Himalaya Airlines, Nepal-Tibet joint venture, comes under financial stress
Summary
Himalaya Airlines is under severe financial pressure, with dues to Tribhuvan International Airport rising to Rs629 million amid higher operating costs, weak demand and repeated disruptions. The Civil Aviation Authority of Nepal says the airline could face service suspension if it fails to clear the outstanding amount, though both sides are still discussing a repayment plan.
Key Points
- Himalaya Airlines owes Tribhuvan International Airport Rs629 million, including landing, parking, navigation and passenger service charges.
- The airline says fuel prices, higher taxes and airport fees, along with Covid-era and recent disruptions, have pushed it into extreme financial stress.
- CAAN has warned that prolonged non-payment can lead to debt being classified as doubtful and may eventually trigger a suspension of services.
- Himalaya has proposed paying Rs200 million immediately and settling the rest in installments, while pledging equipment as security.
