Kathmandu, March 6

Domestic airline operators are preparing to ground their aircraft as the number of passengers has declined due to the fear of the novel coronavirus (COVID-19). Owing to the increasing threat of coronavirus, the number of tourist arrivals in the country has declined drastically, as a result of which the number of foreigners using domestic airlines has also dropped.

Holding a meeting on Thursday, the Airline Operators Association of Nepal (AOAN) has decided to ground their aircraft due to lack of passengers.

“The number of foreign passengers in the domestic sector has declined by 40 per cent over the last two months,” AOAN Spokesperson Yog Raj Kandel said. “Domestic airline operators mostly depend on foreign passengers for their revenue, hence the decline in the arrivals of foreigners has hit the sector hard.” He also mentioned that the number of domestic passengers too has fallen in the last two months.

AOAN has estimated that the domestic aviation sector is likely to face a loss worth Rs four billion in this fiscal year.

Due to the increasing threat of the coronavirus outbreak, the number of tourists arriving in the country has descended this spring season. Moreover, pre-bookings for spring season have also been cancelled this year. According to AOAN, China, Hong Kong, South Korea, Thailand and India are some of the transit countries to reach Nepal. “And since these countries have witnessed quite a high number of people who have been infected with the virus, travellers are avoiding trips to Nepal,” Kandel added.

“The meeting held on Thursday has also decided to ask redundant employees to go on leave without pay as distributing salaries has become difficult for the airline companies. Likewise, other facilities for the staffers will also be cut,” reads the press statement issued by AOAN.

To cope with this challenging situation, the AOAN has requested the government to reduce the investment cost of the airline companies by reducing value added tax on spare parts and aviation turbine fuel (ATF). Likewise, the association has said that the price of ATF should be reduced by 30 per cent. The airline operators have also urged the government to coordinate with Nepal Rastra Bank to refinance interest rates of their bank loans.

Likewise, AOAN has asked the government to waive interests for the time being so that the amount can be used for other necessary works. The airline operators have also sought 100 per cent discount on airport service charges for the whole of 2020. The airport service charges include aircraft landing, parking, navigation and security fees at the airport.