AirAsia’s service to be terminated if failed to pay TIA dues by Friday

AirAsia X has received deadline of March 9 from the authority of Tribhuvan International Airport (TIA) for clearing the pending airport service charge.

Authority from TIA warned the Malaysian based airline to cease its operation on March 6 however, the airline previously stated that it had no due left to pay for the airport service.

As per the information, AirAsia X had presented written commitment to pay the entire remaining amount on Poush 24. The Authority had agreed to halt the flights from March 3 however, the airport office had given additional three days to close the flight which was on March 6. And now the airline has got the deadline extended to March 9, Friday for the final decision.

Two representatives from AirAsia X who arrived Kathmandu on Monday had requested airport authority to extend the deadline.

General Manager of TIA said that the written agreement has been signed with Air Asia for presenting bank guarantee of Rs25 crores within 3 official days. If the airline fails to do so by this Friday then the airport authority will cease the flight operation of the airline from Sunday.

AirAsia X is reported to clear the airport dues which equals to Rs27 crores that includes landing and parking charge, air navigation service charge, airport development fee and other airport service charges.

Civil Aviation Authority of Nepal (CAAN) had dispatched a letter to both Malaysian Civil Aviation Authority and Air AsiaX due to which the two representatives arrived Nepal on Monday to discuss the issue. Air Asia who conducts five flights per week in Kathmandu had paid more than Rs 2 million last month but failed to clear the remaining hefty amount on time.

According to the Airport Service Charge Regulation 2067, the responsibility of collecting airport service charge goes to the chief of the airport who has to submit statement to head office every month.

Likewise, those who fail to dispatch airport service charge within 60 days from the generation of bill then the airport chief can halt their business whereas in case of airline operators, the flight will be restricted.

In addition, the authority can blacklist the airline operators if they fail to pay the airport service charge and act beyond the rules, regulations and agreement of the authority. In such case, the business and airline operators will be restricted to run any businesses at the airport. So, the airport authority is preparing to initiate legal action on AirAsia X.


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