In early November, Rohit, a UK-based doctor, experienced a major inconvenience when Qatar Airways abruptly cancelled his return flight to London due to maintenance work of Tribhuvan International Airport (TIA). Despite having a confirmed ticket, he was forced to book a longer, more expensive route via Malaysia, causing significant physical, mental and financial strain. Frustrated, he questioned how Nepal, which aims to host 1.2 million tourists, could offer a seamless experience when even its citizens face such disruptions.

Tribhuvan International Airport (TIA) is partially closed for 10 hours daily from November 8 for taxiway expansion works. The closure is estimated to last for seven months. Meanwhile, the number of daily flights at TIA has decreased, with domestic flights reduced by approximately 20% and international flights by nearly 30% due to the maintenance closure. Normally operational for 21 hours a day, TIA currently only operates for 14 hours daily, necessitating flight cuts, according to the Civil Aviation Authority of Nepal (CAAN). The airport is closed daily from 10 pm to 8am for five months to facilitate taxiway expansion works.

TIA, Nepal's only international airport for over seven decades, has struggled with limited capacity since its opening in 1955. By the early 2000s, it was handling more than double its intended capacity, leading to congestion, delays and outdated infrastructure. In response, the government and the CAAN developed a master plan back in 2010, supported by the Asian Development Bank (ADB), to modernise the airport. This included extending the runway and constructing a new international terminal building, among others.

The first phase of the expansion, which included the runway extension completed in 2018. Initially expected to be completed by 2015, the $92 million project only progressed 17% in the first six years, prompting CAAN to terminate its contract with the Spanish contractor, Constructora Sanjose. The expansion also involved upgrades to the runway and new taxiways.

The government aims to redirect 30% of Kathmandu-bound flights to Gautam Buddha International Airport in Bhairahawa and Pokhara International Airport to avoid reduction of flights. However, these new airports have been struggling to attract airlines despite offering slew of incentives and discounts.

Five Airlines Flying To Bhairahawa

Five international airlines are now operating regular flights to Gautam Buddha International Airport in Bhairahawa. Jazeera Airways of Kuwait, Thai Air Asia of Thailand, Fly Dubai of UAE and Qatar Airways of Qatar and Nepal Airlines are currently flying to the airport.

(A Jazeera Airways plane is given a water-cannon salute after arriving at Gautam Buddha International Airport in Bhairahawa on Saturday, November 9, 2024. Photo: RSS)

Of these, Fly Dubai and Qatar transit in Lumbini before continuing to Kathmandu, while the other three operate return to their originating destinations.

Although the airport has started to see international flights, the government has yet to start issuing labor permits from Bhairahawa which still necessitates workers to travel to Kathmandu. The availability of all such services, as well as visa processing facilities, would have generated a guaranteed business for airline companies.

Also, the airport faces technical challenges, particularly during winter when fog and low visibility can disrupt flights. Airport officials say efforts are underway to install instrumental landing systems and explore satellite-based landing technologies to improve operational reliability.

Flight Reductions

The decision to reduce operation time by ten hours has led to reduction of flights. People in the aviation sector say foreign carriers, especially those originating from the Middle East, have experienced reductions. Qatar Airways, for example, reduced its daily flights from four to three, with two landing directly at TIA and the third flight transiting in Bhairahawa before continuing to Kathmandu.

Other airlines have also observed at least one flight reduced. In contrast, Nepal Airlines, Himalaya Airlines, and carriers from India and China have not seen flight reductions.

Among domestic carriers, Buddha Air has seen reduction. According to the airline, it has been forced to cut three flights to Pokhara, and two each to Surkhet, Bhadrapur and Bhairahwa, among others. The carrier had been operating 71 flights daily before the flight reductions came into effect.

Similarly, Yeti Airlines is now operating 23 flights a day. According to an official of the airline, it has reduced 10-12 flights. Shree Airlines, on other hand, has cut one flight each to Pokhara, Bhairahawa and Nepalgunj.

CAAN officials say that airlines in the domestic sector typically operate fewer flights than they initially requested in their schedules. Therefore, the reduction in the number of flights has had no significant impact, they say.

Rupesh Joshi of Buddha Air said the airline has reduced the number of flights by 12 due to closure of TIA for expansion works. “The reduced flights have not much impact. The increased holding time due to reduced operational hours, however, has been challenging for the airline,” Joshi added.

Aviation experts explain that the increased holding time is primarily due to the current Instrument Flight Rules (IFR) operating schedule. Holding times would be shorter during Visual Flight Rules (VFR) operations and could increase further during combined IFR-VFR operating periods, they added.

Surge in Ticket Prices

TIA's reduced operation hours and subsequent reduction of flights have resulted in a significant surge in ticket prices for international flights, especially to destinations like New Delhi.

Passengers say tickets that previously cost Rs 35,000–42,000 for destinations like Damman and Dubai are now priced at almost Rs 100,000. Nepali migrant workers, who are unable to access third-country routes via India, are particularly hit by these inflated fares.

Moreover, securing tickets has become nearly impossible, with airlines overbooked for up to a month. This has even forced outbound passengers to travel to their destination by flying via Indian and Bangladesh.

The Ministry of Culture, Tourism, and Civil Aviation has formed a task force to study, what it calls, the artificial scarcity of international air flights. Joint Secretary Indu Ghimire is the coordinator of the task force which has representatives from the Ministry of Home Affairs, Ministry of Commerce and Supplies, and the Civil Aviation Authority of Nepal (CAAN).

