Nepal Airlines seeks funding for its domestic fleet

Nepal Airlines is requesting government funding to finance a new fleet of aircraft for its local regional operations. The airline has a fleet of just nine short-haul aircraft, but these aircraft are regarded as a maintenance headache for the airline.

With the ban of international travel still suspended, the airline is seeking to use this time to promote domestic routes instead. The Nepalese airlines is looking to purchase five new aircraft for domestic operations at a cost of US$33 million. The suggestion is similar to one that was placed in 2018, which was eventually dropped.

At present Nepal Airlines has a diverse domestic fleet of three De Havilland Canada DHC-6-300s, two Xian MA-60s, and four Harbin Y-12s. The fleet has been plagued with technical issues meaning that only five of the fleet are currently airworthy.

Without assistance the airline could collapse as it expects to loose US$412 million by the end of the financial year, mainly due to the pandemic. This latest crisis may well be the end of the airline without a government bailout.