News of Indian private airlines starting flights to Nepal and the resumption of Pakistan International Airlines flights to Kathmandu after two years has raised spirits in the tourism and aviation sectors.

India's private Air Sahara announced this week it plans to start New Delhi-Kathmandu flights this week. Reduction in Royal Nepal Airlines flights has lead to increased demand for seats on this sector. Jet Airways is also expected to announce flights to Kathmandu from points in India.

PIA, which stopped flights last June following India and Pakistan disallowing each other's airlines to use their air space, is expected to resume twice weekly flights between Kathmandu and Karachi on the new year.