Despite extensive fee waivers under the government’s ‘bumper gift’ plan, international flights have yet to take off from Pokhara Regional International Airport (PRIA) and Gautam Buddha International Airport in Bhairahawa. Both debt-financed airports currently operate only one international flight per week, far from the government’s expectations.
To attract airlines, the Civil Aviation Authority of Nepal (CAAN) and the Ministry of Tourism removed passenger service fees, parking, landing, navigation, tourism fees, and offered major discounts on ground handling charges and aviation fuel. For example, a plane carrying 150 passengers, normally paying $5,000 in ground handling fees, now saves $3,750. Nepal Oil Corporation also offers a $100 per liter discount on aviation fuel. These incentives will remain until mid-2026.
However, CAAN spokesperson Gyanendra Bhul admitted that the strategy has not worked, stating, “We have waived all fees, yet flights are not happening, putting the authority at risk of collapse.” Both airports, built with large loans, are struggling to cover interest payments and even staff salaries.
Pokhara Airport, which began operations in January 2023, was built with nearly Rs 28 billion borrowed from China. Bhairahawa Airport, operational since May 2022, cost about Rs 9.5 billion, financed through loans from the Asian Development Bank, OPEC Fund, and others. Without steady international traffic, the airports cannot meet repayment obligations, raising concerns about a potential debt trap.
The lack of passenger demand is a major barrier. Airlines that initially operated flights have stopped due to low load factors. Currently, Nepal Airlines runs a weekly Malaysia–Bhairahawa flight, while Himalaya Airlines operates one weekly Pokhara–Lhasa service. Occasional charter flights also take place, but numbers remain low.
CAAN officials say inadequate support facilities—such as labor offices, immigration, and quarantine services—discourage passengers. Many still travel to Kathmandu for such services, bypassing Pokhara and Bhairahawa.
While domestic flights provide some revenue, they cannot cover mounting debts. Unless passenger demand increases and operational facilities improve, the future of these airports remains uncertain.
