March 5: Domestic airline operators have decided to increase the airfare of all domestic flights from today (March 5) due to the rise in the price of Aviation Turbine Fuel (ATF) sincce March 1.

Airline Operators Association of Nepal (AOAN), the umbrella body of domestic airlines in Nepal, issued a statement on March 4 informing that all its member airlines will increase the airfare of all domestic flights effective from March 5. 

According to AOAN, its members, in coordination with the Civil Aviation Authority of Nepal (CAAN), have decided to increase the airfare following the decision of Nepal Oil Corporation (NOC) on March 1 to increase the price of ATF. 

Nepal Oil Corporation (NOC) increased the price of ATF for domestic flights by Rs 5 per litre from midnight on March 1.

Previously, NOC had increased the price of ATF on February 16, and domestic operators had raised the airfare on February 20.

The airfare is determined based on three components- airfare fixed by the government, fuel surcharge, and airport taxes.

AOAN along with CAAN and the Ministry of Tourism have set a pricing formula comprising of all three components of airfare pricing. Based on the formula, the airfare is determined and approved by CAAN. 

According to a statement issued by AOAN, the association and its member airlines have decided to increase the airfare inline with the government's decision on May 10, 2018, to allow AAON and airline operators to adjust the fuel surcharge in accordance to the fuel price.

After the rise, the airfare of mountain flights from Kathamndu has increased by Rs 170. The price has been fixed at Rs 2470.

Likewise, the airfare of the Kathmandu-Bhadrapur fligh has been increased by Rs 60 per person.

The price of Kathmandu-Dhangadhi flight has been increased by Rs 220 per person while the airfare of the Kathamndu-Pokhara flight has been increased by Rs 80 per person.

Kathamndu-Simara airfare has also been increased by Rs 45 with the rise in fuel surcharge of Rs 45. The airfare of Doti-Sanfebagar route has increased by Rs 20.