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Nepal’s airports struggle to justify heavy investments


09 January 2025  

Time taken to read : 5 Minute


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KATHMANDU: In the quiet hills of eastern Nepal, Lamidanda Airport sits empty. Built to connect Khotang district to the capital, Kathmandu, it hasn’t seen a single flight in years.

In fact, last year, the airport earned just Rs 447—less than USD 4.

Lamidanda is just one of many airports in Nepal facing a similar fate. Of the 54 airports in the country, only 28 are currently in use.

The rest lie abandoned or barely operational, despite the millions spent building them.

Nepal has spent heavily on its aviation infrastructure, with hopes of connecting remote regions and fostering development. Yet, many airports have failed to serve their intended purpose.

Some, like Palungtar Airport in Gorkha, became obsolete as soon as they were built because roads provided cheaper and more convenient alternatives.

Even operational airports are struggling. In the last fiscal year, 13 of Nepal’s airports earned less than Rs 1 million each.

Lamidanda’s revenue was the lowest at Rs 447, while Simara Airport, one of the busiest domestic hubs, generated Rs 355 million. The disparity highlights the inefficiency of many smaller airports.

Jazeera Aircraft at Gautam Buddha Airport. (File photo)

Maintaining these facilities is a costly burden. The Civil Aviation Authority of Nepal (CAAN) spent Rs 3.88 billion (approximately USD 30 million) last year on airport maintenance alone. In contrast, only Rs 6.37 billion (USD 50 million) was collected in aviation revenue, with 88 percent coming from Tribhuvan International Airport in Kathmandu.

Recent large-scale investments have also struggled.

Gautam Buddha International Airport in Bhairahawa opened in 2022, designed to boost tourism and reduce congestion at Tribhuvan.

Pokhara International Airport, inaugurated in January 2023, carried similar hopes. Yet both have failed to attract significant airline interest.

Nepal Airlines, the state-run carrier, operates only two international flights a week from Bhairahawa. In Pokhara, no international airlines have committed to regular flights, citing high operating costs and insufficient demand.

Private airlines like Buddha Air have also hesitated, citing the high price of refueling and landing fees.

“The government builds airports without a clear understanding of how they will be used,” said aviation analyst Prakash Bhandari.

The root of the problem lies in politics. Local leaders often push for airports to showcase development in their constituencies, regardless of whether the region needs one. These projects are approved as symbols of progress, even in areas where roads are more practical.

Pradeep Adhikari, director general of CAAN, acknowledges this challenge, saying, “Airports are seen as political trophies.”

Take the case of Mahendranagar Airport in the far-western district of Kanchanpur. Despite the region’s connectivity needs, the airport remains unused because better roads now serve the area.

The decline of Nepal Airlines’ domestic fleet has further strained the aviation sector. The airline has gradually retired its smaller aircraft, essential for servicing remote areas.

Without regular flights, ticket prices at smaller airports have soared, further discouraging travelers.

Private airlines, which dominate Nepal’s domestic market, prefer routes with higher passenger demand. This leaves many smaller airports underutilized.

Experts suggest that Nepal needs to adopt a more thoughtful approach to airport development. New projects should be based on feasibility studies that assess demand, location, and long-term sustainability.

There is also growing interest in public-private partnerships to revitalize struggling airports. By sharing operational responsibilities with private companies, the government hopes to improve efficiency and attract more flights.

However, without addressing deeper issues like political interference and poor planning, these efforts may fall short.

For now, many of Nepal’s airports remain quiet, their empty runways a stark reminder of wasted potential.

Publish Date : 09 January 2025 06:55 AM

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