KATHMANDU: Tourism Minister Khadak Raj Paudel has raised serious concerns over the operational mismanagement and worsening financial condition of Nepal Airlines, calling for comprehensive reforms to improve the national flag carrier.
Speaking at a meeting of the Federal Parliament’s International Relations and Tourism Committee, Paudel stressed that the airline’s problems require immediate attention, with institutional management needing to be addressed as a priority.
Commenting on the airline’s continued poor performance, Paudel said Nepal Airlines might already have faced liquidation had it been a privately owned company.
He argued that purchasing additional aircraft alone would not resolve the airline’s problems and that efforts should instead focus on strengthening its overall management. He cited recent technical problems involving aircraft as an indication of shortcomings in the airline’s management.
Referring to recent instances in which Nepal Airlines aircraft were grounded in Tokyo and Europe, the minister said such disruptions impose substantial financial costs on the airline. Expenses related to rebooking passengers and cancelling flights add further pressure to its already difficult financial position.
Paudel also questioned the lending practices of banks and financial institutions toward Nepal Airlines. He objected to the airline being charged an interest rate of 10.5 percent while some other borrowers receive loans at rates as low as 5 percent.
He described the difference as unfair and argued that the high borrowing costs were placing additional financial strain on the state-owned airline rather than helping it recover.
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