surcharge to increase in the total fare.
Earlier in December too, the airlines operators had hiked the additional fuel surcharge by Rs 60 to Rs 80 according to the distance, citing the reason of the hike in ATF price.
Meanwhile, the chopper companies have also made their fares uniform by making it $2,500 in tourist season and $2,200 in off-season. "Though some light helicopters were charging $1,880 earlier, others were already charging $2,500 in tourist season and $2,200 in off-season," said Bikash Rana, chairman of Fishtail Air -- a helicopter charter company operating within Nepal based in Kathmandu. "The uniform fare will be effective from March 1," he added.

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