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The question of reviving Nepal Airlines Corporation

वायुसेवा निगम पुनर्जीवनको प्रश्न · Abhinav Karki with Sagar Bhandari

Changing the managing director or converting Nepal Airlines into a company will not revive it. Without changing the law and rules that govern it, every reform stays cosmetic.

The diagnosis

• Grounded fleet: four of six aircraft were grounded around Dashain, stranding passengers abroad.
• No accountability for losses: Section 18 of the Nepal Airlines Corporation Act makes the government cover any loss.
• No targets: four-year leadership terms, renewable, with no measurable goals.
• Closed top ranks: levels 7–11, including the top maintenance posts, are filled only from inside, with a committee route to level 11.
• Company conversion alone fails: with the same rules, no serious investor or strategic partner would come in.

Four reforms, passed as one package

1. End the blank chequeGovernment pays only for defined public-service flights, through transparent subsidy. All other losses are cut through the airline’s own business plan. Old debt gets a separate transition plan.
2. Performance contractsTop executives sign a performance agreement within 30 days of appointment, with half of pay tied to results: aircraft utilisation, dispatch reliability, on-time departures, unit cost and cash flow.
3. Open competition for senior postsLevels 7–11 are open to outside managers, engineers, cabin crew and flight-operations professionals, and to internal staff on the same terms.
4. Close the back doorLevel 11 is filled only through open competition, not committee recommendation.

Safety oversight, the Civil Aviation Act, air service agreements and debt restructuring need separate reform.