Govt Rolls Out Incentives to Lure International Carriers to GBIA and PIA

The government has rolled out incentives, once again, to lure airlines to operate international flights from Nepal's second and third international airports, which have so far struggled to attract foreign carriers.

Gautam Buddha International Airport (GBIA) in Bhairahawa and Pokhara International Airport—opened with much fanfare in May 2022 and January 2023, respectively. Observers cite poor planning, corruption, and weak diplomatic and marketing efforts for the lack of intended traffic.

Under a plan titled “Overall Improvement of the Civil Aviation Sector and Operational Plan for Gautam Buddha and Pokhara International Airports,” passenger service fees, tourism fees, and other charges on international flights from these airports would be waived until mid-September 2026, the Ministry of Culture, Tourism and Civil Aviation said in a statement.

“Passenger service fees of Rs 3,000 currently charged on international flight tickets will be fully exempted, along with parking, landing, and navigation fees,” the statement read. “Tourism fees of Rs 1,000 per passenger will also be waived, and ground handling charges will receive a 75% discount.”