KATHMANDU: The Nepal government has extended fee waivers for international flights at Pokhara International Airport (PIA) and Gautam Buddha International Airport (GBIA) in Bhairahawa by two years, to mid-September 2028, in a renewed push to draw foreign carriers to the two long-underutilized airports outside the capital.

The Cabinet, at its meeting on Wednesday, July 22, endorsed a proposal from the Ministry of Culture, Tourism and Civil Aviation to push the incentive period back from the end of Bhadra 2083 BS to the end of Bhadra 2085 BS, Government Spokesperson Sasmit Pokharel said.

Under the revised scheme, landing, parking and navigation fees for regular international flights at both airports remain fully waived, while the ground handling discount — previously 25 percent — has been raised to 50 percent. Nepal Airlines Corporation, which provides ground handling services at the two airports, will apply the higher rate.

Two related benefits will not carry over, however. The passenger service charge waiver ends once Bhadra concludes, after which passengers must pay the airport service fee. The Civil Aviation Authority of Nepal (CAAN) said charter flights will also lose their discount from October, with operators and passengers required to pay all charges in full.

Kumar Mani Thapaliya, president of the Nepal Association of Tour and Travel Agents (NATTA), welcomed the move, saying it would help draw foreign airlines to the two airports and generate broader gains for tourism and the regional economy.

Flydubai is set to be the first to benefit, launching daily direct flights between Pokhara and Dubai from September 23. The Nepal Tourism Board called the route a major breakthrough for international access to Pokhara, saying it would help lift tourist arrivals, ease travel for Nepalis abroad, and support tourism, trade and investment across Gandaki Province.

Officials say sustained international operations at Pokhara and Bhairahawa could eventually ease pressure on the congested Tribhuvan International Airport in Kathmandu.

Industry operators have historically been reluctant to expand services to either airport, citing safety protocols and inadequate ground infrastructure. PIA, built with a Rs 22 billion loan from China, has faced corruption allegations, while GBIA, developed with Asian Development Bank support, has faced seasonal operational challenges. Combined investment in the two airports, including land acquisition costs, exceeds Rs 40 billion, according to CAAN.