Gulf Air to stop flying to Kathmandu from March 25

"From January 11, Gulf Air — in the first phase — will reduce its flights to Kathmandu to five from the current 14 flights a week," according to operation director of President Travels — General Sales Agent of Gulf Air — Siddhartha Thapa. "From March 25, Gulf Air will stop flying to Kathmandu completely," he added.

Gulf Air — flag carrier of Bahrain — until two years back, used to fly the highest number of passengers to and from Kathmandu.

Some more international airlines — especially from the Middle East — are planning to reduce their flights to Kathmandu citing losses due to high ground handling charges and lack of Double Taxation Avoidance Agreement (DTAA) that has made their operation cost expensive.

According to a CAAN report, Nepal has signed Air Service Agreements with 36 countries generating more than 5.76 million seats from different international airlines annually to and from Nepal. "But international airlines operating to Nepal are using only 44.7 per cent of the total permitted capacity," the report said.

Earlier, foreign airlines operating flights to Nepal had requested government to waive the VAT imposed on ground handling services at Tribhuwan International Airport. According to the Board of Airlines Representatives in Nepal, other countries do not impose levy on ground handling services making Kathmandu an expensive destination to fly.

Apart from lowering ground handling charges, the government must enter into DTAA with middle eastern countries, as middle eastern hubs are well served from Kathmandu, according to international airlines flying to Kathmandu.

source: The Himalayan Times,8 Jan 2013