KATHMANDU: Prime Minister Sushila Karki has directed the immediate dismissal of contract employees recruited at Nepal Airlines Corporation based on political or personal influence.

In her capacity as Minister for Tourism, Prime Minister Karki summoned officials from the corporation’s board of directors and management to Singha Durbar today, issuing a strong directive to end irregularities within the national flag carrier.

She questioned, “What did the Gen Z generation shed their blood for? Wasn’t it to end nepotism, favoritism, and discrimination? There’s a major movement going on, yet here, people are being hired through connections. Even as officials near retirement, they continue their arbitrary practices — what greater mismanagement could there be?”

Once a source of national pride, Nepal Airlines has now fallen into a dire state, she said, instructing management to act decisively and without fear to correct the corporation’s deep-rooted problems.

She further directed the implementation of past reform committee reports with clear plans and accountability.

During the meeting, Acting General Manager Janakraj Kalakheti presented that the airline currently has accumulated losses exceeding Rs 17 billion.

Comparing the airline to “a wealthy household that has decayed from within,” Karki said, “On the outside, it looks fine, but inside, it’s painful. If it were at least breaking even, we could justify it as providing employment — but even that is not happening.”

She advised officials not to succumb to external or political pressure.

“Politicians will always try to interfere. But why do you obey such pressure? You’re the ones who’ll face action later. If you operate lawfully, no one can punish you. Don’t use the Commission for the Investigation of Abuse of Authority (CIAA) as an excuse to avoid doing your job,” she remarked.

Karki also criticized the practice of sending aircraft engines abroad for repair and failing to bring them back, instead renting engines at high cost.

“These losses are borne by the people,” she said. “You must now take tough steps to reform this institution — even if it means making unpopular decisions.”

She questioned why private airlines are making large profits while the national carrier continues to suffer losses.

“The government provides enormous resources and support. Yet, why is this corporation still failing? Perhaps that money would have been better spent on building universities, schools, or hospitals,” she added.

Acting Chairperson of the Board, Bikram Rai, assured that visible reforms would begin within days.

“Bold and even unpopular decisions are needed, and I’m prepared to make them — with the government’s support,” he said.

Prime Minister Karki concluded, “Move forward with institutional reform. The government stands firmly beside you.”

Finance Minister Rameshore Khanal, Chief Secretary Ek Narayan Aryal, and other senior officials were also present at the meeting.