Airlines in Nepal

by Sagun Sapkota consultant Currently only 14 countries have regular direct flights with Nepal. A large portion of this international traffic is held by India (32%) and United Arab Emirates (18%). Qatar (11%), China (9%), Bahrain (7%) and Thailand (7%) have also a high percentage of this traffic. New airlines like: Malindo Air, Himalaya Airlines, Sichuan Airlines and 4 other airlines are starting flights from Nepal in 2015.

In 1953, when cows still grazed the (air)fields of Kathmandu Gauchar, three vintage American made DC-3 Dakotas began the aviation industry of Nepal with the help of the Indian Government. Royal Nepal Airlines Corporation (Now Nepal Airline Corporation) was thus initiated officially in 1958 with services limited to few Indian cities and local flights.

In the course of its operation in the early decades, aircrafts were either leased or bought by NAC from across the world. Feng Shou-2, Bell Helicopters, Russian Mi-4 and Fokker F27 were few of the aircrafts that operated in the early days.
Since 1972, after Tribhuwan International Airport’s runway had been expanded for medium sized jet operation, Boeing 727 jet airliners were introduced and again replaced by superior Boeing 757s.

However, in 2004, to get out of the humongous debt, Government of Nepal sold off 49% of its stake in Nepal Airlines to the private sector.

At present NAC operates 6 international destinations namely Delhi in India, Bangkok, Hong Kong, and Kuala Lumpur in South East /Far East Asia and Dubai and Doha in Middle East. Direct flights to and from Dubai started from June 17, 2002 and flight to Kuala Lumpur operated from March, 31st, 2003. In Domestic operations it connects more than 25 destinations inside Nepal.

These are some problems faced by NAC currently:
·    Lack of minimum facilities in airports
·    Restrictions in operational hours at TIA
·    Obsolete fleet and need for new aircrafts

Nepal Airlines, and most of the airline companies operating in Nepal, present a clear obsolescence and a necessity for modernization of their aircrafts and equipments. It is absolutely imperative that airlines renovate and incorporate new and modern equipments to their fleet. On the government’s side, there is a lack of a clear policy for improvement in the capabilities of the aircrafts that operate in Nepal.

Nepal’s civil aviation policy prevents import of aircrafts that have exceeded 20-year life for security reasons. Moreover, aircrafts insures/reinsurers have placed Nepal in the danger zone for aviation and therefore insurance premium amount is also high. Due to those reasons, it is not affordable for many private air companies to acquire additional aircrafts for their small fleet. Bringing in new aircrafts is almost incompatible with making profits when operation costs are so high.


Domestic market Overwhelmed
The size of Nepali aviation market is limited, as not all the people in the country can afford air travel. It is not possible for an indefinite growth in the number of airlines operating on it. Moreover, expensive fuel prices, aircrafts insurances and the value of foreign currency can hit this sector limiting the number of airlines which can attain benefits and remain in the business. For a small country like Nepal, the number of airlines has probably reached a peak with a total of 13 different airline companies operating domestic flights.

Nepal Airlines Corporation situation: Critical
State-owned NAC is currently in a critical condition, with financial problems. It can neither add aircrafts for domestic purposes nor procure them for international destinations. The two Boeing 757 aircrafts, its biggest aircrafts, are over 24 years old, and therefore NAC’s credibility has decreased in the market.


Nepal could be connected with many other countries, specially taking into account the Bilateral Agreements it has signed with 22 other countries, apart from these 14.

Connecting the country with more international flights would help to increase the air traffic demand in Nepal. In addition to that, new Himalayan routes crossing the country could easily increase the over flights in Nepal.
New Airlines being Introduced

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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