Investors, hoteliers left waiting as flights vanish from Nepal’s Bhairahawa airport

Local businesses fear financial collapse as billions in investments tied to the airport bring no return.

Dipendra Baduwal

Dipendra Baduwal

The Kathmandu Post

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Since its inauguration in May 2022, the airport has seen minimal international flight activity. PHOTO: THE KATHMANDU POST

May 6, 2025

KATHMANDU – Locals of Rupandehi, particularly from the business community, have been staging protests demanding regular international flights at the Gautam Buddha International Airport. Despite persistent calls, they only receive assurances, which do not translate into tangible action.

Since its inauguration in May 2022, the airport has seen minimal international flight activity. According to insiders, most of these limited operations resulted from pressure from Nepal’s civil aviation authority rather than organic airline interest.

Officials explain that since all outbound migration formalities for workers, such as medical checks, visa processing, and labour approvals, are centralised in Kathmandu, passengers naturally prefer to fly from the Capital’s Tribhuvan International Airport.

Pratap Babu Tiwari, general manager of the Gautam Buddha International Airport, said the Civil Aviation Authority of Nepal has introduced several discount packages to reduce operational costs and encourage airlines and passengers to use the airport. These include reductions in aviation fuel prices and passenger service charges, which have been effective since April.

Tiwari pointed out that although the Cabinet decided in July last year to decentralise migration-related services like manpower agencies, medical test centres, and visa offices, these institutions have yet to open branches in Bhairahawa.

As a result, all processes for international travel still have to be completed in Kathmandu, limiting the practicality of flying out of the Gautam Buddha Airport.

Last year, the Ministry of Civil Aviation unveiled a plan to operationalise Bhairahawa and Pokhara international airports. This included establishing labour, medical, and visa offices in both cities, under the direction of the Ministry of Labour. However, these plans remain on paper.

This centralisation has significantly impacted passenger traffic at Gautam Buddha International Airport. In November last year, the airport saw 4,279 passenger movements.

That number slightly dropped to 3,878 in December. Winter fog led to further flight disruptions in January, reducing passenger numbers to just 1,365. Numbers began to climb again in February (6,779 passengers) and March (7,034 passengers), indicating a renewed momentum.

However, the arrival of the summer flight schedule brought another setback. Airlines, required to submit flight schedules in advance, did not apply for slots from Bhairahawa, causing all international flights to be suspended. “Currently, no international flights are operating from the airport,” Tiwari confirmed.

He attributed this to the inconvenience caused by requiring passengers to complete all pre-departure procedures in Kathmandu before flying out of Bhairahawa. “We have repeatedly informed the concerned stakeholders about the situation,” he said.

Tiwari also suggested that the Gautam Buddha Airport could be an alternative landing site when the Tribhuvan International Airport becomes congested. “If flights were diverted here during peak congestion in Kathmandu, it would reduce air traffic and help us maintain operations here,” he said.

Rajesh Kumar Agrawal, a central member of the Federation of Nepalese Chambers of Commerce and Industry, said there is no viable business model for airlines to operate regular flights to Bhairahawa. Around Rs40 billion has already been invested in constructing Gautam Buddha International Airport, with infrastructure expansion continuing to push that figure higher.

According to Netra Prasad Acharya, president of the Siddhartha Chamber of Industry and Commerce, local entrepreneurs have invested approximately Rs80 billion in businesses tied to the airport’s potential. These investments span hotels and restaurants across Bhairahawa, Tilottama, Lumbini, and Butwal, all anticipating a surge in tourism.

Additionally, many have invested in real estate, expecting demand for housing to grow with increased airport activity. However, most of this investment has been financed through bank loans, and entrepreneurs are now struggling to meet their loan repayments.

Frustrated business owners and civil society members have threatened to shut down the customs office and halt flight ticketing services if no steps are taken to operationalise the airport.

Despite its modern facilities, the airport is underutilised. Although it hosts visits from international political leaders and government officials, these guests only use the domestic terminal. While the airport’s long-term viability is frequently discussed during local programmes and events, concrete action is lacking.

Last year, entrepreneurs from Siddharthanagar staged a 15-day sit-in protest demanding regular international flights. When the provincial government failed to respond, they took their grievances directly to federal officials in Kathmandu, appealing to both the prime minister and ministers.

Business groups like the Hotel Association, Chamber of Industry and Commerce, and other associations have submitted multiple memoranda to central government officials, urging them to address the issue.

While the airport has been operational around the clock for three years, international flights remain irregular and seasonal. This inconsistency has frustrated locals who had hoped for stable, long-term service.

Five international airlines—the Kuwait-based Jazeera Airways, Fly Dubai, Thai Asia, Qatar Airways, and Nepal Airlines—operated flights to Gautam Buddha International Airport between September and November last year. This temporarily increased activity in the area, but all withdrew service for the summer season.

Hari Prasad Aryal, president of the Butwal Chamber of Industry and Commerce, said that the initial excitement when these airlines launched flights has turned into disappointment. “We were hopeful because flights started due to the Tribhuvan airport’s congestion, but now that they’ve been cancelled, we feel let down.”

The airport is fully equipped and ready for regular international operations. It has a staff of 141 under the Civil Aviation Authority, 422 security personnel and additional Nepal Police support.

Despite this, Gautam Buddha International Airport generates only about Rs250 million annually in revenue from domestic and occasional international flights—operational costs amount to Rs350 million, resulting in an annual loss of Rs100 million.

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