In a significant development for Nepal’s aviation industry, the Civil Aviation Authority of Nepal (CAAN) has granted permission for Nepal’s international airlines operating from the country to introduce duty-free shops on board their flights. This decision is expected to bring benefits for both the airlines and their passengers, marking a positive step towards enhancing the overall travel experience.
In many countries, duty-paid shops on board aircraft are a common practice. It is a way for airlines to generate additional revenue. The introduction of duty-paid shops on board Nepal’s international airlines is a positive development and it will benefit both the airlines and their passengers.
Implementing new procedure
To operate duty-free shops on their flights, airlines are required to obtain prior approval from the Ministry of Culture, Tourism, and Civil Aviation. The airlines must submit a memorandum demonstrating the financial and technical feasibility of the service to the ministry. An internal operating procedure should be established, covering material selection, purchase processes, quality maintenance, warehouse management, and in-flight sales procedures.
Additionally, Ministry will ensure food safety, consumer rights protection, and safety measures, and strengthen stakeholder relationships.
To ensure safety, security checks are mandatory for goods intended for sale on every flight at Nepal’s international airports. The cargo warehouse at the airport has been closed, and its security is now the responsibility of the airport authorities. Airlines must obtain prior approval from the relevant international airport to operate the service, and detailed information about goods sold, sales delivery, and earnings must be provided on each flight.
To maintain transparency and accountability, airlines must issue official bills for goods sold during flights and ensure compliance with revenue allocation, value addition tax, income tax, and other relevant laws. Progress on the service operation should be reported quarterly to the Ministry, adhering to The Nepal Civil Aviation Authority’s Airport Service Fee Rules 2078.
Both the aviation authority and the International Civil Aviation Organization (ICAO) have been advised to comply with safety laws and regulations. The Ministry takes responsibility for enforcing the procedure for in-flight sales services.
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Conclusion
The introduction of duty-free shops on board Nepal’s international airlines is a positive development for both the airlines and the country’s tourism industry. The shops will generate additional revenue for the airlines, and they will make it more convenient for passengers to purchase duty-free goods. This is likely to boost tourism revenue, as passengers will be more likely to spend money on duty-free goods if they can easily purchase them on board their flights.
