More domestic airlines to fly international
The government has invited proposals from private sector interested to operate international flights on Class A routes.
It sought fresh proposals from interested parties as per the decision made by cabinet on May 7 after it received no proposal on Class A routes in its second notice issued in mid-January.
“We have invited proposals from capable private sector to operate international flights on Class A routes,” Ranjan Aryal, acting secretary at Ministry of Tourism and Civil Aviation (MoTCA) said on Wednesday.
As per the notice, interested companies will have to submit proposal within 45 days.
The government had received proposals from private sector to operate international flights only on Class B and Class C routes in its second call in mid-January.
The government had selected Yeti Airlines to operate international flights in its first call. Yeti operated international operation for some time with the brand of flyyeti.com.
The government had selected four airlines – Buddha Air, Shree Air, Unity Airlines and Dynamic Air – to operate international flights in the second call.
The government has categorized air routes with flight duration of up to two hours as Class B and between two to three and a half hours as Class A.
According to Aryal, companies having experience of five years in domestic aviation and having paid-up capital of Rs 500 million are eligible to apply for international operation. The companies should have at least five aircraft.
New companies with paid-up capital of Rs 500 million are eligible to apply for license for international flights. The companies will have to pay a non-refundable fee of Rs 50,000 and show a bank guarantee of Rs 5 million.
“If the companies failed to launch flights two years after receiving permission, their bank guarantee amount won´t be refunded,” Aryal added.
The government plans to award license to three companies, including one focusing on cargo operations.