China wants to revise air service pact
KATHMANDU, NOV 29 -
The Chinese government has asked Nepal to revise the bilateral air service agreement (ASA) between the two countries as travel demand has outstripped the seat capacity given to Chinese carriers.
A Chinese delegation met officials of the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) on Monday and requested another 10 flights weekly. At present, the ASA allows Chinese airlines to operate 14 flights per week.
Three Chinese carriers—Air China, China Southern and China Eastern—currently serve Kathmandu’s Tribhuvan International Airport (TIA). According to the Nepal Tourism Board, Chinese arrivals via air jumped 77.6 percent to 45,400 in 2011.
However, under the reciprocal agreement, Nepali carriers are unable to utilize the allocated seats
to designated Chinese cities.
China provides almost 10,000 seats per week to seven Chinese cities, with two beyond points to Osaka and Seoul. Many years ago Nepal Airlines Corporation (NAC) used to operate flights to Shanghai.
Under the policy to lure more Chinese visitors, the government has issued temporary operating permits (TOP) for Nepal Tourism Year 2011 and Visit Lumbini Year 2012.
The scheme allows an additional 10 flights per week to international airlines of those countries with which Nepal has signed ASAs. In 2011, the government had allowed international carriers to operate seven additional flights weekly.
With the TOP expiring in 2013, officials said that along with Chinese carriers, other carriers using the scheme are likely to face a
shortage of seats. “The ministry has asked the Chinese side to submit their proposal for revising the ASA,” said Suresh Acharya, joint secretary at the ministry.
Meanwhile, the Nepal Embassy in Japan has written to the MoCTCA to revise the ASA with Japan by permitting services between Kathmandu and Tokyo. According to ministry officials, the pact with Japan needs to be revised to allow start-up Nepali private carrier BB Airways to begin operations.
Officials said that the Tokyo route would help both the countries to promote tourism and stated that the issue would be discussed with the Foreign and Home ministries and the Civil Aviation Authority of Nepal (CAAN).
Meanwhile, proposals to revise and sign new ASAs with different countries have been piling up at the ministry. Officials said that the ministry was unable to move forward due to legal hurdles. As a result, a two-year backlog of proposals has accumulated at the ministry.
According to Acharya, a number of complications have prevented it from updating the air agreements. A recent example is the directive of the now-defunct parliamentary International Relation and Human Rights Committee that has prevented Air Arabia from exercising its Fifth Freedom right on the Kathmandu-Kuala Lumpur sector.
Officials said the House committee’s directive was a violation of the ASA with the United Arab Emirates as it allows such rights.
The directive is under consideration of the Supreme Court. “Unless, the apex court gives the go-ahead, the ministry can do nothing. It even bars the ministry from holding bilateral talks,” Acharya said.
Apart from China, Bhutan has also asked Nepal to permit operations to Bodhgaya from Kathmandu and waive the route royalty charge for its carrier. The UAE has also repeatedly asked the ministry for a revision of the ASA with unlimited point-to-point frequency.
At present, the ASA with the UAE allows 28 weekly flights. With more UAE-based carriers connecting Nepal, demand has surpassed the seat limit. “UAE-based carriers will be under greater pressure after the TOP ends.” Likewise, Pakistan has asked for an increase in the seat capacity.
Other pending proposals for revising the ASA have come from Russia, Saudi Arabia and the United Kingdom. “As NAC has planned to operate services to Riyadh, it has become necessary to revise the ASA. The sector has become our necessity,” Acharya said.
Proposals for signing new ASAs were received from Australia, the US, Cambodia and Indonesia a year ago. The US wants to sign an ASA with Nepal due to improved peace and stability in the country. The US Department of State has recently removed Nepal from its negative travel advisory, citing improved political conditions.
Nepal has signed bilateral air service agreements with 36 countries since 1963. This provides 5.7 million seats per annum to and from Nepal. However, not even 40 percent of this capacity is being utilized.
Presently, 29 international airlines are operating 284 scheduled flights weekly from Kathmandu to some 22 cities in Asia and Europe. New airlines proposing services to Nepal are Turkish Airline from Ista-nbul and Air Lankan from Colombo.
Source: The Kathmandu Post
