Nepal Airlines domestic flight crisis: leadership failures and engine maintenance delays

KATHMANDU: Nepal Airlines’ domestic flight operations have been suspended for over two and a half months amid serious management missteps and persistent engine maintenance issues, raising concerns about the airline’s future in the domestic market.

Domestic Flight Suspension Due to Engine Shortages

Since December 22, the national carrier has been unable to operate any domestic flights. Technical spokesperson Manoj Kumar Sah explained that the crisis began when both engines of the Twin Otter aircraft were simultaneously sent for repair. With no spare engines available, the airline was forced to ground its entire domestic fleet. “We have been pushing hard for a quick turnaround. One engine is expected within two to three days and the other within a week,” said Sah, though these assurances have yet to restore services.

Inefficient Leadership Under Fire

Critics have slammed the leadership of Nepal Airlines for its handling of the crisis. Executive Chairman Yuvraj Adhikari, who remains in position due to an interim court order despite being removed by the previous government, is being accused of mismanagement. Industry insiders claim that the decision to repair both engines at once, without securing an alternative plan such as leasing new aircraft or expediting maintenance through the Aircraft on Ground (AOG) procedure, reflects poorly on the airline’s strategic planning.

The AOG procedure, which facilitates rapid procurement of essential parts to minimize downtime, was not employed. This failure to leverage available options has extended the downtime of the airline’s domestic services, leading to severe operational paralysis.

Impact on Passengers and Staff

The extended suspension of domestic flights has had a significant impact on both passengers and employees. With only two Twin Otter aircraft available for domestic routes, the grounding of both planes has left more than 150 staff members—including pilots, engineers, flight attendants, and ground staff—without work. As a government-owned entity, Nepal Airlines is still obligated to pay these salaries, even as it suffers mounting losses.

Passenger confidence has also taken a major hit. In 2024, the carrier served 11,275 domestic passengers, down from 13,278 in 2023. During the months corresponding to the Asoj and Kartik periods, the airline managed to serve only 3,715 passengers, generating revenue of just NPR 22.4 million. These figures indicate a sharp decline in domestic travel and highlight the urgent need for operational reforms.

Financial Losses and Declining Market Share

The financial impact of the domestic flight suspension is severe. The loss of millions in revenue each month, combined with ongoing payroll expenses, is putting a tremendous strain on Nepal Airlines. In the fiscal year 2080/81 (2023/24), the carrier reported a drop to 18,610 domestic passengers, a stark contrast to the 30,606 passengers recorded in the previous fiscal year. The sharp decline in passenger numbers is not only eroding the airline’s market share but is also undermining public trust in the national carrier.

Despite previous proposals to procure three new Twin Otter aircraft and plans to lease two ATR aircraft, the airline has been unable to implement these solutions. A tender process initiated eight to nine months ago to secure a new engine resulted in the selection of a supplier, yet the delayed delivery has compounded the crisis.

Government and Ministry Response

The Ministry of Culture, Tourism, and Civil Aviation has acknowledged the situation but has taken little decisive action. Ministry spokesperson Ram Krishna Lamichhane stated that officials are aware of the domestic flight suspension and have been informed by Nepal Airlines that the engines are under repair. However, critics argue that the ministry’s response has been tepid, failing to provide the necessary oversight or to intervene in the airline’s management issues.

Observers note that the lack of government intervention has allowed the crisis to deepen. The suspension of domestic flights is not only a logistical problem but also a public relations disaster, sending a negative message about the reliability of Nepal Airlines.

Resumption of International Flights Offers Little Relief

While domestic operations remain at a standstill, Nepal Airlines’ international flights have resumed normal operations. The carrier operates four international aircraft, and recent issues affecting three of these were quickly resolved. However, the recovery in international services does little to mitigate the damage done to the domestic market, where passengers have long relied on the airline for timely and efficient travel.

Looking Ahead: A Call for Urgent Reforms

The ongoing crisis at Nepal Airlines underscores the critical need for a complete overhaul of its management and operational strategies. The failure to utilize expedited maintenance options, coupled with poor decision-making regarding engine repairs and fleet management, has left the airline vulnerable. With mounting financial losses, a demoralized workforce, and rapidly eroding passenger trust, the future of Nepal Airlines’ domestic operations hangs in the balance.

Industry experts warn that unless immediate reforms are implemented, the airline could face long-term repercussions, including further loss of market share and continued financial instability. For now, passengers and employees alike await a clear, decisive plan that will see the rapid restoration of domestic flight services and the rebuilding of confidence in the nation’s flagship carrier.