Saturday, February 5, 2011

Janakpur airport to go international by 2012

SANGAM PRASAIN

KATHMANDU, FEB 05 -

The Ministry of Tourism and Civil Aviation (MoTCA) has intensified efforts to acquire land to upgrade Janakpur airport into a regional international airport, a ministry official said.

The ministry plans to complete land acquisition and construction of a new terminal by 2011. The government has allocated Rs 30 million to acquire 16 bighas of land to extend the airport. It is expected to come online as a regional international airport by 2012.

Janakpur, capital of the ancient kingdom of Mithila and birthplace of Sita, heroine of the Ramayana, is an important pilgrimage site for Hindus. Tourism Minister Sharat Singh Bhandari said that the project to develop Janakpur airport into a regional international airport had been given priority considering the prospects of attracting large numbers of Hindu pilgrims.

Another reason behind developing Janakpur as a regional international airport is the recently signed air agreement between Nepal and India which allows cross-border flights from Janakpur. Development of Janakpur as an international airport could also ease congestion at Tribhuvan International Airport (TIA) as migrant workers from the eastern Tarai could fly out from there. More than 3,000 passengers pass through TIA per hour, which was designed to handle 1,300 passengers.

The government has moved to develop Janakpur, Pokhara and Bhairahawa airports as TIA was being overstretched. “Domestic passenger movement is also increasing at a rapid pace, and developing regional international airports could boost private air operators,” said Bhandari.

Land acquisition for Bhairahawa airport has been completed. The ministry said that the government had allocated Rs 280 million for compensation to land owners. “Bhairahawa could be a hub for Buddhist pilgrims,” Bhandari said.

Domestic airfares to go up 13-49 pc

SANGAM PRASAIN

KATHMANDU, FEB 05 -

The Civil Aviation Authority of Nepal (CAAN) has proposed a hike in domestic airfares of 13 to 49 percent. The new tariff is subject to approval of the Ministry of Tourism and Civil Aviation (MoTCA).

Mountain flights will be dearer by more than Rs 1,500 (28 percent) while long-haul routes like the Kathmandu-Dhangadhi sector will go up by Rs 1,476. Airfares for remote areas will go up by as much as 49 percent.

MoTCA will review the proposed airfares before approving them. A MoTCA source said that the ministry would not be making any big changes in the proposed tariff. In line with the request made by the Airlines Operators Association of Nepal (AOAN) and the provision that airfares should be reviewed every two years, MoTCA had assigned CAAN to study the technical aspects of the proposed fare hike three month ago. The last airfare review was made on Feb. 17, 2006.

“A review of the fare schedule is being done, and it will most likely be approved after the ministry gets its new minister,” said MoTCA secretary Kishore Thapa. CAAN had formed an airfare review committee three months ago under the coordination of deputy director general Binod Gautam. CAAN has proposed a hike in airfares in line with inflation and other major components in the last five years.

Under Nepal Rastra Bank’s inflation rate, the other major components for an airfare review include direct fixed cost (aircraft lease cost, insurance, crew training, salary and allowances), direct variable cost (fuel, maintenance, landing, parking and navigation) and indirect operating cost (administration, agency commissions and overheads). The AOAN had asked for an airfare review citing heavy lease tax, landing charge, parking charge, navigation charge, housing charge and other taxes. The airfare review will not incorporate a fuel surcharge. The government allows airlines to increase the surcharge only if the price of aviation fuel increases by at least Rs 4 per litre.

On Dec 26, domestic airlines had increased the fuel surcharge by Rs 60 to Rs 80 as per the hike in the price of aviation turbine fuel. Nepal Oil Corporation had increased the price of aviation fuel by Rs 5 per litre to Rs 80 on Dec. 6. The AOAN had increased the surcharge by Rs 60 to Rs 180 in February 2010 too.

Proposed Airfare by CAAN (excluding fuel surcharge)


Tourism Sector
existing (in Rs) proposed (in Rs) up (in %)

Kathmandu-Mountain 4,616 7,172 28

Kathmandu-Lukla 2,355 3,227 17

Kathmandu-Bharatpur 1,635 2,241 13

Kathmandu-Pokhara 2,420 3,317 16

Kathmandu-Jomsom 3,402 4,662 16

Long-Haul

Kathmandu-Biratnagar 4,273 5,020 17

Kathmandu-Janakpur 2,352 2,689 14

Kathmandu-Bhairahawa 3,680 4,303 17

Kathmandu-Dhangadhi 7,758 9,234 19

Kathmandu-Nepalgunj 5,742 6,813 19

Kathmandu-Bhadrapur 5,309 6,275 18

Kathmandu-Surkhet 6,465 7,530 16

Remote Sector

Biratnagar-Bhojpur 1,329 1,972 48

Biratnagar-Tumlingtar 1,507 2,241 49

Biratnagar-Lamidanda 1,635 2,421 48

Biratnagar-Rumjatar 1,812 2,689 48

Biratnagar-Phaplu 2,117 3,138 48

Nepalgunj-Dolpa 2,304 3,407 48

Nepalgunj-Bajhang 2,541 3,765 48

Nepalgunj-Bajura 2,363 3,496 48

Nepalgunj-Simikot 3,151 4,662 48

Nepalgunj-Jumla 2,363 3,496 48