Nepal Airlines’ Ambitious STOL Fleet Expansion: Let Kunovice, Hindustan Aeronautics, and De Havilland Respond to RFP

Nepal Airlines is set to bolster its domestic market presence with a strategic move towards short take-off and landing (STOL) aircraft. Reports indicate that three leading Original Equipment Manufacturers (OEMs) have responded to Nepal Airlines’ recent Request for Proposal (RFP) aimed at acquiring three STOL aircraft, a significant step in the airline’s efforts to navigate the country’s challenging terrains.

Ramesh Poudel, a spokesperson for Nepal Airlines, confirmed that by the December 5, 2023, deadline, Czechia’s Let Kunovice, India’s Hindustan Aeronautics, and De Havilland Aircraft of Canada had all submitted proposals. Let Kunovice specializes in the production of the 19-passenger Let 410 and L410 UVP-E20, while Hindustan Aeronautics offers the 17-passenger Do228, manufactured under license. De Havilland has put forward its renowned Twin Otter product, potentially enjoying a competitive advantage as Nepal Airlines currently operates two DHC-6-300s and has a history with the manufacturer.

Nepal Airlines aims to enhance its domestic market share by investing in aircraft capable of handling the country’s numerous short runways. According to ch-aviation data, the state-owned carrier currently holds a 0.14% market share and faces tough competition from leading carriers such as Buddha Air, Yeti Airlines, Shree Airlines, Saurya Airlines, Summit Air (Nepal), and Sita Air. To achieve its expansion goals, Nepal Airlines is seeking STOL aircraft that can navigate the challenging topography and contribute to increased frequency and reach.

Presently, Nepal Airlines operates once-weekly roundtrips between Kathmandu and Bhairahawa, with additional irregular domestic DHC-6-300 flights driven by demand. However, the airline faces limitations due to a lack of available aircraft, with one DHC-6-300 (9N-ABU, msn 814) grounded at Talcha due to engine issues.

Nepal Airlines is committed to covering the acquisition costs of the STOL aircraft from its internal financial resources, signaling self-sufficiency in this ambitious venture. The airline reportedly plans to leverage its real estate interests in Nepal to generate funds for the acquisition, thereby minimizing reliance on government support or external lenders.

As Nepal Airlines moves forward with its STOL fleet expansion, industry observers eagerly await the outcome of the OEM proposals, anticipating a transformative development in the airline’s capacity and reach within the challenging and picturesque landscapes of Nepal.