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Friday, February 27, 2015

Majority of remote airports in loss

KEDAR DAHAL
KATHMANDU, Feb 26
The majority of airports in the country are in loss with more than necessary airports operated considering the country’s geography, according to the Civil Aviation Authority of Nepal (CAAN). Many airports, including over three dozen in remote areas, are struggling to even manage operating cost.
Passenger flow in these airports, constructed when there was no road connection earlier, has fallen now. CAAN officials say the trend of constructing airports under pressure of ministers and high-ranking officials has continued from the Panchayat regime till now. The Tribhuva International Airport (TIA) alone contributes 92 percent to overall income of 51 airports across the country. One dozen of the 51 airports are not even in operation. The CAAN has been providing money to most of the airports.
The TIA earned Rs 2.92 billion out of the total of Rs 3.18 billion earned by all the airports across the country in 2070/71, according to the CAAN. The TIA had net profit of Rs 2.005 billion last year. The CAAN has projected TIA’s income to almost double in the next year while its projection for the current year is Rs 4.11 billion. Director General of CAAN Ratish Chandra Lal Suman says additional Rs 1.45 billion will be earned this year as Rs 1,000 is being collected from every international passenger in airport development fee from the start of the current fiscal year.
Pokhara Airport, that is in the process of being upgraded to regional international airport, is second in terms of income earning Rs 57.63 million in the last year. It earned net profit of Rs 20.82 million spending Rs 38.004 million. Biratnagar Airport earned Rs 41.41 million but spent Rs 49.21 million in the year. Tenjing-Hillary Airport at Lukla, Solukhumbu has earned the highest among remote airports earning Rs 13.78 million. The airport spent Rs 7.39 million.
“The remote airports must now be substituted as they are becoming a burden for the CAAN,” Suman states. “The remote airports at places that have already been connected by roads and with low passenger flow will now be closed and those with bigger flow of passengers modernized. But we are not in a position to shut down airports due to political pressure,” he adds.
Airports Income Expenditure
TIA 2924148226.13 873277316.55
Pokhara 57631586.58 36804785.24
Gautam Buddha 24760086.70 26975226.74
Biratnagar 41414195.96 49219103.59
Tenzing-Hillary 13780732.99 7393583.09
Chandragadi 15721472 10439440
Dhangadi 4627370.98 6492376.93
Nepalgunj 24970875.70 31759341.53

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