Recently, Tourism Minister Yogesh Bhattarai had announced that passengers aged 70 years and above would be provided 50 per cent discount on domestic airfare after holding consultations with concerned stakeholders. Similarly, the ministry has been raising the issue of airfare uniformity for local and foreign passengers. However, domestic airline operators are refusing to implement these decisions citing that the minister announced such provisions without holding any discussion with them and that it is difficult for them to implement these provisions. In this context, Arpana Ale Magar of The Himalayan Times caught up with Rameshwor Thapa, newly elected president of Airline Operators Association of Nepal, and Ghanashyam Upadhyaya, joint secretary and spokesperson for the Ministry of Culture, Tourism and Civil Aviation, to find out the ground reality behind these issues. Excerpts:

What is the current status of domestic airline industry?

Compared to the past, the industry is improving. Air transportation is gradually developing as a major means of transportation, hence, the number of air passengers and domestic aircraft movement is increasing every year. This is quite a good sign for the airline industry. However, the industry continues to be riddled with a lot of challenges. The geographical challenge is something that has now become a habit for Nepali domestic airline operators. Hills, mountains and frequently changing climate are the major challenges for this industry. The government’s bothersome policies and processes are other challenges we have been facing at present. Nevertheless, the industry is running smoothly with healthy competition among airline companies.

Recently, Tourism Minister Yogesh Bhattarai announced that Nepali citizens above 70 years will be provided 50 per cent discount on domestic airfare. However, airline operators are saying it is not possible. What is your view on it?

We are not against the announcement made by the tourism minister. Indeed, it is our responsibility to serve our elderly passengers. And some of the airline companies are currently providing 25 per cent off on airfare for senior citizens. This is not a big deal for us too. However, it would have been better if the tourism minister had held a discussion with us. We are ready to provide service to senior citizens, but it is also the responsibility of the government to support airline operators for such initiatives. We just want to have a discussion with the ministry to find a better way out.

So, what do airline operators want from the government to implement this provision?

We want to know what kind of role the ministry can play to implement this provision. First of all, they have to clearly mention how they plan to implement this rule. Tourism minister has to give a commitment and explain how the government can support us (airline operators) to implement this decision. Government has to introduce a new modality and framework for this agenda. We are not criticising the government’s decision, we are just not happy with the way the tourism minister made the announcement. We wish for the government to prepare a modality for this provision and we are ready to support the government.

Airline operators are also refusing to bring airfare uniformity. Why is it so?

Earlier, the state-owned Nepal Airlines Corporation (NAC) started charging different fares for foreigners and locals. Back then, Nepali passengers did not prefer to use air route for their travel. Hence, to attract Nepali passengers, the then government had brought a policy of charging subsidised airfare for Nepali citizens to encourage them to use air route for their travel. However, even today we don’t have any option other than charging separate airfares for foreigners and local passengers. Today, most airline companies are surviving due to foreign passengers. And we cannot compare the Nepali market with the international market. We have to realise the ground reality of our market. Moreover, the Nepal government itself is charging

different rates for locals and foreigners in trekking and mountaineering sector. So, where is the logic behind airfare uniformity?

Travel and trekking entrepreneurs have been complaining about disparity in airfare and asking for uniformity. What is your opinion on this?

I don’t think any foreigner visiting Nepal has a major issue with the airfare disparity. Travellers across the world visit Nepal to experience its natural beauty, for adventure, and many more. And what they want is quality service. Real tourists won’t hesitate to spend money for their travel or trekking as far as they are able to receive good quality service and visit good places. They are even ready to pay whatever amount we charge. Yet, our tariff is only based on the policy set by the government. Moreover, this thing also relates to the kind of tourists we are welcoming into the country. High-end tourists never bargain and in order to generate revenue, we need to focus on them rather than budget tourists. Therefore, I would say Nepali air services are not expensive, it’s just that we are not receiving quality tourists.

One of the major concerns of European Union regarding our aviation sector is high rate of helicopter accidents. What is your take on it?

It is true that the number of chopper crashes in the country is comparatively high. Moreover, unpredictable climate is a big challenge. But we cannot blame the country’s geographical and natural situation all the time for these accidents. Hence, we are cooperating with the government to improve this sector. It is to be noted though that our aviation sector has already been removed from the significant safety concern of the International Civil Aviation Organisation. This proves that Nepal’s sky is safe. Moreover, the recently concluded 56th Director Generals of Civil Aviation Conference has also contributed to convey the message that our aviation sector is safe and improving. So, hopefully we will be removed from EU’s safety list soon.

What are your plans for development of the country’s aviation service?

During my tenure, my executive team will be working to make the airline industry more commercialised along with being service-oriented. So, my focus will be on providing technical and skilful training to make this industry more professional. Moreover, we also have the responsibility of making Visit Nepal Year 2020 campaign successful. As the aviation sector is the backbone of tourism industry, I will be working on making this sector strong and effective for the development of the country’s tourism. Recently we formed an advisory board of experts. That board will study and recommend us ways to improve the sector.

"We are ready to facilitate airline operators, but we need their positive understanding" - Ghanashyam Upadhyaya

Why does the Ministry of Culture, Tourism and Civil Aviation want to implement uniformity in air services?

First of all, the tourism minister has not included the issue of airfare uniformity in his one-year work plan. It’s just that this issue was brought to the attention of the

minister during one of the discussions and he wants to further hold talks with the concerned stakeholders on the possibility of implementing uniformity in airfare for Nepalis and foreigners. We are still in the recovery phase following the devastating earthquakes of 2015 and are moving towards the development of the industry. Hence, the ministry has to hold discussions with every stakeholder to understand the market and to find out the reality. In the course of understanding the market, the issue of airfare uniformity in air services has also been raised. We realise that this issue needs an in-depth study and we will do whatever will be best for the public.

What about providing 50 per cent discount to elderly passengers? Airline operators are unsatisfied about this decision too.

I don’t think that the airline operators are against this decision. Indeed some sort of miscommunication has been created between airline operators and the ministry regarding this issue. Moreover, there is a trend in international market of prioritising senior citizens not only in aviation sector but in every sector. Considering this, we had announced this provision. However, we will not implement any decision without having discussions with the stakeholders.

What will be the role of the government to implement this policy?

We plan to sit and have a frank discussion with stakeholders soon. What are their agendas and what kind of support they need to implement this provision will be

discussed. We are ready to facilitate airline operators, but we need positive understanding from them. This also falls under their corporate social responsibility. So, further steps will be taken after holding discussions with the stakeholders. The government alone cannot bring any kind of change, we need support from all. Together we have to develop country’s aviation sector.

What are further plans of MoCTCA to improve the country’s aviation sector and its safety?

We have to first develop a system to bring any kind of change in any sector. So, currently we are focusing on legal and strategic reforms of the aviation sector in the first phase. We have already started splitting Civil Aviation Authority of Nepal into two bodies — regulatory and operational. Similarly, depending on the need for sustainable development of aviation sector, we will amend the old policies and bring new ones. We have several game-changer projects at this moment. Construction of Nijgadh International Airport and completion of Gautam Buddha International Airport and Pokhara Regional International Airport are the game-changer projects of the government.