Int'l Airlines Flying High in Nepal

Lately, Nepal has become an attractive destination for international airlines which is vindicated by the fact that the number of international airlines that fly to Kathmandu is now more than two dozen. Unlike in many countries, a weak presence of the national flag carrier has created an atmosphere of 'protection free' competition for the international flight operators in Nepal.

By TC Correspondent

The number of international flights and movement of passengers witnessed a significant growth in the first 10 months of 2011 as compared to the same period the previous year. According to the data provided by the Flight Permission Section at Tribhuvan International Airport (TIA) Civil Aviation Office, the number of incoming international flights to Nepal increased by 17.2 per cent to 9,316 in the first 10 months of 2011 from 7,949 for the same period in 2010. Similarly, the passenger movement in this period increased by 13 per cent to 1,060,949 from 938,551 in the same period of 2010. Qatar Airways recorded the highest number of both flight and passenger movement. The airline operated a total of 943 flights to Nepal bringing in 114,557 passengers in the first 10 months of 2011. Jet Airways stood second with 913 flights and 109,581 passengers, while Air India Airlines stood third with 718 incoming flights carrying 61,874 passengers.

The national flag carrier, Nepal Airlines Corporation (NAC) stood fourth in the race with 680 flights that brought in a total of 84412 passengers. Interglobe Aviation (INDIGO) recorded the least number of flights and passenger movement. The airline's flight and passenger movements were recorded five and 691, respectively. Suresh Acharya, Joint Secretary at the Ministry of Tourism and Civil Aviation, said, "There are 26 foreign airlines operating in Nepal at present. These airlines hold more than 94 per cent of the market share. They are doing a real good business here." The international airlines have also been contributing a good amount to the government's revenue collection, he added. Acharya underscored the need for better infrastructure, improved navigation system and enhanced security at TIA to encourage more international as well as domestic flights in the country. "This will help the airlines to increase their business, and at the same time, also help increase the government's revenue. The government should also encourage NAC."

According to Raju Bahadur K C, Spokesperson at NAC, the business of international airlines in Nepal has been on the rise over the past few years. "The contribution of international airlines to the Nepali economy in 2011 was satisfactory. NTY 2011 campaign, too, promoted their business. But, NAC's market share remained low due to the lack of enough aircraft," he said. Though the international flight movement and movement of passenger were seen high in 2011, the total revenue collected in the first 10 months decreased by Rs 15 million as compared to the same period in 2010. In the first 10 months of 2011, this sector contributed revenue of Rs 587 million against Rs 602 million for the same period in 2010.

Qatar Airways was the highest contributor with Rs 63.39 million during the period. It had contributed Rs 92.86 million in revenue to the government in 2010. Likewise, NAC's revenue contribution till October, 2011 stood at Rs 63.90 million. The national flag carrier had contributed Rs 69.12 million in the same period in 2010. Ramdas Shivram, Country Manager of Qatar Airways, Nepal said, "The airline is growing at 35 per cent per annum globally. In Nepal, we aim to become the number one international airline in terms of time, connectivity and service. I think, practicing the corporate philosophy of Qatar Airways along with correct product positioning and successfully establishing the right business environment has got us this far." The aviation industry plays a vital role for the economic and tourism development in Nepal. It is also considered as one of the fastest growing sectors.

Aviation History in Nepal:

Formal aviation began in Nepal in 1949. A 4-seater lone powered vintage Beach-craft Bonanza aircraft of the Indian Ambassador landed at TIA (the then Gauchar) the same year. The first chartered flight by Himalayan Aviation Dakota took off from Kathmandu to Kolkata in 1950. Five years later in 1955, King Mahendra inaugurated Gauchar Airport and renamed it as Tribhuvan Airport. In 1957, the grassy runway of the airport was transformed into a concrete one.

The Department of Civil Aviation was founded the same year. Later in 1958, Royal Nepal Airlines Corporation (now Nepal Airlines Corporation) started scheduled services both domestically and internationally. In 1964, Tribhuvan Airport was renamed as Tribhuvan International Airport.