Government seeks clarification from AOAN for raising airfare

Kathmandu, December 11

The Department of Supply Management and Protection of Consumers Interest (DoSMPCI) today sought clarification from the domestic airline companies regarding their decision to hike airfare from Tuesday.

A DoSMPCI inspection team today raided the office of Airline Operators’ Association of Nepal (AOAN) and confiscated various documents related to AOAN’s decision to raise the airfare.

Ramesh KajiShrestha, chief of the government inspection team, informed that AOAN has been asked to submit its clarification on the decision to raise the airfare within 24 hours.

DoSMPCI had raided AOAN’s office suspecting that its decision to increase the airfare was unfair.

After adjusting fuel surcharge on Sunday following recent increment in price of aviation turbine fuel (ATF), AOAN had decided to raise airfare from Tuesday.

The state-owned Nepal Oil Corporation (NOC) had increased price of ATF by five rupees per litre to Rs 87 per litre. AOAN had increased the airfare up to Rs 220, depending on the destination.

Meanwhile, AOAN officials said that airfare has been increased on the basis of government’s provision to adjust airfare with change in price of ATF by at least four rupees per litre. Similarly, AOAN officials also said that airfare has been raised only after taking approval from Civil Aviation Authority of Nepal (CAAN).