Nepal Government Moves to Curb Exorbitant Airfares with Stiffer Penalties
The Ministry of Culture, Tourism and Civil Aviation has drafted a bill proposing fines of Rs 500,000 to Rs 1.5 million for airlines charging above approved fares, with doubled penalties for repeat offenses. The move aims to protect passengers from price gouging during festivals and emergencies when demand for air travel surges.
KATHMANDU, Oct 3 — The government is preparing to take strict action against airline companies that exploit festivals, disasters, or other emergencies to charge passengers airfares exceeding approved rates.
The bill, drafted to amend and consolidate laws governing the Civil Aviation Authority of Nepal (CAAN), proposes a fine ranging from Rs 500,000 to Rs 1.5 million for airline operators who charge amounts higher than the approved fare rates.
The Ministry of Culture, Tourism and Civil Aviation has forwarded the draft of the bill after receiving opinions from stakeholders. Under the proposed provision, operating flights while charging more than the airfare rates approved by CAAN will be considered an offense. Clause 47, Section (d) of the bill classifies the act of operating flights while charging airfares above the approved rates as an offense.
The bill has also proposed doubling the normal fine in case of repeated offenses. Individuals who repeat an offense of the same nature after having already faced action for it will be subject to double the fine. This measure aims to discourage the practice of charging fares higher than normal rates.
Demand for air tickets typically surges during major festivals such as Dashain, Tihar, and Chhath. Similarly, passenger pressure on domestic air services increases when overland travel is disrupted by floods, landslides, road blockages, disasters, or other emergencies.
The proposed legal provision is considered significant given recurring complaints from passengers about having to purchase expensive tickets during such times.