The Nepalese government intends to restructure state-owned Nepal Airlines (RA, Kathmandu), according to the country's president, Ramchandra Paudel.
He said the restructuring, announced on May 2 when presenting his government's policies and programmes for the upcoming fiscal year, aims to improve the airline's operations and expand its reach. It is the latest in a series of announcements from various Nepalese governments to restructure or reform Nepal Airlines.
The president's speech contained one paragraph dealing with the country's aviation sector. "Air services will be made safe, accessible, and affordable by making the regulation of civil aviation effective," he declared. "Private sector participation will be increased in aviation infrastructure and service delivery. Airport construction and expansion will be undertaken only on the basis of economic, commercial, and environmental feasibility. Nepal Airlines Corporation will be restructured."
He did not elaborate on how or when the restructuring would take place. However, it is reported that it will involve the well-worn path of the government seeking a strategic partner to invest in the corporation. In April, Nepal's High-Level Economic Reforms Advisory Commission (HERAC) urged the government to hire a foreign company to run the airline. In January, Civil Aviation Minister Badri Pandey said he would "not rest" until Nepal Airlines Corporation was reformed. However, vows and attempts to overhaul the debt-ridden and under-performing airline go back years.
According to the ch-aviation PRO airlines module, Nepal Airlines operates to 22 airports across Nepal, Thailand, India, Saudi Arabia, Qatar, the United Arab Emirates, Hong Kong, Malaysia, and Japan. Its six aircraft include two A320-200s, two A330-200s, and two (one inactive) DHC-6-300s.
Separately, Paudel also plans to split the Civil Aviation Authority of Nepal, which regulates the country's aviation sector. If this proceeds, it will be the second attempt in five years to do so. The government wants to separate the agency's regulatory and service roles. An International Civil Aviation Organisation audit in late 2022 also recommended doing this.
"The bill for the establishment and management of Nepal Air Service Authority, as well as the bill to amend and consolidate the laws relating to Civil Aviation Authority of Nepal will be passed in the ongoing session of the parliament," the president said.
