AOAN President Highlights Challenges in Nepal’s Aviation Sector

KATHMANDU, Jan 02: The President of the Airlines Operators Association of Nepal (AOAN), Mr. Manoj Karki, has voiced grave concerns about the sustainability of Nepal's aviation industry. Speaking during an event, he underscored the financial strain airlines are under and appealed for more supportive policies from the government and regulatory bodies.  

Karki criticized the lack of profitability in the sector, pointing out that despite a business volume of NPR 100 crore, airlines only manage a marginal profit of NPR 3.5 crore, while losses exceed NPR 40 crore due to rising costs, including dollar-denominated expenses.  

"There is no profit margin," Karki stated, adding that airlines face severe challenges in meeting operational costs. New airports in locations like Kamal Bazar and Tikapur have been opened, but operational inefficiencies mean many remain underutilized. "Except for nine airports, most others may not see regular flights," he warned.  

The AOAN President also highlighted the burden of government-imposed regulations and fragmented bureaucracy. "We are required to visit multiple ministries, not just the Ministry of Civil Aviation. Policies are inconsistent, and despite meeting requirements like maintaining a fleet of five aircraft per company, we have not been granted the business opportunities we deserve," Karki noted.  

Emphasizing the importance of regional connectivity, Karki argued that better air links could drive economic mobility, especially in remote hilly and Himalayan regions. "Many people in these areas cannot access provincial or national capitals for essential needs like healthcare and education," he explained.  

While Karki expressed gratitude to the Civil Aviation Authority of Nepal (CAAN) for infrastructure improvements, such as the TIA runway extension and night-landing capabilities at several airports, he stressed that systemic challenges like additional VAT, customs issues, and the inability to purchase new planes are hampering growth.  

He also revealed that the separation of civil aviation functions is under consideration but lamented that the AOAN was not informed of this development.  

Karki concluded with a hopeful note, expressing his desire for these issues to be resolved before CAAN’s 27th anniversary next year. He urged policymakers to establish a stable platform for the aviation industry and ensure consistent regulations to foster growth and sustainability.