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NATIONAL TRANSPORT PLAN Current Situation and Diagnostic

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NATIONAL TRANSPORT PLAN Current Situation and Diagnostic Capacity Development of Civil Aviation Authority of Nepal NATIONAL TRANSPORT PLAN Current Situation and Diagnostic. DRAFT SEPTEMBER 2012 Capacity Development of Civil Aviation Authority of Nepal Page intentioned Blank NATIONAL TRANSPORT PLAN Current Situation and Diagnostic. DRAFT Page 2 of 60 Capacity Development of Civil Aviation Authority of Nepal The present document is embedded into the Project “Capacity Development of Civil Aviation Authority of Nepal“, more specifically into the part “2A- National Plan for Civil Aviation Development”. The main aim of this document is to analyze the current situation of air transport in Nepal, including the existing: a) International Agreements b) Legal Framework and Regulations c) Air Transport Network a. Airlines b. Air routes c. Traffic Characteristics This first diagnostic of the current state of operation will be used to perform a SWOT analysis which can help the experts to design a 20-years strategic plan for Civil Aviation Development. NATIONAL TRANSPORT PLAN Current Situation and Diagnostic. DRAFT Page 3 of 60 Capacity Development of Civil Aviation Authority of Nepal Page intentioned Blank NATIONAL TRANSPORT PLAN Current Situation and Diagnostic. DRAFT Page 4 of 60 Capacity Development of Civil Aviation Authority of Nepal INDEX 1. Introduction ...................................................................................................... 8 2. Nepal economics ............................................................................................... 8 3. Stage of development ..................................................................................... 11 4. Tourism in Nepal ............................................................................................. 13 5. Multilateral agreements of Nepal ................................................................... 14 6. Bilateral agreements ....................................................................................... 15 7. Air transport policy issues (Civil Aviation Policy 2006) ...................................... 16 8. Licensing and juridical background .................................................................. 16 9. Airlines classification ....................................................................................... 18 10. Airfares and Ticket prices ................................................................................ 18 Charges to flights operators .................................................................................................... 20 11. Air network in Nepal ....................................................................................... 22 A. Domestic Traffic .................................................................................................... 22 Domestic airlines data ............................................................................................................. 24 Fixed Wing Operators .............................................................................................................. 28 Rotor Wing Operators ............................................................................................................. 37 B. International Traffic ............................................................................................... 41 International airlines data ....................................................................................................... 45 12. Nepali Air Network Characteristics .................................................................. 50 A. Cross sector flights ................................................................................................. 50 B. Cross border flights ................................................................................................ 51 C. Mountain flights .................................................................................................... 51 D. Adventure flights ................................................................................................... 51 E. Cargo .................................................................................................................... 51 F. Rural areas flights. Social destinations.................................................................... 52 13. Nepali Airports Net ......................................................................................... 55 Domestic Passenger Traffic per Airport .................................................................................. 56 14. Conclusions; Issues in the Nepali Air Network .................................................. 57 A. Limited number of international agreements ......................................................... 58 B. Airlines license distribution – Domestic market overwhelmed ................................ 58 C. Lack of aircrafts ..................................................................................................... 58 D. Nepali air network weakly integrated .................................................................... 59 E. Necessary enhancement of safety in the air transport ............................................ 60 F. Bad situation of airport facilities ............................................................................ 60 G. Need of skilled manpower ..................................................................................... 60 H. Other issues .......................................................................................................... 60 NATIONAL TRANSPORT PLAN Current Situation and Diagnostic. DRAFT Page 5 of 60 Capacity Development of Civil Aviation Authority of Nepal INDEX TABLES Table 1.- Nepal Economics. April 2010. Source: WTO ................................................... 9 Table 2.- Air Traffic Rights in Nepal ............................................................................. 15 Table 3.- Entry Fees for Airline Licensing in Nepal ....................................................... 18 Table 4.- Airfares for domestic routes (private companies), adding fuel surcharge. Source: Nelpa .............................................................................................................. 19 Table 5.- Some airport charges for international flights in TIA. Source: AIP Nepal ....... 20 Table 6.- Some airport charges for domestic flights in TIA. Source: AIP Nepal ............ 21 Table 7.- PSC in TIA. Source: AIP Nepal ..................................................................... 22 Table 8.- Domestic Airlines in Nepal ............................................................................ 24 Table 9.- Domestic fleet characteristics in Nepal .......................................................... 25 Table 10.- Domestic airlines in TIA, historical data (2011)............................................ 26 Table 11.- Domestic airlines passenger traffic (January-June 2012) ............................ 27 Table 12.- Tourist origin (2011) .................................................................................... 41 Table 13.- Tourist arrivals per month (2010-2011) ....................................................... 41 Table 14.- International Traffic in Nepal, 2010.............................................................. 42 Table 15.- International Airlines operating in Nepal ...................................................... 45 Table 16.- International Air Network in Nepal ............................................................... 45 Table 17.- International airlines in TIA, historical data (2011) ....................................... 47 Table 18.- International airlines passenger market share (%) ...................................... 49 Table 19.- Domestic flight seats by region (Seat % in weekly schedule) ...................... 53 Table 20.- Operational airports in Nepal....................................................................... 55 Table 21.- Charter airports in Nepal ............................................................................. 56 Table 22.- Passengers in major domestic airports ....................................................... 56 NATIONAL TRANSPORT PLAN Current Situation and Diagnostic. DRAFT Page 6 of 60 Capacity Development of Civil Aviation Authority of Nepal INDEX FIGURES Figure 1.- GDP per country worldwide, 2011. Source: IMF .......................................... 10 Figure 2.- Comparison of the state of development of Nepal. Source: World Economic Forum (WEF) ............................................................................................................... 11 Figure 3.- GDP (PPP) per capita, 1985-2010. Source: WEF ........................................ 11 Figure 4.- Distribution of population and type of activities by region, 2004. Source: Government of Nepal ................................................................................................... 12 Figure 5.- Natural reserves and tourist destinations in Nepal ....................................... 13 Figure 6.- Signatory countries of SAARC agreement ................................................... 14 Figure 7.- Historical data of domestic passenger traffic in Nepal .................................. 23 Figure 8.- Growth rates of domestic traffic within Nepal ............................................... 23 Figure 9.- Maximum range, with average load conditions, of a single engine Cessna Caravan 208 aircraft ...................................................................................................
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