Study Panel Recommends Special Incentives to Attract Cargo Flights at Gautam Buddha International Airport

Despite being completed with billions in investment, Gautam Buddha International Airport (GBIA) is yet to achieve expected commercial international flight operations. While a few airlines occasionally operate international flights, regular and consistent services have not been established yet.

A government-appointed study panel has suggested attracting cargo flights by offering special incentives, as the airport has not yet been commercially utilized. The High-Level Study and Recommendation Committee for Civil Aviation Reform, chaired by former Supreme Court Justice and current Minister for Industry, Commerce and Supplies Anil Kumar Sinha, highlighted the potential for GBIA to operate cargo services and advised the government to make it appealing to domestic businesses and major international airlines.

The panel recommended developing GBIA as a cargo hub, organizing air cargo operations currently conducted at Tribhuvan International Airport (TIA) at GBIA, discouraging the use of passenger aircraft for cargo transport (belly cargo service), and offering per-kilogram rebate facilities for exports from GBIA.

Currently, exporters from Nepal primarily use TIA. According to the Civil Aviation Authority of Nepal (CAAN), 1,334,0000 kilograms of cargo were exported via TIA during fiscal year 2023/24 through regular commercial flights. However, there are no dedicated cargo airlines operating at TIA, and freight companies often wait weeks to book space for cargo transport.

The committee suggested providing special incentives and aircraft leasing arrangements to domestic businesses to operate cargo planes based at GBIA. If licenses and other approvals are made easily accessible, the private sector is expected to identify and seize opportunities efficiently.

The report also noted GBIA’s strategic location makes it convenient for handling exportable goods from across Nepal. “The pressure on exportable goods at Tribhuvan International Airport is gradually increasing,” the report stated. “There is potential to attract major international airlines for cargo operations. Many stakeholders believe GBIA has the capacity to serve as a pre-export infrastructure hub, presenting an opportunity to design a high-level strategic program for the country’s exports.”

Despite its proximity to international border and significance for Lumbini’s historical and tourism sectors, GBIA has not yet reached operational capacity. The Instrument Landing System (ILS) installed at the airport remains unused.

GBIA General Manager Pratap Babu Tiwari confirmed the airport’s readiness for cargo operations. Following its upgrade from a domestic to an international airport, a cargo terminal building has been completed, though not yet operational. Access roads to the terminal are under construction, including a bridge over a river near the site.

Tiwari also highlighted the airport’s potential for transit cargo services and dedicated cargo operations. He emphasized that once the cargo terminal is fully operational, transit cargo flights could commence.