Airline companies seek policy reform to recover from pandemic losses

Kathmandu: Nepal’s commercial airlines industry is calling on the government to overhaul aviation policies following substantial losses exceeding 10 billion rupees caused by the COVID-19 pandemic.

In a memorandum submitted to Prime Minister KP Sharma Oli today, major airline owners requested that civil aviation be prioritized as a key industry, with tax exemptions to aid recovery.

Representatives from the Airlines Operators Association of Nepal (AOAN), including Lhakpa Sonam Sherpa of Yeti/Tara Airlines, Birendra Bahadur Basnyat of Buddha Air, AOAN President Manoj Karki of Summit Air, and Vice President Pratap Jung Panday of Kailash Helicopters, outlined a 12-point plan.

The memorandum urges PM Oli to advocate for the removal of the European Union’s ban on Nepali airlines, amend aviation policies to support smoother operations, and facilitate helicopter services from Tribhuvan International Airport, which has been restricted by recent regulations.

Other demands include reducing customs duties on imported spare parts, aligning aviation fuel prices with international trends, and revising domestic and international airfare disparities. The document also criticizes the Civil Aviation Authority of Nepal (CAAN) for inadequate weather updates and calls for a 50% reduction in CAAN’s taxes for two years.

PM Oli has pledged to address these concerns, with the Ministry of Culture, Tourism, and Civil Aviation set to form a committee to review and respond to the airlines’ requests.