Nepal Airlines Reforms Under Minister Pandey
Nepal’s aviation landscape is on the brink of transformation as newly appointed civil aviation minister Badri Pandey vows to overhaul Nepal Airlines Corporation. Speaking before a Parliamentary Committee on International Relations and Tourism earlier this month, Pandey declared that he would “not rest” until deep-rooted challenges within the state carrier are identified and resolved.
Pandey, who has held his position since July 2024, was emphatic in his message to parliament. “The way we are going is not the right way; there are some issues that should be identified and addressed. We will not rest until Nepal Airlines Corporation is reformed,” he stated. His remarks come amidst mounting pressure on the airline, which has long been beset by financial mismanagement, technical issues with its fleet, and allegations of corruption related to aircraft orders.
The minister highlighted a pressing concern: the strained relationship between Nepal Airlines and the Civil Aviation Authority of Nepal, which serves as both the safety regulator and service provider for the industry. “Working without cooperation and cordiality will be extremely difficult,” Pandey explained. He assured the committee that his office would initiate a series of result-oriented discussions with the authority, aiming to restore a productive working relationship. The goal is to create an environment in which reform efforts can truly take root, paving the way for long-term operational improvements.
In a notable move during the committee meeting, parliamentarians agreed to establish a subcommittee specifically tasked with analyzing the ongoing challenges at Nepal Airlines. With four Members of Parliament already nominated, including Sunita Baral, Yogesh Gauchan Thakali, and Tsering Lhamu Lama, the subcommittee is expected to submit its first report within 30 days. This initiative underscores the government’s sense of urgency in addressing the deep-seated problems that have plagued the national carrier.
Meanwhile, local media reports indicate that Minister Pandey has also directed Nepal Airlines Chairman Yuvraj Adhikari to tackle the airline’s persistent issues within a month. Adhikari, whose tenure has been marred by calls for his resignation, suspensions, and several controversies, now faces intense scrutiny over the airline’s performance. He has already outlasted three previous civil aviation ministers, yet successive attempts by officials—including his predecessor Sudan Kiranti—to reform the carrier have failed to yield the desired change.
At the heart of the crisis is Nepal Airlines’ overwhelming financial burden. The state-owned airline is reported to carry debts exceeding NPR51 billion rupees (approximately USD368 million). A combination of financial mismanagement, questionable aircraft procurement practices, ongoing technical issues with its aircraft, and a general reluctance from potential lenders to extend new funds has left the carrier in dire straits. Critics argue that a comprehensive overhaul of the airline’s operations and fleet is urgently needed to ensure sustainable growth and restore confidence among passengers and investors alike.
As Minister Pandey spearheads these reform efforts, the future of Nepal Airlines hangs in the balance. His firm commitment to addressing the airline’s challenges is seen as a pivotal moment for the nation’s aviation sector. Should the proposed reforms succeed, they could pave the way for a revitalized Nepal Airlines that meets international safety standards, operates a modernized fleet, and achieves financial sustainability. For now, both industry insiders and the public watch closely, hopeful that the coming months will bring much-needed change to the beleaguered carrier.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com