KATHMANDU: Nepal Airlines Corporation (NAC) has moved forward with a proposal to purchase new aircraft for expanding both domestic and international flights, and to operate them on lease if immediate purchase is not possible.

The corporation has submitted a proposal to the Ministry of Culture, Tourism and Civil Aviation to purchase four aircraft for expanding flights to high mountain and hilly areas. The corporation’s proposal is to purchase two Twin Otter DHC-6 aircraft for flying to high mountain areas and two ATR-72 series aircraft for trunk routes, that is, main flight routes. Among these, the ATR-72 aircraft are proposed to be leased if they cannot be purchased.

According to the corporation’s Executive Director Amrit Man Shrestha, since flights have been absent even in places that were previously served, the proposal is to purchase aircraft where possible and otherwise operate on lease. The corporation has no presence even on trunk routes for domestic flights including Biratnagar, Bhadrapur, and Dhangadhi. Shrestha says, “There is a shortage of aircraft for domestic flights. We have brought a proposal to purchase aircraft to connect hilly and mountain districts through air transport.”

The corporation has made the aircraft purchase proposal with the intention of having it included in the government’s policies and programs for the upcoming fiscal year 2026/27.

The corporation has three Canadian DHC-6 Twin Otter aircraft. Of these, two are flying in remote areas while one has been grounded at Tribhuvan International Airport for a decade and a half due to technical problems. The two Twin Otter aircraft are operating flights to Rukum, Nepalgunj, Jumla, Surkhet, Rumjatar, Resunga, Dang, Dolpa, Simikot (Humla), Ilam, Taplejung, Bhojpur, Thamkharka (Khotang), and Phaplu Airport (Solukhumbu). These aircraft have a capacity of 19 seats.

The two Twin Otter aircraft proposed for new purchase are of the same Canadian DHC-6 model. A budget of approximately Rs 2.5 billion has been proposed for this.

Repairing the Twin Otter aircraft that has been grounded since 2013 is estimated to cost Rs 400 million. Shrestha says that if that budget is made available, that aircraft could also be brought into operation.

Similarly, the corporation has proposed purchasing two ATR-72 aircraft. A budget of Rs 5.5 billion has been proposed to purchase the French aircraft, which have a capacity of 72 seats. ATR-72 aircraft are currently being operated by Buddha and Yeti Airlines.

The NAC has also made a proposal to the government to lease and operate two narrowbody aircraft from Airbus for international flights.

The Chinese aircraft that were previously received as gifts and purchased for domestic flights are currently not in operation. Two MA-60 and three Y-12 aircraft brought from China have been grounded at Tribhuvan International Airport for five years.

In June 2018, then Minister for Culture, Tourism and Civil Aviation Rabindra Adhikari had moved forward with preparations to purchase 6 aircraft for domestic flights. At that time, the NAC’s Managing Director was Sugat Ratna Kansakar. However, after Kansakar was removed from his post and Adhikari died in a helicopter accident, the aircraft purchase process could not move forward.

Nepal Airlines Corporation’s central office located at New Road, Kathmandu. Photo: Bikram Rai

Nepal has 55 airports, of which only 34 are in operation. As many as 21 airports built to connect remote areas to air transport are not functioning. Private airline companies have been unable to send aircraft there. The national flag-carrier Nepal Airlines has been unable to conduct regular and effective flights to remote areas due to a shortage of aircraft.

Proposal to lease two narrow-body aircraft

The corporation has also made a proposal to the government to lease and operate two narrowbody aircraft from Airbus for international flights. Executive Director Shrestha says the proposal has been made on the basis that narrowbody aircraft must be operated on lease if necessary to expand international flights.

The corporation currently operates two narrowbody Airbus A-320 and two widebody A-330 aircraft. The farthest destination the corporation’s widebody A-330 flies to is Narita, Japan. This aircraft also operates flights to Doha, Dubai, and Delhi. Corporation officials say the corporation has been unable to make a profit when it has to fly widebody aircraft to short-distance destinations. Executive Director Shrestha says, “Aircraft are needed to expand flights on short international routes. Additional aircraft are also needed when existing ones go in for maintenance. It would be best to operate purchased aircraft where possible, but we have proposed expanding services by leasing if necessary.”

The corporation has 12 international flight destinations. Flights operate from Kathmandu to Dubai, Doha, Riyadh, Delhi, Mumbai, Bangalore, Guangzhou, Hong Kong, Bangkok, Kuala Lumpur, and Narita. Shrestha says there is a plan to fly to 14 destinations including India after leasing two narrowbody aircraft.

The national flag-carrier Nepal Airlines has been unable to conduct regular and effective flights to remote areas due to a shortage of aircraft.

Nepal has signed air service agreements with 42 countries including those in Europe at various times. An agreement signed with South Korea two decades ago on 21 September 2004 has still not been implemented. The corporation says it is working to make flights to Korea a reality. There is an agreement allowing air flights from Nepal to 11 cities in neighboring India. Shrestha says, “After leasing two narrowbody aircraft, we have planned to fly the A-330 widebody only to Australia and Japan. Flying a large aircraft on short distances causes losses.”

The corporation has formed a committee to study the feasibility of operating the grounded Chinese aircraft and the Boeing-757 aircraft. That committee has not yet submitted its report. “After that committee submits its report, we will make a decision on what to do with those aircraft sitting idle at the airport,” says Executive Director Shrestha.