Airlines hike fuel surchargeThe Airlines Operators Association of Nepal (AOAN) on Friday decided to increase the fuel surcharge from Monday in line with an increase in aviation fuel prices.
The Airlines Operators Association of Nepal (AOAN) on Friday decided to increase the fuel surcharge from Monday in line with an increase in aviation fuel prices.
The extra charges will be added onto the cost of an plane ticket, ranging from Rs75 to Rs355, depending on the distance. The new fuel surcharge, however, is subject to the approval from the Civil Aviation Authority of Nepal (Caan).
The government controls the price of a plane ticket while airlines are allowed to fix the surcharge if fuel prices fluctuate by at least Rs4 per litre.
Fuel surcharges are normally charged to passengers to cover part of the cost increases that are associated with jumps in the price of aviation fuel. “As the aviation fuel price was increased by Rs3 per litre on January 2 and again Rs5 per litre on February 2, based on AOAN decision, we are compelled to revise the fuel surcharge in all sectors,” Buddha Air said posting the revised surcharge on social media channels.
On Thursday, Nepal Oil Corporation hiked aviation fuel sold to domestic carriers by Rs5 to Rs 95 per litre.
Following the revision, a normal fare on a flight from Kathmandu to Dhangadhi, the longest domestic route, will cost Rs12,675, including a fuel surcharge of Rs4,195 and airport tax of Rs200. A ticket on the shortest flight, Kathmandu-Simara, has gone up to Rs3,125, including a fuel surcharge of Rs855 and airport tax of Rs200.
“In response to fuel price hike, we are compelled to pass on the burden of additional fuel costs on the passengers,” said Ghanshyam Acharya, spokesperson of AOAN. “However, the revised surcharge will be implemented after it is approved by the Caan.” This is the second time in last two months that airlines have increased the fuel surcharge. Last December, domestic airlines had increased fuel surcharges by Rs45 to Rs220.
Figures issued by Tribhuvan International Airport (TIA) show that domestic airline passenger traffic jumped 41.23 percent to 1.99 million during the January-October period last year. Meanwhile, domestic flight movements swelled 28.40 percent in the first 10 months of 2017. The 18 domestic airlines consisting of nine fixed-wings and an equal number of rotor-wing carriers made 75,839 flights.
After witnessing a constant fall in passenger numbers in the last four years, the domestic aviation sector rebounded strongly in 2016, recording an all-time high air traveller movement.