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 Nepal News         5/2/2002

Singapore Airlines to stop its flight to Kathmandu Singapore Airlines (SIA) has decided to suspend its Kathmandu flights from May 31 stating that it could not meet the operational costs due to a heavy decline in the number of passengers.  

The decision to suspend the service was taken as part of SIA’s on-going review of the route networks as part of the effort to fine-tune capacity requirements and contain costs in what is still an uncertain operating environment, said a SIA press release. Lawerence Liew, the airlines’ General Manager in Nepal, told that the decision to suspend the flights was taken looking into the profitability aspects of the route. “SIA is not even breaking even under the prevailing situation”, he added.

However, Liew said that the SIA might resume its flights as soon as the tourism industry begins to revive and tourist arrivals go up. “We should not dismiss the possibility of resuming flights”. He added. The airlines seat occupancy had dwindled to 40 percent in the last three months – the duration when the tourist arrival in the country had declined by 50 percent. Things began to go wrong after September 11 terrorist attack in the US and the war in Afghanistan.

Compiled by the office of Mr.Bikrum Pandey, A Himalayan Professional of Nepal   02 May 2002

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