NATIONAL 5 (Spotlight Weekly)]

Flying Without Passengers

Nepal's private airlines face a struggle for survival amid a slump in tourism industry

By A CORRESPONDENT

Despite the gradual return of normalcy, Nepalese private airlines are yet to heave a sigh of relief, as the number of passengers flying in different sectors has drastically declined.

The decline in the number of tourists has also hit hotels, restaurants, trekking and travel agencies, creating a severe knock-on effect on the entire tourism industry.

"Only a few lucky airlines have foreign tourists and Nepalese passengers, but a large number of private airlines have to fly without passengers," said an airline operator on condition of anonymity.

Airplanes at TIA : Vanishing passengers

After the mysterious palace killing of King Birendra and his family members and the violent public demonstrations that followed, the number of tourists visiting the Himalayan kingdom has plummeted.

A number of travel agencies have received cancellation orders. As news of instability in Nepal was beamed around the world for days, Indians and third-country visitors changed their holiday plans and traveled to other destinations. Private airlines have had to bear a major portion of this burden.

Although the months of June, July and August are regarded as off-season for Nepalese tourism, the inflow of Indian tourists usually fills the gap.

The airlines, specially those flying to Pokhara, were normally half occupied by foreign tourists. But these days, there are virtually no third-country tourists on the flights.

As more than a dozen airlines are operating modern and sophisticated aircraft, they have to rely on foreign tourists to meet their operating expenditure.

The market of domestic tourists is also not encouraging. Flights to Bhadrapur, Biratnagar, Nepalgunj and other traditionally busy destinations have seen a decline in passengers.

"If the situation remains unchanged, Nepal's mushrooming airlines would face collapse after the forthcoming off-session," said an aviation expert.

With the opening of the skies to private airlines in 1992, more than half a dozen airlines have already collapsed. Among the first three airlines that entered the business, only Necon Air remains in operation. Nepal Air Ways and Everest Air were folded long ago.

Because of a dwindling number of air passengers, most of the airlines are offering price reductions. At a time when a flock of private airlines are operating, competition may further bring down the air fare.

As the prices of aviation fuel and other materials have increased ten-fold, the air fare is coming down. "In such a situation, how can an airline make profits?

Although the competition among the airlines forces them to reduce the air fare, some airlines are said to be sticking with their standard fare.

"The airlines with old and cheap aircraft can carry passengers on their own prices. It is impossible for an airlines with sophisticated and modern aircraft to reduce their fare," said an aviation expert.

Buddha Air is equipped with the latest and sophisticated American Beach aircraft. Necon Air also has introduced ATR-40 aircraft replacing the old Avro.

Although hotels and travel agents associations have already called on the concerned Nepalese embassy in foreign countries to convey the true picture about Nepal, their plea has come too late and would amount to too little.

In a situation when foreign visitors are virtually absent, the future of private airlines hangs in the air.