CAAN reluctant to collect service charge from airliners

The total pending service charges of Tribhuvan International Airport (TIA) to be paid by various airlines have exceeded NRs. 2 Billion. Civil Aviation Authority of Nepal (CAAN), the aviation regulatory body is seen inactive towards collecting the service charges of over NRs. 2 Billion from the domestic and international airlines conducting flights from TIA.

As per the report of CAAN, Jet Airways of India is left to pay NRs. 5.55 crore while the dues for national flag carrier of Nepal stands at NRs. 32.56 crore. Likewise, Himalaya Airlines is yet to pay NRs. 21.42 crore. Air Arabia, Air Asia, Air China and Air India have to pay over NRs. 26.2 crore to TIA.

The amount of NRs. 1.13 Billion is still pending from other domestic and international companies. In the domestic sector, Saurya Airlines hasn’t paid NRs. 3.35 crore while Simrik Air is left to pay NRs. 1.07 crore. Besides, the former international airlines operating flights to TIA are yet to pay pending airport service charges of almost NRs. 5 crores.

CAAN and TIA Civil Aviation Office (TIACAO) are unable to collect dues from the airlines whose flights have been terminated. Both the authorities haven’t shown concern towards collecting NRs. 4 crore 84 lakhs TIA service charge from almost 10 airline operators. Those former airlines who have ended flights for TIA are not in contact at the moment. The airport charge includes landing, parking, air navigation, airport development fee and other related fees.

As per the record from Public Accounts Committee (PAC), Air Sahara JetLite, Austrian Airlines, Bahrain Air, Burma Airways, Colossus Air, GMG Airlines, Gulf Air, Hong Kong Express Airways, KingFisher Airlines, Lufthansa, Orient Thai Airlines, Pakistan Airlines, RAK Airways, Singapore Airlines, SpiceJet, TUI Airways and United Airways have left to pay the pending TIA service charges.

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Likewise, 10 non-operating national airline companies are also left to pay almost NRs. 8.5 crore to TIA. Necon Air is required to pay maximum of NRs. 4.63 crore whereas Cosmic Air is left to pay NRs. 3.33 crore.

Majority of the domestic and international airlines are hesitating towards paying the airport service charge of TIA. The TIACAO and CAAN is seen feeble while collecting the service charges and is not being able to implement the airport service charge regulations.

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