Nepal Airlines faces massive losses as delays in wide-body aircraft maintenance worsen

KATHMANDU: Nepal Airlines Corporation (NAC) has suffered substantial financial losses due to the prolonged delay in returning one of its wide-body aircraft from Italy after undergoing C-check maintenance. Despite a 30-day deadline agreed with the Italian company Atitech, it has been 79 days since the aircraft was sent for repairs, and the plane has yet to return to Nepal.

The delay has raised serious concerns over the decision-making of NAC’s management, particularly Executive Chairman Yubaraj Adhikari. Adhikari reportedly chose Atitech through a questionable process, prioritizing higher commissions instead of ensuring the aircraft’s timely return. This mismanagement has left the airline crippled by delays, contributing to mounting losses at a time when the national carrier can least afford it.

Worse, NAC sent the plane for repairs without securing the required MRO (Maintenance, Repair, and Overhaul) approval from the Civil Aviation Authority of Nepal (CAAN). This regulatory oversight has added layers of complexity to the ongoing debacle, as officials now scramble to resolve the situation.

False Promises and Repeated Delays

Initially, NAC had sent the aircraft to Italy with the understanding that it would return in 30 days. However, when the deadline passed without the plane’s return, Chairman Adhikari assured the Minister for Culture, Tourism, and Civil Aviation that the aircraft would arrive by August 15. This promise was further delayed, with Adhikari stating that the plane would now return on August 25. When that date also passed without results, NAC issued a press release claiming that the plane would leave Italy on September 7 and arrive in Nepal by the 8th. But the aircraft remains grounded in Italy even as of September 8.

Spokesperson Ramesh Paudel clarified that technical issues during the test flight following the C-check were to blame for the latest delay. He claimed that the plane would now arrive by September 10, yet skepticism is growing over the airline’s ability to meet this new deadline.

Financial Impact and Operational Crisis

As a direct result of these delays, NAC is losing an estimated NPR 15 million in revenue per day. The prolonged absence of the wide-body aircraft has already cost the airline NPR 750 million. Additionally, once the plane does return, it will fly back to Nepal without passengers because its airworthiness certificate from CAAN has expired. A test flight under CAAN’s supervision will be required before the aircraft can resume regular operations, potentially leading to further losses.

The financial implications extend beyond just one plane. A second wide-body aircraft, sent for its C-check on August 28, has not yet had its maintenance work initiated. It is now almost certain that this aircraft, too, will not return within the stipulated 30-day period, exacerbating NAC’s financial woes.

Management Under Fire

NAC’s management, particularly Chairman Adhikari, faces increasing scrutiny over its handling of the aircraft maintenance process. Critics argue that the decision to select an unfit company for the C-check and bypassing proper regulatory procedures have crippled the national airline, adding to its operational inefficiencies. The situation reflects a larger issue of mismanagement within Nepal’s state-run enterprises, where political interference and poor decision-making have led to chronic underperformance.

The Ministry of Culture, Tourism, and Civil Aviation has remained largely silent on the issue, although internal sources suggest that high-level meetings are being held to address the crisis. The continued delays raise serious questions about the future viability of Nepal Airlines, which is already struggling to compete in an increasingly competitive aviation market.

With millions of rupees lost and more potentially at stake, there is growing pressure on the government to take immediate action. Failure to resolve the ongoing crisis swiftly could further damage the already fragile reputation of Nepal’s flag carrier, impacting its ability to attract passengers and maintain operations.

Broader Implications for Nepal’s Aviation Sector

This ongoing fiasco is not just a setback for Nepal Airlines but also highlights deeper issues in the country’s aviation sector. Mismanagement, regulatory lapses, and political interference are severely impacting Nepal’s ability to maintain an effective and profitable national airline. The delays could discourage much-needed foreign investment in the aviation sector, further weakening Nepal’s international competitiveness.

As the country waits for answers, the situation has thrown Nepal Airlines into a full-blown operational crisis, with no clear resolution in sight.