Domestic Airfare Increases due to Rise in ATF Price

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Domestic Airfare Increases due to Rise in ATF Price

This picture taken from Summit Air's website shows a plane landing at Phaplu Airport. Photo Courtesy: Summit Air

Tamish Giri

February 21: Airline operators have decided to increase the fare of domestic flights due to an increase in price of Aviation Turbine Fuel (ATF) effective from February 20.

Manoj Karki, general secretary of the Airlines Operators Association of Nepal  (AOAN) and managing director of Summit Air, confirmed Age that the domestic airline operators have decided to increase the airfare in all the domestic routes from February 20.
"AAON, in coordination with the Civil Aviation Authority of Nepal (CAAN), has decided to increase the airfare following the decision of Nepal Oil Corporation (NOC) on February 16 to increase the price of ATF," added Karki.  

Airfare is determined by three major factors- airfare fixed by the government, fuel surcharge, and airport taxes.
According to a statement issued by AAON, the association and its member airlines have decided to increase the airfare following the rise in fuel price on February 16 and the government's decision on May 10, 2018, that allows AAON and airline operators to adjust the fuel surcharge in accordance to the fuel price.
"AAON along with CAAN and the Ministry of Tourism has set a pricing formula comprising of all three components of airfare pricing. Based on the formula, the airfare had been determined and submitted to CAAN. CAAN has approved it, and decided to implement the new airfare from February 20," Karki informed new Business Age.
After the rise, the airfare of mountain flights from Kathamndu will increase by Rs 70. Previously, the fuel surcharge for mountain flights from Kathmandu used to be Rs 2230 per person. It has increased by Rs 70 to Rs 2300 and individuals willing to enjoy the mountain flight will need to pay Rs 70 extra.
Likewise, the airfare of Kathmandu-Bhadrapur route has been increased by Rs 60 per person.
Fuel airfare of  Kathmandu-Dhangadhi route has witnessed the maximum increase of Rs 90 per person while the airfare of Doti-Safebagar route has been increased the least by Rs 10 per ticket.
Kathamndu-Simara airfare has also increased by Rs 15 with the rise in fuel surcharge of Rs 15.
Nepal Oil Corporation (NOC), on February 16, has increased the price of ATF by Rs 2 per liter.

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