With this, the ATF price has increased by Rs 50 per liter in two years. Domestic airlines had increased the fuel surcharge up to Rs 775 following the increment of Rs 10 per liter in May last year. [break]
Largest domestic airline Buddha Air has announced new airfare, which will be effective from Saturday whereas other airlines including Yeti, Guna and Agni are preparing to hike the airfare shortly.
Rupesh Joshi, executive manager of Buddha Air, said with the increment in ATF, fuel surcharge will increase in the range of Rs 60 to Rs 200.
The longest route Kathmandu-Dhanagadi will cost passengers Rs 9,230 in normal fare. The fare for this sector was Rs 9,030 before. Buddha Air has fixed the total fare for Kathmandu-Simra Rs 2,445 from existing fare of Rs 2,385.
Vinaya Shakya, senior manager at Yeti Airlines, said the airline has not decided anything on increasing airfare so far. Agni Air and Guna Air officials said they will publish the new airfare, which will be effective from Monday.
Prajwal Thapa, sales and marketing manager of Guna Airlines, said the total airfare will increase in the range of Rs 55 to Rs 180.
As per existing regulations, airlines can increase fuel surcharge when ATF price is increased by more than Rs 4 per liter. Civil Aviation Authority of Nepal (CAAN) reviews airfare every two years on the basis of inflation rate, fuel price and maintenance cost, among others.
NOC on Wednesday had decided to give subsidy of Rs 10 per liter in ATF in Karnali zone (Dolpa, Jumla and Humla) and Bajura district. National flag carrier Nepal Airlines Corporation (NAC) and Tara Air are operating flights to these sectors. NOC Spokesperson Mukunda Dhungel said the decision was taken to give relief to people of those areas.
However, airlines are not planning to reduce airfare for these routes. NAC Spokesperson Raju K.C said there is slim chance to reduce airfare as the airline is already operating in loss.
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