Airlines to increase fuel surcharge

With the increment of petroleum prices, private airlines operators are also increasing fuel surcharge making the air travel costlier from March 1.
Though, the Airline Operators Association of Nepal (AOAN) is taking the formal decision tomorrow, the increment — Rs 60 in the shortest route and Rs 150 in the longest route — will be effective from March 1, according to the association.
"The Civil Aviation Authority of Nepal (CAAN) has mandated the private airliners to automatically adjust the fuel surcharge with an increase or decrease of Air Turbine Fuel (ATF)," said executive marketing manager of Buddha Air Rupesh Joshi.
The state oil monopoly has increased Rs 4 for a litre of ATF making it Rs 109 per litre yesterday forcing the airlines to increase the fuel surcharge that will hike the airfare again within a month.
"According to the regulations, airlines can revise fuel surcharge when ATF price is increased or decreased by more than Rs 4 per litre," he said, adding that the fuel surcharge is calculated automatically with price revision of ATF every time.But, CAAN reviews airfare every two years on the basis of inflation rate, fuel price and maintenance cost.
The domestic airlines had on January 21 increased the fuel surcharge by Rs 55 to Rs 200 following the price-hike in ATF. Nepal Oil Corporation (NOC) had increased Rs 5 per liter in a litre of ATF on January 18 making it to Rs 105 per litre.
There are some half dozen domestic private airlines including Buddha Air, Yeti Airlines, Guna Air and Agni Air flying on the domestic routes, apart from the new airlines Blues Air that got Airlines Operating Certificate (AOC) last week.
The government opened the sky after the 1990 movement giving space for the private sector to operate airlines apart from the national flag carrier Nepal Airlines Corporation (NAC) which is operating on the international routes too. The government has encouraged private airliners to fly on the international route as the ailing national flag carrier could not operate its flights on all the routes that the country already has agreement with.