Public savings at risk as Nepal Airlines’ finances spiral: Report
Summary
Nepal Airlines is nearing bankruptcy with Rs50 billion in debt, posing risks to public savings and requiring urgent reforms to restore financial stability and governance.
Key Points
- Nepal Airlines has Rs50 billion in debt and is nearing bankruptcy, threatening public savings institutions like the Employees Provident Fund and Citizen Investment Trust.
- The corporation's financial ratios reveal severe distress, with liabilities exceeding assets and operating income insufficient to cover interest payments.
- Political interference, corruption, and poor management have led to mismanagement, failed aircraft acquisitions, and loss of business to foreign airlines.
- A recent government report recommends restructuring Nepal Airlines into separate entities, improving governance, and adopting new business models to save the carrier.
