Why flight tickets for Nepal is quite expensive

There is an excellent coverage by Nepali Times on why air tickets for Nepal are quite expensive.  According to the times, “expensive jet fuel and high service charges at Kathmandu airport are keeping international airlines away, and preventing ones that fly here from adding flights to meet demand.”

A Nepali Times survey shows the price of ATF JetA1 at Kathmandu airport this week was US$1,050 per kilolitre (kL), almost double the cost in New Delhi and Bangkok ($525/kL) and considerably higher than Beijing ($750/kL). (See chart.)

Aviation experts say high taxes on aviation fuel dissuade international airlines, which magnify downstream benefits to Nepal’s economy through tourism promotion, cheaper travel for Nepali migrant workers, and by making air cargo competitive.

Besides fuel costs, charges for ground handling, parking and landing fees are also costlier in Kathmandu than in other South Asian airports. A widebody operator with 290 passengers pays $6,000 for ticketing and ground handling per flight at Kathmandu airport, which is twice the cost in New Delhi or Bangkok. Landing and parking charges in Kathmandu are $2,800 for heavies like the A330 or B777, which is 20-30% higher than other airports in the region.   Nepali Times claims.

You can read the complete article here