Airlines defy CAAN direction by not deducing international ticket prices

KATHMANDU, NOVEMBER 20: Airlines operating in Nepal have continued to defy the Civil Aviation Authority of Nepal's (CAAN) directive to reduce their international airfares, leading to a dramatic surge in ticket prices. Some routes have seen fare increases of up to 300%, putting immense financial pressure on passengers, especially migrant workers.

Airlines Exploit Airport Closures

The 10-hour daily closure of Tribhuvan International Airport (TIA) for upgrades has been used as a justification for the steep price hikes. Nepali migrant workers, a majority of whom rely on affordable flights, have been particularly affected, bearing the brunt of this exploitative pricing.

In response to mounting complaints, the Foreign Employment Business Association (FEBA) engaged with top officials, including Labor, Employment, and Social Security Minister Sharat Singh Bhandari, Culture, Tourism, and Civil Aviation Minister Badri Prasad Pandey, and Foreign Minister Arzu Rana. Tourism Minister Pandey subsequently held further discussions with his counterparts to address the issue. Despite CAAN's direct orders to airlines not to raise fares, compliance remains absent.

Steep Airfare Hikes by Route

The cost of international travel from Kathmandu has surged across multiple routes:

• Kathmandu to Delhi: Fares have soared to NPR 40,000 (from NPR 10,000).
• Kathmandu to Qatar: One-way tickets now cost NPR 100,000, compared to NPR 50,000 for a previous round trip.
• Kathmandu to Dubai: Prices have spiked to NPR 85,000 for a one-way ticket, up from NPR 55,000 for a round trip.
• Kathmandu to Malaysia: One-way fares now reach NPR 80,000, up from NPR 48,000.
• Kathmandu to Kuwait: One-way tickets have doubled to NPR 70,000 from NPR 35,000.

Migrant Workers Seek Indian Airports

With exorbitant airfare in Nepal, around 40% of migrant workers have turned to Indian airports situated in Bagdogra, Delhi, and Gorakhpur for international travel. Routes often involve travelling from Kathmandu to Bhadrapur, Siliguri, and then flying out of Bagdogra Airport. Similarly, others reach Gorakhpur or Delhi’s Indira Gandhi International Airport via Dhangadhi or Nepalgunj.

The government’s decision to remove the mandatory No Objection Certificate (NOC) for workers flying via India has made the transition easier. However, FEBA General Secretary Meghnath Bhurtel expressed concerns, stating, “Relying on Indian airports is not a sustainable solution. If fares in India rise tomorrow, where will workers go?” He called on the government to address the cartel-like practices of airlines and travel agencies.

Unimplemented TBA Agreement

Airline companies have also failed to implement their agreement with CAAN to abolish the Travel-Based Agent (TBA) system. Under TBA, travel agents buy tickets in bulk and resell them at inflated prices.

A five-point agreement, including provisions to regulate ticket pricing, limit bulk ticket sales, and ensure transparency in fare structures, was reached last week between CAAN, government representatives, and airlines. Yet, this agreement remains largely unfulfilled.

“Travel agents continue to hoard tickets and resell them at exorbitant prices,” a travel agent revealed. “If CAAN enforces stricter regulations, ticket prices will inevitably drop.”

Increased Flights from Bhairahawa

To alleviate the strain caused by TIA's partial closure, Gautam Buddha International Airport in Bhairahawa has seen a rise in international flights. Currently, Nepal Airlines and three other carriers operate flights from Bhairahawa to destinations like Doha.

From October 13 to November 20, airlines such as FlyDubai, Jazeera Airways, and Nepal Airlines have conducted 19 international flights from Bhairahawa, according to CAAN spokesperson Gyanendra Bhul.

Regular schedules include flights on Sundays, Mondays, Wednesdays, and Fridays, with additional flights by Jazeera Airways and Thai Airways bolstering the airport's connectivity.

The Need for Immediate Action

As airfare continues to rise unchecked, the government faces increasing pressure to intervene. Without enforcement of regulations and measures to curb exploitative practices, workers and passengers will remain vulnerable to unsustainable financial burdens.