High demand + lower supply = higher prices. This is standard theory in the airline industry.

Bad management + bad planning + high demand + low supply = very high fares and passengers suffer. This is the case in Nepal.

Flight prices are frustrating travelers in a country that aspires to attract 1.6 million tourists by the end of this year to help its struggling economy.

Airfares have almost quadrupled in Southeast Asia, while they have more than doubled for flights to the West.

For example, travel agencies say a Kathmandu-Delhi flight of one hour and 15 minutes will now cost Rs 80,000 one way from the first week of November, which is the highest fare for a flight based on the Reservation Booking Designator (RBD). .

Airlines simply don’t raise prices arbitrarily. With RBD, the sales rate follows a staircase model, going from the lowest rate to the highest rate, with a difference of $15 to $100 for each step.

The lowest rate, rarely available in the sector, is Rs42,000.

Nepal Airlines, which hardly increased its fares, issued a fare of Rs 48,000 for its business class ticket as economy class seats were sold out for the Delhi sector.

But inbound flights or Delhi-Kathmandu flights cost Rs 17,500.

Indeed, from November 8, Kathmandu’s Tribhuvan International Airport will be closed 10 hours a day, from 10 p.m. to 8 a.m., for five months until March 31, in order to expand the taxiways.

September-November is Nepal’s peak tourist season and the time when migrant workers and other Nepalis studying and working abroad return after celebrating key festivals at home.

Two parallel taxiway projects are underway at Kathmandu’s Tribhuvan International Airport.

As part of the improvement plan, a 1,140 meter long parallel taxiway is being constructed on the south side of the runway, or Koteshwar end. This will connect the existing international apron to the end of Runway 02.

Similarly, another 450 meter long parallel taxiway is being constructed at the northern end of the runway.

Tourism entrepreneurs say this is unplanned construction that is taking far too long and will extend into another peak tourist season in the spring (March).

“As a result, ticket prices are now reaching unprecedented heights,” said Shyam Raj Thapaliya, managing director of Osho World Travel Nepal, a leading travel agency.

He said airlines are having to cut 50 percent of their flights, causing demand to increase exponentially.

“Airlines are scrambling to manage slots because they have already sold tickets to foreigners a year in advance,” Thapaliya said.

Tourism sector entrepreneurs said the civil aviation body’s mismanagement could slash at least Rs50 billion from the airline and tourism industry’s revenue, even as the government has struggling to generate income.

What is the airfare in other sectors?

After Kathmandu-Delhi flights, Sydney is the busiest sector during this period and the most popular in November.

The highest fare in Kathmandu-Sydney sector is Rs 217,000 and the lowest fare is Rs 114,000. The normal airfare for one way route was Rs 85,000.

Flying to Washington, DC, USA from Kathmandu will cost Rs 192,000 for a premium one-way ticket. The standard fare for this route was Rs 100,000.

Similarly, the Kathmandu-London fare has gone up to Rs 217,000, and the lowest ticket price is Rs 142,000. The normal airfare was Rs 72,000 on this route.

Ticket prices in work destinations have also climbed.

According to travel agencies, the Kathmandu-Dubai ticket has gone up to Rs171,000 in the premium segment, while the cheapest option is Rs82,000. The normal fare was Rs35,000 in this sector.

Similarly, the Kathmandu-Kuala Lumpur flight will cost Rs 54,000, while the cheapest option is Rs 39,000. The normal fare in the sector was Rs 29,000.

Airfares began to increase before the airport was built.

Rama Sharma booked a flight from Kathmandu to New Delhi on Monday (November 5), and the cheapest option she found was Rs 67,000 for a return economy class ticket on an Air India flight.

Sharma said the return tickets cost around Rs 40,000. “For those prices, I should be able to make two round trips in this area,” she adds, expressing her frustration.

“Passengers are victims on all sides. »

“A friend of mine from Mumbai called me to tell me that the cost of a direct flight to Kathmandu was almost the same as a direct flight to Athens. Is there a reason why the price of Mumbai to Kathmandu flight tickets has skyrocketed? “, wrote Prajwal Raj Gyawali in X, formerly Twitter, on October 23.

“The cost of Delhi-Kathmandu return ticket by @IndiGo6E reaches almost 1 lakh rupees (Rs 100,000). What kind of tourism promotion is this? an X handle written by Kamala93. “@PM_nepal_The government should immediately understand why this is happening?

Mani Raj Lamichhane, director of the research, planning and monitoring department of the Nepal Tourism Board (NTB), the country’s tourism promotion body, said that construction of airports for long hours in peak season would constitute a significant setback because it would reduce the frequency of flights. increase airfares and prevent tourists from coming to Nepal.

“Increasing airfares by four will have a huge impact on tourism in any country. »

He said most hotels have started receiving cancellations for November due to high airfares and the possibility of chaos at Kathmandu airport. “Most airlines fly to Kathmandu at night to manage their connecting flights. Closing an international airport for 10 hours is not a wise decision.”

The tourism office also revised the number of tourist arrivals for 2024, to 1.1 million compared to 1.3 million forecast.

“The planned works will also affect spring tourism next year.”

Concerned tourism entrepreneurs, who have seen tourists coming to Nepal despite repeated plane crashes, have urged the government to reduce the duration of the work to five hours from the proposed ten hours.

The Civil Aviation Authority of Nepal has ordered international airlines to make arrangements for their flights from Pokhara and Bhairahawa international airports to reduce pressure.

However, airlines are reluctant to fly from these airports, as they consider it not technically and financially feasible.

A senior official of an international airline told The Post that the civil aviation body had forced airlines to fly from Bhairahawa regardless of their refusal. “It’s a punitive measure.”

The International Air Transport Association (IATA), a trade association of airlines around the world that advocates for the safety, security and efficiency of travelers, has sent a letter to the Civil Aviation Authority of Nepal on Oct. 1 after plans to close the airport sparked concerns. several sides.

The letter, obtained by the Post, said the reduced opening hours forced airlines to cancel flights at short notice, inconveniencing passengers who booked their tickets a year in advance.

“IATA has been informed that Tribhuvan International Airport will reduce its operating hours from November 8, 2024 to March 31, 2025 to facilitate runway maintenance. Additionally, IATA noted that there has been no proportionate reduction in established schedules. Some airlines received schedule approvals during the affected period, while others did not.

IATA suggested carrying out a full assessment of demand and capacity.

Kathmandu Airport was designed as a Tier 1 airport, which should theoretically meet airline demand. The Level 1 category means that airport capacity is generally adequate to meet demand.

However, airlines have reported that their schedules cannot be met during maintenance. IATA recommended the civil aviation body reduce the daily closure period by two hours and avoid closure on the busiest days of the week.