Nepal's domestic aviation sector faces a potential pricing shock as airline operators warn that eliminating the controversial 'dollar fare' system could leave local citizens unable to afford flights.
The proposed policy shift aims to lower airfares for foreign tourists, but carriers argue that the current revenue structure is essential for subsidizing domestic travel costs.
Under the existing model, higher fares charged to international visitors help offset the operational expenses of routes serving Nepali residents.
Industry representatives caution that dismantling this cross-subsidy mechanism would not be economically sustainable for airlines, potentially forcing them to raise prices for locals to maintain viability.
This could effectively ground domestic travelers who rely on affordable air connectivity in the mountainous terrain.
The debate highlights the tension between boosting tourism revenue and maintaining accessible domestic infrastructure.