Nepal's aviation sector revenue declines by 17 billion rupees
1st Jan, 2021 | Tourism Mail Crew
KATHMANDU, Jan 01: Due to Covid-19, Nepal's aviation sector revenue has declined by Rs 17 billion. According to the Civil Aviation Authority of Nepal, as of November 2019, domestic and international airlines alone have lost a total of Rs 17.62 billion in revenue.
There are currently two international airlines operating in Nepal and nine domestic airlines. Similarly, 10 helicopter companies have also been allowed to operate. Based on the details sent to the CAAN by those companies, the CAAN has extracted the data of the same amount of income lost.
Out of the total revenue of Rs. 17.62 billion, the Nepal Airlines Corporation alone has lost Rs. 5 billion. Similarly,CAAN has stated that the domestic airlines have lost Rs 10.62 billion in revenue while Himalayan Airlines has lost Rs 2 billion.
CAAN Director General Rajan Pokharel informed that the total income has decreased by 80 percent from March to November after the infection of Covid-19.
Due to Covid, external flights were more affected than domestic flights last year. In 2019, a total of 4.138 million passengers traveled in Nepal. That number has dropped to 1.039 million by November 2020, down about 72 percent.
Similarly, 3.188 million passengers had traveled on domestic flights last year. This year, the number has dropped to 1.03 million. This is about 64.73 percent less.
According to CAAN, domestic and international flights have declined by 73 percent and 86 percent, respectively, in the period up to November since the lockdown began.
Worldwide, the airline lost 2.89 billion passengers in the same period, losing 391 billion in revenue. That's a drop of about 60 percent. Overall, the decline in Nepal's airspace during this period is greater than the world's airspace.
CAAN's revenue has also declined significantly due to the reduction in domestic and international flights along with the flight ban and the exemptions given to airline operators. In the fiscal year 2076/77, CAAN has lost 62.06 percent of its revenue.
In the previous fiscal year, CAAN had projected the total revenue of Rs 10.54 billion including airport development fee. But in reality, the income has been found to be only Rs 6.54 billion. Airport development fees have declined by 62.01 percent during the period.