International Civil Aviation Day: We are battling for survival: Pvt carriers
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KATHMANDU, DEC 08 -
Although the air seat demand has increased significantly in the domestic aviation sector, operators say they are battling for survival with rising fuel price and high tax levied by the government.
During the International Civil Aviation Day celebrations here on Wednesday, Airlines Operators’ Association of Nepal (AOAN)—the umbrella body of domestic air operators—said marginal profit and steep competition have become a worrying factor for airlines’ sustainability.
“Private airlines are battling for survival as oil price is challenging everyone in the industry,” said Rameshwar Thapa, president of AOAN at the programme organised to mark Civil Aviation Day.
“Hence, the government needs to watch closely the sustainability of the airlines industry. Cooperation between the government and private air operators is the need of hour to make the aviation sector sustainable.” AOAN said rise in landing and parking charges, prices of aircraft equipment and government taxes has hit operators’ profits.
“Aviation fuel has touched Rs 100 per litre from Rs 73 per litre within a year, while airlines’ annual direct and indirect tax jumped to $300,000 from $10,000 over a decade,” said AOAN.
The present situation is also hampering operators to fly in remote sectors due to high operating costs, said AOAN. “The government should encourage operators to fly in remote sectors by providing incentives and tax waivers,” Thapa said.
According to TIA statistics, domestic airlines carried 761,043 passengers in the first six months of the current fiscal year, up by 36,160 from last year.
However, the growth in passenger movement in the first half—4.98 percent—is the lowest in three years. The statistics show that except for Buddha Air and Sita Air, all other domestic carriers posted negative growth in their passenger movement in the first six months.
Posted on: 2011-12-08 09:35
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