September 3, Kathmandu – Following the devastating floods and landslides in Rasuwa on August 26 that obstructed several highways, land transportation has been further affected. With roadways blocked, air travel has become the primary option for passengers. Due to the long distances involved, air travel remains the easiest means, leading to a significant surge in passenger demand after the flood-induced highway closures. Airlines are now facing substantial challenges managing this increased demand.
Buddha Air, the country’s largest domestic air service provider, has decided not to raise airfares and to operate flights at minimal fare rates until the highways impacted by the Rasuwa floods are fully accessible again. Currently, Buddha Air transports more than 10,000 passengers daily to various destinations. Company executives note that both the number of flights and passenger volume have sharply increased since the Rasuwa floods. Executive Chairman Birendra Bahadur Basnet stated, “Due to the effects of the Rasuwa floods, traffic flow on highways is not yet fully restored. Therefore, we will continue to offer flights at current fare rates without any increase until the roads are accessible again.”
Basnet added, “Our decision to not increase fares will result in a loss exceeding NPR 600 million for our company in this fiscal year. However, the country is facing a calamity, and we have taken this decision selflessly. Once conditions improve, we plan to generate profits next year; this year, we intend to contribute to the nation.” After the floods, the Trishuli River blocked the Krishna Bhir section of the Prithvi Highway, cutting off the main road that connects Kathmandu and surrounding areas. Alternative routes such as the Tribhuvan Rajpath and Kanti Lokpath have experienced heavy traffic congestion. Basnet noted, “Due to the natural disaster causing problems on the roads, we are compelled to act as an air bridge. We have resolved to operate flights at minimal fare rates despite needing to absorb losses if necessary.”
According to Basnet, operating flights at minimal fares will cause the company to incur 100% losses, but they feel compelled to provide this service when the country needs it. “There will be losses some years and profits in others. Our primary focus is love and dedication to the nation,” he affirmed. Airlines commonly face accusations of hiking fares during major festivals such as Dashain and Tihar. Generally, fares are lower during the ‘off-season’ from mid-June to mid-September and throughout January, while these other months typically have higher fares. However, Buddha Air has confirmed that it will provide affordable fares even during Dashain and Tihar this year. Basnet stated, “We estimate that it will take some time for highways to be fully operational, so we plan to maintain minimal fares and increase the number of flights for at least six months.” Since the Rasuwa floods, Buddha Air has extended its flight schedules until midnight, with the last daily flight operating at 11 pm.
Free Relief Material Transportation
Buddha Air is also transporting thousands of kilograms of relief supplies free of charge daily to various destinations affected by the Rasuwa floods. On Wednesday alone, it transported 6,420 kilograms of relief materials free of cost. According to the airline, shipments included 105 kilograms to Bhadrapur, 2,069 kilograms to Bharatpur, 120 kilograms to Surkhet, 1,665 kilograms to Dhangadhi, 272 kilograms to Biratnagar, 2,045 kilograms to Bhairahawa, and 141 kilograms to Simara. Buddha Air operates 15 ATR 72-500 aircraft and one ATR 72-600 aircraft, each with 72 seats, conducting approximately 60 flights daily.
Significant Increase in Aviation Fuel Prices
Over the past seven months, the price of aviation fuel has nearly doubled. In February 2024, fuel cost NPR 127 per liter but surged to NPR 249 per liter in August, reflecting a 96% increase. Correspondingly, the fare for the Kathmandu-Bhairahawa route rose by 14%, from NPR 5,700 in February to NPR 6,500 in August.
