Domestic Airlines fix uniform fares for long-distance routes

SANGAM PRASAIN

KATHMANDU, DEC 06 -

Domestic airlines have fixed uniform fares and commission rates for travel agents for long-haul routes. The carriers said the move was an effort to make the aviation industry sustainable and ensure healthy competition.

From Dec. 1, Buddha Air, Yeti Airlines, Guna Air and Agni Air have been charging the same fares for flights between Kathmandu and Pokhara, Biratnagar, Bhaira-hawa, Nepalgunj, Bhadrapur and Dhangadhi. The fares have been adjusted to match Buddha Air’s tariff. The differences in ticket prices range from Rs 50 to Rs 300.

Similarly, the commission

for travel agents has been fixed

at its upper limit. Travel agents

get a commission of up to 12 percent. However, the commission

on Buddha Air’s tickets has

been fixed at 7 percent and the commission on Yeti Airlines tickets at 11 percent.

“The uniformity move has been taken to stop uncontrolled overcharging by travel agents when tickets are scarce,” said Rupesh Joshi, senior marketing manager of Buddha Air.

Meanwhile, travellers fear that the standardised airfare policy will mean the end of competition among airlines regarding fares.

“The flat airfare provision will stop the fare war, but it will encourage airlines to upgrade their services,” said Binay Shakya, manager of Yeti Airlines.

He added that overcharging by travel agents would be stopped while carriers would be encouraged to provide improved services. “Fliers will now select the airline that provides the best service as the fares are the same for all,” Shakya said.

Guna Air marketing manager Prajwal Thapa said that

uniformity in airfares would

result in greater punctuality,

more efficient service and healthy competition.

“We are thinking of making domestic airlines sustainable. Fleet expansion could lead to unhealthy competition in terms of airfare among carriers with small and large fleets,” said Yog Raj Kandel, member of the Airlines Operators Association of Nepal (AOAN).


From Kathmandu Revised Yeti’s Past Guna Past Agni Past

Pokhara 2,780 2,700 2,660 2,660
Biratnagar 4,160 4,100 4,000 4,000
Bhairahawa 3,585 3,485 3,285 3,385
Nepalgunj 5,335 5,035 ------ ------
Bhadrapur 4,800 4,750 ------ 4,650
Dhangadi 7,560 7,560 ------ ------