BUDGET : Low fair, reliable service
Vijay Shrestha, executive director, Yeti Airlines
The common purpose of all stakeholders in civil aviation, including the government and private sector, should be to ensure that air transportation becomes accessible to commoners.
This will be in harmony with the basic objectives of the International Civil Aviation
Organisation (ICAO) to develop safe, secure, economical and reliable air transportation to the public.
This will also mean attaining national civil aviation goals as envisaged by the tenth plan. The ultimate result should be low fares and reliable services affordable by many.
In order to ensure lowest possible fares, the government, through the coming
budget, should attempt to address two key bottlenecks in the airline industry. These are high capital cost and high operating cost.
If these two costs can be reduced, airlines will make corresponding reductions in fares, which are exorbitantly high at the moment, putting air services out of reach of the large majority of Nepali people.
Also since civil aviation is an economic stimulator like ICT, government should make all efforts to let it grow.
It is an imperative that the government boosts airline industry through capital investment incentives on aircraft purchases, waiving off aircraft rental tax, VAT on aviation
turbine fuel, aviation insurance and spare parts.
The high volume of tax money is a key factor making airfares high.
In India, airlines are exempted from aircraft rental taxes thus making them more
competitive than Nepali airlines. For aviation safety purpose, the government should, through this budget, allocate enough funds and have appropriate programmes to strengthen rural airports.
Of course, airlines should also adopt all possible safety measures.