Kathmandu. KATHMANDU: The government is preparing to end the discriminatory fare system and implement the same fare throughout the country by removing the provision of ‘dollar fare’ for foreign citizens and non-resident Nepalis in domestic flights. This system, which is not seen in other countries of the world, is only in Nepal and it needs to be removed.

The then Royal Nepal Airlines Corporation Dollar Fair fare was introduced in 2027 from Mountain Flights. 9 airlines in Nepal have been implementing different fares for domestic and foreign passengers. Although the airlines companies are required to contribute the surplus money collected from foreigners to the ‘Remote Development Fund’ established with the objective of using it for the development of remote areas, the amount has not been deposited regularly since 2058 BS.

Due to this arrangement, the foreign and non-resident Nepali tourists have been affected by the fare of domestic flights which is double to three times more expensive than that of Nepali passengers. If a passenger paying a dollar fare to see tigers from Kathmandu to Bardiya, it will be cheaper to go to Africa and return to Europe after observing tigers. However, there is no such discrimination in public vehicles with green number plates designated for tourists. Although the directive on air fare determination has a provision to determine the fare within the minimum and maximum limit, the differential fare policy implemented contrary to it is without legal basis, discriminatory, hindering tourism promotion, unequal and impractical. The ‘dollar fair’ has obstructed the development of tourism areas of mofussil, violated the rights of consumers and is also against the constitution.

The task force formed by the Civil Aviation Authority of Nepal (CAAN) to study this issue in 2077 BS had recommended the airlines companies to determine the airfare in foreign currency or equivalent currency only in the case of mountain flights originating from airports and Bharatpur, Pokhara, Jomsom and Lukla (including Lukla-Ramechhap) for foreign passengers. ।

Buddha Air has at least 60 percent market share in domestic flights, according to Buddha Air:

The government said that the proposal to remove the dollar fare for foreign passengers in domestic flights was a “sensitive matter like firing a wasp” and would cause a big stir and economic impact on the domestic aviation sector.

The dollar exchange rate has increased from Rs 74 in 2072 to around Rs 151 in 2083. The cost of engine maintenance has increased from $500,000 to $2 million. The cost of insurance has also increased significantly. But the fare structure has remained the same for 11 years. The news that international oil prices have crossed $100 per barrel due to the US-Iran war and tensions in the Hormuz region will also increase the pressure on the aviation industry.

If the dollar fare is removed, the cost structure of the airlines will be unbalanced and the direct impact of this will be an increase of about 50 percent in the airfares paid by Nepali passengers. Therefore, if it is removed, the entire network will be unbalanced.

Nepali passengers will be the most affected by the unilateral decision to remove the dollar fare. In the context of different fare systems in the tourism sector in many countries of the world, hotels, heritages, etc., it is not to bring tourists cheaply. As in Sri Lanka, the policy of high spending by tourists will help the economy.

In the past, some foreign embassies in Kathmandu, including Denmark, have called the airlines and intimidated them. What percentage of the tax on the salary received by the ambassadors is a matter of debate.

What is justified?

The question is not only about the chief of Buddha Air, there are many other questions. How justified is the argument of the airlines that the wealthy/elite/elite/elite should be allowed to fly at the cost of the development of remote areas without contributing the extra money collected from foreigners to the ‘Remote Development Fund’ since 2058 BS? How can an action contrary to the purpose for which the dollar fair is applied? Can’t we remove the dollar fare and provide facilities to one without depositing the collected amount in the ‘Remote Development Fund’? Should rich people like Binod Chaudhary continue to get the benefit of the remote fund? The cheapest is sea transport and the most expensive is air travel. Airfares are high in all countries. The average Nepali is not very privileged. The principle is that those who take more facilities should pay more and those who take less should pay less. Airlines do not have to worry about the alternative travel facilities available to the general public. As far as removing the dollar fare can increase the airfare of Nepali passengers by up to 50 percent, such an increase has been done by the airlines during the Dashain and Tihar festivals. Will the transport entrepreneurs be able to make the same demand saying that the fare is expensive? It is important to understand that foreign ambassadors should not be concerned when the amount of rent they pay does not go to the concerned fund.

– Advocate Amar Kumar Mallick