Chinese planes continue to be a costly burden for Nepal Airlines
Summary
Nepal Airlines continues to struggle with idle Chinese-built aircraft that incur heavy financial losses and operational challenges, deepening the airline's debt crisis.
Key Points
- Nepal Airlines has grounded a fleet of Chinese-made aircraft for nearly five years, causing significant financial strain due to accumulating loan interest and upkeep costs.
- The airline has failed to sell or lease the planes despite repeated efforts, including diplomatic engagement with the Chinese supplier AVIC.
- Operational challenges including pilot shortages, costly maintenance, and lack of market demand led to the grounding of the fleet.
- Reviving the fleet would require substantial investment and time, while ongoing depreciation has sharply reduced the planes' value.