The association has also drawn the attention of the government, saying that there is a risk of shutting down the service if the situation continues like this.
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The Airline Operators Association (Nepal), the umbrella organization of domestic airlines, has urged the government to provide immediate relief and concessions, stating that the airlines are facing serious financial crisis.
In a letter to the Ministry of Culture, Tourism and Civil Aviation on Thursday, the association sought relief, stating that the aviation sector is under extreme pressure due to rising fuel prices, declining passenger numbers and international circumstances.
According to association president Pratap Jung Pandey, the impact of the Corona pandemic has not yet been completely eliminated and the recent instability in the Middle East has significantly increased the price of aviation fuel. They said that this has sharply increased the operating costs of airlines. The association stated that fuel costs, which were 30-40 percent of the total costs of domestic airlines before the attack in Iran, have now increased to 45-50 percent.
In addition, the decrease in the number of tourists coming to Nepal, especially those who come for trekking, has reduced income and companies are facing problems in their daily operations, they stated in their letter to the ministry. If the situation continues like this, the association has also drawn the attention of the government, saying that there is a risk of shutting down the service.
There are currently 9 airline companies operating domestic flights in Nepal. They have been providing air services from remote areas to major cities. The association says that immediate support is needed as the continuity of the services of these companies is important for the general public.
The association has demanded that the Civil Aviation Authority of Nepal should provide at least 50 percent discount on landing, parking, navigation, hangar, etc. fees charged at airports across the country, including Kathmandu. Similarly, it has been mentioned that the airport service fee regulations of the authority should be amended and the fees charged for domestic flights should be reduced.
Similarly, the letter also demands that the aviation industry should be treated as a priority industry, given tax exemptions and incentives, and that the fees currently charged in US dollars should be determined in Nepali rupees.
In a letter registered with the ministry, the government has also warned that the domestic airline sector will be pushed further into crisis if the demands of airlines are not addressed in a timely manner.
