CAAN Announces up to 80% Airfare Discount for Senior Citizens and Persons with Disabilities

21st October 2025, Kathmandu 

The Civil Aviation Authority of Nepal (CAAN) has ushered in a landmark era for accessible domestic travel with the enforcement of sweeping airfare concessions for senior citizens and persons with disabilities.

CAAN Announces Airfare Discount

This new directive, which took effect in October 2025, represents a significant social and economic step, drastically reducing the cost of flying across Nepal’s diverse and often geographically challenging terrain. The policy mandates discounts reaching up to an impressive 80 percent for the oldest senior citizens, transforming air travel from a luxury to an affordable necessity for those who need it most. This comprehensive guide breaks down the new discounts, illustrates the potential savings, and explores the broader impact of this crucial regulatory move on Nepal’s domestic aviation sector.

The New Structure: Unprecedented Concessions for Domestic Travel

In a meeting with the Airline Operators Association of Nepal and domestic carriers, CAAN introduced a tiered discount structure for Nepali citizens based on age, ensuring that the highest concessions are reserved for the most elderly and those with mobility challenges.

The discount structure is clear and progressive:

Senior Citizens Aged 70 and Above: Eligible for a minimum 50 percent discount on the basic airfare.

Senior Citizens Aged 75 and Above: Eligible for a 70 percent discount on the basic airfare.

Senior Citizens Aged 80 and Above: Eligible for the maximum concession of 80 percent discount on the basic airfare.

Persons with Disabilities: Eligible for a minimum 50 percent discount on the basic airfare.

This policy is designed to combat the historically high costs of domestic air travel in Nepal, which often serves as the only reliable connection between the capital and remote regions. By making flights significantly more affordable, the government aims to improve quality of life and access to essential services, including healthcare and family visits, for Nepal’s venerable senior population and citizens with disabilities.

Analyzing the Savings: The Kathmandu-Dhangadhi Route Example

To fully appreciate the impact of the new 80% discount, we can look at one of the longest and most expensive domestic routes: Kathmandu to Dhangadhi. According to maximum fare ceilings recently published by CAAN in early October 2025, the highest possible charge for the Kathmandu-Dhangadhi route stands at NPR 17,579. It is important to note that the discount is applied to the base fare, not the total ticket cost which includes taxes and surcharges. However, for a simple and powerful illustration of savings, we can consider a scenario where the 80% discount is applied to the maximum fare component.

If the maximum regulated fare is NPR 17,579, an 80 percent discount for a senior citizen aged 80 or older could translate into a massive saving on the airfare portion, significantly reducing the final price of the ticket. Even when considering the base fare structure, a saving of this magnitude drastically lowers the financial barrier for essential and urgent travel across the country, particularly for long-haul routes connecting the far-western regions of Nepal to the central hub of Kathmandu. For an individual in their eighties, this policy provides indispensable financial relief and dramatically increases their ability to travel safely and comfortably.

Social Impact: Fostering Inclusivity and Accessibility

Beyond the immediate financial relief, this policy holds profound social implications for Nepal. The Civil Aviation Authority of Nepal is explicitly framing this initiative as part of its ongoing efforts to introduce citizen-friendly policies that promote accessibility and inclusion.

Bridging Geographic Gaps: Nepal’s unique mountainous geography means that air travel is often not a convenience but a necessity, especially for residents of remote areas who would otherwise endure days of arduous and often risky road travel. The concession makes this vital lifeline accessible to those with reduced mobility, connecting them to major urban centers and allowing them to participate more fully in the nation’s economic and social life.

Promoting Well-being: For senior citizens, particularly those over 80, long, uncomfortable journeys are detrimental to health. The airfare reduction allows them to choose the fastest and safest mode of transport, thereby contributing directly to their improved health and well-being.

Empowering Disabled Citizens: The guaranteed 50% minimum discount for persons with disabilities aligns with international efforts to ensure equal opportunities and access to transport. This recognizes air travel as a fundamental right and a crucial element for their independence and connectivity.

Economic and Regulatory Oversight

While the new discounts are a boon for passengers, they present an operational challenge for domestic airlines. Airlines operate on tight margins, and such significant mandatory concessions, particularly on popular or high-cost routes, require careful regulatory balancing. The Civil Aviation Authority of Nepal, in its role as the regulator, is responsible for creating a sustainable framework.

CAAN’s monitoring of this new discount implementation is crucial. The authority already has a mechanism in place to regulate domestic airfares, which includes setting maximum and sometimes minimum fare limits based on airline operating costs. Under the provisions of the Civil Aviation Authority Act, CAAN has the power to recommend fare structures, which the government approves, and subsequently monitors for compliance.

CAAN’s Information Officers have previously confirmed that the Authority continually directs airlines to maintain reasonable fares, often taking action or holding discussions to prevent arbitrary overcharging, especially during peak travel periods like Dashain. The implementation of the up to 80% discount will be monitored through this existing regulatory framework. Airlines are required to immediately enforce these concessions, and failure to comply may result in punitive action from the Director General of CAAN. Passengers are consistently urged to remain vigilant, verify approved fares, and report any instances of non-compliance to the authority. The success of this policy rests on the strong enforcement and collaboration between the regulator and the domestic airlines to ensure the concessions are delivered as promised to the deserving beneficiaries.

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