Kathmandu-based Buddha Air has been permitted by the civil aviation ministry to start operations. The airline plans to fly to cities such as Kolkata, Lucknow and Patna.

?We have cleared Buddha Air?s proposal to operate flights to India. They would start flights from the coming winter schedule, subject to DGCA approval,? an official said.

Buddha Air operates a fleet of five Beechcraft 1900D and three ATR 42. It serves several destinations in its domestic market. Traffic between India and Nepal is growing at 13-14% a year, according to industry estimates. Traffic had been affected due to the Maoist threat, but has started picking up now. Citizens of the two countries do not a visa to visit each other.

?Nepal is the nearest gambling destination for north Indians, there is ample tourist traffic between the two countries,? said Amadeus India MD Ankur Bhatia.

Air India, Jet Airways and Kingfisher Airlines operate flights to Kathmandu. The two low-cost airlines SpiceJet and IndiGo also plan to serve Kathmandu from various Indian cities as and when they start international operations.

?For Nepalese, Delhi is the nearest business hub. From cities like Patna and Lucknow also there is enough traffic,? Bhatia said.

To meet increasing demand, India and Nepal recently agreed to increase bilateral seat entitlements to 30,000 per week from 6,000 seats per week for designated carriers from the two countries.

?Both countries are now entitled to designate any number of airlines for operating mutually-agreed services. On certain routes any type of aircraft size can also be operated,? the official added.