Aviation Operators Association Requests Relief from Government Amid Economic Crisis

In Kathmandu, the Nepal Aviation Operators Association has appealed to the government for urgent relief and support, citing the severe economic crisis that private aviation companies are currently experiencing. The prolonged impact of COVID-19, civil unrest, and ongoing conflicts in the Middle East have significantly raised the cost of aviation fuel, making flight operations increasingly difficult, according to the association. The association warns that if the government does not intervene to address the escalating fuel prices and the inability of companies to cover expenses, the aviation sector in Nepal could face a complete shutdown in the future. They note that while previously fuel accounted for 30-40% of total expenses for aviation companies, this has now surged to as high as 60%. The decrease in air travel costs coupled with a decline in tourist arrivals has put immense pressure on companies, resulting in significant financial losses. In response to the current crisis, the government is reportedly considering a special relief package to support the aviation sector and ensure convenient services for travelers, as stated by the association's president, Pratap Jung Pandey. Aviation operators have also requested the Civil Aviation Authority of Nepal to reduce landing, parking, and navigation fees by at least 50%. Additionally, they are urging for amendments to the Aviation Service Charges Regulation of 2078 to completely remove domestic seasonal service charges, and despite being classified as a 'priority industry,' operators express dissatisfaction over the lack of tax exemptions and facilities. Citing fluctuations in foreign currency reserves and exchange rates, operators are also seeking government assistance in paying various fees in US dollars instead of Nepalese rupees, as well as highlighting the additional financial burden placed on companies due to currency exchange rates when making dollar payments.