Nepal Airlines is in deep financial crisis after missing opportunities
Summary
Nepal Airlines Corporation faces a severe financial crisis with Rs 52 billion debt, shrinking market share, and political interference hampering its operations and growth.
Key Points
- Nepal Airlines is struggling with a huge debt of Rs 52.46 billion and limited market share of 11% in international flights from Nepal.
- Political interference, managerial weaknesses, and insufficient aircraft have led to the decline of Nepal Airlines from a once prominent government airline to near insolvency.
- Foreign airlines earned Rs 153 billion operating international flights from Nepal in 2024, while Nepal Airlines earned only Rs 18 billion, highlighting its weak presence.
- The government is in the process of appointing new leadership amid interim management to address the corporation's deepening crisis and operational challenges.
