Explainer: How are airfares set in Nepal, and who regulates them?
Summary
Airfares in Nepal vary by route, demand and seat availability, with domestic tickets regulated by prescribed fare limits while most international fares are left to market forces. The Civil Aviation Authority of Nepal says domestic basic fares have not been revised since 2016, though fuel surcharges and other charges still affect the final price.
Key Points
- Airline fares in Nepal are influenced by operating costs, fuel prices, airport charges, demand and seat availability.
- Domestic airfares are regulated under the Civil Aviation Regulations, 2002 and related directives, with lower and upper fare limits.
- The Civil Aviation Authority of Nepal says domestic airlines cannot charge above the prescribed maximum fare and can face action, including grounding, if they do.
- Most international airfares are determined by market forces under bilateral air service agreements, with Nepal having signed such agreements with 42 countries.
