The growth rate in the consumption of aviation fuel has been declining gradually since the last two years, and this despite the increased frequency of domestic and international airlines . According to Nepal Oil Corporation (NOC) statistics, aviation fuel or aviation turbine fuel (ATF) consumption grew by 5.45 percent to 115,896 kl in the fiscal year 2012-13. It had grown by 9.91 percent to 109,904 kl in 2011-2012 and 20.72 percent to 99,990 kl in 2010-11. Airlines officials attributed the slowed growth rate to the price factor. According to them, for short-haul sector like India, which has less than one-and-a-half-hour flight, aircraft do not refill in full capacity here, because they carry sufficient fuel from their base stations as the fuel cost here is higher. Currently, four carriers connect Kathmandu’s airport from India. Thai Airways has a bigger fuel capacity and it normally refills its tanks in full capacity here. Currently, the NOC is selling ATF for international carriers at Rs 122.20 per litre and it enjoys Rs 32.24 profit in a litre. “Due to higher ATF prices in Nepal, besides operational requirement, carriers with bigger capacity normally don’t refill here,” said Bharat Kumar Shrestha, chairman of the Airlines Operating Committee Nepal. However, Gulf carriers are forced to refill their tanks here because of the distance and Nepal’s difficult terrain and the ‘climatic behaviour,’ although ATF is a lot cheaper in those countries. Due to unpredictable climatic conditions, aircraft are sometimes forced to hold up in the sky for more than an hour before landing at the Tribhuvan International Airport here. Gulf carriers also need to refill here because they do not carry unnecessary fuel to avoid inflated load. Normally, flights with 3-4 hours duration carry 15-16 tonnes of fuel and half their fuel is consumed by the time they land in Kathmandu. Shrestha said ATF consumption is likely to soar dramatically from this year as the number of new airlines has been added in the long-haul sector. International carriers consume 70 percent of the total ATF. Considering the ATF consumption trend, it has soared by 145 percent in the last one decade. In 2001-2002, ATF consumption was 47,274 kl, according to NOC stats. Spokesperson of the Airlines Operators’ Association of Nepal Ghanshyam Acharya said that an increase in the number of bigger capacity aircraft has taken ATF demand up. “Increased consumption of ATF gives a positive signal,” he said, adding that it also reflects on the country’s aviation industry boom. “We expect that consumption will continue to grow in double digits in the coming year.” According to Tri Ratna Manandhar, former director general of the Civil Aviation Authority of Nepal, as of 2012, there are 87 aircraft registered in Nepal, among them 55 are fixed wing and 26 helicopters. The number in 1991, when the aviation sector was liberalized, was 21. It grew to 85 in 2011. “Aircraft growth can be termed healthy but there is shortage of aircraft to serve the remote sector despite greater demand.”
Posted on: Sun, 10 Nov 2013 06:39:53 +0000
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