Airlines cut fare as competition grows

By a staff reporter

Finally, Nepalese customers seemed to be benefiting from the government’s open-air policy. Couple of years after the government resorted to the open air policy, for the first time in the history of Nepal, private sector airlines companies are cutting the price of air travel.

For passengers more airlines is proviig to be a boon.

In a bid to cater to more and more customers in comparison to their rival airlines , private sector companies have started to reduce the airfare in various sectors. Now, people can travel to Pokhara, which is one of the famous tourists destinations and also one of the most traveled city within the country, at only Rs. 900. This amount is less by almost by 30 percent compared to previous airfare for the Kathmandu-Pokhara sector.

Not just in Kathmandu-Pokhara sector but in other sectors also the airfare has been reduced substantially. While the number of airline companies have already reduced the airfare, many are said to be preparing to cut their fares.

Just a couple of months back air ticket for Kathmandu to Pokhara cost Rs. 1,280 in most of the airlines. But the growing cut throat competition among the airline operators has made them reduce the fares. In this bid, Gorkha Airlines Pvt. Ltd., one of the private sector airlines that is providing continuous service for the last couple of years, topped the list for reducing the price. It has cut the fare of Rs. 1,280 from Kathmandu to Pokhara to Rs. 900.

Similarly, Necon Air, the only Nepalese private sector airlines to fly to the Indian City of Patna, reduced its airfare of Rs. 1,280 for Kathmandu-Pokhara sector to Rs. 1,100. Among others, Cosmic Air has also reduced its airfare for Kathmandu-Pokhara sector to a competitive price of Rs. 990.

Likewise, some airline companies are attracting its customers by reducing the fare; others have resorted to publicize safety measures and services they provided during the flight. In its recent notice, Buddha Air, another famous domestic airlines, has informed about the sophisticated measures it is undertaking for the comfort and safety of its passengers. Despite reducing the airfare, this airline has also said that the present airfare is fixed six years backs while price hike has taken in many sectors of our society.

According to sources, Gorkha Airlines has reduced its fare for Kathmandu to Bhadrapur from Rs. 2,280 to Rs. 1,900 and for Kathmandu to Tumlingtar from Rs. 1,680 to Rs. 1,480. Similarly, Necon has cut its fare to Rs. 1,250 from Rs. 1,430 for Kathmandu to Bhairahawa, Rs. 1,600 from Rs. 1,820 for Kathmandu to Biratnagar, Rs. 2,100 from Rs. 2,400 for Kathmandu to Nepalgunj and Rs. 2,000 from Rs. 2,280 for Kathmandu to Bhadrapur.

Tour operator sore on tourism budget allocation

By a staff reporter

Nepal Association of Tour Operators welcomes the overall aspect of the budget. However, it has some reservation regarding the allocation of budget in the tourism sector. Despite the fact that the government has earned Rs 13 million from tourism sector in the fiscal year of 2055/56, it’s very sad to note that there is virtually no allocation of budget for development of tourism sector in the present budget. Nepal Association of Tour Operators strongly feels that the government has undermined the role played by tourism sector in the present budget. Although tourism industry has contributed substantially to the national coffer, the present budget has totally neglected the importance of tourism in the national economy and there is no budget for infrastructure development of tourism sector points out a NATO press release.

Though NATO requested the government to classify the category of travel agency and provide facilities accordingly, it has not paid any heed to our suggestion. Whether small or big, the existing facility allows both to import two vehicle. The present budget seems to be populist one but fails to deliver the real benefit to tourism sector which provides employment to more than two hundred thousand.

Elsewhere in South Asia vis-à-vis other countries, government has provided tax holiday to foreign currency earning giving it export industry status. However, the present budget also fails to meet the aspirations of private sector in this regard. Though the government has given industry status to tourism sector, it has not given any concession required by this industry such as rebate in electricity for hotels.

Considering the not so encouraging performance by national flag carrier RNAC, no step has been taken by this budget to strengthen the RNAC. Until and unless we don’t consolidate RNAC, the future of Nepalese tourism doesn’t seem bright which eventually affects the national economy.

In spite of declaration of Destination Nepal for the year of 2000, there is no allocation of budget for it. NATO feels that the government should not use NTB’s budget to carry out its work for Destination Nepal, as it’s the revenue given by private sector for the marketing and promotion of Nepalese tourism abroad. Like in Visit Nepal, it should set aside some budget, to celebrate this national event in a most effective and productive way.

Sur Sudha in Germany

By a staff reporter

Sur Sudha´s European tour started from London on May 21th, where they performed two times in the Millenium Dome London, where a lot of famous bands like the Spice Girls had also performed before. A total of 4 concerts in London were given - including the concert in the church organized by Yeti Association and one concert for the diplomats in London organized by the Ambassador, His Excellency Mr. Singha Bahadur Basnet.

After England, 13 concerts in France, including at GAP city organized by Mr. Jaques Baumme and one in Strasbourg were organised. Now Sur Sudha is touring in Germany for 11 concerts including those in Frankfurt, Stuttgart, Heidelberg and other cities of Germany. The concerts in Germany are organized by Elke Mueller and Angelika Mamier from the company Trainingspunkt. Some percentage of the money of the concerts will be donated to projects of NGO´s like the German Nepalese Help Association and the Honorary Royal Nepalese Consulate of Stuttgart, who helps in Nepal, like for children care, PIN (People in Need) and the Polytechnicum.