KATHMANDU: The government has implemented a number of airline concessions in an effort to improve the operation of Gautam Buddha International Airport (GBIA) and Pokhara Regional International Airport (PRIA). Under the direction of Prime Minister KP Oli, a decision was made to increase the use of these new airports and address the dearth of international flights that they now see. Effective until mid-September 2026, the concessions include savings on air tickets, ground handling fees, and aviation fuel prices.
The government’s move follows recommendations from a task force that studied ways to fully operationalize the two airports. The concessions will include waivers on service fees for ground handling and the VAT on air tickets. Additionally, the Ministry of Industry, Commerce, and Supplies will procure fuel at reduced rates for GBIA compared to Kathmandu airport, further incentivizing airlines to use the new airports.
Minister for Culture, Tourism, and Civil Aviation, Badri Prasad Pandey, detailed the government's action plan, which includes eliminating the Nepal Tourism Board's ticket fee and VAT charges until mid-September 2026. This comprehensive approach is expected to increase flight frequency and attract more airlines to operate at GBIA and PRIA.
Additionally, the Ministry of Agriculture and Livestock Development will oversee quarantine inspections at airports, while the Home Ministry will oversee the Immigration Office and Visa Center. These actions are part of a larger initiative to fix operational problems and guarantee airport functionality.
The government is aggressively attempting to resolve the difficulties in repaying the loans obtained for the building of both airports, which are regarded as key national assets. Part of a larger plan to improve these important infrastructure projects' operational and financial sustainability are the concessions.
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