Protesting Against Price Rise In Aviation fuel
By KTM Metro Reporter
October 5, 2013: the domestic private airline operators warned of strong protests including suspending flights against the price rise in the domestic aviation fuel in Nepal yesterday, after the government failed to roll back the price increase in aviation fuel, according to the Xinhua news.
On September 10, 2013, the state-run Nepal Oil Corporation (NOC) increased the price of the aviation fuel for the domestic airlines by Rs 7 per liter to Rs 137 per liter. Accordingly, the private airlines also increased the fuel surcharge on air tickets by Rs 80 to Rs 270. Domestic airlines can do so if fuel prices go up by Rs 4 and above.
However, following the decline in the number of passengers flying following the price rise in the fuel, the Airline Operators Association of Nepal (AOAN): the apex body of the private airline operators has been putting pressure on the government to roll back the price rise in the aviation fuel since September 26.
"If the government still does not fulfill our demands, we will gradually begin suspending our services across the country after Chat," Rameshwar Thapa, president of AOAN told Xinhua. Chat festival falls on Nov. 9 following other major festivals Dasain and Tihar.
NOC currently enjoys a profit of Rs 27.51 on a liter of aviation fuel sold to the domestic airlines. Airline officials said it was not justifiable to take such a huge profit from the aviation fuel in the name of offsetting NOC's losses.