Domestic airlines have agreed to provide air tickets of fare lower than the approved maximum to ease the situation as fare hike complaints were on the rise in the run up to the Dashain festival. The agreement came after the Civil Aviation Authority of Nepal (CAAN) and domestic airline representatives met on Thursday at the proposal of Prime Minister Balendra Shah and Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel. As per the agreement airlines have committed to showcasing all applicable fares through their ticket sales platforms so that the passengers can get an idea about the fares.
Government Pressure Results in Airlines Meeting
Passengers had been complaining extensively that domestic airline fares were peaking at a time when the demand for flights was rising, especially for the destinations in the west of the capital. That was because the one way travel to the terminus had been surging in this festival season of Dashain resulting in the inexpensive fares being snatched instantly. For instance, the Kathmandu-Dhangadhi fare was recorded at Rs. 22,180 for a one way trip whereas the CAAN-approved maximum fare stood at Rs. 21,600.
With the complaints on the rise, the Prime Minister’s Office and the ministry of culture, tourism and civil aviation put pressure on the domestic airlines to effectively enforce the regulations on domestic airfares. And so on Thursday, following the meeting between the Civil Aviation Authority of Nepal and domestic airline representatives, the latter has committed to the authorities to provide tickets of fare lower than the approved maximum fares and post the fares on their ticket sales portals. Director general of CAAN Mukesh Dangol said that the agreement would offer passengers affordable fares instead of leaving them with higher bracket fares during the peak season when demand for flights was high.
Airlines to Post Affordable Fares as per CAAN’s Demand
Domestic airfares are largely determined by the minimum and maximum fares whereby carriers usually offer lower fares based on demand and supply. However with the peak season of Dashain in full swing demand for cheaper seats has been rising which in turn has made the carriers to offer higher bracket fares which had sparked complaints from passengers. Particularly, the one way travel to destinations in the west of Kathmandu has been witnessing heavy traffic. That was because many people usually travel to their respective hometowns from Kathmandu using domestic airlines. Meanwhile, the imbalance also occurs due to fewer returnees from holidays compared to those departing from the Valley to various parts of Nepal.
Industry sources say that normally during the peak seasons airlines follow demand and supply where cheaper fares are on offer for some time but quickly get fully booked and so the carriers then move to higher fares. This practice was further exacerbated due to the deluge that occurred in Rasuwa-Bhotekoshi on August 17, 2019, which resulted in the closure of the roadways.
Airlines were directed by the CAAN to keep fares as they were and offer tickets below the maximum fares so that people could resume their travels as normal. Similarly, with this current agreement with the Airlines Association of Nepal (AAN), the authority is set to encourage the carriers to maintain cheap fares, especially on the flights from Kathmandu to the western regional airports.
Domestic Tourism Boosted as Dashain Airfares Get Lower
Dashain is regarded as Nepal’s peak travel season because of the long holidays which result in heavy traffic on the roads as well as the domestic airlines for those people who cannot embark on road trips or whose destinations are miles away. The imbalance between departure and return traffic also influences the fares.
Meanwhile, local tourism is highly reliant on air travel as the region’s tourism sites are scattered and inaccessible by road except for some major cities and towns. Industry sources explain that local carriers usually follow demand when setting the fares. They lower fares as soon as a particular date, route, or cabin class reaches full capacity. So, the cheaper fares sell fast and the airlines then move to higher brackets. This is in most cases witnessed during Dashain and other peak seasons because people tend to leave on holidays together once the long weekends start.
