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.
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