In a recent decision aimed at boosting the operational capacity of Nepal’s key international airports, the government has announced a series of subsidies for the Gautam Buddha International Airport in Lumbini and Pokhara International Airport. This initiative is part of a broader strategy to ensure that both airports operate at their full potential.
The decision follows a meeting chaired by the Prime Minister, which included ministers and officials from relevant ministries. The meeting reviewed recommendations from a task force studying the options and measures required to achieve full operational capacity for both airports. Based on these recommendations, the government has outlined a plan to provide various concessions.
Minister for Culture, Tourism, and Civil Aviation, Badri Prasad Pande, announced that subsidies will be granted on air tickets, ground handling services, and aviation fuel until Bhadra 2083 (August 2026). He said the government will not charge the ground handling service fees during this period. Additionally, the VAT typically imposed on air tickets will also be waived for the specified timeframe.
Pande further stated that the government plans to eliminate the ticket service fee charged by the Tourism Board during this period. The government is also coordinating with the Ministry of Industry, Commerce, and Supplies to ensure that fuel prices at the Gautam Buddha International Airport are lower than those at Kathmandu’s airport.
In terms of operational support, the Immigration Office and Visa Center will be managed by the Ministry of Labor and the Ministry of Foreign Affairs. Furthermore, the Ministry of Agriculture and Livestock will handle quarantine checks at the airports.
The government’s comprehensive support plan is expected to facilitate the full-fledged operation of these airports, significantly enhancing their capacity and efficiency.