The task force has been tasked with investigating and analysing the air tickets purchased by passengers, tickets being sold by airlines and potential black market activities

Tourism Businesses Hit

While some media have reported tour agencies complaining about the airport closure already affecting their business, Bijaya Amatya, CEO of Kora Tours, who was recently at the World Tourism Mart (WTM) promoting Nepal, shared that the airport closure has not affected his business.

“We have not received any complaints yet, nor have we received any cancellations so far. There has been no effect on our clients,” he added. Amatya, however, anticipates a decline in tourists from Japan and Eastern Europe due to rising ticket prices caused by reduced flights to Kathmandu.

Industry people fear that the tourism industry will lose about Rs 2 billion due to the 30% reduction in flight operations over the construction period.

Raj Gyawali from Social Tours also said that he has not yet been affected by the airport's reduced operation hours. “But there definitely will be some impact. It is going to be tough selling tour packages for the spring season,” he added. Gyawali said one of his clients had to pay $9,000 for a one-way ticket to Chicago when Qatar cancelled her flight and rescheduled her on a flight a week later.

“We are going to hear complaints. Every region will be affected. With airfare from Delhi costing as high as $500 one way, who in their right mind will come with such heavy fares?” Gyawali said. “We are informing clients planning on coming post-March to buy tickets immediately.”

The room booking rates at the Kathmandu Marriott for the upcoming spring season are already lower than expected. “Under normal circumstances, when there were 100 bookings, the actual materialisation rate would be around 70-80%. However, with flights now reduced by 30%, the current booking rate has already dropped to 70%,” Sumit Kumar Agrawal, co-owner of Kathmandu Marriott, said. “This raises concerns that actual room occupancy could fall to 30-35%”

The average room occupancy rate should be around 50% for business sustainability of five-star hotels.

“Flight reductions have forced international airlines to adjust schedules, resulting in longer transit times for connecting flights to Nepal,” Agrawal said. “This, in turn, has impacted our business, as changes in flight timings typically lead to longer transit times. Passengers travelling from third countries often try to avoid longer transit times, and as a result, many cancel their flights, which leads to room cancellations.”

According to Agrawal, high airfares have made tourists from prime tourist markets, including India, skeptical about whether they should spend such an amount to visit Nepal. “As Nepal primarily attracts middle-class tourists, with airfare being a key factor in their choice of destination, the recent rise in airfares has had a significant impact,” Agrawal said. “Because of high airfare, there is a risk of our potential tourists flying to other destinations.”

(Sunil Sharma/NBA File Photo)

Booking cancellations at Aloft, another Marriott property, are also increasing. rapidly, according to a staff member. “High airfare and limited availability of tickets are forcing tourists to cancel their trip. Guests are not only cancelling bookings, but also changing their destination,” a staff member of Aloft Kathmandu Hotel said. “Bookings from India have been declining, with Indian tourists seeking alternative travel destinations.”

What CAAN Says?

CAAN has faced criticism for scheduling the construction during the peak tourism season which has affected airline operations significantly. The aviation authority has also been accused of hastily making this decision to encourage more airlines to fly to Gautam Buddha International Airport in Lumbini which has struggled to attract adequate traffic since its inauguration. 

CAAN Spokesperson Hansa Raj Pandey said flight reduction alone should not be blamed for the hike in ticket prices. “Indian carriers are operating their flights as usual. We have not reduced their flights,” Pandey said. “The actual impact of the construction has been limited to six international flights in the Middle East sector operated by foreign carriers. Flights to other regions remain unaffected.”

Pandey added that the number of flights typically declines by the end of November. “With this in mind, we planned the construction work to align with the winter schedule,” he said. “Flights on domestic routes are often affected by poor visibility during winter, making this the best time for construction works.”

Tri Ratna Manandhar, a former Director General of CAAN, brushed aside these accusations, stating that the ongoing works were the final phase of upgrades at TIA as per the Master Plan. He also viewed CAAN’s efforts to promote Bhairahawa as a positive step for the country’s aviation sector. I don’t think operating Bhairahawa to alleviate congestion at TIA is a bad move. However, CAAN and the government should now prioritise providing Bhairahawa with all the facilities available at TIA,” he said.

Commenting on the surge in airfares, Manandhar said a lack of preparation on the part of the government and CAAN may have contributed to the current chaos, leaving passengers to bear the brunt. “As far as I know, CAAN and airline operators have been holding regular meetings since the decision was made to complete the final phase of TIA airport. What CAAN and government officials could have done differently is mandate low-cost foreign airlines, such as Jazeera Airways, FlyDubai, and Air Arabia, to operate flights exclusively from Bhairahawa. Since CAAN has already announced subsidies, it could have engaged with these airlines to provide other necessary support,” he added. “If this strategy had been implemented six months ago, the current price hike fiasco could have been avoided.”

According to CAAN, the taxiways will enhance runway performance by at least 25%. In a normal context, TIA handles around 30 international flights daily. Once the taxiway expansion works are completed, this number is expected to increase to 36.

CAAN had requested airlines to operate flights with wide-body aircraft to minimise impact on their flight operations. CAAN officials say this would have maintained their weekly seat capacity despite a reduction in flight numbers. These plans were discussed with the airlines well in advance to ensure smooth coordination.

Pandey shared that the construction work on the taxiway is currently being carried out for ten hours daily, and at this pace, it is expected to be completed within five months. ”If the working time were reduced to eight hours, it would take seven months,” he added.

The taxiway expansion project is being handled by Avik International at an estimated cost of Rs 7.25 billion. CAAN aims to complete the project within the scheduled five-month timeframe to minimise disruptions to flight operations, said Pandey.

(This report was originally publihsed in December 2024 issue of New Business Age Magazine.)