The government has proposed stricter legal action against airlines that charge passengers more than the airfare approved by the regulatory authority, particularly during periods of high travel demand, festivals, disasters and emergencies. The provision is included in the Bill to Amend and Consolidate Laws Related to the Civil Aviation Authority of Nepal (CAAN), 2083, which has been registered at the Federal Parliament. The proposed legislation seeks to regulate airfare and prevent airlines from charging passengers additional amounts beyond officially approved rates.
Up to Rs 1.5 Million Fine for Overcharging
Under Section 47 of the proposed bill, operating flights by collecting fares higher than those determined and approved by the Civil Aviation Authority of Nepal (CAAN) would constitute an offence. The bill proposes a fine ranging from Rs 500,000 to Rs 1.5 million for an airline operator or concerned individual found guilty of charging passengers above the approved airfare. The authority to impose such a penalty has been proposed to be given to the Director General of CAAN. The provision is intended to prevent airlines from independently increasing ticket prices when passenger demand rises sharply, including during festivals and other periods of exceptional travel demand.
Double Fine for Repeated Violations
The proposed legislation also includes a stricter penalty for repeat violations. If an airline operator or individual who has already been fined for charging above the approved airfare commits the same offence again, the bill proposes imposing a fine double the amount of the previous penalty. The provision is aimed at discouraging repeated violations and creating greater financial consequences for airlines that continue to breach approved airfare limits after an initial penalty.
Focus on Festival Travel Demand
Airfare increases have frequently become a concern during major festivals such as Dashain and Tihar, when large numbers of people travel from Kathmandu and other major cities to destinations across the country. Demand for air services can rise significantly when road transportation becomes congested, travel times increase and public transport services become crowded. Limited flight capacity during such periods can further increase pressure on air tickets. The proposed legal provision seeks to ensure that increased demand does not become a basis for airlines to collect fares beyond the rates approved by the aviation regulator.
Provision Also Covers Disasters and Emergencies
The proposed restriction would not be limited to festival periods. It would also apply during situations such as floods, landslides, adverse weather and other natural disasters when road transportation is disrupted and demand for air travel increases. During such emergencies, passengers may have limited transportation alternatives and may be compelled to use air services to reach their destinations. The proposed provision seeks to prevent airlines from taking advantage of such circumstances by charging fares above the approved rates.
CAAN’s Regulatory Role to Become More Explicit
If the bill is endorsed by Parliament and enacted into law, compliance with CAAN-approved airfares would become a clear legal obligation for airline operators. Airlines found charging passengers more than the approved fare could face penalties under the new law, while repeat violations could result in a fine twice the amount imposed for the previous offence. The proposed framework is aimed at strengthening airfare regulation and ensuring that airlines do not impose unauthorized charges during periods of high passenger demand or exceptional circumstances.
