Kathmandu
Wednesday, August 27, 2025

Nepal Airlines enters 67th year amid financial struggles

July 1, 2025
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KATHMANDU: Nepal Airlines Corporation (NAC), the national flag carrier, has entered its 67th year of operation.

Established on July 1, 1958, the airline began its services with a 28-seat Douglas DC-3 Dakota aircraft and has since transitioned into operating wide-body jets on international routes.

Currently, NAC operates two Airbus A330-200 and two Airbus A320 aircraft on routes connecting Nepal to New Delhi, Mumbai, and Bangalore in India, as well as to Hong Kong, Malaysia, Thailand, Narita (Japan), Doha (Qatar), Dubai (UAE), and Riyadh (Saudi Arabia).

On the domestic front, the carrier continues to serve remote regions using two Twin Otter planes, though its presence in the domestic market has weakened due to its limited fleet.

Despite its long-standing history, NAC continues to face challenges in regaining market share and achieving financial stability.

The Corporation’s debt has reportedly reached around Rs 50 billion, primarily stemming from loans borrowed from the Employees Provident Fund and Citizens Investment Fund for its wide-body aircraft acquisition.

NAC’s reputation, once overshadowed by inefficiency and competition from low-cost carriers, has seen slight improvements owing to enhanced ground handling services and international promotional efforts. However, internal reform measures—including restructuring plans and recommendations from study committees—remain largely unimplemented.

All four of NAC’s international aircraft are reportedly operating at full capacity, though the airline remains unable to expand domestic services due to the lack of sufficient aircraft. Plans are underway to expand international connectivity.