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Domestic carriers see a meagre 1.57pc passenger growth

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The growth in the number of domestic air passengers slowed to 1.57 percent in the first nine months (January-September) of 2012. Over the period, the number of domestic air travellers stood at 1.148 million.

In the same period of 2010 and 2011, the growth was at 12.75 percent and 5.6 percent, respectively, according to the Tribhuvan International Airport (TIA) statistics. Fifteen domestic airlines , including seven fixed-wing carriers, made 50,513 flights across the country in the nine-month period—down 11.77 percent compared to 57,252 flights movements in the same period a year ago. On an average, there were 187 domestic flight movements daily.

Travel trade entrepreneurs and the airlines companies attributed the slowdown in domestic air passenger numbers to rising airfares that forced travellers to opt for road transport.

Ankur Rana, reservation manager at Yeti Airlines, pointed out three reasons behind the slowdown in air travellers’ movement—no strikes, high airfares and cutback in promotional fares.

“Normally, domestic airlines get massive response from travellers when surface routes are obstructed or strikes and bandas are called,” Rana said. “Travellers take highway routes when there is no obstruction.”

Similarly, high fuel cost, which the airliners passed on to travellers in the form of increased fuel surcharge, has adversely affected flyers. The Airlines Operators Association of Nepal has revised fuel surcharge thrice in 2012 alone. In nine-month period, fuel surcharge has risen by more than 20 percent.

For example, normal airfare on the Kathmandu-Biratnagar sector increased to Rs 5,700 from Rs 3,600 in 2010. Similarly, tickets for the Kathmandu-Pokhara flights rose to Rs 4,035 from Rs 2,600 in 2010.

Airline operators said fuel contributes more than 30 percent to their overall operating cost and that they were compelled to cutback promotional fares.

Aviation analyst Kumar Chalise said high fuel cost, which has resulted in a significant rise in airfares over the last two years, has hit airlines ’ profits. “Airlines have not been able to attract new fliers. Almost all current flyers are regular flyers,” he said, adding the significant rise in the number of domestic air travellers in 2010 was due to frequent strikes and bandas.

Over the review period, almost all domestic carriers, except for Buddha Air, witnessed negative passenger occupancy growth. Buddha registered a healthy 28.38 percent growth in passenger movement. The carrier flew 628,935 travellers in the first nine months.

Chalise said irregular flights operation of Agni Air, Guna Airlines and Sita Air helped Buddha consolidate its market share. Currently, debt-ridden Agni and Guna are grounded.

“These three airlines are struggling, which is not a good sign for the travel industry,” Chalise said.

Some market watchers said frequent air crashes also discouraged travellers, particularly foreigners, from taking air routes.

Meanwhile, Yeti Airlines—Buddha’s arch rival—saw its passenger movement drop by a marginal 0.20 percent in the review period. Agni, Tara and Nepal Airlines saw their passenger movement drop by 41.76 percent, 31.28 percent and 20.73 percent, respectively. Travellers’ movement in Guna and Sita dropped by 60.45 percent and 45.92 percent, respectively.

source: The Kathmandu Post,25 Dec 2012