Nepal Plans New Restructuring Strategy for Nepal Airlines

The government of Nepal has announced a new plan to restructure Nepal Airlines in a continued effort to improve the performance of its struggling national carrier. President Ramchandra Paudel revealed the initiative on May 2, 2025, while outlining policies for the upcoming fiscal year.

The announcement marks yet another attempt by Nepalese authorities to reform the debt-laden state-owned airline. The president said the goal is to enhance operational efficiency and expand Nepal Airlines’ international reach. He also stressed the need for improved safety, accessibility, and affordability in the country’s air services, along with better regulation of civil aviation.

The restructuring details remain unclear, but reports suggest the government may again seek a strategic partner, potentially a foreign firm, to invest in and manage the airline. In April 2025, the High-Level Economic Reforms Advisory Commission (HERAC) recommended hiring an international company to oversee operations. Earlier this year, Civil Aviation Minister Badri Pandey also pledged to reform the airline.

Nepal Airlines currently operates a fleet of six aircraft: two Airbus A320-200s, two A330-200s, and two DHC-6-300s, although one of the latter is inactive. The airline serves 22 destinations across Nepal and international routes including India, Thailand, the UAE, Qatar, Saudi Arabia, Malaysia, Hong Kong, and Japan, according to ch-aviation data.

Separately, the government plans to split the Civil Aviation Authority of Nepal into separate regulatory and service entities. A draft bill to establish the Nepal Air Service Authority is expected to pass in the current parliamentary session, aligning with ICAO recommendations.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com