Domestic airlines to lower their air fare slightly as the price of Aviation Turbine Fuel decreases

Domestic airline companies are set to reduce their air travel fees after the cost of air fuel declined in the international market. The new fare charge will be implemented from this Wednesday as per the source. Nepal Oil Corporation (NOC) reduced the air fuel price on Sunday by Rs. 4 per liter for all domestic flights.

After the price went down, the domestic fuel price is currently holding at Eighty Two rupees per liter. Depending to the distance, the price of the domestic airfare could fall by the margin between Rs90 and Rs. 300. After this decision, a committee has been formed under the Civil Aviation Authority of Nepal (CAAN) for the reviewing the fuel surcharge.

Deputy Officer at the Air Transport Division of CAAN, Mr. Subhash Jha released the information that it was failed to implement the decrements rate of the ATF on Monday due to some technical problems on the automatic formula set up to determine the reduced fuel surcharge. The problem was fixed and decrements rate will be applicable by Wednesday and the Lower fuel surcharge will provide some relief to travelers, added Mr. Jha.

This is the very first time that the domestic airline operators have to cut the fuel surcharge. Under the CAAN’s new formula, the entire airline operator is now required to update their fuel surcharge. Data analysis of the Tribhuvan International Airport (TIA) show that domestic carriers welcomed 393,548 additional flyer’s in 2016. The figure includes 27,893 passengers flown by nine domestic helicopter companies.

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